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HERMAWAN KARTAJAYA
Chairman and Founder of MarkPlus, Inc.
MarkPlus, Inc. on
Marketing and Business
Post-COVID-19
Executive Summary
COVID-19 outbreak is putting the world in the middle of a global that after this crisis ends, it also marks the end of the marketing
crisis – perhaps, the worst in the past two decades. For humankind, and business as usual.
the pandemic is a war against humanity. While for businesses, the Customers, which become more quality-conscious, more values-
crisis is a shifting factor to the market as an impact of changes in demanding, and desire more seamless offline-online interactions,
technological, socio-cultural, political-legal, and economic aspects will shape the post-normal.
that it brought. As a result, it drives the changing of customer The way of doing business will shift. Integrating paradoxes
behavior and competitor movement. The dynamic is putting the such as offline and online, local and global, as well as human and
business landscape in the middle of volatility, uncertainty, and machine for greater good, will become the post-normal for
complexity, which brings ambiguity for companies. business operations.
During this desperate time, business leaders must demonstrate Indeed we need to survive this crisis, but it is imperative to
their professionalism and entrepreneurial spirit to tackle prepare ourselves for the post-normal with the post-marketing
the dangers, as well as to capture the opportunities that the because “it will never be the same again.”
circumstances possess. MarkPlus, Inc. offers a strategic framework
to handle the current situation based on the SPA (Surviving /
Servicing – Preparing – Actualizing) model that we originally
developed.
In the short-term, a company must identify its position during
the crisis. Whether the condition has put the company in the
middle of the storm that brings a decline in the company’s
performance, or the situation has put the company in the middle
of windfall resulting in the company’s growth. For companies that
are declining, Surviving by planning Marketing Continuity
Brand (MCB) is the top priority to ensure its continuity. While
for companies that are growing, Servicing by planning Marketing
Sustainability Brand (MSB) becomes essential. It is to show
that business is not all about monetary value, but human values. The way of doing business will shift.
As we know that the pandemic will eventually come to an end,
companies must consider the Preparing step. The company needs
Integrating paradoxes such as offline
to revisit its business in terms of its QCDS (Quality, Cost, and online, local and global, as well as
Delivery, and Service) to prepare for the post-crisis. human and machine for greater good,
In the long run, after the crisis has finally ended, it is the will become the post-normal for
momentum when the market will eventually recover. Companies
should start the Actualizing step, where they begin to execute its business operations.
post-marketing strategies and tactics to deliver value and values
to customers.
It is not certain that the Coronavirus outbreak will be the last
hard hit to mankind and businesses in this century. But we are sure
Prologue
striving to develop plans against the threat, while virologist works long-term.
extremely hard to create a vaccine, or find the cure. Nevertheless, By looking back at times, there was a SARS outbreak widely
none of this attempt has shown significant results. Today, this happening all over the countries. It was a global crisis that led
remains a prolonged war that belongs to all of us, not only to a China to have significant turmoil in every production activity and
particular population, nation, or generation. This could be worse significantly affected supply in the global market. Shortly after the
than the world war I and II, the impact of this pandemic has gone outbreak, China finally made it through the crisis and remained as
dramatically, threatening humanity in general. Human interaction the center of various manufacturing companies in the world. Several
has now changed significantly; people are avoiding each other, even companies such as Huawei, Xiaomi, Alibaba, and many others even
treating sick people like they are not human. In some instances, this came forward as giant business players. The crisis does not even
condition resembles the movie World War Z, where the infected are weaken China; instead, it strengthens the mentality of people in the
treated just like zombies. These are frightening times. Humanity business sector.
faces a crisis not only due to the coronavirus but also due to the lack Indonesia was hit by the crisis in 1998 and got affected the
of trust between humans. most than any other countries where economic, socio-cultural,
and political-legal crisis struck the country long-term. The once-
Wei-Ji powerful regime that was replaced by the new one had to face a
The world might learn from China when it comes to overcoming completely uncertain state inside the country. The effect of the crisis
a crisis. When China faces a crisis, the Chinese don’t see it merely also massively left trauma on society. Even so, the post-crisis time
as a worry, but also an opportunity or moment of action. It’s part of has successfully driven Indonesia to be one of the biggest influences
the Chinese character for crisis or weiji 危机. The character has two in the world’s economic sector.
