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The Essentials of Strategic
       Consulting
        for SMEs
  Case study « GREEN WATER »




                         Navin
                         Agarwal
Analysis of targeted markets
and associated key success
factors
Targeted markets, factors of influence and KSF
Clients needs and Key Success Factors (KSF) of
the SBA

                   Within 20 years, the water world demand could
                   increase by 650%
      Save         The demand of water is set to increase
      Water as a   Increase awareness among communities to have
      resource     judicious use of water
                   Sporting authorities to decrease the use of water
Clien              Private gardens need automatic watering equipment
                   owing to the shortage of water
t
                   Water remains an important expenditure: 42% of the
Need               sums invoiced in 2006 by the services of water and
      Save         sanitation are supported by communities
s     Expense      Drinking water used for irrigation which is expensive
      on Water     The lawn, which accounts for 15% of gardening
                   business, represents the most consuming water zone in a
                   garden
                   Watering represents an important expenditure in the
                   market of private gardening
Targeted markets, factors of influence and KSF
Clients needs and Key Success Factors (KSF) of
the SBA
                                      KSF to be managed
                                  To provide remote watering solutions to both individual and
                                 institutions
                                  Remote monitoring and maintenance without human intervention.
                                 GPRS and SMS based solution to enable easy management
              Products/Servi
                                 remotely
              ces                 Customized solution for various categories i.e. Lawn, Landscaping,
                                 Sporting, Agriculture etc.
Design,                          Set up Information system to inform people about the benefits of
production,                      the solutions.
and                               Differentiated Pricing for different customers
marketing of Price                            People with second homes have higher incomes.
a solution of                                 Institutions and luxury sports will pay premium.
                                              Farmers may not pay premium
remote
                                  Turn Key projects- Providing end to end solutions to the customer
monitoring                        Reaching out to the Landscaping Designers and be a partner in
for automatic                    their assignments.
watering      Distribution/Sal    Partner the ground monitoring agencies in the various sports
systems via es                   Team up with irrigation system suppliers for agriculture to provide
                                 the automated solutions. Target the concentrated regions.
Internet and                     Team with sporting bodies to encourage use of the system by the
GPRS                             affiliated members
                                  Communicating directly to the owners of second homes
                                 (Pensioners) by sending them newsletters.
Strategic positioning of the
company
Strategic positioning of GREEN WATER
   project
   Synthesis of Market Analysis
               Solution of remote monitoring for automatic                     Attractivene
               watering                                                        ss
   Clients,    The Targeted applications are multiple. Customers’
               awareness on the importance to save water has grown
  targeted     significantly. External factors(sustainable development,
                                                                                    5
  Markets      environmental quality, cost savings ) are favorable.
              Programming devices for lawns represent 18,3 million
             euros whereas the connections and terminals account for                4
             30,4 million euros, i.e. 6% of the lawn market
Contingenci  90% of the French have a gardening space (garden,
             terrace and balcony) and 60% of the households have a
    es,                                                                             4
             garden. Only 4% of private gardens are equipped with
Opportunitie systems of integrated watering.( Beginning of the Industry
s & Threats Life Cycle)
              Between 2001 and 2006, the turnover of landscaping                   4
             companies has increased of 28% to reach 4,3 billion euros
             (Development of the Related Industry Life Cycle)
               Large and the contractual suppliers offer serious
Competition
            competitions. The maintenance contracts offered by them is              2
    s       competitive too.

