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CIM Assignment - Integrated Communications - [on Electro-Serv (Pvt) Ltd]

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Situational Analysis and an Integrated Marketing Communication Plan for Electro-Serv (Pvt) Ltd.

This report was prepared based on the assignment questions of the CIM qualifications for Integrated Communications Subject.

Published in: Marketing

CIM Assignment - Integrated Communications - [on Electro-Serv (Pvt) Ltd]

  1. 1. 1 Internal Communication and Change Management [1(b)] At Electro-Serv, the internal communication is mainly focusing on effectively managing the cultural shift the company is undergoing due to the recent management change. Internal communication is playing a vital role in getting the employees aligned with the new corporate identity and also to make the employees more engaged with achieving the organisational goals in order to increase productivity and deliver a better customer experience. Internal emails are used by all the employees to communicate with each other as well as the customers and other external stakeholders. Management uses the internal email service to officially issue special notices and circulations. An employee newsletter is displayed at the main noticeboard within the premises and also emailed to all the employees on a weekly basis and contains internal competitions, motivational messages, health tips, key performance recognitions, employee designation changes, special product promotions and such. [1(c)] The company’s customers are introduced by the sales executives and sales coordinators are assigned to each customer to work with the customers from the back end while a dedicated product support division with qualified and experienced engineers, is available to the customers for technical support. Customers are given the opportunity to contact Electro- Serv via telephone, email, and social media. The sales managers have the authority to provide custom solutions case by case basis and value added services and special rebates are also offered to key customers and key opportunities. Key managers are allowed to allocate additional resources from multiple divisions at urgent and important scenarios and the employees who are in contact with customers are allowed to deviate from standard procedures to ensure customer satisfaction however are liable of forwarding reports justifying the deviation. Employees are given the flexibility to balance their personal life and professional life while completing the work duties, in order to ensure employee happiness which results delightful customer experience. [1(d)] Electro-Serv has currently assigned the responsibility of internal communications to management, marketing and hr divisions and has assigned resources and funding towards internal communications from each divisional funds. A graphic designer is assigned to create content and maintain the newsletter and the noticeboards as well as on-premises signage. An investment has been made on a new CRM implementation with enterprise social network and is expected to increase employee conversation, productivity and customer satisfaction. Effectively implementing and managing change within Electro-Serv needs good investigational and analytical skills as well as expertise since the business model of the overall company is complex and highly technical. The change managers should be well organized and should possess good interpersonal skills to properly coordinate with all the versatile employees and divisions. Corporate management needs to be aligned with the change management process with leadership and strict enforcement where needed. During the solution finding process, it is imperative to communicate and collaborate with the employees in each function in order to identify the best strategies to achieve change objectives. Proper communication of the change process and change strategy as well as proper training need to be utilised in order to communicate and align the employees of all levels with the new processes, resources and goals introduced with the changes.
  2. 2. SLIM-IC-Dec 14-38444633 2.0 Value Proposition and Branding (2.a) The Value Proposition of Electro-Serv is “delivering value to the customers through Quality, Service and Engineering.” Electro-Serv’s customers identifies Electro-Serv as the industry leading engineering service provider within the sector therefore the company has defined all its offerings such as products, solutions, services, etc… while aligning with the above value proposition. The total customer cost is kept highly competitive even with the relatively high short term monetary cost, through reducing the time and energy costs as well as reduced long term monetary costs such as maintenance, replacement and avoided cost derived from lost production through high quality, reliable offerings, while customers enjoy the benefits of the products of globally reputed brands with high service standards and additional services adding up to the customer value. The customer perceived value (CPV) does not deviate far, as the company focuses highly in delivering upon its value proposition, giving the company a delightful level of customer trust. The Core Product of the Electro-Serv brand is the provisioning of complete solutions in Electrical and Pneumatic Engineering Solutions to the mentioned customer segments in [1(a)] while the Actual Product includes the offerings mentioned below. • Supplying of Electrical and Pneumatic