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Proposal to PEPERFRY, Board Members LEADERSHIP Frank Li …Strategic Digital Marketing Operation...
Transcript of Proposal to PEPERFRY, Board Members LEADERSHIP Frank Li …Strategic Digital Marketing Operation...
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STRENGTHEN OMNI CHANNEL LEADERSHIP
Proposal to PEPERFRY, Board Members
Frank Li I Partricia Huang I Aaron Rao I Vicky Huang
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AGENDATarget
Key Issues & Recommendation
Analysis and Alternatives
Implementation
Risk & Mitigation
PEPERFRY
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AGENDATarget
Key Issues & Recommendation
Analysis and Alternatives
Implementation
Risk & Mitigation
PEPERFRY
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TARGET
Reach the Revenue Goal of 2020
Do you best to
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AGENDATarget
Key Issues & Recommendation
Analysis and Alternatives
Implementation
Risk & Mitigation
PEPERFRY
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KEY ISSUES
1.How to Get Sustainable Growth
2.How to Improve Operation Efficiency(Cost Down)
3.How To Funding?
The Challenge We Are Facing
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RECOMMENDATION
1.Best Growth Revenue Channels
- Decor & Utilities + House Brands + Offline Studio +
Partnership with architects and Designer
2.Improve Operation Efficiency
3. Enhance Omni Channel strength
We strongly suggest you
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AGENDATarget
Key Issues & Recommendation
Analysis and Alternatives
Implementation
Risk & Mitigation
PEPERFRY
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ANALYSIS
1• Sourcing
2• Storage
3• Packaging
4• Delivery
5• Assemble
Suppliers Customers
• 2-3 sg.ft Space
• >10 people
• Build Workbenches
• Buy Machines
• QA
Without
Marketing
Mindset
• Indian 90-100M
online customers
• Those who unwilling
to go fur more than
10Km
• Enjoy assembling
450-480M
Users in
India
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ANALYSIS
What we
do Poor
• Pocket Friendly price
• Catalogue Design
• Video Format Display
• Supply Chain(Closed Cycle)
• Efficient Operation
• Customer loyalty(Local
Brand)
• Longtime from B to C
• Market making
• Conversion Rate
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ANALYSIS
Competition In
Furniture Biz
IKEA/FLICKPART
Young Consume with
Innovative mindset
Substitute
Local Vendor
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ANALYSIS
IKEA’s Good
• Low Price
• Attractive Display
• Vertical product portfolio
• Fashionable Design
• Fast Update rate
• Big Skus
• Logistic
• Weak Customization
• Weak E-Commerce
• Location far from city
Know it better
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ANALYSIS
Furniture
E-Commerce• Amazon
• Flickpart
PEP
PER
FRY
Positioning
in Strategy
PEPPERFRY : Omni Channel Players
in Furniture and Home
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ANALYSIS – FINANCIAL STATUS (REV & PROFIT)
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ALTERNATIVES
Revenue growth options ProfitsUtilize current
structureBrand Image
Improving
conversion
Decor and Utilities
House Brands
Offline Studio
Furniture Rental
Partnership
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ALTERNATIVES
Revenue growth options ProfitsUtilize current
structureBrand Image
Improving
conversion
Decor and Utilities
House Brands
Offline Studio
Furniture Rental
Partnership
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RECOMMENDATION
1.Best Growth Revenue Channels
- Decor & Utilities + House Brands + Offline Studio +
Partnership with architects and Designer
2.Improve Operation Efficiency
3. Enhance Omni Channel strength
We strongly suggest you
![Page 18: Proposal to PEPERFRY, Board Members LEADERSHIP Frank Li …Strategic Digital Marketing Operation Human Resources P enetration I nnovation E xpansion Well-positioned Value-Added Repeat](https://reader034.fdocuments.in/reader034/viewer/2022042406/5f203b7469f1fe45c918d9de/html5/thumbnails/18.jpg)
AGENDATarget
Key Issues & Recommendation
Analysis and Alternatives
Implementation
Risk & Mitigation
PEPERFRY
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IMPLEMENTATION – PIE MODEL
Building Bricks – Our Core Competency
Strategic Digital Marketing Operation Human Resources
P enetration
I nnovation
E xpansion
Well-
positioned
Value-Added
Repeat Customer/Regular Supplier/Offline Studios
Product Portfolio/ Business Model/ Services
Growth new customers & suppliers / Develop studios
Promote Digital Profitability
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IMPLEMENTATION – PENETRATION Target Level 1 initiative Level 2 actions break-down
On-line
Customer
- Enhance customer acquisition
- Improve Digital content marketing
initiatives
- Digital Ads enhancement.
