Weitere ähnliche Inhalte Ähnlich wie The RedRoute Franchising Opportunity (20) Kürzlich hochgeladen (20) The RedRoute Franchising Opportunity3. ©redrouteinternational2015
The RedRoute philosophy
• To become trusted partners - making a difference to our clients
with transformational strategies based on rigorous analytics,
customer insight, and in-depth business understanding
– Tailor-made
– Progressive
– Predictive
– Simplifying
• Delivering winning strategies
• Supporting implementation
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Marketing Effectiveness Agency
• Our holistic approach helps you to:
– measure your client’s business drivers
– refine your client’s marketing strategies for maximum impact
– deliver step changes that enable your client to a chieve their business vision
• We help you shape your client’s marketing decisions, strengthen your
client’s business and equip them to beat the competition
– We are a catalyst helping you deliver winning strategies for your clients
• Put simply, by working together we:
– Diagnose – what really matters
– Predict – the most likely outcomes
– Propose – the most insightful winning strategies
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visit www.redrouteinternational.com
Case Studies
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The RedRoute network
• Currently comprises a group of c.30 people
• Hubs in London & Singapore
– with Affiliates in Greece, Poland, Saudi Arabia, Dubai and South Africa
• Studies completed in:
– More than 40 countries and
– Over 200 categories
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We Are Growing - Become Part of the Success Story
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Summary of key services
GLIDEPATH – predicts your future sales trajectory
AIME – magnifies your brand values to deliver competitive edge
OMEGA – Solves the complexity of media choices
OPIUM – understands your customer like a “best friend” would
PRISM – reveals the power of pricing
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Typical success stories
OMEGA recently delivered for a major airport
operator a £3m sales benefit through an
improved allocation of the existing media
budget. This represented a 30 % increase in
the sales generated by the marketing budget)
Typically a 15-25% efficiency from media
bugets is achievable
OPIUM improved targeting of the 1-to-1
marketing programme for a
multi billion £ DIY retailer .
Sales increased by +£34m
within the first year
GLIDEPATH’s marketing mix
recommendations enabled a European
consumer goods manufacturer to
increase market share 4 share points
equating to €14m per annum
in sales value
PROFESSIONAL ENDORSEMENTS
RedRoute is part of the globally recognised
Diploma programmes run by the Institute of
Promotional Marketing and the Institute of
Practitioners in Advertising
RedRoute media modelling expertise and
approach is a key part of the University of
Westminster International Integrated
Marketing Diploma Course
AIME modelling and recommendations
resulted in a new media campaign and
messaging for a large UK retailer.
The improved brand preference delivered
c.£18m per year
extra sales per annum
PRISM identified a £13m per annum profit
opportunity from optimising pricing across the
portfolio of a leading UK branded wine
company
Typical gains of 10% of sales value are
very achievable
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Don’t just take our word for it…
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"RedRoute undertook key studies for us to evaluate the
potential benefits of new customer service initiatives…..
The overall benefits of their work resulted in the
identification of opportunities for company profitability and
business development worth many millions of pounds a
year.”
Tony Dobbs, Head of BI & Market Research,
Viking (Office Depot)
“RedRoute’s help in quantifying the likely impact of our
marketing strategies and tactics has repeatedly enabled us
to meet and overcome some very new and challenging
market conditions. Their predictions have always proved to
be very reliable, enabling us to feel confident we are always
making the right decisions for the right reasons.“
Andrew Smith, CEO, Turk Henkel
“….Heathrow has worked in close partnership with
RedRoute on measuring our media effectiveness….. As a
result, we have been able to accurately predict our long
term revenue performance by understanding the planning
levers for, and identifying & quantifying the impact of the
drivers of, Heathrow Airport’s retail businesses.”
David Ellis, Head of Research and Insight,
Heathrow Airport
“We believe that the RedRoute model is fit for purpose,
providing a comprehensive rationale for the drivers of
historical sales performance trends and a plausible set of
‘baseline growth’ sales-per-passenger projections.”
Civil Aviation Authority Review (2012)
“We always knew attitudes to DIY were important but only
by combining with knowledge of customer circumstances
could we quantify their impact on the drivers of store sales.