Engineering Products, Accessories, and Spares • Tailor-made Solutions for Industrial Automation, Power Distribution and Protection, Industrial Control, and Energy Management • Custom Designing, Building and Implementing of tailor-made Systems and Panels • Undertaking of turn-key Projects in Electrical, Mechatronic and Pneumatic fields. The Augmented Product of Electro- Serv are Delivery Services, Authorized Service Centre, On- site Servicing and Maintenance, Dedicated Customer Care and Product Support with Engineering Expertise, On-site and Off-site Trainings, High Product Availability and Off- shore Stock Management. Augmented - Delivery, Authorized Service Centre, Engineering Support, Customer Care, Training, Stock Availability, etc... Actual - Products, Tailor-made Systems and Solutions, Customized Systems, engineering Projects Core - Electrical and Engineering Solutions Provider 2
  3. 3. [2(b)] Characteristics of Electro-Serv Brand Electro-Serv’s brand has characteristics of a National Brand due to the customized systems and solutions which the company design, build and implement under Electro-Serv brand. Electro-Serv also has strategically partnered with a number of global industry leaders and operates as the authorized service provider for those global brands within the company which give the Electro-Serv brand, Co-Brand characteristics as well (Kotler and Armstrong, 2011). Based on Kepferer’s (2012) Brand Identity Prism model;  The Physique of Electro-Serv brand can be pointed out as ‘trustworthy, reliable, expert, industry leading engineering provider’. This includes the high performance, high efficiency, high built quality and high longevity of the products, solutions and services which Electro-Serv offers. The company has successfully promoted its offerings based on this high-end premium physique.  Personality of the brand can be noted as masculine, accomplished, energetic, service oriented, arrogant, stable, intelligent brand high level of integrity. By maintaining this personality, company has managed to battle off a number of cost leaders, new entrants, etc… and remain as the mostly preferred choice which the customers can place their trust upon.  Electro-Serv brand is associated with global industry leaders such as SMC Pneumatics and Schneider Electrics, etc... as the product partners, local high end engineering and construction organisations as reselling customers, the country’s largest companies and group such as John Keells Holdings, Hayley, Unilevers, MAS, Brandix, Ansell, Coca- Cola, Nestle, Dialog Axiata, Trelleborg, etc… and government bodies such as the Ceylon Petroleum Corp., Ceylon Electricity Board, National Water Supply and Drainage Board, Sri Lanka Parliament, etc… as Electro-Serv’s premium customers which goes on to show the strong Relationships Electro-Serv posses with different kinds of stakeholders. These highly valued relationships are used in all kinds of communication activities to strengthen the brand image which the most competitors does not have to luxury to.  The Culture of Electro-Serv brand derives from the organisation itself which focuses on customer experience above all else which includes the quality standards of the brand offering and the operational processes as well as the people and technology. Skilled labour together with high-end information and the technological tools along with optimised processes help Electro-Serv deliver a better customer experience than all of its competitors.  Electro-Serv’s customers tend to identify themselves are patronisers of the cutting edge engineering and as efficient users of energy in relation to the brand while projecting premium satisfaction. The ‘premium brand’ perception (Reflection) helps differentiate the brand with majority of the competitors with a promise of quality guarantee.  Lastly, the Self-image the customers of Electro-Serv conceive in relation to the brand creates a major competitive advantage for the brand. When a customer choose Electro- Serv brand, they feel as a part of the three decades of engineering excellence and pioneering achieved by the company 3
  4. 4. [2(c)]Branding Method and its Position Being a business to business company offering business solutions and services, Electro-Serv’s does not carry on any main stream advertising or promotional campaigns as of current. The company mainly relies on personal selling and direct marketing communications as the communication medium for branding Electro-Serv. The DAGMAR model (Colley, 1961) is used as the main brand communication method as the company’s sales force is highly focused on building up good relationships with existing and potential customers and their identified key personnel and through those relationships, builds brand awareness, makes the target audience comprehend the brand values and value proposition, builds favourable brand conviction, converts to customers, builds brand loyalty and guides them through their action process to continual purchasing. The company is also executing Brand Extension strategy by acquiring new strategic partnership with other reputed brands from different price positions which helps the company to target price sensitive mid-range segments of the market by offering slightly different systems and solutions fit their exact requirements. While moving in to the mid-range segment, the company retain the original value proposition but optimise the products at the actual and augmented level to satisfy the need of the mid-range market while maintaining at