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1
Donat Mg goes
global
zenel.batagelj@valicon.net
ranko.jelaca@atlanticgrupa.com
2
3
•Funky business forever (Ridderstrale & Nordstrom)
Constant need to choose!, Fukky village is a community of surplus and we are fighting for attention!
Funky Inc is Creative, as wealth is coming from innovation not from optimisation!
•Every business is a growth business (Charan&Tichy)
There is not such a thing as a mature business! Growth is mentality created by leaders! Growth is less risky
than stagnation. A Company shouldn‘t focus on one business or geo.area!
•Blue ocean strategy (Kim & Mauborgne)
86% of all product laucnhes are Red oceans! BOS obsessed with value creation & innovation! Erare factors
that the industry takes for granted! Create an uncontested market space!
Early warnings from clever people
•The strange death of modern advertising (Maurice Saatchi)
Nowadays only brutally simple ideas get through. Companies compete for global ownership of one word
in the public mind. This is one word equity.
4
STRATEGIC WORMHOLE
• The idea came out while trying to finish my master thesis in
Balanced scorecard… BUT
• TIME is not defined as a critical issue in strategic
management literature
• Ridderstrale & Nordstrom: add speed to the organization &
they define „Live“ society as a key driver of speed! Or was it
also Zenel‘s favorite Regis McKenna?
• Kaplan &Norton: very defined timing !! ?? !!
5
WORMHOLE
6
• STRATEGIC WORMHOLE is a model of fast development
and implementation of a new turnaround strategy in
relevant part of Organization (SBU, Brand).
• Within 6 months
• Achieving extraordinary results in a short term but also
completing some of a long term goals
• Showing the way for other parts/brands of a Company
• Sales of a strategic approach to the board
STRATEGIC WORMHOLE
7
STRATEGIC WORMHOLE
STEPS:
1. Choose an SBU or key brand
2. Kashmir effect of the environment
3. Energetic team
4. Create a wanted future brand or SBU
5. Find those that live today closest to the future preferably young enough
6. Be very fast
7. Catapult the brand into the future with innovative products and services
8. Achieve high growth
9. Show direction to other SBU/brands
8
9
STRATEGIC WORMHOLE
1st phase: FASCINATION
• Work should be based on inspiration
• the Work should be emotional
• Project is Relevant for the Company (EBIT, turnover, image)
• Radically different
• Created differently (faster and more creative)
2nd phase CREATIVE synchronization
3rd phase ADAPTIVE acceleration
10
CASE:
11
12
13
Consumers are very loyal
because it WORKS
14
THE PROBLEM
15
2011
A unique water that works but complicated
to explain to new consumers
Route to market needs a rework
Older and traditional consumers
Slow growth
It should be clear why the price is so high
(between 1,5 and 3 €/l depending on the
channel and Country)
A modest marketing budget
16
17
„New Donat Mg“
Can Donat Mg become an innovative brand?
Can it be international despite limitations?
Younger TG?
How to create a niche?
18
19
20
21
Step 1 (New consumers)
22
PRIMARY GLOBAL TARGET:
PREGNANT WOMEN
23
A BIG POTENTIAL FOR DONAT
No. of pregnant women
24
25
26
MORE THAN 75% OF COMMUNICATION
WENT THROUGH SOCIAL MEDIA
27
28
PILOT COUNTRIES WERE B&H
and SERBIA
•SERBIA: in 9 months 90% of total pregnant women were on
“Pregnant Mg” FACEBOOK site
•BiH: in 9 month 75% of pregnant
women were on our site
Sales growth in SERBIA 2012 on 2011 was 78%
Sales growth in BiH in 2012/11. was 41%
29
30
¼ MILLION IN 1 YEAR AND A HALF
as we started to open new countries
31
But where is the strategic
whormhole?
32
33
Preferefed solution
33
prefered
colour
prefered
shape
prefered
overall packages
R: male
A: female
R: younger
younger
these two are close
34
34
perceptionmaping
?
35
36
37
38
39
PREGNANCY COMMUNITY
TRANSFORMATION
PREGNANCY
BREASTFEED
ING
LOOSING WEIGHT
DIGESTION, DETOX
40
Poslovni modeli se spreminjajo
in (z zamikom) prihajajo tudi v naše kraje
„Off-line“ „On-line“
Lokalno Globalno
Drago Poceni
Izdelki Storitve in informacije
Storitve Rešitve
Homogen trg Segmentiran trg
Komponente Sistemi
Posamičen nakup Naročnina
Posedovanje Najem
„Postpaid“ „Prepaid“
„Red ocean“ „Blue ocean“
Navada S pomenom
40
vir: Valicon, interne raziskave
41
iCARE – DIABETES DIY SOLUTION +
C.RESEARCH
iCare
42
MEDICALISATION (A 3 STEP
APPROACH)
DIGESTION
_CONSTIPATION
DIGESTION
_HEARTBURN
DETOX
_ ACID BASE
BALANCE
DIABETES LIVER
CLEANSING
CLINICAL
RESEARC
H
CLINICAL
RESEARC
H
CLINICAL
RESEARC
H
CLINICAL
RESEARC
H
CLINICAL
RESEARC
H
INDICATION
CLINICAL
RESEARCH
SOLUTION
43
44
Double digit growth of Donat Mg every
year
4x sales increase in Russia since 2011
France pilot project of web sales
Entry to China, Ukraine
Donat Mg finally on TV in Austria and
Russia
Results
45
Thank You!!

