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Constant print 2010

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  • 1. BlueOcean Strategy:BlueOcean Strategy: IntroIntro
  • 2. BlueOcean Strategy:BlueOcean Strategy: Does strategy matter?Does strategy matter? Metrics: Revenue perMetrics: Revenue peremployeeemployeeCompanyCompany $/employee$/employee(estimated 2007)(estimated 2007)11 Google (16,800)Google (16,800) $1,000k$1,000k22 Microsoft (79,000)Microsoft (79,000) $ 650k$ 650k33 IBM (355,000)IBM (355,000) $257k$257k44 Infosys (88,600)Infosys (88,600) $50k$50k55 Virtusa (3,000)Virtusa (3,000)www.virtusa.comwww.virtusa.com$35k$35k66 Avg. UA outsourcingAvg. UA outsourcing $20-$40k$20-$40k77 Foliage Software (100)Foliage Software (100)www.foliage.comwww.foliage.com$200k$200k
  • 3. BlueOcean Strategy:BlueOcean Strategy: IntroIntroWhat are Red and Blue Ocean Strategies?Red Ocean Strategy Blue Ocean StrategyCompete in existing market space Create uncontested market spaceBeat the competition Make the competition irrelevantExploit existing demand Create and capture new demandMake the value-cost trade-off Break the value-cost trade-offAlign the whole system of a firm’sactivities with its strategic choice ofdifferentiation or low cost. (Where havewe heard this?????)Align the whole system of a firm’sactivities in pursuit of differentiation andlow-cost.Fig. 1-3, p18
  • 4. BlueOcean Strategy:BlueOcean Strategy: OverviewOverview1.1. Analytical tools and frameworksAnalytical tools and frameworks2.2. Formulating Blue Ocean StrategyFormulating Blue Ocean Strategy3.3. Executing Blue Ocean Strategy – readExecuting Blue Ocean Strategy – readthe book.the book. 
  • 5. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools andFrameworksFrameworksAnalytical tools and frameworksAnalytical tools and frameworks Strategy Canvas – the attributes?Strategy Canvas – the attributes? Four Actions FrameworkFour Actions Framework
  • 6. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools andFrameworks -> Strategy CanvasFrameworks -> Strategy CanvasCurrent situation in your business…Current situation in your business…
  • 7. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools andFrameworks -> Four Actions FrameworkFrameworks -> Four Actions FrameworkPushing you away from (bloody) Red Oceans!Pushing you away from (bloody) Red Oceans!
  • 8. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools andFrameworks -> Four Actions FrameworkFrameworks -> Four Actions FrameworkSo how about for the wineSo how about for the wineindustry?industry?EliminateEnological terminologyand distinctionsAging qualitiesAbove-the-linemarketingRaisePrice vs. budgetwinesRetail storeinvolvementReduceWine complexityWine rangeVineyard PrestigeCreateEasy drinkingEase of selectionFun and adventure
  • 9. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools andFrameworks -> Four Actions FrameworkFrameworks -> Four Actions FrameworkSo how does it look now?So how does it look now?
  • 10. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools andFrameworks -> What to look for?Frameworks -> What to look for?1.1. Focus.Focus. Only a few things emphasized (keep costOnly a few things emphasized (keep costdown- company cannot do everything!)down- company cannot do everything!)2.2. Divergence.Divergence. Just a reactive strategy – not goodJust a reactive strategy – not goodenough (same curves). Distinct curve unlike others.enough (same curves). Distinct curve unlike others.3.3. Compelling tagline.Compelling tagline. New idea can beNew idea can becommunicated easily.communicated easily.
  • 11. BlueOcean Strategy:BlueOcean Strategy: Formulating ->Formulating ->Reconstruct Market BoundariesReconstruct Market Boundaries1.1. Look across alternative industries (Yellow Tail, NetJets,Look across alternative industries (Yellow Tail, NetJets,ConstantPrint)ConstantPrint)2.2. Look across strategic groups within industries (Cirque.., Curves)Look across strategic groups within industries (Cirque.., Curves)3.3. Look across the chain of buyers (Novo Nordisk (insulin), doctors-Look across the chain of buyers (Novo Nordisk (insulin), doctors->users)>users)4.4. Look across complementary product and service offeringsLook across complementary product and service offerings(Foliage: Product Strategy->Design->V1 && Outsourcing)(Foliage: Product Strategy->Design->V1 && Outsourcing)5.5. Look across functional or emotional appeal to Buyers. (QBLook across functional or emotional appeal to Buyers. (QBHouse: walk-in).House: walk-in).6.6. Look across time: (pirated music -> iTunes)Look across time: (pirated music -> iTunes)Other ideas: find an industry making long term good profit, pick aOther ideas: find an industry making long term good profit, pick asuffering client segment- solve their problem. Constant Print.suffering client segment- solve their problem. Constant Print. 
  • 12. BlueOcean Strategy:BlueOcean Strategy: Formulating -> OtherFormulating -> Othersources…sources…1.1. Look to non-customers. Most companies focus onLook to non-customers. Most companies focus onexisting customers, and more segmenting down.existing customers, and more segmenting down.(Calloway and big golf club heads).(Calloway and big golf club heads).2.2. Getting Sequence right:Getting Sequence right:1.1. Buyer Utility Yes/NoBuyer Utility Yes/No2.2. Price Yes/NoPrice Yes/No3.3. Cost Yes/NoCost Yes/No4.4. Adoption Yes/NoAdoption Yes/No
  • 13. Constant PrintConstant PrintA Blue Ocean CaseA Blue Ocean Case
  • 14. Constant Print:Constant Print: Meet Joe the pizza maker!Meet Joe the pizza maker! Over the years Joe hasOver the years Joe hastried:tried: ValpakValpak Entertainment BookEntertainment Book Yellow PagesYellow Pages Sponsoring Little LeagueSponsoring Little League Flyer distributionFlyer distribution Free toppings, freeFree toppings, freetoppings, free toppings…toppings, free toppings…
  • 15. Constant Print:Constant Print: Meet Joe the pizza maker!Meet Joe the pizza maker! What is Joe’s business?What is Joe’s business? Large, 2 topping: $13.75, 2Large, 2 topping: $13.75, 2large soda’s $3.50large soda’s $3.50 =$17.25=$17.25 COGS ~$7.50 (marginalCOGS ~$7.50 (marginalcost)cost) Revenue: $12k-Revenue: $12k-$25k/month, about 800$25k/month, about 800customers.customers. Profit/Owner Net: maybeProfit/Owner Net: maybe$5k-$10k/month$5k-$10k/month How much can heHow much can hereally spend onreally spend onmarketing?marketing?
