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Start-up in Ukraine Strategy Operation plan
<ul><li>Strengths </li></ul><ul><li>Unique product/offer: PHOTOBOOK  </li></ul><ul><li>Developed web-site/software </li></...
<ul><li>SO </li></ul><ul><li>Offer unique product to the market through the mass retail (SM) with the full service support...
Offered marketing mix E-letters, banners Fully under PP control “ Service retail”, POSMs, Photobooks samples PHYSICAL EVID...
Checking strategic directions for appropriateness SO ST WT WO
Operational Sales Planning tbd tbd <ul><li>Production Objectives </li></ul><ul><li>Site/soft updates </li></ul><ul><li>Est...
Channel analysis: SUPERMARKETS VOLUME PLANNED (KYIV) Average sales volume is 20 books per SM per month 1,000 50 35% 144 To...
SUPERMARKETS (Cost expected, UAH) <ul><li>One service point in Retail will generate 32 K cost for one SM in 1 year </li></...
SUPERMARKETS (Cost expected, UAH): B Plan <ul><li>There is a need for a B Plan if Supermarkets will object to roll-out own...
Offer to SM <ul><li>SUPERPHOTO offers: </li></ul><ul><li>Training for shop assistant </li></ul><ul><li>Merchandising mater...
Regular visits to SM <ul><li>Objectives: </li></ul><ul><li>Materials placement, renewal </li></ul><ul><li>Consulting/assis...
Regular visits to SM <ul><li>After Start-up (6 weeks): </li></ul><ul><li>visits frequency/week will be reduced: from 1.5 t...
Sales Process in SM (Customer reluctant for self-service)
Channels analysis: AMBASSADORS <ul><li>PROFESSIONAL PHOTOGRAPHERS </li></ul><ul><li>500 weddings per week in Kyiv (2,000 m...
Channels analysis: AMBASSADORS <ul><li>AMBASSADOR PROGRAM </li></ul><ul><li>Will be particularly addressed to PP  </li></u...
SALES PLAN: BY CHANNELS (KYIV ONLY) 5,590 5,020 4,550 3,890 3,220 2,620 2,020 1,420 250 Total 180 170 160 150 130 120 110 ...
Launch road-map <ul><li>Steps </li></ul><ul><li>Meeting with SM: 2 groups, 9 SM chains -> 1 week (2 meetings / day) </li><...
Rout to market 70 /  410 5% /  7% 850 /  3,500 60% /  63% 400 /  1,500 28% /  27% 100 /  180 7% /  3% 70 /  410 5% /  7% M...
Planned Trade Marketing budget <ul><li>Note </li></ul><ul><li>Quantity and items could be revised depends on number of Ret...
P&L analysis (excluding fixed cost)
STRATEGIC PRIORITIES <ul><li>Short term (till Sep’09): establishing channels </li></ul><ul><li>Supermarkets in Kyiv </li><...
Marketing campaigns 1. For Mass market Objective:  to increase demand Mechanics:  to print special double-side coupon.  On...
Marketing campaigns 2. “End of school” campaign Objective:  to boost sales Mechanics:  visit schools and offer PHOTOBOOK f...
“ End of school” campaign <ul><li>Visits frequency </li></ul><ul><li>Because of Campaign visits frequency will be reduced ...
