Integrated Brand

Communication Presentation

For

“a leading ERP provider” *

* - original name masked out

The Task

SME - Market Overview

Provider’s Offering

Target Industry Segments

Direct Interviews

Findings

Approach to Provider’s branding & communication

CONTENTS

To successfully position and communicate

“Provider’s”

offering in the ERP space

To create awareness among the target public

TASK

All firms with an investment of over Rs. 5 cr. but less than Rs 10 cr. in plant and machinery are called Small and Medium Enterprises

But private and foreign banks have their own definitions of SMEs, which can be a turnover of anything between Rs 10 cr. and Rs 700 cr.

SMEs employ more than 28 million people

SMEs contribute 40% of gross industrial value addition

SMEs account for 50% of direct and indirect exports

Indian SMEs expected average growth rate of 32% over the next two years.

SME – OVERVIEW

Xyz 1

Xyz 2

Xyz 3

PROVIDER’S PRODUCT OFFERING

Provider’s ERP solution is priced at Rs. 1.2 Lakhs

Xyz 4

Xyz 5

Xyz 6

PRICING

Discrete manufacturing units

Sheet metal component manufacturing enterprises

Process industries

Auto component manufacturing enterprises

Special purpose machine manufacturers

TARGET INDUSTRY SEGMENTS

DIRECT INTERVIEWS

Direct Interviews were conducted with Managing Directors

of select SMEs who operate in the Target Industry

segments to get a better understanding of,

Their purchasing behavior when it comes to decision support software

Their perceptions and expectations with regard to ERP

Their software and media habits

FINDINGS

PERCEPTION TOWARDS ERP

SMEs have a strong opinion that a decent ERP

will burn a hole in their pocket

SMEs do not want to be seen investing in a hi-fi

software to manage their small businesses

SMEs strongly feel that they do not need an ERP

to run their business

SMEs have a decent understanding of an ERP,

but they do not specifically know how they can

profit from it

SMEs have over time generated a phobia towards

ERP vendors. They suffer from “Say NO”

syndrome to all the efforts of ERP vendors.

PERCEPTION TOWARDS ERP

COMMON FEARS OF SME

Complex project management

Change management

User resistance

Training

New personnel

Upgradation issues

Compatibility issues with the present hardware

These were some of the fears aired by people who were positive towards opting for an ERP apart from apprehensions with pricing.

Sales outstanding/Collections

Purchase outstanding

Shortage & stock-out

Employees management

BOM

Delivery schedules

Forecasting

TOP PAIN AREAS

Materials planning & Despatch

Financial planning

Inability to generate timely business reports, which would help them know the business health of the enterprise

SME’s face a lot of difficulties monitoring the following vital areas of their business.

1. Solution to pain areas/User friendly features

2. Lesser implementation & migration time

3. Service – expert service provider and not a call-center guy

4. Price & Pricing Policy

5. Ease of use by our existing staff

6. Fixed project cost

SELECTION CRITERIA FOR AN ERP

SMEs selection of a particular ERP will depend on the following.

Note: „1‟ signifies highest importance & „6‟ least

Tally

MS Excel

MS Word

MS Projects

MS Powerpoint

Online ERP access given by Clients

SOFTWARE EXPOSURE OF SME

List of software packages that they use in their enterprise.

Yahoo Messenger (Minimal)

Custom-made software based

on their requirements

Local/Regional ERP brands

Print Media

The Hindu

Economic Times

Business Standard

Daily Thanthi

Dinakaran

MEDIA HABITS OF SME

List of various media brands that they spend time with

TV

Sun TV

Vijay TV

NDTV

Radio

Radio Mirchi

Big FM

Internet

Google for search

Yahoo for mail

Magazines

Limited to their industry specific magazines

Some Common Trends

None of the mentioned media brands are given particular

attention to

There is a common grazing behavior spotted, where they just

focus on articles related to their business in newspapers

TV is strictly limited to a timeframe of 9 – 10 at night

Radio is 100% limited to their travel to & from office

The new generation (son/daughter of the M.D.) who is taking

charge is more Internet savvy

MEDIA HABITS OF SME

BRAND AWARENESS

SAP enjoys a good brand equity among the target

group

Tally enjoys a unique place in the minds of the TG –

They very well know the limitations of Tally, but they

still perceive it to be the ERP that is made for them

Oracle is known to some, but they are a bit confused

associating Oracle with ERP on the first go

6-6:30

Wake-up

8-9 Travel to office

9-9:30 Start work

Lunch between 1

& 3

3-5 High pressure

zone

>6 Pending activities

and discussion

>8 Leaves office/plant

9-10 Dinner &

TV

>10 Goes to bed

A TYPICAL BIZ DAY

Note:

This is a person who has

“NO” time for anyone

A typical day in the

life of an entrepreneur

KEY DECISION MAKER(S)

The SME Owner/Managing Director is the final

decision maker

Since most of the SMEs are family run businesses &

partnership firms, there is a close associate in the

form of son/daughter/first or second degree

relative/partner also playing the role of a joint

decision maker

INFLUENCERS

SME Managing Director

Friends from the industry who have 1st

hand experience of ERP

Finance Department

IT Services Personnel

Clients

Family Members

VERBATIM COMMENTS

I will be interested to invest in producing more rubber rather than

spending lakhs of rupees on ERP

- Mr. XYZ

- Organization XYZ

My accounts and finance persons are the one’s who are going to

provide me with reports and they will strongly oppose if I force

them to change from Tally

- Mr. XYZ

- Organization XYZ

Approach to Provider’s

Branding & Communication

ASPIRATION

Addressing this aspiration quotient through all our

communication targeted at SMEs

Communicating the fact that we can enhance their

decision making skills, in turn pushing growth at a

faster pace

There is always a strong aspiration to grow among the

SMEs.

Raising the question “Do you want to grow at a

better pace or not?”

BENEFITS

Through all our communication efforts, we will only talk

about the benefits that an SME can derive from

Provider’s offering

Taking the “Benefits” route will help us focus all our

communication efforts on what we have to offer and how

our offering will make a change for the SMEs

Communicating the benefits that Provider can provide

the SMEs

“We provide you with timely information that will

help you plan every step of your business on time”

FEAR FACTOR

The danger of running out of business, simply because

there was lack of information to take timely decisions

Converting all the small problems that a SME faces into

dangerous alarm signals that draws the attention of

SME

Every business enterprise faces a lot of threats – and

our communication will amplify these threats.

Just because I did not have the updated material

costing, I quoted a higher rate and “lost a huge

contract ”

REGULAR PROBLEMS

Our communication will specifically revolve around day-

to-day problems that a SME faces and it can range

anywhere from stock outs to collection mismanagement

to an incorrect sales forecast

Since most of the SMEs are problem prone, our

communication efforts can be focused on highlighting

these problems

“The production guy thought that there was

enough stock, and the stock guy did not know the

SIH, ultimately the production line is waiting for

lack of stock”

MONETARY BENEFIT

Optimal utilization of all your resources with the help of

Provider’s offering will definitely lead to increased

savings

Save more, increase your savings, and expand your

business

Bringing to fore the monetary benefit that Provider’s

offering can provide a SME

“Do you really know

how to save with what you have at hand?”

MEDIA VEHICLES

Direct Mailers

Product inserts

Trade magazines (Target industry specific)

IT Magazines (visibility)

Partnering opportunities with Industry Regulatory

bodies/Associations/Promotion councils

Industrial estate specific activities

Radio

Associate visibility

THANK YOU