parts, and the first part means danger 危险, while the second part For what is worth, Indonesia was then later acclaimed to be a
means opportunity 机会, or point of change 转机. Weiji emphasizes member of the G-20. Indonesia’s powerful position in future years
the fact that there are always two sides in every situation, even has long been predicted by many international institutions. It is also
during a crisis. It helps to open up horizons that even if there is strengthened by the success of Indonesia in organizing the Asian
danger, but there are always opportunities that come alongside. Games back in 2012, which was glorified by many countries in the
(Figure 1) world.
Why
Complexity in Customer
The outbreak also affects customers who are forced to stay at
home, hence altering their routines and behaviors. This condition
would also speed up the adoption of technology; thus, the flow of
information received by customers is increasing.
There is a great possibility that customers would begin to
compare the condition inside their country with the circumstance
abroad, seeking information not only regarding how governments of
countries handle the situation but also how companies around the
world manage their customers.
They might see some companies do extra miles to serve their
customers by giving additional services or increasing the standard
quality of the products, especially emphasizing on its health and
The crisis marked that, after this, “it will safety factors as it becomes essential.
never be the same again,” and we are This condition results in the increasing complexity of
facing the post-normal. understanding the Customer. Decreasing income during the crisis
may result in shifting purchasing power. The inability to transport
may put convenience as an essential purchase factor above all.
And there is a considerable possibility that Customer traits and
behaviors in post-crisis will not be the same as during crisis or post-
customer behavior.
Ambiguity in Company
Companies may find themselves in the middle of confusion and
dilemma in determining the right action as the business landscape
is changing. This condition may cause ambiguity within the
company. Companies may start to consider whether they have to
come up with new products or services to serve the customers or
not, in order to win the competition among its competitors. Some
companies may focus on planning and executing short-term plans
for quick-wins. Some others may think that there is a need to take Finally, companies must keep their awareness on the outlook
time to think about the longer-term impact of the strategy that since the landscape is changing dramatically fast, and the company
would be implemented. needs to adapt to every change.
Companies may ask, is it the right time to launch a new product Within DAMO, momentum is the most crucial. The failure to
in response to the outbreak condition? Would it damage our brand execute planned maneuver in the right momentum could result in
equity? Should we prioritize our cash flow above all during this suboptimal results.
crisis? And so on. Leading the business during hard times requires strong
Among elements of VUCA, ambiguity endangers companies leadership. Especially during the crisis, leaders must possess
the most since slow or wrong moves could threaten business Physical Quotient (PQ) along with Emotional Quotient (EQ). Many
performance in the short and long run. believe that physical health is the most essential, but ignoring the
In tackling these circumstances, companies must adopt the mental health of the team is not an option at any time. Besides,
Discover –Adventure – Momentum – Outlook (DAMO) leaders must pay attention to Intellectual Quotient (IQ) as well as
mindset, which was introduced by Jack Ma through Alibaba. to Spiritual Quotient (SQ) to be able to make decisions that will
First, it suggests that companies must be able to discover benefit all stakeholders rationally, but at the same time showing
opportunities. This means, in times of crisis, companies must be their caring to the surroundings.
able to see an opportunity and discover what the company can do The pandemic has changed and will keep changing the business
to seize the opportunity. It could be by launching new products or landscape. As a result, macro factors and micro aspects of business
services. environments will keep shifting – But one thing that remains
A company must also adventure the new way of doing business, constant is the change itself. The crisis marked that, after this, “it
by thinking more creatively to communicate and deliver its offerings will never be the same again,” and we are facing the post-
to the customers. normal. Our marketing approaches need to shift along with the
Then, the movements planned previously must be executed in the change. Therefore, it requires a new approach to marketing –
right momentum to gain the expected result. the post-marketing. (Figure 2)
Figure 2:
VUCA-DAMO and Strong Leadership
VUCA DAMO
VOLATILE
CHANGE
ISCOVER
TECHNOLOGY
MARKET DVENTURE
UNCERTAIN COMPLEX
COMPETITOR
VUCA CUSTOMER
OMENTUM
UTLOOK
AMBIGUOUS
COMPANY
STRONG LEADERSHIP
(PQ/EQ & IQ/SQ)
TECHNOLOGY FOR HUMANITY
What
Figure 3:
MCB and MSB
Figure 5:
The 9 Core Elements of Marketing with Values
STRATEGIZED
VALUES TACTICAL
POSITIONED DIFFERENTIATED
CUSTOMER PRODUCT
VALUES-BASED
BUSINESS
VALUE
CREATING
BRAND
Figure 6:
Short-term and Long-term Plan
STORM
DECLINING
PREPARING ACTUALIZING
WINDFALL
GROWING
SHORT-TERM LONG-TERM
Figure 7:
Surviving / Servicing – Preparing – Actualizing
Q1 Q2 Q3 Q4
PREPARING
Finally, the brand needs to continue to create value to the business landscape may shift again once the outbreak has passed.
