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- 2. SEGMENTATION AND SALES ORGANIZATION PROPOSAL Bologna BusinessSchool Business Marketing Professor Lelli April 8, 2016
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- 6. AGENDA Proposal Company Market Analysis Segmentation Analysis StrategyShift Organizational Analysis Implementation Next Steps
- 7. EXECUTIVE SUMMARY The currentsegmentation strategy is not designed to handle the evolution of the customer mindset in emerging markets, specifically the rotogravure market. As a result, the organizational structure cannot support the shift to emergin markets and the sales force is having difficulty penetrating the market. The current proposal offers a segmentation strategy based on Mature and Emerging markets, and segments customers into Key and Prime customers, based on size, need, and level of service expected. The organizational structure is informed by the new segmentation strategy and proposes a departmental shift, change in mindset, and a dedicated Product Management division. Rotogravure is a growing worldwide market, but is stagnant in mature market. Changing strategy to reflect this change is necessary for the long-term strength of the company.
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- 9. ISSUES Cost of saleshas been rising gradually Cost of lead acquisition is increasing Current segmentation cannot support expansion Current sales organization is ineffective
- 10. SCOPE Create a leanersales process for rotogravure printing machines Reduce overall cost of sales Develop a sales structure that supports the market growth Develop a sales structure that supports entering emerging markets
- 11. To help ourcustomers worldwide to supply safe, cost- efficient, environmentally friendly and appealing packaging We want to play a key role in the success of our customers We create sustainable, long-term value for all our stakeholders The Bobst Group way: specialists with a strong bond While spanning the globe, our activities remain close to our customers People excellence Leading innovation Long-term partnership Continuous cost- efficiency improvements Setting industry quality standards
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- 25. Brand owners areworking closer with printing houses in order to meet the challenges of product packaging requirements “With these developments we have adapted to the customers’ needs for printing forms that are easier and faster to handle”
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- 29. Growing 7.6% perannum 80% flexible material Industry grew by 73% 2006-2011 Fastest growing in world Industry growing very rapidly Outpace mature markets 3rd in printing worldwide Focused on sustainable printing
- 30. PRINTING PROCESSES GRAVURE FLEXOGRAPHYDIGITAL Best process for color Highest and most consistent quality Suitable for large runs Competes with Gravure in terms of level of quality Acceptable quality Economical for medium runs Designing mockups and prototypes Does not print on substrates Suitable for small batches
- 31. EMERGING MARKET NEEDS PRINTINGVOLUME PRICE ENVIRONMENTAL CONCERNS CUSTOMIZATION VOLUMES
- 32. The market requirementshave changed. Integrated and customer-specific solutions are important to cope with the new challenges. A flexible, platform-based press concept, for example, would allow different processes and tools to be combined together and modules exchanged between different printing presses.
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- 34. MAINTAINING LEADERSHIP As globalizationweaves companies, supply chains, and regions together, printers must begin to look beyond traditional borders of geographies and capabilities to meet their customers’ needs Growing demand among their consumers for more sustainable practices: printers must proactively meet their customers’ demands in this area Printers will find success by looking at the direction of the industry and finding what fits their business direction, in addition to listening to their customers
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- 36. STRATEGY SCOPE Current customersexpect excellent service Focus needs to shift to emerging markets New segmentation strategy is required in order to be efficient in emerging markets How do we serve current customers with excellent service, but focus our sales strategy on emerging and growing markets?
- 37. MATURE MARKETS SEGMENTATION Key Customers Prime Customers Replaceequipment more frequently Seek services more frequently Likely purchase in higher volumes Price-sensitive Value BOBST, but are less likely to afford high- end products and services Service responsiveness is important because they make decisions based on urgency
- 38. ADDRESSING THE MATUREMARKET Keep level of customer service high Account Executives will be responsible for Key Customer accounts Account Managers will manage the Prime Customer accounts Customer relationship management is important
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- 42. EMERGING MARKETS SEGMENTATION Key Customers Prime Customers Largerprinting facilities that have higher capital spending Seek frequent service and are willing to spend more on training and consulting High volume of end-user customers Smaller capital spending budget Price-sensitive Likely smaller facility with lower output volume
- 43. ADDRESSING THE EMERGINGMARKET Behavioral and cultural sensitivity to different regions Account Executives will manage the Key Customer accounts Account Managers will manage the Prime Customer accounts
- 44. ASIA Multiple cultures withdiffering behaviors and business practices Business and personal etiquette is important Tailor approach and strategy to each region and company Product features and functions are important across most companies in Asia
- 45. CHINA Close network withpersonal ties Establishing relationships can take a long time to build Delays in the business process are common Product competence is important Working with a team of sales/engineers/product managers is best practice Navigating hierarchy and bureaucracy is common
- 46. INDIA Many modern companiesand many traditional family-run companies Research each company thoroughly Hierarchy is important Decisions are made at the top-level of a company Meetings are informal and usually not on time Developing relationships and network is important
- 47. JAPAN Personal network isimportant Majority of time is spent building relationships Education and personal background questions are common Approval process can be long Formality and documentation is part of the process
- 48. SOUTHEAST ASIA Personal relationshipsand network are crucial in decision-making Bureaucratic and time-consuming Maintain composure “No” is never said directly Understand the company and culture well before the first meeting
- 49. MIDDLE EAST The areais diverse and customs do not carry over country-country Islam is common in the region and informs all levels of society, business Understanding customs and traditions is important Business and personal are usually mixed Be careful what you promise and deliver Honor is important
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- 51. CUSTOMER MINDSET When seekinga sales rep to assist in buying decisions, customers look for the following attributes: Source: SAP
- 52. Customers have differentneeds Sales strategy has to reflect the customer’s mindset Utilizing new tools and technologies to deliver leads and close sales WHAT DOES IT MEAN?
