Mktg 445- Client Presentation

Alex Diaz | Crystal Fong | Jeff Ka | Suzy Parikh | Dale Wilson

Objective

Introductions

B 2 B

M a r k e ti n g

B2B Marketing

OnlinePresence

Target Industries Financials Execution Conclusion

Agenda

IntroductionsBusiness-to-Business MarketingOnline PresenceTarget IndustriesFinancialsExecutionConclusion

IntroductionsB2B

MarketingOnline

PresenceTarget

Industries Financials Execution Conclusion

Microsoft SharePoint Conference

Casino Marketing Conference

Global Gaming Expo (G2E)

Conferences

B2B Marketing

Advertising

IntroductionsB2B

MarketingOnline

PresenceTarget


CRM

IntroductionsB2B

MarketingOnline

PresenceTarget


Store client information1

Track employee correspondence2

Research start-up companies3

Online Presence

WebsiteSearch Engine

Optimization (SEO)

Social Media

Marketing (SMM)

IntroductionsB2B

MarketingOnline

PresenceTarget


Website Research Findings

IntroductionsB2B

MarketingOnline

PresenceTarget


SEO Research Findings

IntroductionsB2B

MarketingOnline

PresenceTarget


Idea Entity

IntroductionsB2B

MarketingOnline

PresenceTarget


SMM Research Findings

Target Industries

How SharePoint can be used within these industries?

What new industries have a SharePoint need?

IntroductionsB2B

MarketingOnline

PresenceTarget


University and

CollegeBeverage Franchise

Target Industries

IntroductionsB2B

MarketingOnline

PresenceTarget


University and

CollegeInformation shared across numerous departments

Website Creation, Collaboration Portal

Shoreline Community College

Beverage

Constantly changing product lines, large number of clients

Supply chain management, Customer service tracking

Coca-Cola

Franchise

Geographically dispersed offices

Communication and performance tracking

Legal Services

NEED

FUNCTION

EXAMPLE

IntroductionsB2B

MarketingOnline

PresenceTarget


Financials

Highlights:

Good:2011 Net Income of $51,426No DebtQuick Ratio of 2.33

IntroductionsB2B

MarketingOnline

PresenceTarget


Financials

2008 2009 2010 2011$3,000,000$3,500,000$4,000,000$4,500,000$5,000,000$5,500,000$6,000,000$6,500,000$7,000,000$7,500,000

Revenue

Revenues: 2011 2010 2009 2008

Service Revenue 7,138,562 7,086,134 6,225,812 4,213,945

Product Revenue 60,000 0 0 0

Other 36,503 10,865 9,610 22,629

Total Revenues 7,235,065 7,096,999 6,235,423 4,236,575

IntroductionsB2B

MarketingOnline

PresenceTarget


2008-2009 2009-2010 2010-20110.50%5.50%

10.50%15.50%20.50%25.50%30.50%35.50%40.50%45.50%50.50%

Revenue Growth Rate

Financials

2008 2009 2010 201115.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Gross Profit MarginRevenues: 2011 2010 2009 2008

Service Revenue 7,138,562 98.7% 7,086,134 99.8% 6,225,812 99.8% 4,213,945 99.5%

Product Revenue 60,000 0.8% 0 0.0% 0 0.0% 0 0.0%

Other 36,503 0.5% 10,865 0.2% 9,610 0.2% 22,629 0.5%

Total Revenues 7,235,065 100.0% 7,096,999 100.0% 6,235,423 100.0% 4,236,575 100.0%

Cost of Goods Sold

Direct Labor - Client Site 3,330,378 46.0% 3,013,121 42.5% 2,807,739 45.0% 1,380,168 32.6%

Direct Subcontractors 2,007,607 27.7% 1,965,809 27.7% 1,462,747 23.5% 998,451 23.6%

Other 36,450 0.5% 200,475 2.8% 0 0.0% 0 0.0%

Total COGS 5,374,436 74.3% 5,179,406 73.0% 4,270,486 68.5% 2,378,619 56.1%

Gross Profit 1,860,630 25.7% 1,917,593 27.0% 1,964,937 31.5% 1,857,955 43.9%

IntroductionsB2B

MarketingOnline

PresenceTarget


Financials

IntroductionsB2B

MarketingOnline

PresenceTarget


• Decreasing Revenue Growth

• Decreasing Profit MarginsConcerns

• Financial stability to take on new projects

• Expand into new marketsSolutions

Implementation

Attend Conferences

Develop Web Presence Through SEO

Implement CRM Database

Primary Objectives

Secondary Objectives

Social Media Marketing

Website Development

IntroductionsB2B

MarketingOnline

PresenceTarget


Implementation Timeline

Introductions B2B Marketing

Online Presence

TargetIndustries Financials Execution Conclusion

Period 1March

Period 2June

Period 3Sept

Period 4Dec

Period 5March

Period 6June

Evaluate

Create CRM Database

Update CRM Database

CRM

Casino Marketing

Conference

LinkedIn Advertising

B2B Marketing

Join Organizations

SharePoint Conference

Seattle Intelligence Conference

SEO Website

SMMWeb

Presence

Introductions B2B Marketing

Online Presence

TargetIndustries Financials Execution Conclusion

Q & ABusiness-to-Business Marketing

Conference LinkedIn Ads CRM

Online Presence Web Analysis Table Web Recommendation SEO SMM Facebook Blog Idea Entity Web Site

