Consultant Society: Business Case and Research SLT Presentation - March 25, 2003.
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Transcript of Consultant Society: Business Case and Research SLT Presentation - March 25, 2003.
![Page 1: Consultant Society: Business Case and Research SLT Presentation - March 25, 2003.](https://reader035.fdocuments.in/reader035/viewer/2022062803/56649f275503460f94c3e53b/html5/thumbnails/1.jpg)
Consultant Society: Business Case and Research
SLT Presentation - March 25, 2003
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Rainmaker sub-team
Kevin MahlerDave Mitchell Susan RendaCorinne Smereka Jon Steffey
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MICA - The Opportunity
SAE has 4,000 - 7,000 members and circulation recipients in consultant-related positions
SAE’s overall membership base and corporate associations are very attractive to consultants
SAE discontinued its print Consultant Directory, and thus has no formal mechanism for connecting consultants with companies who need them.
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MICA - The Solution
Create a new society to provide members with a professional affiliation, networking benefits and to facilitate the connection between industry consultants and corporations…
The Mobility Industry
Consultant’s Association
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Why a separate, affiliated association?
Provide a specialized professional membershipProvide a new, clearer value statement to current
non-SAE membersMake a clearer distinction from SAE, to counter
claims that new benefits should be included in SAE membership
Use affiliated status to draw on SAE’s brand strengths
No existing society meets these needs
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Building a business case
One-on-one consultant interviews Found preliminary indications of interest, honed
value possibilities
Consultant Survey 1800 consultants in SAE’s database, with email
addresses Divided into 4 groups, to test various price points 293 respondents (16% response rate)
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Overall Interest in MICA concept
31%34%
20%
9%
5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Probably Join Might Join Unsure Probably Not Not Join
65% of respondents indicated at least preliminary interest.
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Join rates at different dues levels
0%
10%
20%
30%
40%
50%
60%
$150 $250 $300 $350
Much less price sensitivity from $150 & $250 than higher
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Four Dues packages:
Dues: $150
Initiation Fee: $100
Preferred Membership: $200
Dues: $250
Initiation Fee: $150
Preferred Membership: $400
Dues: $300
Initiation Fee: $200
Preferred Membership: $600
Dues: $350
Initiation Fee: $250
Preferred Membership: $800
1) 2)
3) 4)
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Package Acceptance Rates
0%
10%
20%
30%
40%
50%
60%
1 2 3 4
Package
% W
illi
ng
to
Pay
Dues
Initiation
Status
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Revenues Scenarios:(assume similar acceptance rates for a market of 4000)Dues Only: Year 1 Mbrs Year 1 Rev. Year 1 Mbrs Year 1 Rev. 2 Year RevScenario 1 1938 290,625$ 2131 319,688$ 610,313$ Scenario 2 1611 402,778$ 1772 443,056$ 845,833$ Scenario 3 861 258,228$ 947 284,051$ 542,278$ Scenario 4 845 295,775$ 930 325,352$ 621,127$
Dues & InitiationScenario 1 1625 406,250$ 1788 446,875$ 853,125$ Scenario 2 1222 488,889$ 1344 537,778$ 1,026,667$ Scenario 3 861 430,500$ 947 473,550$ 904,050$ Scenario 4 845 507,000$ 930 557,700$ 1,064,700$
New Scenario:$250 + $100 1611 563,889$ 1772 620,278$ 1,184,167$
*Membership levels assume lower of acceptance rates betweenrelevant Dues & Initiation Fee responses.
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Interest in proposed benefits
64%75%
59%
42%36%
55%46%
31%39% 37%
42%
13%
0%10%20%30%40%50%60%70%80%
Online
Dire
ctory
Consultin
g Opps
Job
Matching
Web S
ite &
Em
ail
Discuss
ion Fo
rum
Best P
racti
ces
Prof D
ev
Ins.
Disc.
Bus. S
erv. D
isc.
Prese
nt O
nline
Mag
azine
Other
Very Imp/Imp
Not Very/Not Important
Directory, job listing & matching and best practice surveys are tops.Professional Development, Web services & magazine have some interest
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Benefits interest for most likely members:79%
85%
69%
50% 50%
66%58%
38%45% 47%
53%
17%
0%10%20%30%40%50%60%70%80%90%
Online
Dire
ctory
Consultin
g Opps
Job
Matching
Web S
ite &
Em
ail
Discuss
ion Fo
rum
Best P
racti
ces
Prof D
ev
Ins.
Disc.
Bus. S
erv. D
isc.
Prese
nt O
nline
Mag
azine
Other
Very Imp/Imp
Not Very/Not Important
Similar patterns, tend to regard everything as more important
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Interest in corporate membership
41% belong to organizations with more than one consultant
35% of those believed their organizations might be interested in a corporate membership
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Response to MICA name/tagline
43% indicated a positive response11% indicated a negative response
58% Full-time / 42% Part-time26% consulting 1-4 years, 28% 2-5 years,
46% for more than 10 years
Consulting Status
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Consulting Field
Engineering Management 30%Engineering Design 46%Engineering Manufacturing 22%Information Technologies 14%Human Resources 5%Marketing 14%Accounting 0%Other 54%
(more than one could be chosen for each respondent)
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Other Memberships
77% of respondents are SAE members64% of those expressed a positive interest in
MICA (vs. 65% overall)
25% of respondents are members of other consulting-related societies
84% of those expressed a positive interest in MICA
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Conclusions
The MICA concept is viable and potentially profitable for SAE
Primary member-only value propositions include: Online consultant directory Consulting opportunity listings Best practices surveys and reports
Secondary possibilities: Web and email services, journal/magazine, business
services discounts, presentations to SAE members
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Estimated Revenue StructureYear 1 Year 2 Year 3Projected Budget Projected Budget Projected Budget
Revenue 1,200 members at$240 each =$288,000$100 initiation feefor 1000 members =$100,000
1,500 members at$240 each dues,$100 initiation feefor 300 members =$390,000Member benefitsrevenue of $30,000
2,000 members at $240each dues, $100 initiationfee for 500 members =$530,000Member benefits revenueof $30,000
Expense $50,000 $60,000 $70,000Net $338,000 $360,000 $490,000Employees* 7 (E, part-time
commitment foreach)
7 (E, part-timecommitment foreach)
7 (E, part-timecommitment for each)
*(E) Existing *(N) New *(C) ConsultantNOTE: This revenue projection assumes a conservative initial market of 4000 potential members, and a 30%penetration of this market. In addition, it assumes that the initiation fee would be waived for the first 300 chartermembers, so the revenue is for dues only. Thus, revenues may be substantially higher than shown here. Expensefigures are estimates and could be higher, but will be refined in the business plan for this implementation.
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Current Plan
Create a team to write and implement a complete business plan
Rhonda Buzard* Kevin Mahler Dave Mitchell Susan Renda Corinne Smereka Jon Steffey Becky Wiley** These potential team members have not yet been approached about potential involvement