Presentation on theme: "Business Development. Activities in Business development Business Strategy Business Planning Writing a Business Plan Marketing Research Competition."— Presentation transcript:
Activities in Business development Business Strategy Business Planning Writing a Business Plan Marketing Research Competition Analysis Segmentation Forecasting demands Promotion Pricing Monitoring the business plan
What is Business Strategy?
Strategy Examples What customers do we wish to serve? How do we position ourselves against similar or competitive organizations? What approaches will we use to reach our target audiences? What kind of structure will help us achieve our objectives?
STRATEGY: Characteristics Environment – Opportunities/Threats Resources – Strengths/ Weaknesses Operational decisions (tactics) Values & expectations of “sources of power”
Definition of strategy Direction & Scope Long term Achieves Advantage Configuration of resources Changing Environment Meet Needs of Markets Fulfill Stakeholder Expectations
CORPORATE STRATEGY-INDIAPOST Post office v/s doorstep Retail v/s bulk Network One stop shop Positioning Total solutions Outsourcing Training & HRD Monitoring & MIS High revenue v/s cost effectiveness Prioritize
MARKETING STRATEGY-INDIAPOST Outsource agents Data on printing presses Tie-ups Exhibitions & local fairs Monthly draws Sustain quality
Trainer to give 20 minutes to the trainee groups to prepare their strategy for marketing. One group to present before the class in 15 minutes EXERCISE-5.3.1
How will you present your product before a customer? S-Strengths W -Weaknesses O-Opportunities T-Threats
SWOT Analysis of “Speed Post” Our Strengths:- Large Network Reliable Legal Brand name Free Pick up (3) Credit Facility (5000) 24 hr service Insurance cover (up to 1 lakh) Special discount (Rebate) Economical Tariff International Tariff is most economical Cont…
SWOT Analysis of “Speed Post” Contractual Service (5) Deposit A/c facility Fast Transmission (Air & Express Trains) Time bound delivery Free home delivery Proof of delivery Franked articles accepted Track & Trace facility is offered (www.indiapost.gov.in)www.indiapost.gov.in Refund Compensation Collection Agents Business offered counts towards national revenue.
Our Weaknesses: Negotiations – no scope Dependent on others for transportation. Consumed much of our time in procedure i/o performing job (e.g. preparation of delivery slip) Lack of professional approach Inadequate computerization Handling of complaints -- Insist in writing -- Lot of time is consumed -- Interim reply – Generally not given Contd…
Our Weaknesses: POD is not handled carefully Presentation of International SPA – Open Non supply of Packing material Binding customer to write pin code Lack of qualified staff POD charged at single rate BNPL customer is asked to book his own articles. Lack in providing customer comfort.
Opportunities: Most of our revenue is through retail customers. Addition of thousand retail customers can’t earn good revenue for the organization but if tens of giants / corporate customers / multinationals / bulk customers are attracted, a fast multiplication is possible which will earn large business and revenue for the organization. Therefore, we have to target the opportunity of giants in the market.
Threats: No more a monopoly Stiff competition from: --Couriers --Telephone -- --Banking Services --LIC --Parcel Services (Run by Pvt. Operators, Rail, ST) Multiple options available to the customer. We are customer dependent.
SPEED POST MNOP More extension counters Readjustment of working hours New bulk mail customers Nodal delivery system Pickup through postmen Outsourced agents Same day delivery Supply & working of computers, scanners
Trainer to give 15 minutes to the trainee groups to prepare SWOT analyses of Business Post using the previous slides on SWOT analyses of Speed Post. One group of trainees to present SWOT analyses of Business Post before the class in 15 minutes EXERCISE 5.3.2
India post's Competitive Advantage Banks- National & Multinational Insurance Sector- National & Multinational Courier Companies- National & Multinational Logistics Companies- National & Multinational Sustainable Competitive Advantage?
