• Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,500
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
62
Comments
0
Likes
3

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Market entry strategy Q2 2008
  • 2. A sound market-entry strategy gives an operator greater control over its market introduction and launch expectations, thereby ensuring financial targets are met
    • A well-founded market-entry strategy minimises the uncertainties faced by new entrants
    • Analysys Mason has developed a systematic approach to market-entry strategies, allowing us to create well-supported and objective plans that extract maximum value from internal assets and investment, and ultimately increased competitiveness and secured revenue
    • We have used this approach to:
      • decrease the financial uncertainty that derives from lack of comprehensive market analysis and a structured strategic plan
      • enable business plan collaboration and financial planning
        • initial business case assumptions need to be revisited to better correspond with market conditions and chosen market position
      • create launch efficiency by delivering a framework for subsequent planning of tactical launch activities, coordinating and prioritising tasks for launch team
      • enable risk management and market perception control through contingency planning
    • Launch organisations face immense pressures on market entry, created by internal and external expectations:
      • some of these pressures can be eased by developing a clear and structured market-entry strategy and effective functional plans
    Pressures faced by new entrants Internal constraints and expectations
    • Time constraints:
    • rapid deployment is crucial to avoid rise in market share cost and to deliver predicted financial results
    • Resource limitations:
    • core launch teams are often rapidly assembled, and specialist expansion is done gradually, creating a large resource gap during the implementation phase
    • Financial pressure:
    • as financial targets and expectations have been set prior to launch, any unpredicted market activity and launch delays will disturb initial customer take-up and revenue generation
    • Market data:
    • in many instances organisations lack in-depth understanding of market drivers or have limited access to market data
    • Competition:
    • competitors will plan pre-emptive, disruptive action to improve their own positions and secure their customer base prior to new entry
    External constraints and expectations
  • 3. Analysys Mason’s structured approach to developing an entry strategy begins with a comprehensive analysis of the market, based on market data or tailored research
    • Our approach to developing a market-entry strategy follows a proven and structured process, based on extensive industry experience and in-depth understanding of all aspects that feed into a commercial launch
    • A comprehensive analysis, using market data and tailored market research, allows us to assess all areas affecting the operator’s strategic direction:
      • market dynamics : detailed consumer and business market segmentation and analysis of market drivers will be undertaken to identify the most valuable target segments and underlying reasons for market growth. Specific target areas are evaluated to provide key inputs: retail structures, financial transactions systems and Internet usage provide input to sales and distribution planning
      • competitive landscape : extensive competitive profiling in areas such as positioning, brand, target segments, value proposition, market offer, pricing, customer care, sales & distribution, coverage, network & support systems enable assessment of competitors’ strengths and weaknesses
      • macro-economic outlook : analysis of relevant macroeconomic data determine market and segment growth
      • legislation and regulatory framework : description of limitations or possibilities within the current regulatory environment that affect market and segment growth
      • internal assets/technology : analysis of all internal assets including technology, brand, partnerships will be done to clarify which sustainable competitive advantages the company holds
    • An internal SWOT highlight areas of valid advantages and disadvantages, providing input to market entry positioning and value proposition
    • Identification of strategic risk areas at an early stage enables preparation of mitigating actions prior to market entry
    • Conclusions from the market analysis together with internal SWOT and identified strategic risk areas form the basis for describing the market opportunity
    Market dynamics Competitive landscape Macro-economic outlook Regulatory environment Internal assets / Technology Internal SWOT Identified strategic risk areas Summary and conclusions Market opportunity description Market entry strategy Strategic directions Pricing Brand and communication Sales and distribution Products and services Customer service Launch phasing Market analysis Tactical launch plan Contingency plan Vision and Mission Objectives Overall Strategy Positioning Value proposition Brand Target segments Internal and external factors Products & services Pricing Brand and communication Sales & distribution channels Customer service
  • 4. Analysys Mason’s overall market entry strategy statement and market position clearly demonstrates which main directions are necessary to reach market objectives
    • A description of the company’s vision and mission statements as well as financial objectives form the starting point for the market entry strategy as they set the framework in which a new entrant will function
    • Short-term objectives , sales targets, market share and brand awareness, will be set against the market opportunity and supplied as input to the business planning team
    • Analysys Mason will develop an overall market entry strategy statement, clearly demonstrating which main directions are necessary to reach stated objectives
    • The positioning statement visibly describes the company’s strategy in relation to competition and the value proposition captures the company’s differentiating advantages and their benefits to potential customers
