1. Marketing YourNew Business Dr. George F. Dierberger

2. Agenda

Business planning

Situation Analysis

Critical Issues

Target Market

Winning Strategies

• • Build Your Profitable Brand

• • Expand your Business

Summary

3. Business Planning

Effective Business Planning

• Introduction and review of deliverables

• Mission and Vision Statements

• Strategic Planning versus Business Planning

• SWOT

• Key Components of a Business Plan

• Introduction of a Business Plan Template

• Business Plan

4. Business Planning

Definition

• Formal Process used by organizations to help plan, organize and allocate resources.

• Typically an annual plan

• Shows up in the mission statement, goals, objectives, intent, and functional policies.

5. Why Business Planning?

Provides a framework for action for the organization and its employees

Unleashes the energy of the organization behind a shared vision

Stretches the organization to new goals and objectives.

Helps the organization review its plans on an annual basis and make adjustments to the marketplace.

Helps the organization develop the next generation of leaders.

6. Why Business Planning?

Business Planning needs to answer three questions

• Where are you going? This includes a mission statement and a specific set of financial goals

• What is the environment in which you participate? This includes competition, legal and social issues.

• How will you get there? Allocation of resources.

7. Business Planning

Six Steps in the process

• Mission statement- why are we here as an organization? Medtronics

• Vision/Values- Where do we want to go?

• SWOT analysis Identify core competencies

• Key Success factors/value drivers/goals

• Actions and measurement

• Coordination/Follow-up

8. Business Planning

Six benefits of the process:

• Business plans need to be coherent, unifying and help integrate feedback and decisions.

• Business plans are a means of establishing an organizations purpose, objectives, action plans, and resources.

• Business plans define the organizations competitive domain what business are we in?

• Business plans are a response to internal strengths, weaknesses and external opportunities and threats.

• Business plans help differentiate organizational tasks so that structure follows function

• Business plans define an organizations contribution to society, stakeholders and to its employees.

9. Situation Analysis

Summary of the current situation. What has worked and why?

What has not worked and why?

Timing?

How can we win?

How will your competitors respond?

10. Critical Issues

Distribution of your products

Product differentiation by trade dress and value proposition

Key account specific action plans

Awareness/trial/repeat usage of the product

• Ad/Merch expenditures of 15%

Commitment to the industry to succeed

Distribution in the top 10 accounts

11. US Market Overview

Total size of the prize

• $100 million dollar category

• Gross margin requirements

Market Segmentation

• Breakdown by channel

Alternative solutions

• Higher Margins (40-60%)

Who are the competitors

• What are their resources?

Legal and environmental issues

$1.4B Retail Dollars 12. Competitive Profile Sales Key Brands Shares Products Competitor 1 $.500k 40% Competitor 2 $400k Competitor 3 $350k Competitor 4 $300k Competitor 5 $250k Other $500k 13. Competitive Intelligence Strategies

Industry attractiveness

• Potential entrants

• Industry competitors

• Buyers

• Substitutes

• Suppliers

Threat of Entry

• Barriers

• Expectation of retaliation

• Intensity of competitor rivalry

• Substitute products

• Bargaining power of suppliers

14. SWOT Analysis

Strengths:

• The reputation of the Brand

• Strong relationships with key accounts

• Strong intellectual property position

• Unique, differentiated technology

• Global opportunity

Weaknesses:

• Little brand identity/recognition in key markets

• Minimal footing into the Independent channels (50% of market)

• Our product portfolio is limited compared to the major players

Opportunities:

• Global opportunity for expansion using resources and technologies

• Identified XYZ as a $420 million dollar opportunity that is waiting for a breakthrough product portfolio

• Many small companies in the industry

• Demographic trends look favorable for continued industry growth over the next 5+ years

Threats:

• Current line of products are available by competitors and are entrenched

• Multi-billion dollar companies playing in the industry could react to protect market share

• Lack of differentiation in channels could cause resistance in the specialty channel

15. Market Segmentation

Segmentation:

• We will market our products to premium consumers with discretionary income

Target Audience:

• Consumer- shops at higher end stores

• Female between the ages of 30 and 45

Positioning:

• XYZ is a revolutionary technology that offers innovative blah, blah that changes the basis of competition.

16. Channel Segmentation

Independent channel

Provides products and services.Higher enddifferentiated products General Goods Primarily sells general goods.Drives solid foot traffic.Mass Market Discount stores. Compete on price Regional chains Provides products and services.Buys direct and through regional distributors Retail space is limited and may offer catalog/InternetMiscellaneous Online Retailers, catalogs One size fits all- part of their business. Clubs Primarily sells bulk items.National in scope 17. Strategies/Tactics 18. 2009 Product Introduction Calendar StandardStandardPremiumPremium New product New Product New Product New Product New Product 2011 Q 1Q 2Q 3Q 4 2009 2010 19. Summary

Business Planning works!