customers by maximizing total get for customers from the brand’s Therefore, companies must prepare themselves to face the post-
functional and emotional benefit, and keep minimizing total give normal.
that incurs to the customers from the cost and other expenses. The third step, for a long-term, is where a company needs to
As asserted by Philip Kotler in his article The Consumer in the actualize what it has planned, called the ‘Actualizing’ step.
Age of Coronavirus, that after the pandemic ends, along with the Here is where the professionalism and entrepreneurship spirit
emergence of anti-consumerism movements, customers will want in a company are about to put into tests. Companies must have
brands to spell out their greater purpose on how they could serve the courage to implement its plans, probably with less time for
the common good. Therefore, businesses could no longer rely on consideration than before as the circumstances keep changing over
triggering consumerism to compete and maximizing profits for their time, and the right momentum may pass.
own. Instead, businesses should focus on delivering values for the We hypothesized that there are right momentums for companies
greater good through the right marketing. Hence, values-based to perform each step of SPA 2020.
business is crucial. (Figure 5) The first step, Surviving / Servicing, could be done in the first
and second quarters of this year since it responses to the current
SPA 2020: Surviving / Servicing – Preparing – condition. This is the most critical phase since it will determine
Actualizing the company’s survivability or ability to grab the opportunity. In
In creating a short-term and long-term plan for the business, developing the right strategy, companies should be able to perform
especially during the time of 2020 crisis as caused by the COVID-19 a comprehensive analysis of both internal and external conditions.
outbreak, we concluded that companies need to base their strategy Then, during the second quarter until the third quarter of the
across the three steps: Surviving/Servicing, Preparing, and year, where the crisis would begin to come to an end, the company
Actualizing or ‘SPA 2020’. should start to prepare for the strategy that would be implemented
As an initial step, a company needs to assess its current when the market condition starts to enter the post-normal. The
condition, whether the external conditions and internal capabilities market situation would be different from the condition during or
have put the company in a growing (windfall) or declining (storm) before the crisis. This is an important phase since the company has
state of the business. For companies whose business is declining, never faced a similar situation before. The market condition might
in the short-term, the first ‘S’ would refer to ‘Surviving’ since the affect every aspect of the business process.
company needs to focus on ensuring its survival and preventing the Next, in the third and fourth quarters, the company could
business from collapsing before it even able to prepare itself for the initiate the Actualizing step, which is the time for the company to
future. (Figure 6) rebound from the fall. In this stage, companies should be wise in
While for the companies whose business is growing, the word ‘S’ implementing the strategy and using the resources in order to gain
refers to ‘Servicing.’ Since the company is in favorable condition, traction back. Those who are willing to go above and beyond will
it needs to show its capabilities not merely to fulfill market capacity, come out stronger for years to come. (Figure 7)
but to serve the community for good. Hence the company can show
its values of caring for humanity.