Now we are leveraging attitudes as well as past behaviours
in our marketing strategy, sub-segmenting customers;
targeting by life-stage & attitude, no longer just RFM.
Andrew Glover, Customer Strategy Director, Homebase
RedRoute conducted modelling to develop pricing
scenarios for our UK retail business. This resulted in us
gaining valuable insights into the impacts of alternative
pricing strategies and we have used those learnings to shape
our future price strategy recommendations. We can now
respond more quickly and more effectively to our competitor’s
price and promotion moves.“
Matthew McKee, Commercial Sales Director, Proximo UK
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Market has hardly been tapped…
• Only 7% of organisations always set clear accountabilities for
their objectives
• Only 7% of companies always set KPI’s clearly for each initiative
• Only 10% of businesses have core strategic metrics that remain
consistent to enable longer term reporting
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CIM – Deloitte Joint Study on Improving marketing effectiveness, 2016
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Measures that count…..
• While 96% of companies measure customer satisfaction only
10% of businesses are very effective at measuring cost to
serve, and only 10% are very effective at measuring
consistency of the customer experience
• 80% of companies measure brand health – but only 15% say
this is very effective and only 32% of companies measure
brand valuation fairly or very effectively
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Source: CIM &Deloitte – Improving marketing effectiveness study 2016
Companies measure what’s easy, not what counts…
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Measures that count…..
• Only 23% of companies measure social media fairly or very
effectively
• Organisations perceive their ability to measure digital channels
as being no stronger than their ability to measure traditional
media activities
• And over 2/3 of businesses feel their KPI’s are not optimal for
measuring the impact of marketing
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Source: CIM &Deloitte – Improving marketing effectiveness study 2016
Companies measure what’s easy, not what counts…
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Existing measurement processes
aren’t delivering sufficient return
• Only 51% of companies believe that executives drive change as a
result of marketing or customer performance measures
• Only 1/2 of organisations believe they have timely reporting
• 1/2 of organisations feel their reporting isn’t sufficiently accurate
• Only 36% of companies say they have data that is presented in an
effective way to enable insight to be identifird
• Only 39% of companies believe they are fairly or very effective at
measuring ROI (and fewer still act upon it)
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Source: CIM &Deloitte – Improving marketing effectiveness study 2016
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Who will be your clients?
• In short – people you already know
• The RedRoute Story
– RedRoute, like all consultancies, began looking for business by talking to people the founders already
knew and had worked alongside in the past, either as colleagues, clients, or agency personnel
– Sending out a brief PowerPoint presentation (of which RedRoute’s e-booklet is now the present day
equivalent) to people who already knew our capabilities and trustworthiness led to projects with
former employers, former clients, and former colleagues.
– For the cost of stamp, business streams opened up which have lasted ever since, including Office
Depot, Heathrow Airport, and a range of beverage companies and retailers
– What has changed in the market is that opportunities have grown exponentially as the digital
revolution has taken grip
– Data now exists everywhere, and new forms of data tracking activities as diverse as the habits of bees
to the times you clean your teeth are appearing everyday
– Companies need people with the skills and expertise to not just look at the data but to also uncover
meaning and insight to be able to predict future trends and invest their marketing budgets on the
most effective activities for their brands
– Working together, you can supply that support to a range of people either you or we know already –
that is how the business has grown in the past and the opportunity is to become part of that story
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How many clients do you need?
• It depends solely on your ambitions
• For an independent consultant, a single client may provide
£50k - £100k of revenue for you per year
• So a span of 3 – 5 clients could be expected to deliver on
average c.£300k per year in annual revenue.
• Out of that, you could reasonably expect to retain £150k
• The key difference between this and being an employee is that
you would also be creating your own asset you can later sell
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What skills would you provide?
• There will almost certainly be at least one of the key services we
outlined earlier which you will be able to deliver better than
anyone else, especially if they are just setting out
– Which ones best play to your own particular skills & strengths?
• You have been there, faced the problems and found the solutions.
– So have we.
