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APMP Foundation: Developing Proposal Strategy

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Part of the Bid to Win APMP Foundation Accreditation programme.

Covers the topic Proposal Strategy Development and Value Propositions

APMP Foundation: Developing Proposal Strategy

  1. 1. APMP® Accreditation Programme Developing Strategy Session 1: Proposal Strategy Development© APMP 2005 and Bid to Win Ltd 2010 Version: 0v9
  2. 2. Developing StrategyChoosing the right opportunities Establishing Requirements Developing Strategy Proposal Strategy Development Teaming Identification Winning Price Development Managing Time, Cost and Planning the Proposal Phase Communicating your Plan Quality Learning from Experience How are we going to win?
  3. 3. Qualification and Strategy Can we Do we win? want to win? How do we win? Win Strategy
  4. 4. Qualification and Strategy Can we Do we win? want to Solution Teaming win? Strategy Strategy How do we win? Proposal Price Strategy Strategy Win Strategy
  5. 5. Customer Competitive Proposal Analysis Analysis Strategy
  6. 6. Learning objectives:In this unit we are going to examine:Analysing customer decision criteriaDeveloping Initial Value PropositionsAnalysing our competition (customer view)Identifying our discriminatorsDeveloping strategies and win themes Proposal Guide 251
  7. 7. Understand your customer “If you wish to persuade me, you must think my thoughts, feel my feelings, and speak my words.” - Marcus Tullius Cicero circa 54 BC
  8. 8. Because if we want to do businesswe need to know who makes decisionsUnderstand their objectives and concerns • Think their thoughtsIdentify their level of knowledge or expertise • Speak their wordsUnderstand their role: Budget Holder, user, recommender • Feel their feelings
  9. 9. Issues, Motivators, & Hot Buttons Issues
  10. 10. Issues, Motivators, & Hot Buttons Issues Motivators
  11. 11. Issues, Motivators, & Hot Buttons Issues Hot Motivators Buttons
  12. 12. Can you solve the issues?Motivator / Hot Button Decision Criteria Your PositionSystem Availability Solution Resilience 2 for 1 redundancy 99.999% uptime Lack of / cost of Equipment Footprint 30% of existingspace Risk of implementation Vendor Experience Lots of references Reducing OPEX 50% reduction in TCO Yes. Model agreed with Customer. CAPEX restricted Payback within current Yes, payback in 6 months year 
  13. 13. Can you solve the issues?Motivator / Hot Button Decision Criteria Your PositionSystem Availability Solution Resilience 2 for 1 redundancy 99.999% uptime Lack of / cost of Equipment Footprint 30% of existingspace Risk of implementation Vendor Experience Lots of references Reducing OPEX 50% reduction in TCO Yes. Model agreed with Customer. CAPEX restricted Payback within current Yes, payback in 6 months year 
  14. 14. Can you solve the issues?Motivator / Hot Button Decision Criteria Your PositionSystem Availability Solution Resilience 2 for 1 redundancy 99.999% uptime Lack of / cost of Equipment Footprint 30% of existingspace Risk of implementation Vendor Experience Lots of references Reducing OPEX 50% reduction in TCO Yes. Model agreed with Customer. CAPEX restricted Payback within current Yes, payback in 6 months year 
  15. 15. What is your Value Proposition? – Starting……………………………...…………………… [implementation date] – As a result of <your company>’s… [service or product] – Client will be able to……...................... [do what specifically] – Resulting in………………………………………….. [quantified business improvement] – With payback within………………………… [timeframe] – We will document our delivered value by…………………….……… [result tracking strategy] Proposal Guide 278