               An overall value chain with the development, distribution and        5
  Types of
Strategic positioning of GREEN WATER project
                   Key Success Factors of Franchise SBA
                                                                                      GREEN
                                  KSF to be managed                                   WATER          Comments
                                                                                      project
                        Provide remote watering solutions to both individual and        5       Core of the Project
                       institutions
                        Remote monitoring and maintenance without human
           Product     intervention. GPRS and SMS based solution to enable easy          4       Core of the Project
                       management remotely
           s/Servic     Customized solution for various categories i.e. Lawn,           5       Differentiated
solution   es          Landscaping, Sporting, Agriculture etc.                                  offerings
of                     Set up Information system to inform people about the             3
remote                 benefits of the solutions.                                                On demand
monitori                                                                                        Information
ng for                  Differentiated Pricing for different customers                  4       Concept of the
automat                               People with second homes have higher                     Project
ic                                   incomes.
           Price                      Institutions and luxury sports will pay
watering
System                               premium.
                                      Farmers may not pay premium
s:
Ranking                 Turn Key projects- Providing end to end solutions to the        3       Concept to be work
of                     customer                                                                 out
                        Reaching out to the Landscaping Designers and be a              4
GREEN
                       partner in their assignments.                                             Important partnership
WATER      Distribut    Partner the ground monitoring agencies in the various           3
Project    ion/Sale    sports                                                            4       Important partnership
vs KSF     s           Team up with irrigation system suppliers for agriculture to              Important partnership
                       provide the automated solutions. Target the concentrated          3
                       regions.                                                                  Important partnership
                       Team with sporting bodies to encourage use of the
                       system by the affiliated members
Strategic positioning of GREEN WATER project
                    Assets/Attractiveness Matrix

 Strengthen assets
                                5                  Maintain
Search for alliances
                       Strengthen assets       positioning by all
          or
                       and invest to grow    SBA    means
         exit
                          (challenger)      GREE (winner)
     (dilemma)
                                              N
                                            WATE
0 Exit                      Maximize          R Improve           5
progressively           profits carefully        Positioning
       (risk)             (acceptable)           (supporter)


                              Exit
      Exit and                                   Double the
                         progressively
      disinvest                                 betting or exit
                             (risk)
       (looser)                                   (dilemma)
                                0
Strategic Choices and
Formulations
Strategic Choices of GREEN WATER project
                                            Scenarios
      Strategy 1- Direct Selling to Institutions and
      Individuals
Product/Servic Pricing          Commercializati Communicatio                       Associated
es                 Policy             on                      n Marketing          Means
Direct Selling     • Premium          • Direct Sales by       • Product            • 8 person for
of customized      Pricing since      Agents especially for   brochure             The
solutions to       the product will   landscaping             • e commerce         landscaping
                   be used by         business which has      website with         and second
Institutions and
                   institutions in    a large no. of          virtual process      home clients
Individuals        growth stage or    players.                implementation       •1
                   high worth         • Since large sales     and calculation of   relationship
                   individuals.       agents required         ROI                  executive for
                   • However          therefore its better    •Sponsors of local   tie up with
                   pricing has to     to have commercial      sporting events or   sporting
                   take into          agents for pre sales    environmental        bodies and
                   account            and then follow up      conservation/awa     environmenta
                   competition        by company agents       reness drive         l agencies
                                      • Referencing by        • Advertising        and/or NGOs
                                      landscape               Budget               • 2 Person for
                                      designers, sporting     magazines            technical
                                      bodies, water                                support and
                                      conservation                                 maintenance,
Strategic Choices of GREEN WATER project
                                              Scenarios
       Strategy 2- Selling through gardening and landscaping
       designers
Product/Servic Pricing         Commercializ Communicati Associated
es              Policy         ation          on Marketing Means
Selling          • Bundled        • Provide        • Product          • Bundled
through          Pricing- The     commercial       brochure           offerings
gardening and    premium          contracts to     • Affiliated       • 1 relationship
                 pricing can be   designers        marketing          executive to
landscaping
                 charged for                       • e commerce       forget
designers        servicing        • Distribution   website with       partnerships with
                                  contracts        virtual process    these agencies
                                                   implementation     •1 relationship
                                                   and calculation    executive for tie
                                                   of ROI             up with sporting
                                                   •Sponsors of       bodies and
                                                   local sporting     environmental
                                                   events or          agencies and/or
                                                   environmental      NGOs
                                                   conservation/aw    • 2 Person for
                                                   areness drive      technical support
                                                   • Advertising in   and
Strategic Choices of GREEN WATER project
                                     Example of matrix of Scenarios
Scenario   Offerin       Risk            Coherence      Pertinence     Acceptabilit   Operability    Feasibility    Total
                         market          culture,       USP,           y              Technical      Need for
           g             growth,         values, will   sustainabili   delay of       means,         financing,
                         technological   and            ty             ROI, impact    HR,            breakeven
                         ruptures,       reference      of             on             schedule of    point,
                         competition     framework      positioning    shareholde     implementa     availability
                                         of the         coherence      rs             tion           of
                                         leader         of value                                     resources,
                                                        chain                                        cash flows

