Don't Forget the People Side of Change

For some, the word "change" is invigorating -- filled with opportunity; for others it's something to be avoided at all costs.  Dictionary.com states that it's anything from "to make the form, nature... different"; "substitute"; "give and take" to"transform".*

As a management consultant, a lasting positive and profitable transformation of a client's organization is my main priority with every project.  This typically includes selling more goods and services more profitably, and should include improved experiences for the client's customers and internal team.

Planning is of course an important part of these engagements.  We must anticipate the gaps between the current state and the desired future outcome.  No matter how small or large the project, we must consider two sides of the change equation: technical and people.

It is unfortunately all too common to focus on the technical side, forgetting the human element required for successful change.  Let's use an example of building an e-commerce site for a client which has never before used an online business channel:  Simply creating a project plan, implementing it and running through the testing with a demo is not sufficient.  The technical side may work, but the people side will suffer.  So we must also understand how the team takes and processes orders, who is involved in each state, when each step must occur and and where the important information lives.  Then we compare the former process to the new in order to create a change management plan including coaching, follow up and point persons.

You can imagine how a change management plan intensifies when ours is a project covering the entire business side of the operation given the number of people and functions involved.  The scope is much broader, but our process stays the same.

* When speaking with potential clients, assessing how they view change is critical to the potential success of a project together.  Just as with any fitness regimen or new habit, we have to be ready and committed or the effort will not work.  So we only enter into client agreements when we are confident that the outcome will be a successful one.

How Does Your Brand's Pricing Align with the Competition?

Analyzing the competition is an essential aspect of business planning. Examining the competitive market’s strengths and weaknesses, for example, can lead to opportunities for your business; one company’s weakness is another’s opportunity.

It is also important to regularly check competitor pricing.  This is easily done by surveying accounts to determine what deals are being offered and where your brand fits within the price spectrum.

In late May, we challenged the students enrolled in Dixie’s Introduction to Wine Marketing at Umpqua Community College’s Southern Oregon Wine Institute to examine wine prices at a local off-premise accounts.  We asked each of the 12 students to gather information on five Pinot Noir brands from Oregon and California priced from $10 to $20.[1]  

The data we requested included the brand, vintage, original price and discounted price if one was available.  Then we pulled together a summary of the findings, which are detailed in the table below:

Metrics	OR	CA	Overall
Vintage Range	2005-2010	2005-2010	2005-2010
Price Range	$10.99 - $21.49	$8.88 - $29.99	$8.88 - $29.99
Avg Price	$18.01	$15.77	$16.83
Avg Deal Price	$14.87	$11.74	$13.00
Avg Discount	22%	26%	24%
Number of Producers	27	30	57
Number Discounting Producers	17	25	42

One of the more interesting things we found was how many producers were discounting -- 42 out of 57 surveyed.  On average, these discounts are 24% of suggested retail price or about $13.  We were also interested to find the range of vintages being offered.

 For an individual Pinot Noir producer looking to compete in the off-premise, being aware of the state of pricing and discounting is a must.

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[1] With an approximate even male-female ratio, we asked female students to examine California brands while males collected information on Oregon producers.