  16. 16. Value Propositions varyby the type of buyer:Consider two examples from a desktop outsource proposition:For the Economic Buyer: For the Technical Buyer MegaCorp will experience a £3m Commencing November 1st 2006, IT reduction in desktop support costs over professionals will have extensive and varied the next 5 years starting November 1st opportunities for personal growth and 2006 by outsourcing support to IT advancement within their profession on their Wizards at a cost of £2m per year. In transfer to IT Wizards. addition MegaCorp will receive a £500K payment for its current desktop assets. IT Wizards will maintain current pay levels for Annual support costs will reduce by 30% current positions. To maintain our leadership measured against the current agreed position IT Wizards regularly reviews pay and baseline. All costs will be clearly visible positions in line with industry standards. to you online as documented in monthly Opportunities for training and Development invoices and quarterly review will be provided as part of normal career summaries. progression.
  17. 17. Competitive Analysis“If you know the enemyand know yourself,your victory will not stand in doubt” Developing Strategy Sun Tzu: “The Art of War”
  18. 18. Proposal Strategy Development• Identify how the customer perceives our organisation• Identify the customer’s perceptions of the competitors• Identify the POSITIVE and NEGATIVE discriminators for the opportunity• Develop proposal strategy statements in a ‘what’ & ‘ how’ format
  19. 19. Competitive Analysis:Who are our competitors? • Look for the hidden competitors as well as the ‘usual suspects’Competitive intelligence • Many sources: • Account Manager, News and Journals, Web, observation • Suppliers • Plus (best of all) the Customer and/or your competition.Some Useful Tools: • Gap Analysis • SWOT • Chain of DifferentiationUse these in a team setting • Teams are creative • Sometimes two minds are better than one, five are better than two
  20. 20. Te ch no l og yC om pe P ric tit o e rA Perception Te ch n ol C og om y pe tit o tA P ric e A nd so on … Customer Perception - of You & Your Competition
  21. 21. Customer Perception- of You & Your Competition What you think: y y … e e og og ric ric on ol l P P no n tA so ch ch oTe Te nd tit A pe rA om o tit C pe om C
  22. 22. Customer Perception- of You & Your Competition What your Customer thinks: y y … e e og og ric ric on ol l P P no n tA so ch ch oTe Te nd tit A pe rA om o tit C pe om C
  23. 23. Base your strategy on discriminators: the differences that matter to the Customer. Sour Spot Our Their Weaknesses Strengths Customer’s Needs Their Our Strengths Weaknesses Sweet Spot
  24. 24. Base your strategy on discriminators: the differences that matter to the Customer. Sour Spot • Mitigate Our Weaknesses Our Their Weaknesses Strengths STRATEGY Customer’s Needs Their Our Strengths Weaknesses Sweet Spot
  25. 25. Base your strategy on discriminators: the differences that matter to the Customer. Sour Spot • Mitigate Our • Neutralize Weaknesses Our Their Their Weaknesses Strengths Strengths STRATEGY Customer’s Needs STRATEGY Their Our Strengths Weaknesses Sweet Spot
  26. 26. Base your strategy on discriminators: the differences that matter to the Customer. Sour Spot • Mitigate Our • Neutralize Weaknesses Our Their Their Weaknesses Strengths Strengths STRATEGY Customer’s Needs STRATEGY Their • Highlight Our Our Strengths Weaknesses Strengths STRATEGY Sweet Spot
  27. 27. Base your strategy on discriminators: the differences that matter to the Customer. Sour Spot • Mitigate Our • Neutralize Weaknesses Our Their Their Weaknesses Strengths Strengths STRATEGY Customer’s Needs STRATEGY Their • Highlight Our Our Strengths Weaknesses • Ghost Their Strengths Weaknesses STRATEGY STRATEGY Sweet Spot
  28. 28. Bidder comparison matrix Decision Criteria Your Position Competitor 1 Competitor 2 Solution 2 for 1 redundancyA Resilience 99.999% uptime    Equipment Need only 30% ofB Footprint existing space    VendorC Experience Lots of references    50% reduction in Yes. TCO Model agreedD OPEX with Customer.   ++ Payback within Yes, payback in 6E current year months   
  29. 29. Creating your Proposal strategy:• Headline sentence(s) that pinpoint the key to success in our case: “In order to win we must……….” – WHAT you are going to do in the proposal – HOW you are going to do it in the proposal • Mitigate your weaknesses, neutralise their strengths • Highlight your strengths, ghost their weaknesses• The focus area of your sales messaging: – Driven by Customer Issues – Based on Your Company’s discriminators – Relevant and supported by evidence
  30. 30. Get pecific easurable chievable elevant ime related
