1. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Signifo Expenses Strategic Marketing in Practice Case Study December 2005

2. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Scenario You are Ed Walker marketing consultant. TASK: –Positioning and branding of the company –Communications strategy –International marketing strategy

3. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Where are we now ? Audit of current situation

4. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Signifo today Business to business, fast growing SME within the Software Services sector –Established 5 years, profitable, grown organically –£1.5m T/O –400 customers –Impressive range of clientele – Chivas Regal, Heineken,Woolmark,Hitachi, Pernod etc. –Mainly U.K. only few customers overseas –Mainly targets SME market –One product currently – expense solutions –Poised for growth but how?

5. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 FIRMS INFRASTRUCTURE - Customer focused, Marketing taken on and understood at every level, core function - strong internal communications HR MANAGEMENT - Retain technical and knowledge based employees and recruit marketing and sales experts - Project/consulting expertise TECHNOLOGY DEVELOPMENT - Technology leaders, continuous innovation, R&D focused towards buyers needs, strength in R&D relationships I.e. Research institutes PROCUREMENT - Combined buying power INBOUND LOGISTICS Intranet JIT for suppliers OPERATIONS JIT Efficient production (closely monitored) OUTBOUND LOGISTICS E- Order handling JIT MARKETING AND SALES Customer/ segment research Investment in Branding Relationship marketing, Key Account managment SERVICE Total systems solution Consultancy services Maintenance Outsourcing, MARGIN SUPPORT ACTIVITIES PRIMARY FUN CTIONS

6. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Brand issues BRAND DOMAIN (brand’s target market) BRAND HERITAGE(how it has achieved success) BRAND VALUES (core values and characteristics) BRAND ASSETS (what makes brand distinctive) BRAND PERSONALITY (character of brand)

7. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Signifo SWOT Strengths Fast growing Profitable 400 customers Fully web based system Simple to use Ability to work offline Interfaces directly with credit card companies Links with mobile (SMS) Winner of DTI SMART award Weaknesses Not many corporate customers Predominantly U.K. based Medium sized company, only 1.5 m turnover Fledgling business to some extent, established only 5 years Opportunities To drive more business within the U.K. e.g. public sector – Universities To target US market as well as Europe, South Africa and Australasia Threats Barriers to entry fairly low Larger companies such as Concur in the US could outflank Signifo Large companies in Canada and Germany – highly competitive market Expansion could stretch resources too thinly

8. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Map of competition SME (International) ExpensAble (US) CORPORATE (International) Concur (US) Necho (Canada) Sap(Germany) CORPORATE (Domestic) Global Expense (UK) SME (Domestic) 4 UK players but very small at present

9. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 The Business Environment MICRO MACRO PHYSICAL Suppliers Labour Capital Product Wages Profit Organisation Materials Pollution Politics Economy Society Technology Legal More than SLEPT! Porter’s 5

10. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Consider Signifo’s positioning Use either BCG or PLC

11. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Brand Equity Bonding –----How does it retain itself with me Advantage – --Does it offer something different Performance- -Can it deliver Relevance – Does it offer something I want Presence- Do people know it

12. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Where do we Want to be?

13. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Objectives Decide Objectives –For U.K. and International Deliver Outcomes

14. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Segmentation Described and Profiled for each sector

15. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Targeting Specific and Justified for each sector

16. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Positioning Clear and defensible –Set out USP and Positioning for each sector. –Are there any commonalities or Single Brand options Vision Values

17. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 How do we get there?

18. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Action Decide Objective Deliver Outcomes

19. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Strategic Development Product –Sector Selection –Core/ Physical/Augmented Proposition –Branding Pricing Distribution Promotion People Process

20. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Implementation and Control Budgeting Areas Metrics Balanced Scorecard McKinsey 7S

21. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Comms Strategy for Signifo Audiences –Internal and External, domestic and international, SME and Corporate, private and public Media Messages Timing/Budget Stakeholders Investors Suppliers Partners Customers Media ASP’s Who else ?

22. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Internationalisation Where, when and how –GE/ Harrel and Keiffer

23. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Implementation and Control Budgeting Areas Metrics BS McKinsey 7S

24. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Critical success factors Create a sustainable brand image and position amongst competitors Change management (PLC,BCG) Internal marketing (stakeholder management, CRM) Funding (Borrowing/J.V/Debt) Constraints – Overstretching - Competitive landscape - Attempted takeover by larger company

25. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Vision For Signifo to be the first destination for any SME/Large company that is seeking a value for money, simple to use and cost effective solution to their expense management process.

26. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Mission statement To become first choice for any company seeking a cost effective solution to expense management who demands high quality standards and exceptional customer service

27. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Critical Questions What is Signifo’s USP when targeting the Corporate sector in the U.S. when Expensable have a very large following (1,000 + customers) ? What possible reasons could have caused Necho’s decision to pull out of the U.K?

28. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Values Committed to high quality, effective solutions which provide excellent ROI for any company Committed to superb customer service which fully integrates with client’s existing systems and accounts packages Committed to continual quality enhancement of all processes to speed up and simplify expense management within companies

29. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Corporate objectives To develop the public sector market by targeting universities and increase turnover by £250,000 from this sector by 2007 To enter the US market aiming at the SME market to create a niche opportunity, as no other US operator targets this market using a web based system

30. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Strategic management of marketing mix Product Core – simple to use, fully integrated with existing company systems and accounts packages. Large savings in staff time and speeds up the whole process. Versatile Augmented – can be used offline, links to mobile (SMS) Price Favourable price – value for money because of a good ROI within 3 months expense package saves companies money Pricing strategy could involve a percentage of future sales

31. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Strategic management of marketing mix Place UK based primarily – but needs to drive more sales from the public sector. Also needs to target the U.S and European markets, plus South Africa and Australasia Promotion B2B - emarketing campaigns to selected companies (use SIC lists and professional bodies) Associations – referrals from existing customers promotional scheme) Publish P.R. related material for senior decision makers, opinion leaders in relevant business/accounting magazines, airline publications, etc. Web site – continually update the content. Company endorsements – refresh regularly

32. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Strategic management of marketing mix People Train and develop the existing staff. Selective recruitment of key sales/marketing/technical personnel. Recruit proven staff in overseas markets Processes Regular internal/external communication. Long term relationship building. B2B customer involvement. Relationship marketing. Customer Lifetime Value. Branding strategy.

33. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Strategic management of marketing mix Physical evidence Corporate web site Signifo logo and brand ROI table – company examples

34. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Implementation and Control McKinsey 7S Structure Single company or J.V.? U.K. Head Office and overseas subsidiary? Strategy Focus differentiated aimed at SME and Corporate markets in U.K. and overseas

35. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Implementation and Control Systems Develop MKIS and control systems to regularly review and monitor effectiveness of all strategies Develop benchmarking system to monitor against key market indicators Staff Continual development of key staff. Advanced sales training, inbound and outbound. CRM development. Key account relationship building

36. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Implementation and Control Skills Ensure correct training and development programmes are established to keep Signifo staff at the leading edge of technology, systems and processes Shared values Ensure company strategy shared by everyone in the organisation. Growth strategy and international expansion shared with all staff, suppliers, stakeholders. Compliance regulations (IRS) understood and accepted.

37. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Implementation and Control Style Commitment top down from 3 founders. Creative, dynamic, leading edge, probity, commitment, ethical trading stance. Profit sharing scheme

38. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Control – Balanced Scorecard Internal Employee awareness, staff turnover, assess staff performance against benchmarks (KPI’s), participation in continuous development (training schemes), develop CRM databases for collecting customer feedback and insights into future needs, wants, industry trends, (market intelligence)

39. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Control – Balanced Scorecard Innovation and learning Skills training – advanced B2B selling, customer ‘champions’, technical, systems, accounting software interface training and development, critical thinking, project management

40. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Control – Balanced Scorecard Financial Sales vs. targets in each sector – SME/Corporate – U.K.,EUROPE,U.S.A. Australasia, etc. Profitability metrics, CLV Customer Customer satisfaction surveys – customer feedback. Customer endorsements - web based Brand recall/awareness of brand

41. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Possible questions 1. What branding strategy should Signifo adopt to maximise sales and profitability? 2.Prepare a communications plan which will increase sales and profitability for Signifo across all its target markets 3.What branding and positioning strategy should Signifo adopt to improve its appeal to U.S. corporate customers? 4.Devise a marketing plan to make Signifo a leading player in the mid sized market in Europe.

42. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Possible questions 5. Prepare a relationship marketing campaign which will effectively increase Signifo customer loyalty and their lifetime value. 6. Signifo is at the crossroads in its development and growth. Produce a strategic marketing plan which will ensure increased revenue from expense management and negate the marketing strategies of domestic and international predators.

43. C A M B R I D G E M A R K E T I N G C O L L E G ES © CMC 2005 Possible questions 7. Prepare a corporate social responsibility charter for Signifo in the light of the recent tightening of security legislation, such as SOX in the U.S. and the FSA in the UK.