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S U P E R P H O T O[1]

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Transcript of "S U P E R P H O T O[1]"

  1. 1. Start-up in Ukraine Strategy Operation plan
  2. 2. <ul><li>Strengths </li></ul><ul><li>Unique product/offer: PHOTOBOOK </li></ul><ul><li>Developed web-site/software </li></ul><ul><li>Experience </li></ul><ul><li>Flexibility </li></ul><ul><li>Established supply chain (Logistics) </li></ul><ul><li>Intention to establish own Sales Force </li></ul><ul><li>Weaknesses </li></ul><ul><li>Start-up activity: lack of power </li></ul><ul><li>No established Sales Force </li></ul><ul><li>Lack of local knowledge/expertise </li></ul><ul><li>Lack of customer base </li></ul><ul><li>Lack of relationships/connections </li></ul><ul><li>Limited “easy to use”: software requires certain Customer’s capabilities (and time) </li></ul><ul><li>Customer experience fully depends satisfaction with Web </li></ul><ul><li>Opportunities </li></ul><ul><li>Growth of Internet penetration </li></ul><ul><li>Current wide offer to order print through Web </li></ul><ul><li>Potential demand </li></ul><ul><li>High penetration of digital cameras: “digitalization” of Customers’ behavior </li></ul><ul><li>Globalization: knowledge and experience penetration (EU -> Ukraine) </li></ul><ul><li>Low competition but print on souvenirs and photo through Web are available </li></ul><ul><li>Customers’ readiness for innovations </li></ul><ul><li>Supermarkets (SM) are the part of social life </li></ul><ul><li>Threats </li></ul><ul><li>Trend for print at home due to sophisticated equipment availability (retail trend) </li></ul><ul><li>Pro-photographers (PP) with home production could grow as alternative (substitution risk) </li></ul><ul><li>Limited customers capabilities to make and manage their order online (skills) </li></ul><ul><li>No customer experience </li></ul><ul><li>Lack of awareness </li></ul><ul><li>Political and economical uncertainty </li></ul>SWOT analysis
  3. 3. <ul><li>SO </li></ul><ul><li>Offer unique product to the market through the mass retail (SM) with the full service support and merchandising support </li></ul><ul><li>Active communication to potential customers in order to create awareness </li></ul><ul><li>Enabling full Customer service in mass retail </li></ul><ul><li>Bind retail chains with long-term contracts (min.18 months) and during that time penetrate whole Ukraine </li></ul>Elaborated strategic directions <ul><li>ST </li></ul><ul><li>Focus on PP in order to create Ambassadors group </li></ul><ul><li>Position PP as re-sellers </li></ul><ul><li>Manage this channel with own Sales Force (regular workshops, meetings etc) </li></ul><ul><li>WT </li></ul><ul><li>Focus on PP in order to create Ambassadors group, position PP as re-sellers </li></ul><ul><li>Manage this channel through Web mainly (Ambassador Program, discounts) </li></ul><ul><li>WO </li></ul><ul><li>Web-based market penetration, e-commerce </li></ul><ul><li>Saved cost is relocated towards web adverts (banners) </li></ul>
  4. 4. Offered marketing mix E-letters, banners Fully under PP control “ Service retail”, POSMs, Photobooks samples PHYSICAL EVIDENCE Regular e-communication, Customers management (by volume, value) PP, customers database, regular e-communication to TA PP Database collection, regular contacts by Sales Force Sales standards, targets, daily visits, reporting, supervision PROCESSES Web specialists Web specialists Loyal PP (Ambassadors), SP Sales Force Sales Force is required (FMCG experience is preferred) PEOPLE Web (banners), “hot offers” campaigns Word of mouth, links from SP site to PP sites, bundles Availability, visibility in Retail, WEB (links to SM pages), PP, bundled offers for new customers PROMOTION Flat Discounted offers to PP (identification by IP addresses) FLAT, commissions to Retail, discounts for PP PRICE Web PP, Web PP (served by Sales Force based on regular meetings) Key retail, PP, WEB PLACE SUPERPHOTO PHOTOBOOK PRODUCT WO WT ST SO