a competitive rate. Electro-Serv is perceived by the target markets as the Technology Leader in the industry compared to its competitors, due to the strategic partnerships it currently holds with global industry leaders in their own sectors such as Schneider Electric and SMC Pneumatics. These brands are leading with innovation and being the authorized distributor and service partner for these brands, Electro-Serv is also seen at the same innovation level and the view of the Sri Lankan electrical and mechanical engineering industry is that, the Electro-Serv also offers similarly innovative solutions with cutting edge technology. Electro-Serv brand, unlike most of its competitors, has been in the industry for nearly three decades which has helped the brand to mature and spread its reach to a major share of the market. The brand is well-known and majority of the major companies in Sri Lanka has worked with Electro-Serv at one point or another. Most of the solutions provided by Electro- Serv throughout these three decades has remained productive and efficient proving the Quality and Reliability of the Electro-Serv brand. As a result, the customers perceive Electro- Serv and a Trusted Engineering Expert compared to its competition. This perceived brand position is further strengthen through company’s industrial training and in-plant internship programs which are offered to the engineering students and young engineers as well as technicians, which helps to build the Electro-Serv brand awareness and loyalty within the industry’s young generations ensuring the Sustainability of the brand. As discussed in [2(b)], due to the brand characteristics and the branding efforts, the target market has perceived a unique brand image of Electro-Serv. This has lead Electro-Serv to be positioned at the top end of the ladder compared to the competition. The brand perception of Electro-Serv within the target market is as an expert, high quality, advanced, premium engineering solution provider in power, control, and automation fields with a premium price tag. The majority of the target market view the high overall customer value through Electro- Serv brand in comparison, however, increasing market share in the price sensitive segments are still a challenge with the current position of the brand. 4
  5. 5. [2(d)] Developing a Creative Brief The customer-to-customer and sales staff-to-customer word of mouth as the primary branding method could be used as an active branding method as discussed in [2(c)]. Based on the same, the customer facing divisions of the company which are products sales, solutions, customer care, engineering support, marketing, and special services divisions could be used for branding communications. An analysis on the current situation of the Electro-Serv brand can be seen sections [2(a)], [2(b)] and [2(c)] of this report. It is highly important to identify the customer perceived value of the brand’s value proposition and the current customer perception of the Electro-Serv brand. Identifying the major strengths and weaknesses of Electro-Serv would help to build upon the strengths and minimize the effects of the weaknesses on the campaign. Defining the objectives would be the next step. Electro-Serv’s vision is about creating, building and maintaining lasting profitable customer relationships by delivering delightful customer value. Marketing objectives for the upcoming financial year are to increase annual revenues by 15% through strengthening relationships, awareness and loyalty with the existing customers, increase the purchase volumes of the low active customers, and acquire new customers. Communication objectives are to focus on achieving these marketing objectives while staying aligned with the vision. The branding method discussed on [2(c)] suits well in achieving the mentioned objectives. It is important to mention the strategies used by Electro-Serv in achieving the desired growth and brand development such as the brand extension, market penetration, segmentation, targeting and the brand positioning compared to competition. The creative developer can use these strategies to align the creative communications appropriately. The target audience in this case are two fold as the branding method is through personal selling and direct marketing. Primarily the customer facing employees need to be able to comprehend and follow the communication activities and the message as the major disadvantage of personal selling is that the intended message and delivered message being different. The targeted customers should be defined based on the Electro-Serv’s current target segments and the key personnel and their designation and decision making level within the DMU. The KPI’s are to be defined based on the monetary objectives as well as based on the DAGMAR model (Colley, 1961). The time frame of the whole campaign to be decided based on the campaign budget allocated and authorized by the corporate management. The final approval will be given by the Chairman and the MD of the company. The message which to be communicated is of critical importance. As discussed above the main focus area should be on ensuring the intended message and the delivered message are same as the human element of the brand communication method discussed can affect the end message therefore the message should be clear and should communicate the positioning of the brand clearly to the audience using relevant collaterals online and offline. When developing the appeal of brand communications, it is important to keep in mind the educational level of the audience and the nature of the overall value proposition. The product offered through the Electro-Serv brand are highly technical therefore a rational appeal such as communication, slice of life, demonstrational and comparative appeal would deliver the message to the target audience. 5
