Download - Slides for APMEA
Market leadershipExplosive topline growth
Failan Saleem
Plan
• Discovery consist of looking at the same thing as everyone else and thinking what nobody has thought
alberszent-gyogi
Perspective Marketing Innovation
Happy customers
Loyal customers
Cash flow
Profit
EVA
“The customer is simply the fulcrum (core) of the business and everything from production to supply chain, finance, risk management, personnel management and product development all adapt to and converge on the business value proposition that is projected to the customer”.
Perspective
(The Customer Information Wars, Sean Kelly, Wiley, 2005
Purpose
Profit improvement
Productivity improvement Sales growth
Productdevelopment
Marketdevelopment
Marketpenetration
Changeasset base
Existingassets
Costreduction
Improveasset
utilisation(experience
andefficiency)
Increaseprice /reduce
discounts
Improveproduct /sales mix(margins)
Newmarkets
Existingmarkets
Convertnon-users
Newsegments
Takecompetitors’customers
Increaseusage
Growth focusCash and margin focus
Investment• Innovation• Diversification
Divestment• Redevelopment of capital resources
Capital Utilisation focusProfessor Malcolm McDonald
AssetBase
Define markets& understand
value
Determinevalue
Proposition
Delivervalue
Monitorvalue
Finance & marketing alignment
• How does the company plan to generate its predicted future sales and profits?
• Will the marketing strategy on which these plans are based work?
• Will this strategy create shareholder value, given its inherent level of risk?
Transactional or transformational?
• Control• Curtailment • Consolidation
My experience
Model 1 :Ansoff matrix
MarketPenetration
ProductDevelopment
MarketExtension
Diversification
Present Newincreasing technological newness
newness
increasing market
newness
Present
New
PRODUCTS
MARKETS
Professor Malcolm McDonald
• Burger king :Satisfries• Maccafe : Iced smoothies and frappes• Digital engagement• Drink destination and food destination
Food destination or Drink destination
Starbucks
• Store loyalty?• Satisfaction ?• Sales from new customers?• Average purchase value
Quiz
How much value does Starbucks add?
Cost of coffee bean when harvested =
$0.50/lb.
Value realized by Starbucks from selling cup of coffee =
$230/lb.
AN INCREASE IN VALUE
OF +46,000%
Numbers don’t speak for themselves
Purchase Criteria
Importance Market ratings (0-10)
Us Them
Product offer 45% 8.2 7.8
Customer service 25% 7.1 7.1
Experience 20% 5.4 7.2
VFM 10% 9.2 6.6
• Whilst accountants do not measure intangible assets, the discrepancy between market and book values shows that investors do. Expenditures to develop marketing assets make sense if the sum of the discounted cash flow they generate is positive.
Investment in marketing
What's wrong with this table? Sales growth 2.25%Price growth 1.00%
Estimates 2015Unit sales 1000Unit price $500 REVENUE $500,000
Purchases $144,627 Direct labour 97,665Indirect labour 55,257Distribution 26,236Depreciation 17,634Advertising 12,600Commssion 27,748Promotion 10,084Market Research 10,078R&D 15,073Other 32,546TOTAL EXPNCES $449,548
PROFIT $50,452
• Competition : market entry or new product
• Customer: assumed , effect of CRM, product recall
• How we calculate profit: TR-TC=TP• Cut spending? example advertising?
Cutting cost is not a good thing or bad thing, the tools forces us to do that
What's not in the spreadsheet
• Insanity “ doing the same things over and over again and expecting different results”
• Business insanity “ Doing the same things over and over again and expecting different results”
Business insanity
Are you caught in the EVM trap?
• Acquisition gap : emerging segments
• Customer gap: acquisition• Loyalty gap: purchase frequency• Expansion gap: average items purchased• Margin gap: average price paid
Model 2 : Growth gaps
Market Space
Cool Places: where the
latest trends emerge
Hot Spots: Where the
new competition is
Black Holes: Where old brands die
White Spaces:
Where nobody has ventured
The concept of More
Segments
Acquisitions
Retention
Sales
Thank you