  5. 5. Checking strategic directions for appropriateness SO ST WT WO
  6. 6. Operational Sales Planning tbd tbd <ul><li>Production Objectives </li></ul><ul><li>Site/soft updates </li></ul><ul><li>Establish winning spirit by acting based on detailed strategy and plan </li></ul><ul><li>Avoid mental blockage </li></ul><ul><li>Market success vs organizational size </li></ul><ul><li>Personnel / Structure Objectives </li></ul><ul><li>Winning attitude </li></ul><ul><li>High cost sensitivity </li></ul><ul><li>Attack the Market by </li></ul><ul><li>win-win proposal for SM to retain Customers and gain new ones </li></ul><ul><li>Complementary product for PP (their portfolio extension) </li></ul><ul><li>Precise execution </li></ul><ul><li>Effective management </li></ul><ul><li>Performance control and management </li></ul><ul><li>Sales Objectives </li></ul><ul><li>Create a Distribution and Sales system in line with the growth expectation </li></ul><ul><li>Establish own Sales Force </li></ul><ul><li>Penetrate to SM, PP </li></ul><ul><li>Show competence on Retail level </li></ul><ul><li>Visibility and availability </li></ul>tbd tbd <ul><li>Finance Objectives </li></ul><ul><li>ROI, break even </li></ul><ul><li>Combine Innovations with “Easy to use” principle to establish a positive emotional brand relation </li></ul><ul><li>Trade Marketing activity </li></ul><ul><li>Merchandising standards </li></ul><ul><li>Start-up promo (bundled products) </li></ul><ul><li>Brand/Marketing Objectives </li></ul><ul><li>Create Consumer demand by quality, innovations and presence </li></ul><ul><li>Growth based on Market penetration through mass retail and Ambassador group with focus on service quality </li></ul><ul><li>Speed to Market </li></ul><ul><li>Successful penetration to SM </li></ul><ul><li>Company/Market Objectives </li></ul><ul><li>1,500 photobooks in May 09 </li></ul><ul><li>Steady monthly growth up to 4,500 books in Sep 09, 6,000 in Dec 09 </li></ul><ul><li>Trade channel focus with a following prioritized regional extension </li></ul>Strategy Critical Success Factors Objectives
  7. 7. Channel analysis: SUPERMARKETS VOLUME PLANNED (KYIV) Average sales volume is 20 books per SM per month 1,000 50 35% 144 Total 20 1 100% 1 Magellan 40 2 100% 2 Materik 20 1 100% 1 Karavan 36 2 60% 3 Billa 32 2 10% 16 Eco-market 90 5 10% 45 Fora 371 19 50% 37 Silpo 190 10 50% 19 V.Kyshenja 200 10 50% 20 Furshet Planned sales volume/month Covered SM Expected agreement to be signed SM number Chain
  8. 8. SUPERMARKETS (Cost expected, UAH) <ul><li>One service point in Retail will generate 32 K cost for one SM in 1 year </li></ul><ul><li>Desktop is assumed to be available (SM-?), otherwise it is $200 additional cost </li></ul><ul><li>Alternative solution: Cost of Desktop is to be paid by installments to SM in 6 months </li></ul><ul><li>In order to support Shop Assistant in SM commission can be offered by SP </li></ul><ul><li>Assumption: AVG order value is 300 UAH, commission rate is 10% </li></ul><ul><li>With 2,636 UAH monthly cost the Break even for SM is 88 photobooks / month (3 / day) </li></ul>31,640.00 2,570.00 800.00 Total 840.00 70.00 Traffic (1 Gb) 800.00 800.00 Internet (3G m odem ) 30,000.00 2,500.00 Salary (1 shop assistant) Ann ual cost Monthly cost Initial cost Cost item