In the second step, the ‘Preparing’ step, both companies who
are in declining or growing condition, need to prepare the next
movement after the crisis ends. Companies must be aware that the
How
“The Post-Marketing”
Surviving for Declining Companies customers well managed by providing easiness in rescheduling their
During the crisis, as the companies get struck, and business starts travel plans through mobile apps.
to decline, the short-term actions that they can do to manage their Companies should also be able to capture customers’ desire to
customer and product is by surviving. The act of surviving revolves show empathy to those who are in need of supports during times
around understanding anxiety and desire of the customers of crisis. Companies could open an option for customers to donate
through the elements of service quality except for tangibles, which their money to support medical staff that is fighting to minimize the
is not relevant during this crisis era. In addition, companies can also outbreak impact.
manage their product by providing offers and access through the In order to survive, companies could still deliver what it offers to
elements of the marketing mix. customers by adjusting their product’s price. By temporarily cut-
As the crisis is still rolling in uncertainty, customer desired more down the price or offer bundling packages, companies could push
empathy from the company. Their anxiety emerges uncontrollably, its product sales.
and the company should be responsive to tackle this. Online travel Moreover, companies could provide access to customers
agents, as one of the most impacted sectors, for example, should regarding their products. They are enabling customers to keep
be responsive in understanding customer’s anxiety to travel as aware of the company’s products and services. Through promotions
the Coronavirus spread. Or anxiety that the money they have with educative and entertaining content related to the current
spent could not be refunded as traveling across cities or areas are situation and by using electronic and digital media, companies are
prohibited, due to temporary lockdown. The company could keep its able to promote themselves to customers. (Figure 8)
Figure 8:
Customer and Product Management for Surviving and Servicing
Surviving Servicing
Responsiveness ANXIETY Reliability
Customer
Management
Empathy DESIRE Assurance
Servicing for Growing Companies Another example, in the food and beverage retail industry,
For the companies, which experienced windfall during the crisis, supermarket and minimarket brands should be able to understand
meaning the situation is favorable for the business condition, customer desire by providing assurance that their inventories
it is time to perform servicing. As well as surviving, the act of are being monitored. Therefore, it ensures the accessibility of the
servicing also revolves around customer management, focusing inventories for their customers. Retailers could also inform that
on understanding anxiety and desire of customers and product they are open during these hard times. For retailers who provide
management, focusing on providing offers and access to the delivery options, they could assure the availability of delivery slots
customers. during a particular time, and ensure its hygiene during the delivery
As the frontline in tackling the outbreak, companies in the process. In terms of product management, companies could launch
pharmaceutical and healthcare industry, for example, must reflect new products or new features in response to the current condition.
their reliability in providing service by showing professionalism in Digital healthcare apps developers may come up with chat-bot to
order to answer the anxiety of its customers, which numbers are help customers perform symptoms check-ups, whether they are
rapidly growing. vulnerable to COVID-19 or not. They are hence providing more
Figure 9:
Four Principles of QCDS
More Quality,
1 Outside-In
Less Price
Less Cost,
2 Inside-Out
More Productivity
Offline Delivery,
3
Online Transaction
OMNI
Online Service,
4
Offline Transaction
Figure 10:
SPA 2020 Strategy
OFF Top
C/F Customer Cost Intimacy Line
ON
ON Middle
B/S Product Delivery Innovation Line
OFF
le
Finance
op
Human Future Nightmare
Pe
As the COVID-19 outbreak triggered the faster adoption of
technology, it is not impossible that the current condition will be
ns
tio
followed by more technological inventions and adoptions on wider
ra
sectors of business. Philip Kotler mentioned in his article, Seven
pe
Nightmares and Three Alternative Policies for Moderating Them;
gy
O
there are rising fears among mankind that someday and somehow,
lo
technology would replace humans. Physical tasks would be replaced
no
by automation, and mental tasks would be replaced by artificial
ch
intelligence, resulting in a rapid increase in global unemployment,
Te
online would replace offline, and so on. In the OMNI way,
we believe that humans and machines could go side-by-side,
complementing each other. Online would not replace offline, where
at post-crisis, offline interactions would be back as it should, with
increasing intensity of online interactions as customers are getting
accustomed to it.
References:
Kotler, Philip (2020).
Seven Nightmares and Three Alternative Policies for Moderating Them.
Pitt, B., Gardner, D., &, Kleiner, J. (Producer), & Foster, M. (Director). (2013).
World War Z. [Motion Picture]. California: Paramount Pictures.
Franklin, S., Aronofsky, D., & Parent, M., (Producer), & Aronofsky, D. (Director). (2014).
Noah. [Motion Picture]. California: Paramount Pictures.