Business Development

Activities in Business development

Business Strategy Business Planning Writing a Business Plan Marketing Research Competition Analysis Segmentation Forecasting demands Promotion Pricing Monitoring the business plan

What is Business Strategy?

Strategy Examples

• What customers do we wish to serve?• How do we position ourselves against

similar or competitive organizations?• What approaches will we use to reach our

target audiences?• What kind of structure will help us achieve

our objectives?

STRATEGY: Characteristics• Environment – Opportunities/Threats

• Resources – Strengths/ Weaknesses

• Operational decisions (tactics)

• Values & expectations of “sources of power”

Definition of strategy• Direction & Scope• Long term• Achieves Advantage• Configuration of resources• Changing Environment• Meet Needs of Markets• Fulfill Stakeholder Expectations

CORPORATE STRATEGY-INDIAPOST• Post office v/s doorstep• Retail v/s bulk• Network• One stop shop• Positioning• Total solutions• Outsourcing• Training & HRD• Monitoring & MIS• High revenue v/s cost effectiveness• Prioritize

MARKETING STRATEGY-INDIAPOST

• Outsource agents• Data on printing presses• Tie-ups• Exhibitions & local fairs• Monthly draws• Sustain quality

• Trainer to give 20 minutes to the trainee groups to prepare their strategy for marketing. One group to present before the class in 15 minutes

EXERCISE-5.3.1

How will you present your product beforea customer?

S - Strengths W - Weaknesses O - Opportunities T - Threats

SWOT Analysis of “Speed Post”

Our Strengths:-

Large Network Reliable Legal Brand name Free Pick up (3) Credit Facility (5000) 24 hr service Insurance cover (up to 1 lakh) Special discount (Rebate) Economical Tariff International Tariff is most economical Cont…

SWOT Analysis of “Speed Post” Contractual Service (5) Deposit A/c facility Fast Transmission (Air & Express Trains) Time bound delivery Free home delivery Proof of delivery Franked articles accepted Track & Trace facility is offered (www.indiapost.gov.in) Refund Compensation Collection Agents Business offered counts towards national revenue.

Our Weaknesses: Negotiations – no scope Dependent on others for transportation. Consumed much of our time in procedure i/o

performing job (e.g. preparation of delivery slip) Lack of professional approach Inadequate computerization Handling of complaints

-- Insist in writing-- Lot of time is consumed-- Interim reply – Generally not given

Contd…

Our Weaknesses:

POD is not handled carefully Presentation of International SPA – Open Non supply of Packing material Binding customer to write pin code Lack of qualified staff POD charged at single rate BNPL customer is asked to book his own articles. Lack in providing customer comfort.

Opportunities:

• Most of our revenue is through retail customers.

• Addition of thousand retail customers can’t earn good revenue for the organization but if tens of giants / corporate customers / multinationals / bulk customers are attracted, a fast multiplication is possible which will earn large business and revenue for the organization. Therefore, we have to target the opportunity of giants in the market.

Threats: No more a monopoly Stiff competition from:

-- Couriers -- Telephone-- e-Mail-- Banking Services-- LIC-- Parcel Services (Run by Pvt. Operators,

Rail, ST) Multiple options available to the customer. We are customer dependent.

SPEED POST• MNOP• More extension counters• Readjustment of working hours• New bulk mail customers• Nodal delivery system• Pickup through postmen• Outsourced agents• Same day delivery• Supply & working of computers, scanners

• Trainer to give 15 minutes to the trainee groups to prepare SWOT analyses of Business Post using the previous slides on SWOT analyses of Speed Post. One group of trainees to present SWOT analyses of Business Post before the class in 15 minutes

EXERCISE 5.3.2

India post's Competitive Advantage

• Banks- National & Multinational• Insurance Sector- National & Multinational• Courier Companies- National & Multinational• Logistics Companies- National & Multinational

Sustainable Competitive Advantage?

