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Case Study Presentation
Term 5- PGXPM6
Grey World Wide: Strategic Repositioning
through CRM
Team: KadhiravanKarimPushkarSwamiIlavarasan
Background Established in 1978, Grey Worldwide Hong Kong
and China is in Communication industry:- Focus on Communications- Wide range of marketing
16 global partner companies across the world Delivers integrated marketing expertise
Objective Build Customer equity
and Expand Brand equity
Integrated marketing approach
Create customer value through GRM
Develop Skills for setting realistic
Shift focus from Brand equity to Customer Equity
Shift from generalization to specialization model
Strengthen integrated customer knowledge database
Arrive at measurable ROI goals
Take CRM platforms across the organization
Opportunity Strengthen the
existing customer based knowledge on technology to server customer better
Growth in Asian Market – paradigm shift to customer service into customer service era due to emergence of e-Commerce and Internet. With high growth in China
High growth in China Focus on GRM to
provide best solutions
One-one to customer Relationship
One stop support management
Issue, Objective and OpportunityIssues Increasing
competition from management consultants, marketing businesses and competition
Rising customer expectations
Strong price pressure New technology
resulting in low price competitors
High caliber People migrating to clients
Rising customer expectations
Increasing cost of acquiring new customers
Pure online-players producing competitive high quality products at lower prices
Smaller Asian market Transactional Marketing
Philosophy
Facts and Figures Dip in commissions from 15% to 2% Only 50% of sales are accounted CRM performance Cost to acquire new customer is 5 times than retaining the new
customer Only 11 customers can be acquired by spending 3,500 USD as
compared retaining 23 customers for same cost CRM in Asia:
CRM industry would be ~ UD 17 B by 2003 – AMR research Smaller Market 14 times (7%) growth is expected between 1986 to 1999 Including CRM for 600 million is more difficult then for 60
million Avaya is investing between 80 to100 million USD for
opportunity in data networking and IP Telephony
Ö Do not compete on cost with competitionÖ Build a better, efficient and cost effective
CRM strategyÖ Reposition with defined e-marketingÖ Data mining and customer profiling as
key focus areaÖ To Differentiate from competitors through
CRM preposition
Strategy
CRM Solution for GreyCustomer management plan:
Risk Manage
ment
Risk Manage
mentRisk
Management
Risk Manage
ment
Philosophy: An holistic approach to customer management Create, identify, evaluate, capture, enhance, share and apply
Grey’s IP capital 4-point philosophy for customer management focus
Build brands Develop and manage customers Create positive brand experience for customers Build bran through knowledge about the customer
through constant dialogue Shift to Specialization from generalization
Tools: Brand Futures+ and GRM Charter – GRM implementation Data mining and customer profiling Integrated Marketing Approach with Technology as enabler
to support the functional groups
CRM Solution for Grey
Plan/Steps to be followed: Prepare new management structure and top management
participation Perform customer analysis, segmentation and market analysis Elevation of senior executives to parent company
New structure used by GRM charter to serve targeted customers
Grey’s companies benefited from their wisdom and experience
Know more about customers faster than the competition and turn that learning into action faster than the competition with the help of technology
Campaigns and programmes leading towards CRM strategy On-line and Off-line consulting (Strategic) Participation from GD, GI and BI teams Build market share through direct presence and distributor
partner Educating customers about the products and benefits/risks Look for external opportunities to raise revenues instead of
looking at in-ward process to as part of cost cutting Develop new strategies and products to retain existing
customers and acquire new customers by laddering technique GRM focus on communications GRM philosophy training to employees
CRM Solution for Grey
Plan/Steps to be followed: Redefine customer value Deploy Key Account Managers to service high highly qualified
and prestigious customers with help of KM by looking at cost reduction opportunities
New management structure and top management participation
Differentiation Technique: Customization for different customers Employ DW and DM techniques Deliver the customer centric strategy by Integrating and evolution
of strong feedback mechanism Interaction with customer should be through CRM, One stop
helpdesk support from the centralized front-end Process optimization in the front-end and back-end office
systems Build organizational culture around GRM framework model as
part of organizational change
Position itself as trusted, sustainable partner among its clients for long time
CRM solution should be customizable to support future expansion of Grey WW Hong Kong and China
CRM Solution for Grey
Assessment of CRM Strategy on periodic basis:
CRM Solution for Grey
Category Assessment description
People
1. Dedicated teams for CRM implementation2. Development of management talent to capture the benefits and build it into system
LearningEnables learning environment for customer facing departments and people
Customer ValueWill result into customer value creation and customer satisfaction
Alignment Aligning the CRM strategy with business strategy
Implementation Cost, Time and Effectiveness
Technology Availability of technological capabilities internally
Marketing Plan: Cost effective Marketing e-Marketing (use of PDA's, 3G mobile,
IP TV and Internet) Use brand name to build relationships
with other service providers in ASIA Deliver value to customer by creating,
communicating and delivering value to customers and for managing customer relationships
Handle risks: Dramatically changing industry cost
structure Understand specific market forces
driven by media and communication Identify how the business model can
be changed to be competitive Attract good talent to run operations
and strategy Customer retention & loyalty focused
initiative Long Term: Database used to segment
customer, determining profitable customer, analyzing business strategy
Focus on key profitable customer Relational Marketing Philosophy
CRM Solution for Grey
Grey WW HK/China CRM implementation
Integrated approach to create, identify, evaluate, capture, enhance
Grey IP External
Institutionalize key processes and strategies that are developed through customer interaction
Internal Change management through making people
part of building team for GRM philosophy rather than adapting to it
Cross functional skill development for team
GRM Philosophy
Build brands Develop and manage customers Create a positive brand experience for clients Build brand through knowledge about the
customer through constant dialogue
Grey Relationship Management
GRM Framework
Grey Relationship Management
Grey WW/HK and China GRM tools Integrated
GRM Charter:Targets companies that has strong marketing and brand but want to develop the CRM vision and Plan
Brand Futures+:
Target companies that had traditional marketing needs
Brand equity Financial value of the brand Market share and ROI Brand extension Brand Value to the company
Customer loyalty Repurchase rate and value by customer Lifetime customer value
Customer retention Retention rate
Measurement of CRM implementation
LTV of Customer
Market Share - ROI
Source: Profit Impact of Marketing Strategy (PIMS)
Thank You!!!!
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