  9. 9. SUPERMARKETS (Cost expected, UAH): B Plan <ul><li>There is a need for a B Plan if Supermarkets will object to roll-out own POS with own person </li></ul><ul><li>Then, as compromise, SP have to place own Shop Assistants </li></ul><ul><li>Salary in this case will be the cost of SP </li></ul><ul><li>It could be consisting of fix portion (1000 UAH) plus variable portion (% of Sales revenue) </li></ul><ul><li>For 3 months till July (when sales will exceed 33 books/SM/month and salary will be equal to 25% of it) it will create extra cost. </li></ul>
  10. 10. Offer to SM <ul><li>SUPERPHOTO offers: </li></ul><ul><li>Training for shop assistant </li></ul><ul><li>Merchandising materials </li></ul><ul><li>Permanent support (technical, operational) </li></ul><ul><li>Co-branding (links from SP site) </li></ul><ul><li>Benefits for SM: </li></ul><ul><li>Extended service portfolio </li></ul><ul><li>Loyalty increase from existent customers </li></ul><ul><li>Opportunity to gain new customers </li></ul><ul><li>Additional communication channel in Web (SUPERPHOTO site) </li></ul><ul><li>No earning but retention activity! </li></ul><ul><li>Requirements to SM: </li></ul><ul><li>Interior Kiosk/counter </li></ul><ul><li>Shop assistant (capable and trained by SP) </li></ul><ul><li>PC </li></ul><ul><li>Cashier/collections </li></ul><ul><li>Customer’s database (name, phone, e-mail), format is to be provided by SP </li></ul>
  11. 11. Regular visits to SM <ul><li>Objectives: </li></ul><ul><li>Materials placement, renewal </li></ul><ul><li>Consulting/assistance </li></ul><ul><li>Info, orders, reporting </li></ul><ul><li>Planned KPIs: </li></ul><ul><li>18 SM under direct responsibility for 6 weeks (start-up) </li></ul><ul><li>6 visits per day, 9 visits to every SM during start-up </li></ul><ul><li>Staff: 3 Sales Reps are required </li></ul>3 X X X SM 4 6 Rout 3 mo 6 X Rout 1 tu 6 X X Rout 2 we 6 X X Rout 3 th Reserved fri sa su MINIMUM Rout 2 Rout 1 Rout 3 Rout 2 Rout 1 3 3 3 3 3 Total/SM su sa 6 6 6 6 6 TOTAL X X SM N X … X SM 3 X X SM 2 X X SM 1 fri th we tu mo
  12. 12. Regular visits to SM <ul><li>After Start-up (6 weeks): </li></ul><ul><li>visits frequency/week will be reduced: from 1.5 to 1 </li></ul><ul><li>Visits per day: 5 </li></ul><ul><li>Planned KPIs: </li></ul><ul><li>25 SM under direct responsibility FOR 1 SR </li></ul><ul><li>5 visits per day, 1 visit to every SM per week </li></ul><ul><li>Number of SR: 2 (1 SR is to be transferred to PP to promote AMBASSADOR program) </li></ul>2 X X SM 8 2 X X SM 7 2 X X SM 6 2 X X SM 5 2 X X SM 4 5 X Rout 1 mo 5 X X Rout 2 tu 5 X X Rout 3 we 5 Rout 4 th 5 Rout 5 fri sa su MINIMUM Rout 5 Rout 4 Rout 3 Rout 2 Rout 1 2 2 2 2 2 Total/SM su sa 5 5 5 5 5 TOTAL X SM N X … X SM 3 X SM 2 X SM 1 fri th we tu mo
  13. 13. Sales Process in SM (Customer reluctant for self-service)
  14. 14. Channels analysis: AMBASSADORS <ul><li>PROFESSIONAL PHOTOGRAPHERS </li></ul><ul><li>500 weddings per week in Kyiv (2,000 monthly), up to 200 PP </li></ul><ul><li>Planned volume: 25% or 500 orders per month </li></ul><ul><li>Assuming 4 couples/months for 1 PP it means 125 PP are to be involved </li></ul><ul><li>At the same time AVG order per couple is 2.5 </li></ul><ul><ul><ul><li>assumption; reasons: </li></ul></ul></ul><ul><ul><ul><ul><ul><li>wedding order is more than 1, </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>book can be offered to existent clients) </li></ul></ul></ul></ul></ul><ul><li>Plan: 50 PP are to be converted as AMBASSODRS in 2 months (April, May) </li></ul><ul><li>PHOTOSCHOOL ( www.photoschool.kiev.ua ) </li></ul><ul><li>Competence and learning centre in Kyiv </li></ul><ul><li>Assumed 50 people converted with 2 books ordered per months result in 100 books extra </li></ul>