What is a Business Plan? Definition: “written document containing the guidelines for the business center’s (product/ group of products/ market segment) marketing programs and allocations over the planning period” Writing a Business Plan
Planning Period -Most common – Annual PARTS Situation analysis – Environment Analysis – Competition Analysis – Customer Analysis – Internal Analysis Objectives, Strategy & Programs
Planning – The Process Plan Implement Evaluate
Situation Analysis Customer Analysis – Who buys, uses, influences …..? – What they buy and where do they buy? Benefits they seek – When and why? – How do they use? How do they respond to specific promos ….? – Will they buy again? Planning – The Process
Define opportunities & problems (identify issues) Establish objectives Define strategies and programs to achieve objectives Establish and implement a monitoring and control mechanism Budgeting and approval of the plan
Write in groups a business plan for PLI for the coming three months taking in view the following attributes of a business plan. – Situational analyses – Define opportunities & problems – Establish objectives – Define strategies and programs to achieve objectives – Establish and implement a monitoring and control mechanism EXERCISE-5.3.3
CORPORATE PLAN-INDIAPOST Setting up of premium services delivery centers Tech based booking system for bulk mailers New speed post centers Web-based booking for individuals Upgradation of major speed post centers Establishing speedpost hubs Developing speedpost software Monitoring quality of service
Why MR? Informed decision making: – Who should be the target customer? – How much will be the demand and in what time interval? Marketing Research
MR Methods Qualitative – Depth/ unstructured interviews – Focus group discussions – Observation + Interview – Other techniques
MR Methods Quantitative – Survey Research Steps: Qualitative study Questionnaire design and testing Data collection Analysis
Defining Competition Everything competes with everything else for scarce resources ….. Usually money Important to gauge the extent of this competition Analyzing Competition
Role of Metamediaries Indiatimes.com Yatra.com Rediff.com e Post office
Determining your Competitors Managerial Judgment Customer based measures – Using behavioral data Consumer Panels – brand switching – Using customer judgments Perceptual mapping
Segmentation Targeting a group of customers who share a similar set of needs and wants
Segmentation Investments: Stage of life: – Retired – First income – Small children (less than 6 yrs old) Mail/ Logistics: Speed Vs Money Vs Security Vs …. – Corporate communication – Letters – Regd. Letters/ Legal Value of goods – Diamonds – Iron Ore
Measures of Market Demand Product Level X Space Level X Time Level Product Levels : – All Sales – Product Item Sales Demand Forecasting
Measures of Market Demand Space Levels : – Region/ State – Territory/ District – Customer Time Level : – Short term – Medium term – Long term
Market ???? Potential Market Available Market Qualified Available Market Target/ Served Market Penetrated Market Impact of Marketing Expenditure on Demand
Estimating Future Demand Survey of Buyers Intentions Composite of Sales Force Opinions Expert Opinion (Internal employees views…) Market-Test Method Past-Sales Analysis
THE PROMOTION MIX Advertising Sales Promotion Public Relations & Publicity Personal Selling Direct Marketing Internet & Social Media Marketing
Advertising “paid form of non personal presentation & promotion of ideas/ goods or services by a sponsor” 5 Ms of advertising : – Mission – Money – Message – Media – Measurement
Newspapers Merits : – Good local market coverage – Timeliness (Daily) – Broad Acceptance – Verbose material (Cognitive Evaluation) Demerits : – Short life – Poor reproduction quality (except special suppl.) – Small “pass-along” readership
Magazines Merits : – High Selectivity (A&M, Inside Outside) – Long Life – Good “pass-along” readership – Credibility & Prestige (TIME, Fortune..) – High-quality reproduction Demerits : – Long Lead Times (TIME – Tylenol) – Some “waste” circulation
Direct Mail Merits : – Target audience selectivity – No competition for the medium – Customisation of the message Demerits : – High cost – Mail into the “Trash-bin”
Television Merits : – Creative abilities – High reach – High attention – Useful for image building Demerits : – Selectivity of audience – High cost – High clutter – High noise (Zapping, Flipping …)
Display Media Merits : – Very high geographic selectivity – Flexibility – Low Cost (may not be at “Marine Drive”) – (Creative Hoardings ???) Demerits : – Audience Selectivity – Reach very limited – Creative Execution ??
PRODUCT PROMOTION- INDIAPOST Customer segmenting & profile data Giving comparative charts to MEs Training of MEs Awareness campaigns Customer meets Direct mail Centralized ad themes Monitoring of marketing efforts
Prepare in groups an innovative action plan for promotion of the Business post in your area using the last slide. One of the group to present their plan before the class in 15 minutes EXERCISE-5.3.4
What is CRM? Comprehensive approach for creating, maintaining, and expanding customer relationship.
CRM is …… a Comprehensive Approach which provides integration of every area of business like Marketing, Product Design, Service, Complaint Management etc. achieved through Integration of technology, human resources, process and equipment CRM creates Mutually Beneficial relationship with customer.
Customer Relations “designed to protect/ promote a company’s image or its individual products” ROLE Launch of New Products Building interest in a product category Influence specific target groups
Consumer Segment & CRM Brand Equity – A Strong Tool of CRM In consumer segment, the relationship is established through brand equity. CRM is rarely established through personal contacts Quality and Superiority of the product established in the market.