Pier Paolo Mucelli @ LSE: Knowing your Market 2010 03


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Pier Paolo Mucelli @ LSE: Knowing your Market 2010 03

  1. 1. eOffice Case Study “ Knowing and Impressing your Market” LSE – October 2009
  2. 2. eOffice Vision <ul><li>eOffice  ‘s vision is to improve the quality of life of professionals by providing flexible and competitively priced ready made networked offices , touch down spaces, meeting and conference facilities in a contemporary and high tech environment in city centre locations across the UK, and worldwide, in the future </li></ul>
  3. 3. eOffice – The Concept <ul><li>eOffice  offers beautifully designed, high tech, fully furnished and serviced offices in city centre locations </li></ul><ul><li>eOffice  workspace is based on an open plan environment, or “office neighbourhoods” with few wall to wall partitions, where good aesthetics and design are combined with information-age technology. </li></ul><ul><li>Main service lines are virtual offices (business address and telephone answering), hot desking (touch down), fully furnished office, meeting and conference facilities </li></ul><ul><li>Additional services include administration and online services, making eOffice a one-stop-shop for start-ups and SMEs </li></ul><ul><li>Strong activities for members, including company visits, networking events and powerful online communities (faceboook, linkedin, twitter) </li></ul><ul><li>eOffice  centres provide a suitable office solution for small businesses, start-ups and self-employed, in particular in the creative, media and technology sectors </li></ul><ul><li>All services are sold online, with an ecommerce platform </li></ul>
  4. 4. Office Trends <ul><li>Decrease in the amount of workspace allocated to individuals </li></ul><ul><li>Increase in the creation of spaces to support collaborative work </li></ul><ul><li>Growth in the practice of distributed working </li></ul><ul><li>Growth in the use of technologies to support collaboration, connectivity and distributed working </li></ul><ul><ul><ul><ul><ul><li>Study by DEGW, 2004 </li></ul></ul></ul></ul></ul>
  5. 5. Market <ul><li>Office space (serviced offices) </li></ul><ul><li>- Market leader Regus (1000 centres, 135 UK), Servcorp (Austrialian based, 77 centres) , MWB (UK, 60 centres), The Executive Office (UK, 30 centres) </li></ul><ul><li>- Very fragmented market, around 2,000 centres in UK </li></ul><ul><li>- Serviced offices offer little differentiation in terms of design, technology and services </li></ul><ul><li>Conference / meeting rooms </li></ul><ul><li>- Several hotel chains offering conference and meeting rooms </li></ul><ul><li>- Conference and meeting centres (Etc. Venues, De Vere) </li></ul><ul><li>Virtual office services </li></ul><ul><li>- Mail Boxes Etc (part of UPS): shipping, postal and business services , over 4,800 locations worldwide </li></ul><ul><li>- FedEx Office (ex Kinkos): postal services, printing and office services </li></ul><ul><li>- eReceptionist: telephone number and answering services </li></ul><ul><li>- DaVinci : virtual office operator </li></ul>
  6. 6. History <ul><li>Dec 99 – eOffice is accepted as a trademark </li></ul><ul><li>Jun 00 – eoffice.net and eoffice.co.uk are purchased </li></ul><ul><li>Apr 02 - eOffice  opens it first business centre in London Soho </li></ul><ul><li>May 02: eOffice launched prepaid hotdesking, then virtual office </li></ul><ul><li>Sep 02: eOffice starts Google PPC, Google writes case study </li></ul><ul><li>Jan 03: First wi-fi connected business centre in UK </li></ul><ul><li>Jun 03: CNN and BBC coverage </li></ul><ul><li>Mar 06: eOffice Manchester opens </li></ul><ul><li>Mar 07: eOffice Birmingham and Bristol open </li></ul><ul><li>Oct 07: eOffice wins British Council of Offices Innovation Award </li></ul><ul><li>Nov 07: eOffice becomes first carbon neutral business centre </li></ul><ul><li>Jul 08: eOffice eNetwork launched, a network of independent worldwide business centres </li></ul><ul><li>Jan 09: 100 centres joined eOffice eNetwork </li></ul>