  15. 15. Channels analysis: AMBASSADORS <ul><li>AMBASSADOR PROGRAM </li></ul><ul><li>Will be particularly addressed to PP </li></ul><ul><li>Every registered PP will get own ID (login, password) to be identified </li></ul><ul><li>Discount will be offered based on cumulative value of orders: 5%, 10%, 15% with “YOU SAVE” indication (Alternative: collected bonuses to be exchanged for following orders) </li></ul><ul><li>For this discount PP can charge their audience </li></ul><ul><li>Extra: forum (Q&A section) in SUPERPHOTO site for Professionals </li></ul>
  16. 16. SALES PLAN: BY CHANNELS (KYIV ONLY) 5,590 5,020 4,550 3,890 3,220 2,620 2,020 1,420 250 Total 180 170 160 150 130 120 110 100   Photoschool 1,500 1,300 1,200 1,000 800 650 500 400   Ambassador (PP) 3,500 3,200 2,900 2,500 2,100 1,700 1,300 850 200 SM 410 350 290 240 190 150 110 70 50 Public 50 50 50 50 50 50 50 50 50 Current Dec-09 Nov-09 Oct-09 Sep-09 Aug-09 Jul-09 Jun-09 May-09 Apr-09
  17. 17. Launch road-map <ul><li>Steps </li></ul><ul><li>Meeting with SM: 2 groups, 9 SM chains -> 1 week (2 meetings / day) </li></ul><ul><li>50 PP After training Assistants will receive Certificate of SUPERPHOTO designing skills </li></ul><ul><li>Note/proposal </li></ul><ul><li>After training Assistants will receive Certificate of Master in SUPERPHOTO designing skills </li></ul>
  18. 18. Rout to market 70 / 410 5% / 7% 850 / 3,500 60% / 63% 400 / 1,500 28% / 27% 100 / 180 7% / 3% 70 / 410 5% / 7% May’09 / Dec’09 Total Sale volume CONSUMERS SM PP Photoschool
  19. 19. Planned Trade Marketing budget <ul><li>Note </li></ul><ul><li>Quantity and items could be revised depends on number of Retailers </li></ul>50     1 Cap 50     1 Pazzle 50     1 Mouse pad 50     1 T-shirt Sample kit 101 1 1 1 Photobook (sample) 50     1 Poster/Banner (Spider) 1 50 50 Total Photoschool PP SM Materials
  20. 20. P&L analysis (excluding fixed cost)
  21. 21. STRATEGIC PRIORITIES <ul><li>Short term (till Sep’09): establishing channels </li></ul><ul><li>Supermarkets in Kyiv </li></ul><ul><li>Ambassadors (PP, Photoschool) </li></ul><ul><li>Mid term (till Dec’09) : reasonable “suburbs” regional expansion, channels development </li></ul><ul><li>Supermarkets, shopping malls </li></ul><ul><li>B2B activity (souvenirs, Photobooks) </li></ul><ul><li>Long term (from Jan’10): National expansion </li></ul><ul><li>Supermarkets </li></ul><ul><li>Ambassadors </li></ul><ul><li>B2B </li></ul><ul><li>Mass market with active communication in Web </li></ul>
  22. 22. Marketing campaigns 1. For Mass market Objective: to increase demand Mechanics: to print special double-side coupon. One side: description of PHOTOBOOK. Back side: Offer to owners of coupons “Order one PHOTOBOOK till the end of May and get another with 50% discount”. Addresses of SM are indicated. This Program could be communicated to SM as additional marketing benefit for them Distribution place: maternity homes, kindergardens. 2. For Ambassadors: same mechanics could be applied
  23. 23. Marketing campaigns 2. “End of school” campaign Objective: to boost sales Mechanics: visit schools and offer PHOTOBOOK for graduates End of lessons: 25.05.09 Exams: till 20.06.09 School leaving ball: 20.06.09 Time required: 200 schools / 3 SR / 5 visits per day = 9.5 days Expected Sales volume: 200 schools x 3 classes x 30 people x 25% = 4,500 photobooks Offer is to be carefully prepared: e.g. PHOTOBOOK + T-shirt (with phaces of classmates) + Cap
  24. 24. “ End of school” campaign <ul><li>Visits frequency </li></ul><ul><li>Because of Campaign visits frequency will be reduced </li></ul><ul><li>2 days in 1 st , 2 nd weeks + 3 rd week will be used for schools: 2+2+5=9 days </li></ul><ul><li>Number of daily visits: 200 / 3 SR / 9 days = 7.5 </li></ul>su sa SCHOOL fri SCHOOL th 6 Rout 3 we 6 X X Rout 2 tu 6 X X Rout 1 mo X SM 4 SCHOOL mo SCHOOL tu SCHOOL we SCHOOL th SCHOOL fri sa su SCHOOL SCHOOL Rout 3 Rout 2 Rout 1 su sa 6 6 6 TOTAL X SM N X … X SM 3 X SM 2 X SM 1 fri th we tu mo
  25. 25. Thank you!
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