    • The brand strategy explains which values are important to communicate in order to enhance the company’s relationship with its customers
    • Targeted customer segments that need be addressed in order to deliver desired objectives will be specified and prioritised
    • Strategic directions in all functional areas; products & services, pricing, brand & communication, sales & distribution and customer service further detail the overall entry strategy. Finally, the launch phasing section explores the various viable market entry options, their pro’s, con’s and pre-conditions
    Market dynamics Competitive landscape Macro-economic outlook Regulatory environment Internal assets / Technology Internal SWOT Identified strategic risk areas Summary and conclusions Market opportunity description Market analysis Market entry strategy Strategic directions Pricing Brand and communication Sales and distribution Products and services Customer service Launch phasing Tactical launch plan Contingency plan Vision and Mission Objectives Overall Strategy Positioning Value proposition Brand Target segments Internal and external factors Products & services Pricing Brand and communication Sales & distribution channels Customer service Market position Business Company A Company B Company C Price Consumer Market position Business Company A Company B Company C Price Consumer Quality Quality Price NW/ QoS Service portfolio Customer service Positioning values Broad Leader Premium Leader Narrow Basic Leader Adequate Medium Basic Moderate Adequate Company B Company C Company A Price NW/ QoS Service portfolio Customer service Positioning values Broad Leader Premium Leader Narrow Basic Leader Adequate Medium Basic Moderate Adequate Company B Company C Company A
  • 5. Detailed tactical launch plans enable efficient and controlled implementation, leading to rapid market introduction
    • Strategic directions are further detailed into a tactical launch plan , covering all functional areas. This provides the launch team and vendors with necessary specifications for implementation and ensures that all launch activities support the overall market entry strategy
    • A product & service roadmap will be developed by matching technical capabilities and benefits with customer needs. The roadmap includes detailed set of individual services or product packages at and post-launch
    • Pricing launch packages and separate services includes development of complex price modelling and deployment of conjoint research to assist in the choice of, from customer perspective, the most valuable pricing option
    • Brand and communication plan for market entry includes development of brand wheel (attributes, benefits, values) and full launch campaign planning
    • The development of a sales and distribution channel plan involves creation of a tailor made sales and commission model, detailing of the company’s sales and distribution channel structure and analysis and recommendation on commission structure and levels
    • The customer service plan includes high level customer service processes and customer centre dimensioning
    • Clear contingency planning enables the company to pre-empt the occurrence of situations that affect the planned activities and prepare plans to remedy those, resulting in shortened reaction time. Both internal and external factors will be analysed
      • Internal – e.g. technical and organisational issues
      • External – e.g. competitive market activities and regulatory actions
    Market dynamics Competitive landscape Macro-economic outlook Regulatory environment Internal assets / Technology Internal SWOT Identified strategic risk areas Summary and conclusions Market opportunity description Market analysis Market entry strategy Strategic directions Pricing Brand and communication Sales and distribution Products and services Customer service Launch phasing Tactical launch plan Contingency plan Vision and Mission Objectives Overall Strategy Positioning Value proposition Brand Target segments Internal and external factors Products & services Pricing Brand and communication Sales & distribution channels Customer service
  • 6. Structured and comprehensive planning and interaction with business planning and technical teams enables coordinated effort, bringing market entry success
    • The commercial market entry strategy must work in unison with business planning and technical team to ensure a coordinated market entry approach
      • Business planning unit requires market input when developing business plan and budgets
        • Positioning, price strategy, marketing investment and coverage (in relation to competition) affect potential market size and share
        • Segment uptake assumptions serve as input to market share calculations
      • Development and deployment of network and support systems need take commercial requirements into consideration and vice versa
        • Technical possibilities and limitations are taken into consideration when developing the market entry strategy
        • Market offer and customer approach produce requirements for support system configuration
    Business plan and budget Market entry strategy and tactical launch plan Technical roadmap and roll-out plan
  • 7. In addition to market entry strategy development, Analysys Mason can provide complete launch support and coordination of connected business functions Source: Analysys Mason Corporate and operational KPIs Master Project Plan and Project Management Office Business Planning and Budgeting Organisational management
    • Launch support covers a range of activities that will enable the successful launch of the business in an aggressive timescale
    • Determining the exact role of different entities needs to be undertaken in an implementation planning phase that will balance the cost of external resources with the speed of launch , based on intensive , short - term external team effort
    Approach to overcome challenges Launch management structure
    • The overall project management office (PMO) coordinates the roles of different team s to ensure that the management is fully updated of progress and potential bottlenecks for action