  6. 6. [3(a)] Philip Kotler (2011) defines Public Relationships as “building good relationships with the company’s various publics by obtaining favorable publicity, building corporate image and handling or heading off unfavorable rumors, stories and events.” PR can deliver the same or better results as paid advertising in the case of Electro-Serv but at a relatively lower cost through press releases, event, earned media, publications, etc… however it is hard to manage. Electro-Serv is participating in industrial exhibitions and events as a part of its PR strategy and planning on publishing newsletters and gain earned media coverages in future. Advertising is any form of non-personal presentations of ideas, goods or services by an identified sponsor. (Kotler, 2011) It is important to concentrate on five crucial areas when planning an advertising campaign which are objectives, budget, message, media, and evaluation criteria. Advertising can be easily controlled in terms of the context, medium, frequency, tone, etc… and can reach a large audience however the in relation with the Electro-Serv’s whole audience of an advertising campaign may not be the ideal target audience and advertising can also be costly. The current advertising strategy used at Electro- Serv can be optimized and modified to deliver more returns on the investment. The current advertising platforms are business directories such as Rainbow Pages and Kompass, regulatory bodies such as chamber of commerce, ambient advertising such as on street name signs, etc… in industrial areas. Social Media is “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user- generated content” (Kaplan and Haenlein, 2010). Social Media is considered as the digital word of mouth and it facilitate people to socialize and exchange information. Social Media is often a cheap high ROI communication media however monitoring and maintaining the brand image is critical otherwise negative messages about the brand can get viral and hurt the brand image. Social media would provide Electro-Serv, the platform for social conversation where the company can maintain two way communication with the target audience. Electro-Serv has recently moved on to the social media space however being a B2B organization, Electro- Serv’s followership is not expected to be at high rate. Odel PLC is arguably the number one fashion brand in Sri Lanka and has placed high importance in using social media for brand communication. The target audience of Odel is families from upper middle income and above which includes both males and females and age ranging from as young as 15 to as old as 55 or 60. This target audience assembly comfortable with technology and social media. Odel uses a number of social media platforms with different characteristics and appeals namely, Facebook, Twitter, Google+, YouTube, and Instagram. Odel’s YouTube channel has over 100 subscribers and quite a lot of videos with an average viewership of around 500. Video context varies from commercials, short ads, event coverages, CSR briefs, etc… Google+ page has over 600 followers and over 90,000 views however the company is currently not using the Google+ platform for communications as the latest post is from 2012. Odel is highly active on Instagram and has 3600 followers and over 1250 posts mainly showcasing the products and promotions. It also contains pictures of special events at Odel. Audience interactions are high with averaging 100-150 like on almost all the posts. Twitter page of Odel contains tweets about special events, promotions and CSR projects and has a followership of over 500. The frequency of the posting is high with some interaction from the audience. 6
  7. 7. The Facebook page of Odel has over 300,000 followership and contains videos, images, and text content on Odel’s product offerings, Odel shopping experience, promotions, CSR project, special events, etc… It is averaging around 50-75 likes per post and some comments from users requesting more details on certain products and promotions. Across all the platforms, the Odel has managed to maintain its brand image as a colourful, vibrant, passionate, fashion icon. It has also managed to communicate to a vast majority of the target audience and get the audience to engage in a social conversation with the brand. [3(b)] Communication Objectives Electro-Serv’s vision is to create, build and maintain lasting profitable customer relationships by delivering delightful customer value. Based on the corporate vision, the long term mission of the company is stated as to become the default choice of complete industrial engineering solutions provider in Sri Lanka. Corporate objective of Electro-Serv for year 2015 primarily is to strengthen relationships with all the stakeholders of the company. This includes, increasing employee satisfaction and employee lifestyle, strengthen relationships with existing suppliers and build relationships with new suppliers while increasing the total value provision for all the suppliers, achieve the annual turnover growth by 15% YOY, increase sales volumes per customer by increasing customer choices, leading with customer value and