- Customer influence & Celebrity (video + Social
Media)
- Referral /Testimonial review
- Email marketing (e-catalog subscription)
Offline
- Brand trade show
- Interior design
- Customer experience
- Membership scheme
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IMPLEMENTATION – INNOVATION - Expand Product portfolio
- Develop second hand product mkt.
- Promote bundling / packing selling with décor & utilities.
- Optimize Biz model
- Develop close-circle of supply chain ecosystem with more biz-
collaboration with suppliers.
- Partnership with IKEA to convert offline customer to online ones.
- Cooperate / provide online platform/ source for horizontal players with
limited focus on furniture to develop them.
- Enhance customer Services
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IMPLEMENTATION
Build Payed Service Program
Suppliers Customers
Premium Supporting Service Premium Membership
• SEO priority • 7 days Experience and Return back priority
• Catalogue Showing Place in first pages • Get New Catalogue in Advance
• Free to Trade Shows • Vertical and Horizonal Service discount
Service Center
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IMPLEMENTATION
IT system
AI Date Analysis
(India Center)
Online Offline
• Feedback
• Inquirers
• Purchasing hobby
• Fashion Trends
• Sales data
• Suggestion
• Seasonal update
• Best Sellers
• Logistic arrangement
• Visit data
• Searching data
• Conversion rate
• Regional hobby
• Visit data
• Searching data
• Conversion rate
• Regional hobby
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IMPLEMENTATION
SuppliersWorkers
• Reduce Breakage Rate
• Bundling Information Collect
Investigation
House type
Furniture style
Which service hope we offer
Living Area Information
Frequency Changing furniture
……
• Marketing and Promotion
• Furniture Design
• How to Target Customers
• Manufacturing cycle
• Style Trends
• ……
Training Center
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IMPLEMENTATION – EXPANSION
- Territory Expansion footprint to enhance domestic mkt coverage
- Go West to cover Tier2/3/4 cities.
- Customer base expansion to grow customer conversion rate
- Enhance more digital marketing initiatives.
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IMPLEMENTATION – OPERATIONEcosystem Initiative
Sourcing
- R&D
- Build best-selling items with SKUs.
- Develop new product with suppliers.
- Standardize design
- Improve common parts using parts, eg. Screw, raw material, assembly
tools.
- Postpone customization
- With special customization of color, customer-tailed tags.
Storage/ warehouse- Prepare enough semi-product in sourcing hub.
- Set up one sourcing hub in Nagpur.
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IMPLEMENTATION – OPERATIONEcosystem Initiative
Package
- Reduce packaging fee
- All the semi-product are packed by set, the reduce the second
package fee.
- Standard package
- To ensure all the package materials the same raw material.
Delivery
- To provide self-owned logistic source the other company
- Send the goods during night to reduce traffic jam cost.
- Cooperation with 3rd party to enhance the delivery frequency to
shorten logistic time.
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IMPLEMENTATION – OPERATIONEcosystem Initiative
Assembly
- To make the assembly menu in detail.
- The consumer could assembly it by himself.
- Best practice sharing.
- Bonus for customer self-assembly driven plan.
- To cultivate the culture something like LEGO, eg: if you assembly
by yourself, you could have 1% of the price for bonus.
- Develop assembly talent plan.
- May some consumer has strong assemble skill, he could proved
assembly service to the one that not good at it and also gain
some fee.
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GANTT CHART + FINANCE PROJECTION
Phase I Phase II Phase III
2018 2019 2020
set up a sourcing hub in Nagpur 61
Bonus plan for assembly 20
IT investment & enhancement 5
Training Center setup 2
Service Center buidup 10
Total 98
Initiative Budget (M INR)
Funding Plan 32 32 34
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AGENDATarget
Key Issues & Recommendation
Analysis and Alternatives
Implementation
Risk & Mitigation
PEPERFRY
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RISK AND MITIGATION
Risk
Quality
Funding
People
1
2
3
Impact
Poss
iblit
y
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RECOMMENDATION
1.Best Growth Revenue Channels
- Decor & Utilities + House Brands + Offline Studio +
Partnership with architects and Designer
2.Improve Operation Efficiency
3. Enhance Omni Channel strength
We strongly suggest you
![Page 33: Proposal to PEPERFRY, Board Members LEADERSHIP Frank Li …Strategic Digital Marketing Operation Human Resources P enetration I nnovation E xpansion Well-positioned Value-Added Repeat](https://reader034.fdocuments.in/reader034/viewer/2022042406/5f203b7469f1fe45c918d9de/html5/thumbnails/33.jpg)
THANK YOU