  • 16. Constant Print:Constant Print: Meet Joe the pizza maker!Meet Joe the pizza maker! What does Joe look forWhat does Joe look forfrom a marketing servicefrom a marketing service How much does itHow much does itcost?cost? How much does itHow much does itcost?cost? Is it going to work?Is it going to work? How will I know it isHow will I know it isworking?working? Is it like anything I triedIs it like anything I triedbefore? (“Valpak didn’tbefore? (“Valpak didn’twork!”)work!”) How much time is it goingHow much time is it goingto take me?to take me?
  • 17. Constant Print:Constant Print: Joe tries Valpak (once, and $3000 later)…Joe tries Valpak (once, and $3000 later)…Marketing Service Attributes0123456ProgramCostCost/impressionTargetabilityFinancialEffectivenessMeasureableCycleTimeTrackabilityService Offering AttributesPerformanceValpak
  • 18. Constant Print:Constant Print: Flyers! Then Joe realizes “I can do better myself”Flyers! Then Joe realizes “I can do better myself”Marketing Service Attributes0123456ProgramCostCost/impressionTargetabilityFinancialEffectivenessMeasureableCycleTimeTrackabilityService Offering AttributesPerformanceValpakFlyer Distribution/Direct Mail
  • 19. Constant Print:Constant Print: Paper Ad: “But there must be another way?”Paper Ad: “But there must be another way?”Marketing Service Attributes0123456ProgramCostCost/impressionTargetabilityFinancialEffectivenessMeasureableCycleTimeTrackabilityService Offering AttributesPerformanceValpakFlyer Distribution/Direct MailNewspaper ad
  • 20. Constant Print:Constant Print: Restaurant.com: “This sounds different!”Restaurant.com: “This sounds different!”Marketing Service Attributes0123456ProgramCostCost/impressionTargetabilityFinancialEffectivenessMeasureableCycleTimeTrackabilityService Offering AttributesPerformanceValpakFlyer Distribution/Direct MailNewspaper adRestaurant.com
  • 21. Constant Print:Constant Print: Background and InspirationsBackground and Inspirations VistaprintVistaprint (( www.vistaprint.comwww.vistaprint.com )) ConstantContactConstantContact (( www.constantcontact.comwww.constantcontact.com )) CompetitionCompetition (( www.valpak.comwww.valpak.com,,www.entertainment.comwww.entertainment.com & Yellow Pages directories)& Yellow Pages directories) GoogleGoogle Tesco Supermarket Loyalty programTesco Supermarket Loyalty program
  • 22. Constant Print:Constant Print: Nuance of Coupons.Nuance of Coupons. Coupons without measurement are a WASTE of $Coupons without measurement are a WASTE of $ Local business is about RELATIONSHIPS. I give you aLocal business is about RELATIONSHIPS. I give you aBIG coupon, ONCE to DECREASE your RISK to TRYBIG coupon, ONCE to DECREASE your RISK to TRYmy business.my business. Local business is about LOYALTY. It means if you areLocal business is about LOYALTY. It means if you areloyal to a business, the business can TREAT you asloyal to a business, the business can TREAT you asSPECIAL.SPECIAL.
  • 23. Constant Print:Constant Print: Scalable and targetted.Scalable and targetted. Joes creates a collection of offersJoes creates a collection of offers Picks a marketing plan… Say $49/monthPicks a marketing plan… Say $49/month And begins farming in his neighborhood!And begins farming in his neighborhood!
  • 24. Constant Print:Constant Print: System OverviewSystem OverviewConstantPrint.com:1. Register2. Create Offers, Announcements3. Record/Track Redemptions4. Dashboard5. Account ManagementPrint-Production Manager:1. RegisterConstantPrint Admin:1. Unpaid Content Management2. Performance management3. Customer supportPrint Content Generator:1. Optimization2. Store “Footprint” analytics3. Yield optimization4. Unpaid Content Management
  • 25. Scalable and targeted.Scalable and targeted.1. Createcampaign offers2. Define acommunity regionConstant Print:Constant Print: System OverviewSystem Overview
  • 26. Constant Print:Constant Print:“What I really need!”“What I really need!”Marketing Service Attributes0123456ProgramCostCost/impressionTargetabilityFinancialEffectivenessMeasureableCycleTimeTrackabilityRepeatContactCommunitySupportService Offering AttributesPerformanceValpakFlyer Distribution/ Direct MailNewspaper adEntertainment BookRestaurant.comDirectory ListingsConstantPrint
  • 27. ENDENDConstant Print combines digital printing, a self-service cooperative mailingConstant Print combines digital printing, a self-service cooperative mailingmodel, and the power of analytics designed for the local small businessperson.model, and the power of analytics designed for the local small businessperson.All delivered as a service designed to farm each business’ home territory andAll delivered as a service designed to farm each business’ home territory andsteadily grow a profitable customer base.steadily grow a profitable customer base.