I've recently conducted a review of a number of businesses that I’ve been associated with as a customer as well as providing external support. Their Pivot, Pirouette, Tansformation strategies have been varied and the top five successful strategies I've discovered follow.
Each of these have underpinned greater stability and growth and opened new markets and consumers for their respective businesses:
- Digital Transformation and E-Commerce Expansion
The businesses accelerated their digital transformation efforts, by enhancing their online presence, while expanding their e-commerce capabilities. - Supply Chain Resilience and Diversification
They have focused on making their supply chains more resilient by diversifying suppliers, increasing inventory buffers, and investing in local sourcing. - Product and Service Innovation
The majority developed new products and services or adapted existing ones to meet changing consumer needs. - Identifying a new customer needs
Customer behaviours have changed and the market has changed due to lock-downs and current hesitancy due to inflationary pressures. - Adapting existing skills & resources
By leveraging existing expertise and resources the have reviewed and returned to address previously rejected opportunities.
Below are some examples of regional businesses who have adopted and adapted to changed circumstances:
- Original Model: Craft gin distillery.
- Pivot: Began producing hand sanitizers during the COVID-19 pandemic.
- Reason: A significant drop in gin sales due to bar and restaurant closures, combined with a high demand for sanitizers.
- Outcome: Four Pillars Gin was able to continue operations, support community health needs, and maintain staff employment.
2. Carboni's Italian Kitchen
- Original Model: Authentic Italian restaurant focusing on in house food and catering
- Pivot: Launched takeaway and drive through “Next Door Deli” with packaged meals and pasta, including distribution of fresh pasta to local supermarkets, along with YouTube cooking demonstrations of recipes.
- Reason: The COVID-19 pandemic lock-downs led to the inability for the restaurant to trade.
- Outcome: The pivot has provided new revenue streams with a now expanded deli product range and limoncello liqueurs.
3. Bendigo and Heathcote Tourism
- Original Model: Regional tourism promotion.
- Pivot: Created virtual tours and online experiences for potential visitors.
- Reason: Travel restrictions and lock-downs during the COVID-19 pandemic severely impacted tourism.
- Outcome: Virtual experiences kept the region on the map and is now a visual resource for future visitors.
4. Pizzini Wines - King Valley
- Original Model: Winery with on-site tastings and events.
- Pivot: Created online cooking classes and virtual wine tastings.
- Reason: The COVID-19 lock-downs reduced visitor numbers drastically.
- Outcome: The online experiences have attracted new customers and kept the existing ones engaged with more refined mail order offerings.
5. Great Ocean Road Chocolaterie and Ice Creamery
- Original Model: Chocolaterie and café with a focus on tourist visits.
- Pivot: Started offering online chocolate-making workshops and home delivery of their products.
- Reason: The drop in tourism due to the pandemic impacted their foot traffic.
- Outcome: The online workshops and delivery services are now physical activities, as well with virtual visitors now becoming physical.
- Original Model: Retailer of outback-inspired clothing and accessories.
- Pivot: Expanded their e-commerce platform and increased social media marketing efforts.
- Reason: Retail store closures and reduced foot traffic during the pandemic.
- Outcome: The enhanced online presence and marketing efforts have underpinned increased online sales and brand visibility.
- Original Model: Customised full-service food service butcher
- Pivot: Moved to include home cooks with a large catalogue of restaurant-quality products
- Reason: The COVID-19 pandemic led to a decline in food service demand
- Outcome: Now back supplying full-service butchery to the food service, with the addition of home delivery and retail click-n-collect.
- Original Model: Producer of gourmet macadamia products.
- Pivot: Commenced offering home delivery and subscription services.
- Reason: The pandemic disrupted traditional retail channels.
- Outcome: Home delivery and subscriptions have provided a more stable revenue stream and prompted additional value adding products.