  7. 7. Products / Services <ul><li>Virtual Office : business address, mail forwarding, telephone answering, messaging </li></ul><ul><li>Hot Desking : office access by the hour, with internet connection, prepaid hot desk hours </li></ul><ul><li>Meeting , Conference Rooms and Videoconferencing: available on hourly or daily basis </li></ul><ul><li>Serviced Offices : flexible office space for individuals and companies from 1 to 20 people </li></ul><ul><li>ePA: secretarial services on a prepaid flexible basis </li></ul><ul><li>Membership and networking : access to community portal and networking events. Calendar function in myeOffice blog integrated to facebook, linkedin, twitter </li></ul><ul><li>Services : voice, data, mail, fax to email, printing, copying, secretarial services, stationery, file storage and digital services </li></ul>
  8. 8. <ul><li>eOffice Soho </li></ul>
  9. 9. <ul><li>eOffice Manchester </li></ul>
  10. 10. <ul><li>eOffice Birmingham </li></ul>
  11. 11. <ul><li>eOffice Bristol </li></ul>
  12. 12. Pricing <ul><li>Retail concept: £xx.99 </li></ul><ul><li>Competitive basic prices and adds on (low cost airline strategy) </li></ul><ul><li>Different options: basic / premium </li></ul><ul><li>Incentives for prepayment (12+1 foc) </li></ul><ul><li>Start low, build volume and slowly increase prices </li></ul><ul><li>Keep competitive prices, while building volume and add more services </li></ul>
  13. 13. Promotion / Exhibitions
  14. 14. PR - Endorsements - Awards <ul><li>CNN Coverage 2002 (Design 360) </li></ul><ul><li>BBC Coverage 2003 (Dreamspaces) </li></ul><ul><li>eOffice Soho Finalist FX Awards 2002 and eOffice Manchester Finalist FX Awards 2006 </li></ul><ul><li>eCiffo, Japan (2002): Selected as innovative offices </li></ul><ul><li>IAO (Germany) Office 21 – Future of Work, 2003, selected in their ‘Best Practice Tour’ </li></ul><ul><li>HSBC Star Award 2004 – Finalist </li></ul><ul><li>BCO Innovation Award Overall Winner 2007 </li></ul><ul><li>BCO Regional Winner 2007 – 2008 </li></ul><ul><li>RIBA – Good Office Design 2009 </li></ul>
  15. 15. Partnerships <ul><li>Key Suppliers </li></ul><ul><li>Herman Miller - Case Study 2003 </li></ul><ul><li>Kristalia – Case Study 2007 </li></ul><ul><li>Avaya – Telecom </li></ul><ul><li>Canon – Imaging solutions </li></ul><ul><li>Key Marketing Partners </li></ul><ul><li>British Library – IP Centre </li></ul><ul><li>Make your Mark </li></ul><ul><li>Microsoft – Biz Spark </li></ul><ul><li>Nacue (entreprise societies) </li></ul><ul><li>Seedcamp </li></ul><ul><li>School for Startups </li></ul><ul><li>TiE </li></ul>
  16. 16. ‘ Distribution’ eOffice 2.0 <ul><li>Search Engines: Google / Yahoo / Bing </li></ul><ul><li>Business Networks: Linkedin / Twitter </li></ul><ul><li>Social Networks: Facebook, ASmallWorld </li></ul><ul><li>Directories: Gumtree / Primefind / Craig’s List </li></ul><ul><li>Surveys: Zoomerang / Survey Monkey </li></ul><ul><li>Blogs: myeOffice.com / eOffice.tv </li></ul><ul><li>Directories encyclopedia: Wikipedia </li></ul><ul><li>Photo Sharing: Picasa / Flickr </li></ul><ul><li>Video Sharing: YouTube / Vimeo </li></ul><ul><li>Virtual Life: Second Life: myeOffice.net </li></ul>
  17. 17. Competitive Advantages <ul><li>Lower property costs. eOffice operates from business centres of around 10,000 s.f. average (1/3 the size of traditional serviced offices), hence a lower property cost </li></ul><ul><li>High margin services. More than 50% of eOffice turnover is derived from high margin services like virtual office, meeting and conference rooms and videoconferencing and hotdesking, as compared to traditional full time self contained office space </li></ul><ul><li>High Density. Space efficient benches offer higher density in self contained offices, while the balance of the office space is dedicated to open plan workstations, giving higher density and lower fit out cost. </li></ul><ul><li>Direct Sales . A high percentage of leads come via search engines (using SEO techniques and pay per click campaigns) cutting the agent intermediaries </li></ul>
  18. 18. Selling Points / Benefits to Clients <ul><li>City centre locations , next to transport hubs, and leisure and retail, good quality and representative building </li></ul><ul><li>Creative environment with contemporary design and ergonomic furniture. Variety of working areas, including large lobby, break-out areas, quite booths, hot desking / open plan. </li></ul><ul><li>Advanced technology , including wireless broadband, voice logging-in anywhere, plasma screens and videoconferencing </li></ul><ul><li>Members networking. Registration to myeOffice blog, calendar and connection via Facebook, Linkedin, Twitter. Regular networking events called Net Thursday </li></ul><ul><li>Flexibility, scalability and competitive pricing . Price below market leader, options including virtual, part time and full time, possibilities of changing options every month and to scale up or down quickly </li></ul><ul><li>Outstanding customer service . Friendly, attentive and professional customer service, from administration, sales, front desk to IT support, fundamental to long-term client retention </li></ul>