• So you would be joining a mutually beneficial network of trusted
advisers that will serve to magnify the value of your own skills
– Working together to build winning solutions
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Creating solutions for clients:
Three key aspects
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1. Understanding the client’s business problem and getting
the right people and solutions together to address the need
2. Working in partnership
with the client by bringing
the specialist skills,
resources and solutions
needed – not simply
client and agency
3. Providing your client with tools and frameworks
that enable them to benefit from your work on-
going and implement the solutions
What you get from RedRoute
Marketing, Training, Support,
Solutions, Tools, Skills, Resources
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Setup
Step 1:
MEASURE
Step 2:
PLAN
Step 3:
EQUIP
Step 4:
MONITOR
• Define key client
business
questions and
challenges
• Identify critical
internal and
external data
• Measure the
impact of key
demand factors
• Measure
marketing effects
• Develop price,
marketing mix
budget
optimisation or
customer
analytics
segmentation
modules
• Equip client with
tools so they take
ownership
• Training to embed
key learnings,
recommendations,
implementation
approach and
rollout
• Implement
bespoke
monitoring
• Put in place data
management
solutions
The solutions roadmap
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1. DIAGNOSTICS
Knowing the
dynamics of their
sales performance
and how to leverage
them to help the
client achieve their
business plans
2. PREDICTIONS
Predictions of the
sales and profit
consequences of
alternative marketing
strategies and tactics
3. PROPOSALS
Proposals on the best
strategies that will
enable your clients
to achieve their
business objectives
How it all fits together
The deliverables you’ll provide
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How it works
• The RRI Franchise System
– The ‘RRI Franchise System’ is defined as the total sum of the business system rights
that are licensed for use by the franchisee, including branding, know-how, systems,
territory, initial training and support, for which a franchise purchase fee and ongoing
royalty fees are charged by the franchisor
• Joining the network
– A full franchise purchase fee is £50k but there are also ‘Soft Start’ options (see below)
– On-going royalty fees are a licence fee of 5% of turnover and an advertising fee of 2%
– Joining the network also requires a written commitment to follow common protocols
• Soft Start option
– The Soft Start option requires a deposit of £2.5k with the remainder of the fee
financed by RRI and repaid slowly over the first 3 years through a higher royalty rate
• Note: the start date for repayments is also deferred for 6 months so as to allow the business to build
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What the franchise provides
The key components of the RRI Franchise System include:
– Product Management & Solution Development
– Training
– Operations Manual
– Corporate & Brand Identity
– Territory / Business Area Selection and exclusive ownership
– Software Systems and Solutions
– Marketing Resources & Tools
– International Advertising Spend
– Clients & Referral Network
– Website
– Central Phone Number
– Financial Management
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The RRI Franchise System
To help you envisage what this support contains, the following
elements are expanded on in the following few slides:
– Product Management & Solution Development
– Training
– Marketing Resources & Tools
– International Advertising Spend
– Clients & Referral Network
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Service management, solutions
tailoring & solutions development
RedRoute International Limited:
• Global UK head quarters in London providing centralised resource of
subject matter experts (SME’s) in each of the key services
• These SME’s provide the technical delivery of business solutions
• The SME’s are the IP owners and developers of the key services and
can also tailor them to meet the needs of your particular clients – it is
not a “one-size-fits all” service – every client is unique
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Management teams
RedRoute International
PRODUCT MANAGEMENT &
SOLUTION DEVELOPMENT
• Technical Delivery of
Business Solutions
• IP Owner / Developer
• Subject Matter Experts
• Back Office Systems
BUSINESS DEVELOPMENT
• Coaching in market
sector targeting
• Lead generation and
customer conversion
strategies
• International/National
Accounts referrals
• Best Practice transfer
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FRANCHISE NETWORK
DEVELOPMENT
• International
Development of the
RedRoute Brand
• World Class Induction
Training of the
proven headline
solutions
RedRoute International (Franchising)
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Training
• RRI has developed a comprehensive initial training program that is
provided to franchisees in their first 15 days with us
• Our training courses are a mix of practical and classroom learning:
– The Key Services – theoretical background, underpinnings, case examples
– How to Present the Key Services to prospective clients
– Prospecting, designing and proposing solutions
– Closing the sale
– Project management, delivery and on-going support
• Ongoing e-training
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Marketing Resources & Tools
• RRI has developed a comprehensive range of tools and resources that
are consistent with the image of the brand and assist franchisees in