strengthening customer relationships, increase profit margin by 3% YOY through increased efficiency and lowering the bottom-line, increase the awareness, reputation and the recognition of Electro-Serv, restructure the company and processes to best suit delivering the expected customer satisfactions. Annual marketing objectives of Electro-Serv for 2015 are defined to match the corporate objectives. Major ones are namely, increase the volume of the low active customer sales by 50% average YOY; 15% of overall sales should be from new acquisitions; gain 10% approximate market share; bring all the credits within 60 days of purchase; maintain a minimum of 90% credits : sales rate; maintain a minimum of 1 visit per week with all the key customers; maintain a minimum of 2 contact per week with low performing customers; add at least 1 more product supplier targeting the mid-range markets; get 60% of the top 250 customers to actively engage with the brand through social media, emails and the CRM solution; maintain a minimum of breakeven ROI with every campaign; achieve over 90% customer satisfaction rating; differentiate and strengthen the existing positioning and brand value.. Electro-Serv’s current communication objectives should be looked at based upon achieving the marketing objectives. • Achieve 10% increased revenue at each sales focus promotion or campaign, • Uplift the perceived brand image within 50% of the target market during the year, • Provide information about the brand values and offerings • Inform of new product launches and product upgrades • Influence purchase intent and stimulate brand switching • Communicate structural and functional changes within the company. The communications are to be targeted at the industry professionals such as electrical engineers, mechanical engineers and technician, purchasing officers/managers, factory managers, COOs, head engineers and decision makers, engineering students of electrical and mechanical schools of engineering. Electro-Serv is expecting to see an increase in inquiries, leads, customer engagement through telephone, email and social media, number of newly 7
  8. 8. acquired and reactivated customers, increased sales volumes for low performing customers. The above change areas are to be measured throughout the 2015. In order to achieve the above objectives while enhancing the corporate reputation Electro- Serv has identified a few communication tools Social Media Marketing is of major importance as a tool that will be used to achieve the above objectives and increase the brand reputation as it is one of the upcoming tools as well as it will bring high ROI. As discussed in [3(a)], social media also enables two way conversation between Electro-Serv and its customers which helps to build customer satisfaction, brand trust, perceived reliability of Electro-Serv, loyalty of the customers as well as helping to increase brand conviction and conversion Advertising is one of the important tools and one which should be carefully due to the high investment related with it. In the case of Electro-Serv, industry magazine advertising, business directory advertising, online PPC advertising, hoardings, street sign advertising, digital display advertising, POS, and newspaper advertising can be identified as viable. PR, as discussed in [3(a)] is also a potential communication tool which can be used to uplift the corporate reputation of Electro-Serv. Newsletter publications, online blog publications, industrial engineering training publications, exhibitions and trade event participations (such as Inco exhibition, Techno exhibition, Construct exhibition, Energy Symposium trade conference, etc…). Special events and sponsorships such as special case study seminar sessions at engineering departments of the country’s major universities and national engineering bodies can also help in terms of increasing the corporate reputation of Electro- Serv and ensure the sustainability of the corporate reputation throughout the generations. Personal selling is currently the main tool of overall marketing activities including marketing communications. As discussed in the section [2 (c)], it is highly important to keep the customer facing employees well trained and properly aligned with the corporate reputation and the brand identity which Electro-Serv would like its customers to perceive. The message should be clear and well understood by not only the customers but also the employees and suppliers as well in order to maintain the desired corporate reputation. Using an advanced CRM solution is a key requirement in personal selling as every activity, opportunity, case, etc… must be properly tracked and attended to on a per customer basis in order to maintain a good corporate reputation. Direct marketing is yet another tool which can be used in the forms of email marketing, direct mailing, sms marketing, corporate website and landing pages, etc… By using a marketing automation solution either separate or integrated within the CRM is important in order to ensure the audience receives the one message through out all the communication channels which in return adds value to the Electro-Serv brand and its corporate reputation. Special branding strategies such as ingredient branding (branding Electro-Serv logo on every product, system and solution sold), promotional gifts (pens, key tags, tool kits, diaries, etc…), Internal (delivery vehicles branding, branded employee wearables), email signature can also help uplift corporate reputation. Last but not least, sales promotions is a good tool to drive sales spikes, increase brand awareness, stimulate brand switching, and uplifting corporate reputation. Electro-Serv can provide special discounts, deals, credit extensions, quick supply, free additional service bundles, special warranty extensions, etc… through sales promotions to its key customers and loyal customer which strengthen the relationships but also the overall image of the company as a total solution provider in electrical and mechanical engineering fields. 8