Target IndustriesBeverage Coca-Cola Case Study

FinancialsFinancials StatementCost Estimates

ExecutionTimelineBalanced Scorecard

http://www.ideaentity.com/

Cost Estimates

LinkedIn Advertising: $10 per advertisement per day x 15 advertisements $150 per day x 30 $ 4500 per month

Conference Fees: $ 400 per conference

CRM Licensing: $44 per user per month x 5 users $200 per month

Income StatementIdea Entity

Comparative Income Statement

Statement Type: Unaudited Unaudited Unaudited UnauditedStatement Date: 12/17/11 12/31/10 12/31/09 12/31/08

($000) % ($000) % ($000) % ($000) %

Revenues:Service Revenue (Staffing & Software) 7,138,562 98.67% 7,086,134 99.85% 6,225,812 99.85% 4,213,945 99.47%Product Revenue 60,000 0.83% 0 0.00% 0 0.00% 0 0.00%Other 36,503 0.50% 10,865 0.15% 9,610 0.15% 22,629 0.53%

Total Revenues 7,235,065 100.00% 7,096,999 100.00% 6,235,423 100.00% 4,236,575 100.00%

Cost of Goods SoldDirect Labor - Client Site 3,330,378 46.03% 3,013,121 42.46% 2,807,739 45.03% 1,380,168 32.58%Direct Subcontractors 2,007,607 27.75% 1,965,809 27.70% 1,462,747 23.46% 998,451 23.57%Other 36,450 0.50% 200,475 2.82% 0 0.00% 0 0.00%

Total COGS 5,374,436 74.28% 5,179,406 72.98% 4,270,486 68.49% 2,378,619 56.14%

Gross Profit 1,860,630 25.72% 1,917,593 27.02% 1,964,937 31.51% 1,857,955 43.86%

Expenses:Payroll Taxes 386,005 5.34% 58,540 0.82% 62,366 1.00% 739,108 17.45%Insurance 157,977 2.18% 203,705 2.87% 165,442 2.65% 179,788 4.24%Employee Benefits 179,068 2.47% 209,378 2.95% 136,054 2.18% 79,665 1.88%Recruiting 33,884 0.47% 23,691 0.33% 21,777 0.35% 26,190 0.62%Depreciation 0 0.00% 19,384 0.27% 14,636 0.23% 0 0.00%Non-Billable Overhead 526,710 7.28% 685,565 9.66% 710,468 11.39% 629,854 14.87%Marketing 26,674 0.37% 12,246 0.17% 2,960 0.05% 1,000 0.02%Other 498,943 6.90% 562,181 7.92% 454,966 7.30% 340,689 8.04%

Total Expenses 1,809,260 25.01% 1,774,691 25.01% 1,568,669 25.16% 1,996,294 47.12%

Operating Income 51,370 0.71% 142,902 2.01% 396,268 6.36% -138,339 -3.27%

Total Other Income (Expenses) 57 0.00% 1,866 0.03% 6,704 0.11% -635 -0.01%

Net Income 51,427 0.71% 144,768 2.04% 402,972 6.46% -138,974 -3.28%

Balance SheetIdea Entity

Comparative Balance Sheet

Statement Type: Unaudited Unaudited Unaudited UnauditedStatement Date: 12/17/11 12/31/10 12/31/09 12/31/08

($000) % ($000) % ($000) % ($000) %

Assets:Current Assets:Cash and Equivalents 317,614 31.53% 216,167 20.00% 221,465 24.75% 220,296 36.25%Accounts Receivable 393,648 39.08% 611,851 56.60% 412,834 46.14% 276,318 45.47%Deposits 9,800 0.97% 8,300 0.77% 8,300 0.93% 0 0.00%Prepaid Expenses 53,877 5.35% 0 0.00% 0 0.00% 0 0.00%Other 0 0.00% 65,299 6.04% 134,425 15.02% 75,202 12.38%

Total Current Assets 774,939 76.94% 901,617 83.40% 777,024 86.85% 571,815 94.10%

Fixed Assets:Computer Equipment 151,573 15.05% 111,827 10.34% 87,232 9.75% 59,127 9.73%Software 2,732 0.27% 0 0.00% 0 0.00% 0 0.00%

Total Fixed Assets: 154,305 15.32% 111,827 10.34% 87,232 9.75% 59,127 9.73%Less Accumulated Depreciation 55,569 5.52% 55,569 5.14% 37,931 4.24% 23,296 3.83%Net Fixed Assets 98,736 9.80% 56,257 5.20% 49,300 5.51% 35,831 5.90%