S1:        Direct
           Selling of         4               2              2              2               2            3
Direct     customiz
Sale       ed            Frontal         XXX            Direct         Delay of       Rather         Around 150        1.8
           solutions     reactions       wishes to      control of     ROI on         short          K€
           to            from            directly       the relation   sales force    delay of       commercial
           Institution   competition     sales in the   with end-      and            recruitment    expenses
           s and                         market         users          marketing      ,
           Individual                                                  efforts        immediate
           s                                                           compensat      implementa
                                                                       ed by a        tion
                                                                       higher
                                                                       margin

S2:        Selling
           through             2               4              2             2             3                3
Sale       gardening
throug     and           No Frontal      Does not       Relative       Shorter        Delay of       Around 100
           landscapi     reactions       Match with     risk of        ROI on         contractuali   K€
h          ng            from            XXX            losing         sales force    sation         commercial        2.7
Proposal of detailed action plan
for implementation of selected
scenario
Implementation Plan of GREEN WATER project
Operations              Q1            Resp         Q2         Resp        Q3        Resp         Q4         Resp

                • Contact
                                             • Contract
                landscaping
                                             Finalisations
                designers and                                                               • Deployment
                                             with
Commercial/     sporting agencies.
                                             landscaping              •Deployme
                                                                                            at additional
                • Selection and 1st                                                         landscape
   sales                              JNS+   and sports       JNS +   nt at
                contacts                                                            Sales   and also at     Sales
administratio                         DA     bodies           Legal   around 20
                with other                                                                  around 10
                                             •Drafting                locations
     n          installing agents
                                             contract of
                                                                                            second
                •Formalization of                                                           homes
                                             guarantee and
                distribution
                                             service
                contract
                • Sale force                 • Creation of            •
                communications               Web site with            Advertising           • Leveraging
 Marketing /    • Designing                  virtual                  in            JNS     through
                                                              JNS +
Communicati     Affiliated            JNS    deployment
                                                              Sales
                                                                      magazines     +       advertisement   JNS
                marketing                    • Sponsoring             • Targeting   Sales   s in soccor
    on
                campaigns                    environmental            pension               games
                                             events                   fairs
                • Drafting of sales          • Recruitment
                rep & relationship           of Sales                 • Hiring of
                executive job         JNS    representative           additional
    HR          description                  and
                                                              JNS
                                                                      sales
                                                                                    JNS
                • Publishing                 relationship             executives
                                             executive

Product and     • Remote
                                             • Easily
                maintenance
  process       • Ease of
                                      JNS    customizable     JNS
                                             solutions
   R&D          operations
Thank You

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Strategic consulting sm_es_green_water_navin_agarwal

