Mark Kapiy. Constant Print With Blue Ocean

Blue Ocean Strategy: Intro

Blue Ocean Strategy: Does strategy matter?
Metrics: Revenue per employee
$200k Foliage Software (100) www.foliage.com 7 $20-$40k Avg. UA outsourcing 6 $35k Virtusa (3,000) www.virtusa.com 5 $50k Infosys (88,600) 4 $257k IBM (355,000) 3 $ 650k Microsoft (79,000) 2 $1,000k Google (16,800) 1 $/employee (estimated 2007) Company

Blue Ocean Strategy: Intro

Blue Ocean Strategy: Overview
Analytical tools and frameworks
Formulating Blue Ocean Strategy
Executing Blue Ocean Strategy – read the book. 

Blue Ocean Strategy: Analytical Tools and Frameworks
Analytical tools and frameworks
Strategy Canvas – the attributes?
Four Actions Framework

Blue Ocean Strategy: Analytical Tools and Frameworks -> Strategy Canvas
Current situation in your business…

Blue Ocean Strategy: Analytical Tools and Frameworks -> Four Actions Framework
Pushing you away from (bloody) Red Oceans!

So how about for the wine industry?
Create Easy drinking Ease of selection Fun and adventure Reduce Wine complexity Wine range Vineyard Prestige Raise Price vs. budget wines Retail store involvement Eliminate Enological terminology and distinctions Aging qualities Above-the-line marketing

So how does it look now?

Blue Ocean Strategy: Analytical Tools and Frameworks -> What to look for?
Focus. Only a few things emphasized (keep cost down- company cannot do everything!)
Divergence. Just a reactive strategy – not good enough (same curves). Distinct curve unlike others.
Compelling tagline. New idea can be communicated easily.

Blue Ocean Strategy: Formulating -> Reconstruct Market Boundaries
Look across alternative industries (Yellow Tail, NetJets, ConstantPrint)
Look across strategic groups within industries (Cirque.., Curves)
Look across the chain of buyers (Novo Nordisk (insulin), doctors->users)
Look across complementary product and service offerings (Foliage: Product Strategy->Design->V1 && Outsourcing)
Look across functional or emotional appeal to Buyers. (QB House: walk-in).
Look across time: (pirated music -> iTunes)
Other ideas: find an industry making long term good profit, pick a suffering client segment- solve their problem. Constant Print. 

Blue Ocean Strategy: Formulating -> Other sources…
Look to non-customers. Most companies focus on existing customers, and more segmenting down. (Calloway and big golf club heads).
Getting Sequence right:
Buyer Utility Yes/No
Price Yes/No
Cost Yes/No
Adoption Yes/No

Constant Print A Blue Ocean Case

Constant Print: Meet Joe the pizza maker!
Over the years Joe has tried:
Valpak
Entertainment Book
Yellow Pages
Sponsoring Little League
Flyer distribution
Free toppings, free toppings, free toppings…

What is Joe’s business?
Large, 2 topping: $13.75, 2 large soda’s $3.50  =$17.25
COGS ~$7.50 (marginal cost)
Revenue: $12k-$25k/month, about 800 customers.
Profit/Owner Net: maybe $5k-$10k/month
How much can he really spend on marketing?

What does Joe look for from a marketing service
How much does it cost?
How much does it cost?
Is it going to work?
How will I know it is working?
Is it like anything I tried before? (“Valpak didn’t work!”)
How much time is it going to take me?

Constant Print: Joe tries Valpak (once, and $3000 later)…

Constant Print: Flyers! Then Joe realizes “I can do better myself”

Constant Print: Paper Ad: “But there must be another way?”

Constant Print: Restaurant.com: “This sounds different!”

Constant Print: Background and Inspirations
Vistaprint ( www.vistaprint.com )
ConstantContact ( www.constantcontact.com )
Competition ( www.valpak.com , www.entertainment.com & Yellow Pages directories)
Google
Tesco Supermarket Loyalty program

Constant Print: Nuance of Coupons.
Coupons without measurement are a WASTE of $
Local business is about RELATIONSHIPS. I give you a BIG coupon, ONCE to DECREASE your RISK to TRY my business.
Local business is about LOYALTY. It means if you are loyal to a business, the business can TREAT you as SPECIAL.

Constant Print: Scalable and targetted.
Joes creates a collection of offers
Picks a marketing plan… Say $49/month
And begins farming in his neighborhood!

Constant Print: System Overview ConstantPrint.com: 1. Register 2. Create Offers, Announcements 3. Record/Track Redemptions 4. Dashboard 5. Account Management Print-Production Manager: 1. Register ConstantPrint Admin: 1. Unpaid Content Management 2. Performance management 3. Customer support Print Content Generator: 1. Optimization 2. Store “Footprint” analytics 3. Yield optimization 4. Unpaid Content Management

Scalable and targeted. 1. Create campaign offers 2. Define a community region Constant Print: System Overview

Constant Print: “What I really need!”

END Constant Print combines digital printing, a self-service cooperative mailing model, and the power of analytics designed for the local small businessperson. All delivered as a service designed to farm each business’ home territory and steadily grow a profitable customer base.

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Mark Kapiy. Constant Print With Blue Ocean

by Lviv Startup Club on Feb 23, 2010

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Mark Kapiy. Constant Print With Blue Ocean — Presentation Transcript