• Research shows that organizations that use business planning outperform companies that do not use the process. (Bracker and Pearson 1986).

• The cost of failed implementation by an organization can be enormous:

• • Poor employee morale

• • Higher turn-over

• • Diminished trust and faith in the management team

• • Bankruptcy

• Helps bring focus, discipline and energy to the organization

20. Business Template

Who is going to do what, when and how quickly?

21. Strategy Implementation The Preferred supplier of profitableservices used in the XYZ field

Growth Accelerate

PROJECT CLUSTERSIdentify and develop newopportunities Identify new categories and products . AccelerateAccelerateLeadership -Demonstrate leadership attributes terms changes, deductions Productivity, Planning tools Stretch assignments, recognition, communications, team building Focus on leadership in our operations Performance appraisals ImplementSKU Optimization Planning Tools Improve receivables

Costs -Streamline / Invest

Operational Excellence

Cash-Generate

Business Process Excellence

• Increase

• Increase

IntroductionPartnerships InvestmentsExamine costs

Business Conduct -Protect the Corporation

Ethical business practices

Classes on customer service Business conduct training, communications, expectationsInitiatives External Growth Opportunities 22. What is a brand?

A brand is a distinctive identity which distinguishes a promise associated with a product, service, or organization and indicates the source of the promise.

A brand is more than a trademark.A brand is apromise mark .

23. What is a brand promise?

Represents the expectation the customer holds about our products, services and relationships and is relevant and differentiated.

An effective brand promise is created by addressing five levels in the customers mind.

24. The Brand Pyramid Tangible, checkable attributes/characteristics associated with the brand. Functional benefits that help to create and reinforce brand loyalty.What are the tangible benefits of using SA? Emotional benefits that help to create and reinforce brand loyalty.How do customers feel when using SA? Customer values that best describe the target loyalist. Who is the customer and what do they value? Characteristics that humanize and help give life to the brand. Features Benefits Rewards Values Personality Character of the brand Claim of the brand Permission to believe 25.

XYZ promises performance, quality, and reliability that will lead to a better experience, put your mind at ease and make you look and feel better.

Brand Promise 26. Segmentation

Savvy Segment

• Want choicesbut not too many

• Not price sensitive

27. Segmentation

Intermediate Segment

• Price sensitive but will pay for value

• Somewhat educated about the options

• Pre-occupied with other interests

• Want convenience

28. Segmentation

Economy Segment

• Very price sensitive

• Less educated about the options

• Pre-occupied with other interests

• Want hassle-free and convenience

29. Advertising/PR Plan 30. 2009 Promotional Calendar JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV TOT DEC PR Print Ads Radio Referrals Shows Sampling Internet Demo 31. Summary

Keys to a successful marketing strategy

• Know our business and products

• Know your core customer

• Manage your time and money wisely

• Be able to give your elevator speech about your business to anyone

32. We welcome your questions. 33. Business Planning -Authors/Key contributors

Michael Porter -Professor of Business Administration at the Harvard Business School and a leading authority in the field of competition and strategic management.What is Strategy,How Competitive Forces Shape Strategy, From Competitive Advantage to Corporate Strategy

Alan Weiss - Founder and president of Summitt Consulting Group.Has published hundreds of articles on strategic thinking and organizational behavior.Turning Strategy into Action Throughout Your Organization, Good Enough - Isnt Enough

George Morrisey -Chairman of the Morrisey Group, Management Consulting firm.Published over 15 books.Strategic Thinking, The Executive Guide to Strategic Planning.

Henry Mintzberg -former president of the Strategic Management Society, His main thesis is that planning and strategy making are mutually exclusive activities. He suggests how strategy making and planning can be implemented to complement each other.Crafting Strategy,The Fall and Rise of Strategic Planning

34. Strategic Planning -Authors/Key contributors

Gary Hamel and Prahalad -management consultants. Hamel and Prahalad have coauthored a number of best-selling, award-winning articles for theHarvard Business Reviewon corporate strategy and competition. Key concept - strategic intent, Strategy is revolution. Ten principles to creating truly revolutionary strategies.Strategic Intent,Strategy as Revolution

Dr. Igor Ansoff -known worldwide as the "Father of Strategic Management. His strategic success theorem states: For optimal success of an organization, the strategic aggressiveness (both technological and marketing) and the components of capability (both managers and organizational climate, competence and capacity) must match the level of environmental turbulence in which the organization competes.Implanting Strategic Management, The New Corporate Strategy

Peter Drucker -With over 60 years of work in the field of management offers a wide variety of books and articles relating to strategy and management concepts. Published 1st book in 1937.Was Editorial columnist for Wall Street Journal.The Essential Drucker: Sixty Years of Peter Drucker's Essential Writings on Management