  9. 9. [3(c)] Integrated Marketing Communications Plan Marketing Communication Planning Framework (Fill, 2013) Clipboard functionality has been disabled while a protected document is open. Please close this document to restore clipboard usage. Context Analysis – Analysis done through section [1] and [2], Existing Porter’s Five Forces and SWOT analysis, PEST, Current marketing strategies, STP (please refer to the appendix) Promotional Goals & Positioning – As discussed in [2(c)] and [3(b)] Promotional Strategy (3Ps) Push – Through Personal Selling using the sales force, Direct Marketing such as Email Marketing, Sales Promotions. Pull – Through Advertising as discussed in [3(b)], Social Media, Email marketing, Website, Blog Profile – Blog, Newsletters, Publications mentioned in [3(b)], Events, Special Trainings Coordinated Promotional Mix Same positioning message to be carried through all the selected promotional tool Similar, connected presentation theme to be used across channels which expresses the premium value proposition of Electro-Serv Coordinated internal and external communications Scheduling Schedule of the activities and the communication frequencies Resources Funding – Approximate fund allocation excluding capital expenses LKR 5,000,000.00 Human & Competencies – Marketing Division, HR Division, Corporate Management. Additional resources to be allocated based on the case Implementation, Control and Evaluation – Marketing Division to monitor the communications, provide resources facilitating the communications and obtain and assess customer feedback and satisfactions. Customer facing divisions to execute the planned communications. 9
  10. 10. Social Media - Electro-Serv currently present on Facebook via an official business page and an employee group. Page is utilized to communicate brand values, and inform followers of specific products, solutions and services the company offers as well as promotions while the group is used to communicate special promotions, activities and internal events to the employees. Google+ business page is up and running along with the verified business location on Google Maps/Places to communicate the above mentioned information as well as contact information. LinkedIn page is also available and used to communicate similar message targeting the professional community specifically. An assistant marketing coordinator is to be assigned to create and manage the content of the social media pages and to acquire followers using organic methods and increase the reach and the activities on these platforms. Online Advertising is to be utilize through Google AdWord, Facebook Ads and LinkedIn Ads. These advertising campaigns are created to communicate the primary objectives and direct customers to more robust platforms such as the corporate website, landing pages and the social media pages where the customers are communicated the additional information. As our customers starting to spend more and more time online, using the online advertising platforms will create more brand awareness for Electro-Serv through high number of impressions. These platforms also provide accurate statistics for measuring the effectiveness of the campaigns therefore making it easier to measure the rate of achieving the company’s communication goals. Marketing executive is responsible of managing the campaign while the graphic design is responsible of creating the relevant advertisements content. Campaigns are typically to be carried out throughout 2015 with an annual budget of LKR 300,000 while maintaining average of LKR 75,000 per quarter (subjected to change after an analysis and review at the end of the Q1 2015). Electro-Serv YouTube channel is active and currently carry a few videos of the company and its offering including a corporate profile video. A few employees are to be assigned from a few divisions namely R&D, Projects, Panels, Automation, and Engineering Support to make videos of their work related activities, experiments, demonstrations, installation and implementation activities and handed over to the marketing division for editing and uploading to YouTube. In addition to those videos, promotional videos, special event videos and product introduction and video manuals are also to be uploaded to the YouTube channel. Social media coordinator is to promote the channel and videos posted by Electro-Serv. Not much of a budget need to be allocated for this purpose however LKR 100,000 should be set aside in case of requirement of professional services. Special branding activities discussed in [3(b)] are to be implemented by the Marketing division with the help of relevant divisions such as HR, Inventory, Delivery and logistics, General admin. Collaterals for direct marketing and personal selling such as pens, memo pads, calendars, diaries, mugs, brochures, etc… which carries the brand name and in some cases additional information, are to be developed and freely distributed to the existing customers, at special events and to newly acquired customer. In every possible case, materials developed should point audience towards the company’s online resources. Annual budget allocation would be LKR 2,000,000. Implementation of CRM, ERP, Enterprise Social Network and Marketing related technological tools are to be carried out. These should be considered as long term investments therefore the funding of the same should be allocated through primary corporate development fund. Marketing division and other relevant divisions such as IT, Inventory, Delivery, Customer Service, Sales, Engineering support, Automation, etc… are to work in conjunction with the corporate management in implementing these transformational changes. These technology adoptions will result in increased productivity of all corporate activities including 10