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SMK: Donat Mg goes global, Batagelj (Valicon) in Jelača (AG)

  • 2. 2
  • 3. 3 •Funky business forever (Ridderstrale & Nordstrom) Constant need to choose!, Fukky village is a community of surplus and we are fighting for attention! Funky Inc is Creative, as wealth is coming from innovation not from optimisation! •Every business is a growth business (Charan&Tichy) There is not such a thing as a mature business! Growth is mentality created by leaders! Growth is less risky than stagnation. A Company shouldn‘t focus on one business or geo.area! •Blue ocean strategy (Kim & Mauborgne) 86% of all product laucnhes are Red oceans! BOS obsessed with value creation & innovation! Erare factors that the industry takes for granted! Create an uncontested market space! Early warnings from clever people •The strange death of modern advertising (Maurice Saatchi) Nowadays only brutally simple ideas get through. Companies compete for global ownership of one word in the public mind. This is one word equity.
  • 4. 4 STRATEGIC WORMHOLE • The idea came out while trying to finish my master thesis in Balanced scorecard… BUT • TIME is not defined as a critical issue in strategic management literature • Ridderstrale & Nordstrom: add speed to the organization & they define „Live“ society as a key driver of speed! Or was it also Zenel‘s favorite Regis McKenna? • Kaplan &Norton: very defined timing !! ?? !!
  • 6. 6 • STRATEGIC WORMHOLE is a model of fast development and implementation of a new turnaround strategy in relevant part of Organization (SBU, Brand). • Within 6 months • Achieving extraordinary results in a short term but also completing some of a long term goals • Showing the way for other parts/brands of a Company • Sales of a strategic approach to the board STRATEGIC WORMHOLE
  • 7. 7 STRATEGIC WORMHOLE STEPS: 1. Choose an SBU or key brand 2. Kashmir effect of the environment 3. Energetic team 4. Create a wanted future brand or SBU 5. Find those that live today closest to the future preferably young enough 6. Be very fast 7. Catapult the brand into the future with innovative products and services 8. Achieve high growth 9. Show direction to other SBU/brands
  • 8. 8
  • 9. 9 STRATEGIC WORMHOLE 1st phase: FASCINATION • Work should be based on inspiration • the Work should be emotional • Project is Relevant for the Company (EBIT, turnover, image) • Radically different • Created differently (faster and more creative) 2nd phase CREATIVE synchronization 3rd phase ADAPTIVE acceleration
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  • 13. 13 Consumers are very loyal because it WORKS
  • 15. 15 2011 A unique water that works but complicated to explain to new consumers Route to market needs a rework Older and traditional consumers Slow growth It should be clear why the price is so high (between 1,5 and 3 €/l depending on the channel and Country) A modest marketing budget
  • 16. 16
  • 17. 17 „New Donat Mg“ Can Donat Mg become an innovative brand? Can it be international despite limitations? Younger TG? How to create a niche?
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  • 21. 21 Step 1 (New consumers)
  • 23. 23 A BIG POTENTIAL FOR DONAT No. of pregnant women
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  • 26. 26 MORE THAN 75% OF COMMUNICATION WENT THROUGH SOCIAL MEDIA
  • 27. 27
  • 28. 28 PILOT COUNTRIES WERE B&H and SERBIA •SERBIA: in 9 months 90% of total pregnant women were on “Pregnant Mg” FACEBOOK site •BiH: in 9 month 75% of pregnant women were on our site Sales growth in SERBIA 2012 on 2011 was 78% Sales growth in BiH in 2012/11. was 41%
  • 29. 29
  • 30. 30 ¼ MILLION IN 1 YEAR AND A HALF as we started to open new countries
  • 31. 31 But where is the strategic whormhole?
  • 32. 32
  • 33. 33 Preferefed solution 33 prefered colour prefered shape prefered overall packages R: male A: female R: younger younger these two are close
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  • 36. 36
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  • 40. 40 Poslovni modeli se spreminjajo in (z zamikom) prihajajo tudi v naše kraje „Off-line“ „On-line“ Lokalno Globalno Drago Poceni Izdelki Storitve in informacije Storitve Rešitve Homogen trg Segmentiran trg Komponente Sistemi Posamičen nakup Naročnina Posedovanje Najem „Postpaid“ „Prepaid“ „Red ocean“ „Blue ocean“ Navada S pomenom 40 vir: Valicon, interne raziskave
  • 41. 41 iCARE – DIABETES DIY SOLUTION + C.RESEARCH iCare
  • 42. 42 MEDICALISATION (A 3 STEP APPROACH) DIGESTION _CONSTIPATION DIGESTION _HEARTBURN DETOX _ ACID BASE BALANCE DIABETES LIVER CLEANSING CLINICAL RESEARC H CLINICAL RESEARC H CLINICAL RESEARC H CLINICAL RESEARC H CLINICAL RESEARC H INDICATION CLINICAL RESEARCH SOLUTION
  • 43. 43
  • 44. 44 Double digit growth of Donat Mg every year 4x sales increase in Russia since 2011 France pilot project of web sales Entry to China, Ukraine Donat Mg finally on TV in Austria and Russia Results