Other Assets:Europe Expansion 133,570 13.26% 123,146 11.39% 68,398 7.64% 0 0.00%

Total Assets: 1,007,244 100.00% 1,081,020 100.00% 894,722 100.00% 607,646 100.00%

Liabilities:Current LiabilitiesAccounts Payable 165,597 16.44% 102,814 9.51% 124,709 13.94% 108,633 17.88%Credit Cards 22,273 2.21% -544 -0.05% 0 0.00% 50 0.01%B&O Taxes Payable 96,423 9.57% 198,179 18.33% 70,199 7.85% 48,199 7.93%Accrued Salaries & Wages 0 0.00% 96,756 8.95% 122,151 13.65% 109,243 17.98%Payroll Liabilities 45,501 4.52% 11,821 1.09% 14,128 1.58% 161,942 26.65%Other 3,000 0.30% 0 0.00% 19,500 2.18% 32,014 5.27%

Total Current Liabilities 332,794 33.04% 409,027 37.84% 350,686 39.19% 460,082 75.72%

Total Liabilities: 332,794 33.04% 409,027 37.84% 350,686 39.19% 460,082 75.72%

Equity:Capital Stock 5,000 0.50% 5,000 0.46% 5,000 0.56% 5,000 0.82%Distributions -68,317 -6.78% -16,811 -1.56% -6,500 -0.73% -51,476 -8.47%Paid in Capital 23,500 2.33% 23,500 2.17% 23,500 2.63% 23,500 3.87%Retained Earnings 714,268 70.91% 660,305 61.08% 522,036 58.35% 170,540 28.07%

Total Equity: 674,451 66.96% 671,994 62.16% 544,036 60.81% 147,564 24.28%

Total Liabilities & Equity: 1,007,244 100.00% 1,081,021 100.00% 894,723 100.00% 607,646 100.00%

Calculated RatiosIdea Entity

Financial RatiosIndustry Averagesa

Statement Type: Unaudited Unaudited Unaudited Unaudited IT Services Staffing

Statement Date: 12/17/11 12/31/10 12/31/09 12/31/08 (All) (All)

EBITDA 52,430 164,340 418,389 -108,474

EBITDA Margin 0.72% 2.32% 6.71% -2.56% 5.20% 1.60%

Gross Margin 25.72% 27.02% 31.51% 43.86% 76.30% 44.00%

Operating Expenses 25.01% 25.01% 25.16% 47.12% 73.60% 42.90%

Operating Income 0.71% 2.01% 6.36% -3.27% 2.70% 1.10%

Net Profit Margin 0.71% 2.04% 6.46% -3.28% 1.50% 0.60%

Liquidity Ratios

Current Ratio 2.33 2.20 2.22 1.24 1.67 1.68

Quick Ratio 2.33 2.20 2.22 1.24 1.36 1.31

Accounts Receivable Days 19.59 31.04 23.83 23.48 51 26

Accounts Payable Days 11.09 7.15 10.51 16.44

Debt Ratios

Debt-Equity Ratio 0.49 0.61 0.64 3.12 1.53 1.09

aAverages obtained from Hoover's Online

Balanced Scorecard Strategy Objective What will be

measuredTarget Goals If target goals are

not met, what new initiatives should be

undertaken?

Customer -Differentiate themselves by their SharePoint services

-Find out how the company compares within the industry -Discover their target clients

-Number of qualified leads

-Sales Closing Rate -Retention Rate

-Qualify 4-8 leads per month - 25% Sales Closing Rate (1-2 new sales per month in SharePoint services) -100% Retention

- Re-evaluate the customer’s objective - Consider additional services besides SharePoint

Internal -Deliver quick and innovative solutions

-Develop solutions based on comprehensive industry knowledge and creativity

-Customer Satisfaction Rate

- Gain above 90% Customer Satisfaction Rate

- Follow-up with overall discussion for improvement

Financial Perspective

-Increase Profit Margin

-Increase Revenues -Amount of revenue from SharePoint services

-$12 million in one year-$50 million in five years

- Re-assess profitability of SharePoint development

Website Comparison Table

Website Recommendation

IntroductionsB2B

MarketingOnline

PresenceTarget


• Implement call to action• Create and upload more case studies• List quantified results • Add a "SharePoint Services" tab

Beverage – Coca Cola Case StudyIssues –• Mobile staff • One-way, push-down communicationSolution – • Employee portal • Employees can leverage SharePoint team sitesBenefits • Place of action • Centralize info and data• Difficult to find files, but now it is all shared • Helps security - control access to info • Drives effectiveness and efficiency

Online Presence - Blog

Online Presence - Facebook

B2B Marketing – LinkedIn Ads

Online Presence – Idea Entity Website

Mktg 445- Client Presentation

Business

Transcript of Mktg 445- Client Presentation