  • 1. The Essentials of Strategic Consulting for SMEs Case study « GREEN WATER » Navin Agarwal
  • 2. Analysis of targeted markets and associated key success factors
  • 3. Targeted markets, factors of influence and KSF Clients needs and Key Success Factors (KSF) of the SBA Within 20 years, the water world demand could increase by 650% Save The demand of water is set to increase Water as a Increase awareness among communities to have resource judicious use of water Sporting authorities to decrease the use of water Clien Private gardens need automatic watering equipment owing to the shortage of water t Water remains an important expenditure: 42% of the Need sums invoiced in 2006 by the services of water and Save sanitation are supported by communities s Expense Drinking water used for irrigation which is expensive on Water The lawn, which accounts for 15% of gardening business, represents the most consuming water zone in a garden Watering represents an important expenditure in the market of private gardening
  • 4. Targeted markets, factors of influence and KSF Clients needs and Key Success Factors (KSF) of the SBA KSF to be managed  To provide remote watering solutions to both individual and institutions  Remote monitoring and maintenance without human intervention. GPRS and SMS based solution to enable easy management Products/Servi remotely ces  Customized solution for various categories i.e. Lawn, Landscaping, Sporting, Agriculture etc. Design, Set up Information system to inform people about the benefits of production, the solutions. and  Differentiated Pricing for different customers marketing of Price  People with second homes have higher incomes. a solution of  Institutions and luxury sports will pay premium.  Farmers may not pay premium remote  Turn Key projects- Providing end to end solutions to the customer monitoring  Reaching out to the Landscaping Designers and be a partner in for automatic their assignments. watering Distribution/Sal  Partner the ground monitoring agencies in the various sports systems via es Team up with irrigation system suppliers for agriculture to provide the automated solutions. Target the concentrated regions. Internet and Team with sporting bodies to encourage use of the system by the GPRS affiliated members  Communicating directly to the owners of second homes (Pensioners) by sending them newsletters.
  • 6. Strategic positioning of GREEN WATER project Synthesis of Market Analysis Solution of remote monitoring for automatic Attractivene watering ss Clients, The Targeted applications are multiple. Customers’ awareness on the importance to save water has grown targeted significantly. External factors(sustainable development, 5 Markets environmental quality, cost savings ) are favorable.  Programming devices for lawns represent 18,3 million euros whereas the connections and terminals account for 4 30,4 million euros, i.e. 6% of the lawn market Contingenci  90% of the French have a gardening space (garden, terrace and balcony) and 60% of the households have a es, 4 garden. Only 4% of private gardens are equipped with Opportunitie systems of integrated watering.( Beginning of the Industry s & Threats Life Cycle)  Between 2001 and 2006, the turnover of landscaping 4 companies has increased of 28% to reach 4,3 billion euros (Development of the Related Industry Life Cycle) Large and the contractual suppliers offer serious Competition competitions. The maintenance contracts offered by them is 2 s competitive too. An overall value chain with the development, distribution and 5 Types of
  • 7. Strategic positioning of GREEN WATER project Key Success Factors of Franchise SBA GREEN KSF to be managed WATER Comments project  Provide remote watering solutions to both individual and 5  Core of the Project institutions  Remote monitoring and maintenance without human Product intervention. GPRS and SMS based solution to enable easy 4  Core of the Project management remotely s/Servic  Customized solution for various categories i.e. Lawn, 5  Differentiated solution es Landscaping, Sporting, Agriculture etc. offerings of Set up Information system to inform people about the 3 remote benefits of the solutions.  On demand monitori Information ng for  Differentiated Pricing for different customers 4  Concept of the automat  People with second homes have higher Project ic incomes. Price  Institutions and luxury sports will pay watering System premium.  Farmers may not pay premium s: Ranking  Turn Key projects- Providing end to end solutions to the 3  Concept to be work of customer out  Reaching out to the Landscaping Designers and be a 4 GREEN partner in their assignments.  Important partnership WATER Distribut  Partner the ground monitoring agencies in the various 3 Project ion/Sale sports 4  Important partnership vs KSF s Team up with irrigation system suppliers for agriculture to  Important partnership provide the automated solutions. Target the concentrated 3 regions.  Important partnership Team with sporting bodies to encourage use of the system by the affiliated members
