Marketing in 2007
The Way Forward: Innovate to Grow

Marketing in 2007: An Executive Summary

Contrary from the stronger ground rules set up in 2006, this year paints a more colorful picture. Many economists and experts have predicted that there is growth momentum where the economy will enjoy a brighter year in 2007. As the economy gets better and is slowly moving back on track, we should now enter 2007 with optimism, forward orientation, the desire to grow and the right marketing practices.

The ‘as-is’ analysis and projected macroeconomic statistics show positive projected growth opportunity. The economy is expected to expand by 6 percent next year on the back of continued increasing consumption and exports of selected commodities. This is complemented with our 4C analysis on Changes in the technological landscape, political-legal situation, as well as socio-cultural trends which also direct towards the pro-business growth direction.

While the macro outlook indicates a growing year; from the marketing standpoint, 2007 will set the momentum in driving business profitability. Based on our research, several business domains are expected to be in the high business profitability zone with Return on Net Assets (RONA) exceeding 14%. Those include the telecommunication, pharmaceuticals, cosmetics, cigarettes, and coal sectors; while in the medium profitability zone (9-13% RONA) there are the food and beverage, automotive components, oil & gas, and plantation sectors. We expect businesses in property & real estate, banking, textiles, and some commodities to be in the low profitability zone.

In light of the optimistic year ahead, of an improved macro-economic condition and momentum to boost business profitability, companies need to drive their innovation capability. In terms of marketing, there are three platforms of innovation capability; (1) minor marketing innovation, (2) moderate marketing innovation, and (3) major marketing innovation.

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