Bases of Competitive Advantage• Cost Leadership• Differentiation• Focus• Strength/ Consistency

Strategic Planning• Organizational level Indiapost

• Business Unit Or Division level Chief PMG, PMG

• Subunit levelOr

• Product level Supt./ Post office

Business Planning

Internal Analysis• Mission• Objectives (stakeholder-wise)

• Social Impact (affordable communication for every citizen)• Reputation, Market Share, Profit etc

• Goals – Orgn. level

Internal Analysis• Strengths & Weaknesses• List down Strengths & Weaknesses of your

organization• How can these be leveraged?

• Note: Competitive Advantage

External Analysis

• Macro environmental– All India done at Postal Board Level –– We do a regional/ divisional analysis

External AnalysisIndustry & Competition Analysis• Market size – Total & Product Wise • Segment analysis (Individual, Business –

industry level …)• Competition Analysis– Number, Size/ Sales, S/W, Product Portfolio,

Pricing etc

Goal Setting• Specific• Measurable• Realistic

1. Marketing & Social Goals2. Financial Goals

Strategy Formulation• Product – Market Matrix

• Competitive Strategy (Porter)a) Differentiationb) Cost Leadershipc) Focus

Product-Market Mix• Market Attractiveness

Vs.

• Business Strengths

Analysis for Communication-, Transportation-, Financial-,& Premium Value added- services?

Strategy Implementation• Breakup of Goals/ Budgets – Geographically/ Functionally– Product-wise breakup (Mkt Plans)– Target Setting

• Organizational Design• Control Mechanisms

What is a Business Plan?• Definition: “written document containing the

guidelines for the business center’s (product/ group of products/ market segment) marketing programs and allocations over the planning period”

Writing a Business Plan

Planning Period-Most common – Annual

PARTSSituation analysis– Environment Analysis– Competition Analysis– Customer Analysis– Internal Analysis

Objectives, Strategy & Programs

Planning – The ProcessPlan

Implement

Evaluate

Situation AnalysisCustomer Analysis– Who buys, uses, influences …..?– What they buy and where do they buy?• Benefits they seek

– When and why?– How do they use? How do they respond to

specific promos ….?– Will they buy again?

Planning – The Process

Planning – The Process• Define opportunities & problems (identify

issues)• Establish objectives• Define strategies and programs to achieve

objectives• Establish and implement a monitoring and

control mechanism• Budgeting and approval of the plan

Write in groups a business plan for PLI for the coming three months taking in view the following attributes of a business plan. – Situational analyses– Define opportunities & problems– Establish objectives– Define strategies and programs to achieve objectives– Establish and implement a monitoring and control

mechanism

EXERCISE-5.3.3

CORPORATE PLAN-INDIAPOST

• Setting up of premium services delivery centers• Tech based booking system for bulk mailers• New speed post centers• Web-based booking for individuals• Upgradation of major speed post centers• Establishing speedpost hubs• Developing speedpost software• Monitoring quality of service

Why MR?• Informed decision making:

– Who should be the target customer?

– How much will be the demand and in what time interval?

Marketing Research

MR Methods

• Qualitative– Depth/ unstructured interviews– Focus group discussions– Observation + Interview– Other techniques

MR Methods

• Quantitative– Survey Research

Steps:• Qualitative study• Questionnaire design and testing• Data collection• Analysis

Defining Competition• Everything competes with everything else for

scarce resources ….. Usually money

• Important to gauge the extent of this competition

Analyzing Competition

Bases of Competition1. Customer oriented

1. Brand Competition2. Benefit competition3. Usage competition

Bases of Competition

2. Marketing oriented1. Theme/ copy2. Media3. Distribution – shelf space etc4. Sales promos – Mag. subscriptions etc

Bases of Competition3. Resource oriented

1. Resource Management2. Employees3. Financial resources

4. Geographic

Role of Metamediaries

• Indiatimes.com• Yatra.com• Rediff.com• e Post office

Determining your Competitors• Managerial Judgment• Customer based measures– Using behavioral data• Consumer Panels – brand switching