  • 8. Strategic positioning of GREEN WATER project Assets/Attractiveness Matrix Strengthen assets 5 Maintain Search for alliances Strengthen assets positioning by all or and invest to grow SBA means exit (challenger) GREE (winner) (dilemma) N WATE 0 Exit Maximize R Improve 5 progressively profits carefully Positioning (risk) (acceptable) (supporter) Exit Exit and Double the progressively disinvest betting or exit (risk) (looser) (dilemma) 0
  • 10. Strategic Choices of GREEN WATER project Scenarios Strategy 1- Direct Selling to Institutions and Individuals Product/Servic Pricing Commercializati Communicatio Associated es Policy on n Marketing Means Direct Selling • Premium • Direct Sales by • Product • 8 person for of customized Pricing since Agents especially for brochure The solutions to the product will landscaping • e commerce landscaping be used by business which has website with and second Institutions and institutions in a large no. of virtual process home clients Individuals growth stage or players. implementation •1 high worth • Since large sales and calculation of relationship individuals. agents required ROI executive for • However therefore its better •Sponsors of local tie up with pricing has to to have commercial sporting events or sporting take into agents for pre sales environmental bodies and account and then follow up conservation/awa environmenta competition by company agents reness drive l agencies • Referencing by • Advertising and/or NGOs landscape Budget • 2 Person for designers, sporting magazines technical bodies, water support and conservation maintenance,
  • 11. Strategic Choices of GREEN WATER project Scenarios Strategy 2- Selling through gardening and landscaping designers Product/Servic Pricing Commercializ Communicati Associated es Policy ation on Marketing Means Selling • Bundled • Provide • Product • Bundled through Pricing- The commercial brochure offerings gardening and premium contracts to • Affiliated • 1 relationship pricing can be designers marketing executive to landscaping charged for • e commerce forget designers servicing • Distribution website with partnerships with contracts virtual process these agencies implementation •1 relationship and calculation executive for tie of ROI up with sporting •Sponsors of bodies and local sporting environmental events or agencies and/or environmental NGOs conservation/aw • 2 Person for areness drive technical support • Advertising in and
  • 12. Strategic Choices of GREEN WATER project Example of matrix of Scenarios Scenario Offerin Risk Coherence Pertinence Acceptabilit Operability Feasibility Total market culture, USP, y Technical Need for g growth, values, will sustainabili delay of means, financing, technological and ty ROI, impact HR, breakeven ruptures, reference of on schedule of point, competition framework positioning shareholde implementa availability of the coherence rs tion of leader of value resources, chain cash flows S1: Direct Selling of 4 2 2 2 2 3 Direct customiz Sale ed Frontal XXX Direct Delay of Rather Around 150 1.8 solutions reactions wishes to control of ROI on short K€ to from directly the relation sales force delay of commercial Institution competition sales in the with end- and recruitment expenses s and market users marketing , Individual efforts immediate s compensat implementa ed by a tion higher margin S2: Selling through 2 4 2 2 3 3 Sale gardening throug and No Frontal Does not Relative Shorter Delay of Around 100 landscapi reactions Match with risk of ROI on contractuali K€ h ng from XXX losing sales force sation commercial 2.7
  • 13. Proposal of detailed action plan for implementation of selected scenario
  • 14. Implementation Plan of GREEN WATER project Operations Q1 Resp Q2 Resp Q3 Resp Q4 Resp • Contact • Contract landscaping Finalisations designers and • Deployment with Commercial/ sporting agencies. landscaping •Deployme at additional • Selection and 1st landscape sales JNS+ and sports JNS + nt at contacts Sales and also at Sales administratio DA bodies Legal around 20 with other around 10 •Drafting locations n installing agents contract of second •Formalization of homes guarantee and distribution service contract • Sale force • Creation of • communications Web site with Advertising • Leveraging Marketing / • Designing virtual in JNS through JNS + Communicati Affiliated JNS deployment Sales magazines + advertisement JNS marketing • Sponsoring • Targeting Sales s in soccor on campaigns environmental pension games events fairs • Drafting of sales • Recruitment rep & relationship of Sales • Hiring of executive job JNS representative additional HR description and JNS sales JNS • Publishing relationship executives executive Product and • Remote • Easily maintenance process • Ease of JNS customizable JNS solutions R&D operations