maximizing the effectiveness of their marketing
• These tools include quality PowerPoint presentations, sales
management scripts together with state-of-the-art selling tools,
template customer letters, flyers, brochures, print advertisings, digital
key words/adwords and display banners, e-Blasting and landing pages
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International Advertising Spend
• The International Advertising Budget is managed by the
franchisor to pay the costs of developing, producing and
publishing advertising, marketing and promotional materials
• By contributing advertising fees into a group fund, individual
franchisees are able to benefit from much greater advertising
exposure than they could afford if each franchisee had to
market their business on an individual basis
• As the network grows, the level of funds in the advertising
account grows accordingly
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Clients & Referral Network
• RRI have a global database of over 1000 potential clients together
with a comprehensive database of past and current clients with
case studies traversing almost every industry sector
• Critical to the success of each franchise are the personal marketing
activities you perform in order to generate enquiries & sales
• Complementing this is the range of customer enquiries and business
that is generated from the marketing initiatives of the RRI network,
through group advertising, thought-leading presentations, seminars
and webinars; central website; new tools; education; and so on
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Why your clients will want
to work with RedRoute
• Successfully completed projects across all sectors
and internationally
• We deliver robust, valued-based insight and
recommendations
• Deliver actionable strategic options that are relevant –
it isn’t analysis for the sake of analysis
• Our approach is fully validated by expert trade
bodies (e.g. IPM, IPA. ESA, CIM, IDM, CAA etc )
• Resource pool of senior analysts, market research
experts and consultants with client and agency
experience
• Fully independent, ensuring maximum credibility for
recommendations
• Extensive affiliated network
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Typical financials
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GBP’000 Year1 Year2 Year3 Year4 Year5
Gross Sales 150.0 350.0 500.0 750.0 850.0
COGS 97.5 227.5 325.0 487.5 552.0
Gross Margin 52.5 122.5 175.0 262.5 297.5
Operating Costs* 25.5 38.5 52.0 72.5 86.5
Operating Profit 27.0 84.0 123.0 190.0 211.0
Notes:
1) Model is based on actual UK Year 1 to 5 results delivered by a single consultant without HQ resources
2) Op. Costs include Franchisee Royalty & Adv Fees plus marketing & variable costs
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Return on investment
• Cumulative profits at the end of the first two years can be
expected to be at least £100k
• The break-even point on a full £50k investment would
therefore be between 12 – 18 months after start-up
• At the end of five years, the return on the initial £50k
investment would be £635k (+£585k)
• What if the sales do not come?
– We would expect that is unlikely to happen (!) but if you wish to leave
the network at anytime within the first 18 months of joining then the
only financial cost to you would be your initial £2.5k deposit
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Building an asset
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*At the end of Year 5 the plan shows the franchisee will have grown a business
with a marketable value of £1.5m (£211k profit at a Multiple of 7)
As a Franchisee you would also be Building a Business with an
expected Business Enterprise Value of £1.5M after 5 years*
This is not wishful thinking.
The market for leveraging data to generate unique customer insight is
growing at a phenomenal rate as more and more data becomes available.
You can ride this wave too if you have the right board to rely on.
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Financial endorsement
• The financials shown on the
previous pages have been
independently endorsed by
our accountants as a true
reflection of RedRoute’s
historical in-market
performance so you can
have confidence in the
expected returns
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Moving ahead
• Joining the network is not to be done on a whim
• Discussion is required to define the areas to work in, where
the initial business will come from, which services you can
most easily support, and develop a route plan
• Only at that stage will you be ready to start
• The first step is a wider discussion
• Let’s review how it might work
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Hinweis der Redaktion What is it? The forum where the leadership team sign of our
spend for the coming quarter(s), usually 6 months out.
What spend is covered? All brand A&P and promotional funding.
How does it work? Spend proposals are circulated as pre reads. The meeting is used to challenge the spending decisions against the holistic AOP challenges of NSV, TP, Cash and Beating the competition.
Who leads? Customer Marketing Director to chair the meeting with a 7 vote majority decision cabinet system across heads of marketing, channel directors and commercial finance.
How does is drive better M&E?
Used as quarterly milestone to complete all post and pre evaluations so all insights can be applied into future spend.
All spend proposals must include specific KPIS for ROI, volume and other relevant metrics. This drives the pre and post evaluation culture.
It hard wires M&E into the business planning process.