– Using customer judgments• Perceptual mapping

Segmentation

Targeting a group of customerswho share a similar set of

needs and wants

Segmentation

Investments:• Stage of life:– Retired– First income– Small children (less

than 6 yrs old)

Mail/ Logistics:• Speed Vs Money Vs

Security Vs ….– Corporate

communication– Letters– Regd. Letters/ Legal

• Value of goods– Diamonds– Iron Ore

Measures of Market DemandProduct Level X Space Level X Time Level

• Product Levels :– All Sales– Product Item Sales

Demand Forecasting

Measures of Market Demand• Space Levels :– Region/ State– Territory/ District– Customer

• Time Level :– Short term– Medium term– Long term

Market ????• Potential Market• Available Market• Qualified Available Market• Target/ Served Market• Penetrated Market• Impact of Marketing Expenditure on Demand

Estimating Future Demand• Survey of Buyers Intentions• Composite of Sales Force Opinions• Expert Opinion (Internal employees views…)• Market-Test Method• Past-Sales Analysis

THE PROMOTION MIX• Advertising• Sales Promotion• Public Relations & Publicity• Personal Selling• Direct Marketing• Internet & Social Media Marketing

Advertising• “paid form of non personal presentation &

promotion of ideas/ goods or services by a sponsor”

• 5 Ms of advertising :– Mission– Money– Message– Media– Measurement

Newspapers• Merits :– Good local market coverage– Timeliness (Daily)– Broad Acceptance – Verbose material (Cognitive Evaluation)

• Demerits :– Short life– Poor reproduction quality (except special suppl.)– Small “pass-along” readership

Magazines• Merits :– High Selectivity (A&M, Inside Outside)– Long Life– Good “pass-along” readership– Credibility & Prestige (TIME, Fortune ..)– High-quality reproduction

• Demerits :– Long Lead Times (TIME – Tylenol)– Some “waste” circulation

Direct Mail• Merits :– Target audience selectivity– No competition for the medium– Customisation of the message

• Demerits :– High cost– Mail into the “Trash-bin”

Television• Merits :– Creative abilities – High reach– High attention– Useful for image building

• Demerits :– Selectivity of audience– High cost – High clutter– High noise (Zapping, Flipping …)

Display Media• Merits :– Very high geographic selectivity– Flexibility – Low Cost (may not be at “Marine Drive”)– (Creative Hoardings ???)

• Demerits :– Audience Selectivity– Reach very limited– Creative Execution ??

PRODUCT PROMOTION- INDIAPOST

• Customer segmenting & profile data• Giving comparative charts to MEs• Training of MEs• Awareness campaigns• Customer meets• Direct mail• Centralized ad themes• Monitoring of marketing efforts

Prepare in groups an innovative action plan for promotion of the Business post in your area using the last slide. One of the group to present their plan before the class in 15 minutes

EXERCISE-5.3.4

What is CRM?Comprehensive approach for creating, maintaining, and expanding customer relationship.

CRM is ……• a Comprehensive Approach which provides

integration of every area of business like Marketing, Product Design, Service, Complaint Management etc.

• achieved through Integration of technology, human resources, process and equipment

• CRM creates Mutually Beneficial relationship with customer.

Customer Relations“designed to protect/ promote a company’s

image or its individual products”

ROLE

•Launch of New Products

•Building interest in a product category

•Influence specific target groups

CRM Tools• News• Publications– Annual Reports– Brochures– Newsletters …

• Events, Seminars, Conferences• Speeches• Public service activities• Lobbying

Consumer Segment & CRM• Brand Equity – A Strong Tool of CRM• In consumer segment, the relationship is

established through brand equity. • CRM is rarely established through personal

contacts• Quality and Superiority of the product

established in the market.

Monitoring and ControlKey ‘Result Metrics’

•Sales (Value & Volume)Primary, Secondary ….

•Market Share

•Profit & Profitability

•Promotion Budget/ Sales

Exercise 5.3.5

• Trainees to think over innovative ideas for communication with customers to have top class CRM

• One group to compile & present before the class taking 15 minutes time

THANK YOU