  31. 31. Themes must support the strategy: • Resilience: demonstrate compliance, quote service record • Ghost competitor 1’s weakness in space usage. Win Show that our solution needs 30% less space Stress extra cost and delivery risk with larger kit Strategy • Experience: Show compliance, provide references show(What and experience of team How • TCO: Neutralise Competitor 2 strength on price by stressingsentences) early benefits and savings over the full cycle • Ghost Competitor 2’s delivery performance by showing that our systems are shipping and in service now Major: Win • Compact cost effective solution Themes • Early delivery, early benefits (Key • Savings available this yearmessages) Minor: • Proven resilient solution • Experienced team
  32. 32. Develop Theme Statementsfrom your Proposal StrategyTheme Statements:• Are derived from the Win Theme• Appear in every major section• Highlight your Discriminators – Linking customer needs to quantified benefits – Linking those benefits to features• Can be either – a concise sentence or paragraph – or a visual• Links benefit to discriminating feature• Answers the question ‘Why us?’ Proposal Guide 272
  33. 33. Connect benefits to discriminators:© LORE Systems International
  34. 34. Develop the theme: Payback this Speed of Fast Early OPEX XYZCo case year implementation deployment reduction. study approach Reduced project costs 50% TCO Cost of space Small footprint Only 30% of Gartner reduction and power and low power space needed benchmark consumption and 50% of report power High support Lifetime No ‘break fix’ Financial charges warranty maintenance projection vs charges. (-15%) competition© LORE Systems International
  35. 35. Theme statements link discriminating features to Customer benefits: “You will be able to realise financial payback this year(GOAL), overcoming the problem of implementation speed (ISSUE) because of our rapid deployment approach(FEATURE). This will give you early OPEX savings and release space equivalent to twice the purchase cost. Your internal project costs will also be half what you could expect with a typical alternative (BENEFITS). After a similar project XYZCo’s Managing Director said “ABC really delivered for us. The system was installed in half the time and paid for itself in 6 months”. (PROOF)”. A Theme Statement can also be a GRAPHIC© LORE Systems International
  36. 36. Quick Quiz Question: Which of these statementsbest describes a theme statement?a) Theme statements link strategy and solutionb) Theme statements link the advantages and benefitc) A theme statement links a prospect benefit to thediscriminating features of your offer.d) Theme statements establish sales objectives Please click on your selection
  37. 37. How did we do? c) A theme statement links a prospect benefit to the discriminating features of your offer. The best themes contain your unique discriminators. That is, something the prospect wants which only you can offer.a) “Theme statements link strategy and solution” is not the bestdescription because themes should tell prospects why they should selectyou. Strategy and solution say more about the seller than the prospect.b) “Theme statements link the advantages and benefit ” is not the bestdescription either because while these are about the prospect , advantagesare only potential benefits if they relate to a prospect issue.d) “Theme statements establish sales objectives” is not a good descriptionbecause it says only what the seller wants to achieve for themselves.
  38. 38. In this session we have:Gained an increased appreciation of the customer’s viewDeveloped a statement explaining our valueResponded to different types of buyer/evaluatorUnderstood the competition from customer’s viewpointShowed we are different from the customerDeveloped a proposal strategy and win themes Proposal Guide 251
  39. 39. Preparing for the eTorialReferences• The Manco case study• Your exercise notes• Proposal Guide – Pages 272, 278Exercises for the e-torial• Develop a value proposition for ManCo• Create two themes for your proposal• Submit your work to the class space
  40. 40. • Value, the Prospect’s budget, and your price – Using quantified value to establish price targets – Pricing approaches and cost targets

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