- 53. Geographical Specialisation • Salesand Business development people were not specialized in specific geographical areas so deal-closing process couldn’t be adapted to each market's culture Communication inefficiency • Communication process between all the parts of the organization was too long Loss of Cross sell opportunities • No follow-up people dedicated for each group of customers, so that means that cross sell opportunities are not optimized. No dedicated Product Management • Product Management spent too much time in the sales process. The nature of customer has evolved in emerging markets that they require dedicated product management
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- 57. DEPARTMENT STRUCTURE Departments haveto work together to achieve highest level of sales Utilize knowledge across departments for efficiencyDEPARTMENTS
- 58. VP MARKETING AND BUSINESS DEVELOPMENT VPSALES ACCOUNT EXECUTIVES AND MANAGERS VP PRODUCT MANAGEMENT PRODUCT MANAGERS INBOUND OUTBOUND BUSINESS DEVELOPMENT MARKETING DEPARTMENT Serves as leader in developing business and marketing opportunities for the company The marketing team carries out the marketing stratgey globally and works with every department in the company to achieve its target Inbound team handles requests from leads/ prospects that are directed towards the company via web, phone, email, etc. Outbound team focuses on procuring leads using cold calling, email marketing, and other avenues Serves as the Sales department leader. Oversees and develops strategy for the ales team to carry out. They overtake the prospect customers that receive from business developers and from executives and managers. Their mission is to turn them into actual customers Most deep knowledge about the product. People from product management team help the sales people with the technical aspects when they are closing a deal with the customers. Serves as leader in developing business and marketing opportunities for the company ROLES
- 59. PRODUCT MANAGEMENT Unlocks growthfrom a product- selling company to be a solution provider Provide support for the product’s lifecycle Better collaboration with sales if PM team is focused on its function
- 60. CUSTOMER-CENTRIC APPROACH Customer needsand business goals need to be aligned Product Management Team provides business leadership across the company and the customer
- 61. SALES AND BUSINESSDEVELOPMENT DEPARTMENT Mature Markets Regional Directors manage Account Executives and provide support Emerging Markets Regional Director manages Account Executives and Managers
- 62. MARKETING DEPARTMENT Understands andfulfills customer needs Works in planning and execution of sales Segments the market Develops strategies to identify potential partners Implements strategies to achieve company goals Develops pricing strategies Researches and analyzes potential markets Works across all departments to achieve company’s vision
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- 68. UTILIZING SOCIAL MEDIA Source:IntroHive B2B Customers are utilizing Social Media to build relationships with companies
- 69. CONTENT MARKETING Important toestablish reputation as a leader Customer’s will rely on a “thought-leader” Email nurture and drip marketing is necessary to succeed against competitors Increased conversion potential Decrease marketing costs Increase sales
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- 71. E – PROCUREMENT E-procurementis the business-to-business purchase and sale of supplies, work, and services through the Internet It has become an innovative strategy to enhance the business performance. ADVANTAGES: It enables purchasing organizations to find the right suppliers products at a fair price Allows buyers to collaborate with suppliers throughout the purchasing process to cut the lead time, reduce the probability to stock out and lower the bullwhip effect Enables both buyers and suppliers to track the movement of the items throughout the purchasing process in a real time manner.
- 72. TYPES THIRD PARTY MARKETS Appliedto a specialized industry with deep roots in a given industry. SPONSORED MARKETS A public platform that collaborates with sponsors in order to help the vertical industry e- marketplaces and trading communities PRIVATE MARKETS Refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds
- 73. REQUIREMENTS Supply needs types ofproducts volume and size of orders complexity of the purchasing process the importance of the products to their business objectives The relationship between purchasing situations and types of e-procurement need to be examined to assist the supply manager to make the right sourcing decision
- 74. BENEFITS OF COMMUNICATIONTECHNOLOGY Simplify communication process Increase approach to new customers by 10% Decrese sales time Customers are enabled to see the process, which is important in the emerging market
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- 76. SALES PROCESS 1. Interaction:Personal touch points Relationship building 2. Qualifying purchasing power Break barriers to purchase 3. Defining purchase need 4. Budget confirmation 5. Negotiation and verification 6. Selection and purchase order 7. Buying
- 77. SHORTEN THE SALESCYCLE Break the deal up Simplify the price Teach them how to buy Get everybody involved Look for hidden friction Try time-Limited Offers
- 78. Proper hiring/organization of toplevel Sales executives Financial Planning and Management system implementation Budget preparation Proper recruitment of sales force Proper organization of marketing activities Implementation of organizational structure Implementation of market segmentation Training of sales force Measure success of plan
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