  19. 19. eOffice Client Base <ul><li>Virtual Office: start ups and overseas clients, around 500 companies </li></ul><ul><li>Hot Desking: growing market, mostly consultants, SMEs, but also corporates </li></ul><ul><li>Meeting Rooms: small businesses, creative businesses, large corporates </li></ul><ul><li>Serviced Offices : mostly start ups, small businesses, consultants, rep. offices, companies with between 1-20 people </li></ul><ul><li>Networking, membership: 130,000 opt-in email addresses, 50,000 Linkedin contacts, over 10,000 twitter followers, over 1,000 eOffice card members </li></ul>
  20. 20. Growth Opportunities <ul><li>Virtual Office </li></ul><ul><li>- Offer virtual office worldwide locations via a full ecommerce solution </li></ul><ul><li>- Buy business addresses, add VOIP numbers and re-sell </li></ul><ul><li>eNetwork expansion </li></ul><ul><li>- Extend the eNetwork scheme to 200 centres by 2010 </li></ul><ul><li>- Relaunch eOffice membership card scheme via affiliate centres </li></ul><ul><li>Management Contracts </li></ul><ul><li>- Develop a management contract scheme </li></ul><ul><li>- Target property companies with prestigious buildings in city centre locations </li></ul><ul><li>- Landlords to invest in fit out, eOffice management / marketing </li></ul><ul><li>Licence/Franchise Agreements </li></ul><ul><li>- Introduce franchise contracts in non-core markets </li></ul><ul><li>- Obtain fixed fee and yearly fees percentage of turnover </li></ul>
  21. 21. Building Knowledge <ul><li>Properties: Working with property consultant to identify appropriate sites. Visited hundreds of properties since 2001, hands on approach </li></ul><ul><li>Interiors: Since 2000, visited major design/trade exhibitions including Salone del Mobile – Milano, and French/Germany/UK fairs </li></ul><ul><li>Technology: Attending small and large technology events, including Cebit </li></ul><ul><li>Start up community : Attending smaller events targeting startup community in London and UK, and sponsoring many events </li></ul><ul><li>Client Networking: Participating to eOffice networking events (Net Thursday, Coffee Fridays, and Lunch with the CEO), to understand clients requirements. Several online group resources too </li></ul><ul><li>Knowledge building: Subscribing to over 50 publications, and several specialised newsletters/blogs/online resources </li></ul>
  22. 22. Importance of the Brand <ul><li>The name eOffice was first thought in summer 1999 (dot-com boom) </li></ul><ul><li>eOffice UK trademark was obtained before business started in Nov 1999 </li></ul><ul><li>eOffice logo developed by small creative agency in mid 2000 </li></ul><ul><li>eOffice  word and logo is now trademarked in 5 classes of services in UK, CTM (25 countries of European Community), USA and all countries signatory of the Madrid Protocol. </li></ul><ul><li>Domain names eoffice.net and eoffice.co.uk were bought in 2000 </li></ul><ul><li>eOffice now owns around 100 domain names, including eoffice.net, eoffice.co.uk, eoffice.de, eoffice.it, eoffice.fr, eoffice.ru, eoffice.us etc. </li></ul><ul><li>Memorable telephone number 0870 888 88 88 and fax number </li></ul><ul><li>Complete branding manual available </li></ul><ul><li>Simple, memorable brand reduces marketing expenditure and increase sales potential </li></ul>
  23. 23. Tips and lessons learned <ul><li>Knowledge: Prepare yourself, study the market, attend events/fair/presentation and read a lot </li></ul><ul><li>Innovate: W hatever you do, do it better than existing providers, offer benefits to your clients </li></ul><ul><li>Marketing: Try different marketing / promotional activities and then focus on the most effective </li></ul><ul><li>People : Even with the best products/services, you need a good team around you to implement your vision </li></ul><ul><li>Perseverance: If you believe in what you do, be focused and patient, it takes a long time to build a stable business </li></ul>
  24. 24. The eOffice Car Fleet … in 2002 (left) and 2012 (right)…