    • The individual functions can be undertaken by the Analysys Mason consortium or by client entities, with the objective of handing over the running of the business to the client
    Key issues Market entry strategy and execution Product roadmap Tariffs Advertising Sales and Distribution Customer service Network deployment Vendor interactions Site acquisition reporting Installation management Regulatory support Interconnect negotiation support Regulatory lobbying support Back-end support Customer care Billing
  • 8. Case study: Fourth entrant market entry strategy and detailed launch plan
    • Conducted a comprehensive market analysis
    • Developed a robust market entry strategy
      • Setting attainable sales objective, in liaison with the business plan
      • Determining durable positioning and value proposition
    • Developed detailed tactical plans for each functional area
      • Recommended segmented market offers for launch and post-launch, having evaluated various options
      • Build a comprehensive price model and initiated market research to evaluate tariff options
      • Developed complete sales and distribution channel structure including modelling of commission structure and levels
      • Created a brand adapted to local market conditions and developed a communication plan
    Business challenge
    • Our client had acquired a mobile license for Afghanistan, entering as the fourth operator in an extremely difficult market with regards to economic and social structures, security issues, geographical accessibility and lack of reliable market information. Furthermore, our client did not have a separate Programme Management Office (PMO) to oversee launch implementation, increasing the demand for a clear and structured market entry strategy and subsequent tactical plans
    • Analysys Mason was hired to undertake development of a market entry strategy and detailed launch plan to steer the launch team and contracted suppliers towards a successful market introduction. In parallel, Analysys Mason developed a long-term business plan and detailed operating model / budget
    Approach Benefits and results
    • Analysys Mason produced a complete market entry strategy and detailed tactical launch plans, allowing our client to formulate a clear and differentiated market position with aligned market offering, pricing, communication, customer service and sales & distribution structure. This enabled complete stakeholder buy-in and efficient launch plan execution
    Market position Business Residential Price Quality Market position Business Residential Sales and distribution network Large distributors Over the counter wholesale Own stores Direct sales force Authorised retailers Points of sale Small distributors Residential market Business market Sales and distribution network Large distributors Over the counter wholesale Own stores Direct sales force Authorised retailers Points of sale Small distributors Residential market Business market One - size - fits - all Tailor - made approach Segmented packages Description Type of approach One - size - fits - all Tailor - made approach Segmented packages Description Type of approach P1 P2 P4 P1 P2 P4 P3 Base P3 Base Unique product Unique product Market offer options Q1 Q2 Q3 Q4 Q5 Q6 Subscribers (thousands) Market share Segment A Segment B Market share Q1 – Q6 objectives Q1 Q2 Q3 Q4 Q5 Q6 Subscribers (thousands) Market share Segment A Segment B Market share Q1 – Q6 objectives
  • 9. Analysys Mason has assisted several new entrants worldwide in developing their market entry strategies Analysys Mason carried out a comprehensive market and technical due diligence, covering all elements of the core business of the operator, including operations, technology, sales and marketing, information technology systems and human resources. Analysys Mason developed a growth strategy for the acquisition target, using the outputs of its due diligence, as well as those from the financial and legal ones. On this basis, Analysys Mason built a business plan and subsequently contributed to the preparation of the bid book Investment bank Development of a strategy for the smaller mobile operator in a market of four operators as part of an acquisition process Analysys Mason worked as part of a wider team which included the client's senior bid team, a technology vendor and other parties. The client recognised that coming late into the market as a 3G operator, and being one of numerous infrastructure-based operators in that country required an innovative approach to the market. Analysys Mason produced a credible bid, financial model as well as a solid mobile business strategy taking into account 3G technology, network planning, local planning and network build issues, the local mobile market, product propositions and channels to market Western European fixed operator Development of a mobile business strategy for a new entrant Analysys Mason provided insight into successful market entry strategies employed by late mobile entrants and examined markets and operator performances where spectrum obtained initially or permanently constrained to offer limited mobility services North African fixed operator Assessment of a mobile entry strategy offering limited mobility services Analysys Mason developed a robust strategy for entering the mobile market by developing alternative service propositions and marketing strategies and analysing different technology options (UMTS, CDMA 2000 and WiMAX), roll-out approaches and handset strategies. Analysys Mason has also developed high level financials for the various options in order to make a detailed recommendation. Our conclusions were accepted by the Board and we were praised for our clear reasoning and innovative approach North African alternative fixed and mobile operator Development of a mobile strategy (including UMTS, CDMA 2000 and WiMAX technologies) Asian wireless operator Client type Analysys Mason worked as part of a wider team to support the launch of a new mobile operator in a developing Asian country. The task consisted of business planning, international connectivity assessment and program management support Launch support Key project results Project focus