c a m b r i d g e m a r k e t i n g c o l l e g es © cmc 2005 signifo expenses strategic marketing...

© CMC 2005C A M B R I D G E M A R K E T I N G C O L L E G ES

Signifo Expenses

Strategic Marketing in Practice Case Study

December 2005


Scenario

• You are Ed Walker marketing consultant.

• TASK: – Positioning and branding of the company– Communications strategy – International marketing strategy


Where are we now ?

Audit of current situation


Signifo today

• Business to business, fast growing SME within the Software Services sector– Established 5 years, profitable, grown organically– £1.5m T/O– 400 customers– Impressive range of clientele – Chivas Regal,

Heineken,Woolmark,Hitachi, Pernod etc.– Mainly U.K. only few customers overseas– Mainly targets SME market – One product currently – expense solutions – Poised for growth but how?


FIRMS INFRASTRUCTURE - Customer focused, Marketing taken on and understoodat every level, core function - strong internal communications

HR MANAGEMENT - Retain technical and knowledge based employees and recruitmarketing and sales experts - Project/consulting expertise

TECHNOLOGY DEVELOPMENT - Technology leaders, continuous innovation, R&D focused towards buyers needs, strength in R&D relationships I.e. Research institutes

PROCUREMENT - Combined buying power

INBOUND LOGISTICS

• Intranet• JIT for suppliers

OPERATIONS• JIT

•Efficientproduction(closely

monitored)

OUTBOUNDLOGISTICS•E- Orderhandling

•JIT

MARKETINGAND SALES• Customer/

segmentresearch

•Investmentin Branding

•Relationshipmarketing,

Key Accountmanagment

SERVICE• Total

systemssolution

•Consultancyservices

•Maintenance•Outsourcing,

MARGIN

MARGIN

SUPPORT ACTIVITIES

PRIMARY FUN CTIONS


Brand issues

• BRAND DOMAIN (brand’s target market)

• BRAND HERITAGE(how it has achieved success)

• BRAND VALUES (core values and characteristics)

• BRAND ASSETS (what makes brand distinctive)

• BRAND PERSONALITY (character of brand)


Signifo SWOT

Strengths• Fast growing• Profitable• 400 customers• Fully web based system• Simple to use• Ability to work offline• Interfaces directly with credit card

companies• Links with mobile (SMS)• Winner of DTI SMART award

Weaknesses• Not many corporate customers• Predominantly U.K. based• Medium sized company, only 1.5

m turnover• Fledgling business to some

extent, established only 5 years

Opportunities• To drive more business within the

U.K. e.g. public sector – Universities

• To target US market as well as Europe, South Africa and Australasia

Threats• Barriers to entry fairly low• Larger companies such as Concur

in the US could outflank Signifo• Large companies in Canada and

Germany – highly competitive market

• Expansion could stretch resources too thinly


Map of competition

SME(International)

ExpensAble (US)

CORPORATE (International)

Concur (US)Necho(Canada)Sap(Germany)

CORPORATE (Domestic)

Global Expense (UK)

SME(Domestic)

4 UK players but very small at present


The Business Environment

MICRO

MACRO

PHYSICAL

SuppliersLabourCapital

ProductWagesProfit

Organisation

Materials

Pollution

PoliticsEconomy

Society Technology

Legal

More than SLEPT!

Porter’s 5


Consider Signifo’s positioning

• Use either BCG or PLC


Brand Equity

• Bonding –----How does it retain itself with me

• Advantage – --Does it offer something different

• Performance- -Can it deliver

• Relevance – Does it offer something I want

• Presence- Do people know it


Where do we Want to be?


Objectives

• Decide• Objectives

– For U.K. and International

• Deliver• Outcomes


Segmentation

• Described and Profiled for each sector


Targeting

• Specific and Justified for each sector


Positioning

• Clear and defensible– Set out USP and Positioning for each

sector.– Are there any commonalities or Single

Brand options

• Vision• Values


How do we get there?


Action

• Decide• Objective• Deliver• Outcomes


Strategic Development

• Product– Sector Selection– Core/ Physical/Augmented Proposition– Branding

• Pricing• Distribution• Promotion• People • Process


Implementation and Control

• Budgeting Areas• Metrics• Balanced Scorecard• McKinsey 7S


Comms Strategy for Signifo

• Audiences –Internal and External, domestic and international, SME and Corporate, private and public

• Media• Messages• Timing/Budget• Stakeholders

• Investors• Suppliers• Partners • Customers• Media• ASP’s• Who else ?


Internationalisation

• Where, when and how– GE/ Harrel and Keiffer



• Budgeting Areas• Metrics• BS• McKinsey 7S


Critical success factors

• Create a sustainable brand image and position amongst competitors

• Change management (PLC,BCG)• Internal marketing (stakeholder

management, CRM)• Funding (Borrowing/J.V/Debt)• Constraints – Overstretching

- Competitive landscape - Attempted takeover by

larger company


Vision

For Signifo to be the first destination for any

SME/Large company that is seeking a value

for money, simple to use and cost effective

solution to their expense management process.