  11. 11. marketing activities focused on building brand awareness such as effective email marketing, and social media activities. Telephone and business directories are also used to index the contact details of the company increasing the availability of brand information. SLT Rainbow Pages and Ceylon Chamber of Commerce are main priorities however the budget allocation will be at a minimum level not more than 400,000 LKR. Marketing Division is to coordinate with relevant parties in getting the best possible value for money. Event Sponsorships and participation in major industrial event is suggested and expected to increase the brand awareness, comprehension of brand offerings and brand awareness and reputation. The Inco exhibition and the Construct exhibition will be considered as high priorities. Special training sessions are to be coordinated and arranged with universities and engineering training institutes where Electro-Serv brand will be showcased at the presence of the next generation of industry personnel. LKR 1,000,000 from the annual budget is to be allocated here. Newsletter, Corporate website, Trade blog are to be published by Electro-Serv and to be promoted using the personal selling and direct marketing as well as online advertising. Internal newsletter will be issued weekly and external newsletter will be issued monthly. Blog content will be developed by in-house and guest engineers and maintained by the social media marketing coordinator while the graphic designer will be designing the newsletters with employee content and recent updates. Corporate website is to be out sourced for development and to be maintained by the Marketing division. Newsletters are to be delivered via emails. Budget allocation is LKR 500,000. Customer facing employees are to be undergo training in terms of customer care, knowledge of the technological tools, value proposition, brand offerings, etc… LKR 250,000 budget to be allocated annually and training to be done by senior managers and guest trainers. Defining KPIs for measuring is highly important. Social media pages are to gain 50+ follows on average during Q1 2015 and to reach 100 followers minimum on average by the end of 2015. By the end of the year, it is expected to see average of 3 comments per post excluding the comments from Electro-Serv. The statistics can be taken from the platforms. Online advertising is to create 5 visitors to the directed online touch point during Q1 and Q2 and should see and increase up to 10 visitors on average in Q3 and Q4. Corporate website and blog is to see 10 visitors per day during the first half which should increase to 25 per day on average by the end of 2015. Google web analytics and other relevant tools are to be used to monitor activities. YouTube channel is to have over 100 subscribers and 100 views per video on average by the end of Q2 and the views are to double by the end of 2015. The site itself provides the statistics. Marketing emails to maintain over 50% open rate and over 5% click rate during 2015. Mass emailing tools provide the necessary statistics. During 2015; Low active customer sales growth by 50% average YOY. 15% of overall sales should be from new acquisitions. Should increase market share by 10%. Less than 10 credits over 60 days of purchase. Maintain a minimum of 90% collection : sales rate. Maintain a minimum of 1 visit per week with all the key customers, 2 contact per week with low performing customers. Data can be collected through the CRM solution. Minimum ROI with marketing campaigns must breakeven. Achieve over 90% on customer satisfaction surveys. ~ End of Report ~ 11
  12. 12. Organisation Summery [1(a)] Organisation Summary Organisation Name Electro-Serv (Pvt) Ltd Type of Organisation Electro-Serv (Pvt) Ltd is privately owned limited liability company which operates nationally within Sri Lanka with the intention of making monetary profits. Average Annual Turnover and Number of Employees LKR 350 million to LKR 400 million (as of the financial year ended on 31st of March 2014). As of 31st of October 2014, the number of employees of the company is 143 Products & Services Electro-Serv (Pvt) Ltd has over 500 major product categories from over 30 global and local brands and provides Products, Solutions and Special Services related to Electrical and Mechanical Engineering, within the fields of Power Distribution, Protection, Control, Energy, Metering, Automation, Instrumentation, Communications, Management and Retrofit. Customer Business customers in residential, commercial, industrial, public and infrastructure sectors. The customers are segmented industrially, geographically, Sales Volumes, frequency and potential. Competitors