Bibeault Model Concept
Bibeault Model is a model developed by Donald Bibeault and that seeks to help the managers identify the needed changes in the marketing strategies, at the same time that strengthens the determination in making marketing to contribute for the turnaround efforts.
The main model applications are the following:
- Adjustment of the marketing strategies to the company’s needs with financial problems;
- Selection of a marketing strategy adapted to the organizations’ turnaround;
- Evaluation of the marketing tactics during the organizations’ turnaround;
- Elimination of the company business areas that are unprofitable.
The model should, so, be used to direct the marketing actions for the priority questions in companies that cross problems and to identify unnecessary or even counterproductive marketing expenses. In a company with difficulties and that crossing a turnaround process, marketing strategy is much different than the one applied on a normal situation, from there the great utility of the model developed by Bibeault.
The model should be implemented in two steps, namely:
1. Identification of the turnaround phase in which the organization is found and that, according to Bibeault five step model can be one of the following:
- Management change step, in which the organization becomes aware of the problems and proceeds to the choice of a new leadership to solve them;
- Evaluation step, in which the new leadership identifies problems and designs a turnaround plan;
- Recovery step in which are taken measures seeking to solve the treasury and cash-flow problems, performing cuts on expenses if necessary;
- Stabilization step, in which the administration concentrates on the profits and repositions for growth;
- Growth step, in which is initiated the internal and external development as a way to allow the business growth and the organizations’ consolidation.
2. Development of a marketing plan based on a consistency strategy with the turnaround phase in which the organization finds itself. On a situation of difficulty, the traditional approaches referent to price, communication or even the one referent to the product lines usually are not the most adequate. In the recovery phase, for example, the most relevant question is to know what to do with the business traditional areas that aren’t profitable.