Mission statement

To become first choice for any company seeking a cost effective solution to expense management who demands high quality standards and exceptional customer service


Critical Questions

• What is Signifo’s USP when targeting the Corporate sector in the U.S. when Expensable have a very large following (1,000 + customers) ?

• What possible reasons could have caused Necho’s decision to pull out of the U.K?


Values

• Committed to high quality, effective solutions which provide excellent ROI for any company

• Committed to superb customer service which fully integrates with client’s existing systems and accounts packages

• Committed to continual quality enhancement of all processes to speed up and simplify expense management within companies


Corporate objectives

• To develop the public sector market by targeting universities and increase turnover by £250,000 from this sector by 2007

• To enter the US market aiming at the SME market to create a niche opportunity, as no other US operator targets this market using a web based system


Strategic management of marketing mix

• Product Core – simple to use, fully integrated with existing

company systems and accounts packages. Large savings in staff time and speeds up the whole

process. Versatile Augmented – can be used offline, links to mobile

(SMS) • Price Favourable price – value for money because of a

good ROI within 3 months expense package saves companies money

Pricing strategy could involve a percentage of future sales



• PlaceUK based primarily – but needs to drive more sales from the public sector. Also needs to target the U.S and European markets, plus South Africa and Australasia

• PromotionB2B - emarketing campaigns to selected companies (use SIC lists and professional bodies) Associations – referrals from existing customers promotional scheme)

Publish P.R. related material for senior decision makers, opinion leaders in relevant business/accounting magazines, airline publications, etc. Web site – continually update the content. Company endorsements – refresh regularly



• People Train and develop the existing staff. Selective recruitment of key sales/marketing/technical personnel. Recruit proven staff in overseas markets

• ProcessesRegular internal/external communication. Long term relationship building. B2B customer involvement. Relationship marketing. Customer Lifetime Value. Branding strategy.



Physical evidenceCorporate web siteSignifo logo and brandROI table – company examples


Implementation and Control McKinsey 7S

Structure Single company or J.V.? U.K. Head Office and overseas

subsidiary?

Strategy Focus differentiated aimed at SME and

Corporate markets in U.K. and overseas


Implementation and Control Systems Develop MKIS and control systems to

regularly review and monitor effectiveness of all strategies

Develop benchmarking system to monitor against key market indicators

Staff Continual development of key staff.

Advanced sales training, inbound and outbound. CRM development. Key account

relationship building


Implementation and Control SkillsEnsure correct training and development programmes are established to keep Signifo staff at the leading edge of technology, systems and processes

Shared values Ensure company strategy shared by everyone

in the organisation. Growth strategy and international expansion shared with all staff, suppliers, stakeholders. Compliance regulations (IRS) understood and accepted.



Style Commitment top down from 3 founders. Creative, dynamic, leading edge, probity, commitment, ethical trading stance.

Profit sharing scheme


Control – Balanced Scorecard

InternalEmployee awareness, staff turnover, assess staff performance against benchmarks (KPI’s), participation in continuous development (training schemes), develop CRM databases for collecting customer feedback and insights into future needs, wants, industry trends, (market intelligence)


Control – Balanced Scorecard

Innovation and learning Skills training – advanced B2B selling,

customer ‘champions’, technical, systems, accounting software interface training and development, critical thinking, project management


Control – Balanced Scorecard Financial Sales vs. targets in each sector –

SME/Corporate – U.K.,EUROPE,U.S.A. Australasia, etc. Profitability metrics, CLV

Customer Customer satisfaction surveys –

customer feedback. Customer endorsements - web based

Brand recall/awareness of brand


Possible questions 1. What branding strategy should Signifo

adopt to maximise sales and profitability?

2. Prepare a communications plan which will increase sales and profitability for Signifo across all its target markets

3. What branding and positioning strategy should Signifo adopt to improve its appeal to U.S. corporate customers?

4. Devise a marketing plan to make Signifo a leading player in the mid sized market in Europe.


Possible questions 5. Prepare a relationship marketing

campaign which will effectively increase Signifo customer loyalty and their lifetime value.

6. Signifo is at the crossroads in its development and growth. Produce a strategic marketing plan which will ensure increased revenue from expense management and negate the marketing strategies of domestic and international predators.


Possible questions

7. Prepare a corporate social responsibility charter for Signifo in the light of the recent tightening of security legislation, such as SOX in the U.S. and the FSA in the UK.

c a m b r i d g e m a r k e t i n g c o l l e g es © cmc 2005 signifo expenses strategic marketing...

Documents

e g es cmc

b r i d g e

e t i n g c o

present slide

recruit marketing

us market

sme market

corporate customers