Band Level - ABB, Siemens, Lovato, Kutler & Hammer, LS, L&T, Festo, Fuji, CHINT, Moller, etc. Distributor Level – Nikini Automation, KIK, Rotax, Roche, Bianco, Vidma, Rishardson, etc. Inter-Functional Relationships The company has 3 revenue divisions (product sales, solutions, and special services) and 10 support divisions (marketing, finance procurement, hr, logistics, IT, inventories, R&D, admin and engineering support.) The revenue divisions act as the bridges connecting with customers while support division enables and supports revenue divisions to satisfy customers directly and indirectly. Other Stakeholders Brand principals, Dealers, Partners Organizational Culture The company believes in creating value for customers with quality products, and solutions, keeping high service standards and innovative engineering expertise. The company try to resonate with the micro environment through restructuring where needed. Customer relationships are highly valued. The employees are loyal to the company and open door policy is practiced. Employees are given the opportunity to develop their careers through trainings, guidance, education loans and job promotions based on their qualifications, service and loyalty to the company. High valued employees are treated with special benefits such as medical benefits, company maintained and fuelled vehicles with drivers, laptops and mobile phones, company paid mobile connections, etc. Management actively participates in improving and maintaining the quality of the organizational processes and quality of the offerings to ensure best customer experience and employee happiness. However, the employees and customers are facing a mild discomfort presently due to the company restructuring and location shifting although measures are being taken proactively to minimize the effects. The management has recently changed hence the company is shifting its previous sales orientation to a marketing orientation therefore employees are to adjust and adopt to the cultural shift.
  13. 13. Reference References • Colley, RH. (1961) Defining Advertising Goals. New York, Associate of National Advertisers. • Fill, C. (2013) Marketing Communications. 6th edition. United Kingdom, Pearson. • Kaplan AM., Haenlein M (2010) Users of the world, unite! The challenges and opportunities of social media. Business Horizons Vol53 (1), [online], http://dx.doi.org/10.1016/j.bushor.2009.09.003 (Accessed on 22 November 2014). • Kepferer, JN. (2012) The New Strategic Brand Management: Advanced Insights and Strategic Thinking. 5th edition. London, Kogan Page. • Kotler, P and Armstrong, G (2011) Principles of Marketing. 13th edition. New Jearsey, Prentice Hall.
  14. 14. SWOT Analysis – Electro-Serv (Pvt) Ltd Strengths • Corporate Image in the market • Experience engineering expertise • 25 years presence in the industry • Excellent products with highest quality • Strong brand image of the products we sell • Strength of our principle suppliers • Our Sales staff and their knowledge • Office Location and the Branch network • Loyal staff • Experience In handling large/famous project • Stock availability Weakness • Low penetration of brands (High , Medium , Low) • High dependency on one Supplier • Low Customer focus attitude of the staff • Lack of information and coordination within departments • Lack of team work • Lack of usage of IT and its benefits • Low focus on supplier relationship management • Low proactiveness in the market • Lay back attitude in some of staff Opportunities • Rapid growth in the market with the government projects • Developments in the southern & Northern areas of the country • Emerging opportunities in the market for energy saving • Emerging market for solutions • High demand for the low cost products Threats • High number of competitors in the market • Aggressive marketing activities by competitors • High demand for Chinese products • Recognition for Korean products as a quality one • Suppliers decisions on forward integration • Availability of substitute products in the market • Emerging small companies in the market and their low overhead cost • Low product shifting cost for customers • Competitors also promoting the same brand Appendix
  15. 15. Porter’s 5 Force Analysis Threat of New Entrance • Availability of Schneider products in the market • Low capital investment to start the business • Availability of Chinese product • Low cost for customers to switch Suppliers • Other cost advantages when operating with low overhead cost. • Very easy entrance to the market (Less Barriers ) Bargaining Power of Customers • High number of suppliers in the market • Low product differentiation • Low supplier switching cost • Due to high competition customers have multiple choices and have very high bargaining power. High Medium Low Threat of Substitutes • High number of substitutes (China) • Low price • Low supplier switching cost • Substitutes are the prime choice of all Price conscious customers Bargaining Power of Suppliers • Limited number of reputed suppliers • The brand image and the strength of Schneider • We only promote limited number of brands and the brands • Supplier threat in forward integration / appointing new agents Revelry among existing players • Number of competitors in the market well established and emerging. • Low Product differentiation • Good growth rate in the industry due to government projects specially (8%) • Diversified group strength in competitors Appendix

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