Kenya Coconut Production Presentation by Dr. Lalith Perera
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B2B: Business case Gearbox
1.
2.
3.
4.
5.
6. MISSION STATEMENT
SATISFY AND PROVIDE OUR CUSTOMERS WITH HIGH
VALUE BY DEVELOPING, PRODUCING AND SELLING
GEARBOXES AND DELIVERING HIGH QUALITY TECHNICAL
PERFORMANCE AND RELIABILITY, WORLDWIDE
VISION STATEMENT
IN THE FUTURE THREE YEARS WE WILL GROW BRINGING
OUR GEARBOXES ON THE INTERNATIONAL MARKET AND
ESTABLIGH LONG TERM RELATIONSHIPS WITH OUR
CUSTOMERS AND DISTRIBUTORS MEETING THEIR HIGH
EXPECTATIONS
16. The downtrend in margin from 2007 to 2010 can be explained
by the fact that the company encounters problems in the
effectiveness of the processes and is not a cost leader.
Its resources are in line with other competitors; this means
that available resources do not permit the company to reach a
competitive advantage over competitors.
Rinaldi is not able to lower the costs in order to increase
margin plus the prices decreased over time.
17. THEY ARE NOT TAKING GOOD CARE OF THE
ITALIAN MARKET
THEY ARE TRYING TO APPROACH OTHER
MARKETS
THEY ARE NOT COMMUNICATING WELL
THE FUTURE VISION OF THE COMPANY
18. THE EFFICIENCY IS HIGH
THE EFECTIVENESS IN THE PROCESS IS LOW
THEY ARE NOT COST LEADER
THEY DONâT HAVE A CLEAR COMPETITIVE ADVANTAGE
THEY ARE IN POSSESION OF ONLY ONE MANUFACTURING SITE
19.
20. A HIGHER Market share means:
ďźGreater sales
ďźLess effort to sell more
ďźStrong barrier to entry of
new competitors
ďźWhen the MARKET expands, the leader
gains more than the others
26. Big customers and big in size
Specialized segmentation
INDIRECT DISTRIBUTION CHANNEL
NON DIFFERENTIATED DISTRIBUTOR NETWORK
All kind of customers, many in numbers
Traditional Segmentation
27. COUNTRY SMALL COMPANIES BIG COMPANIES
Italy 75% 5-10%
Spain, U.K., R.O.W. 60% 5-15%
N.A., France, Germany 5-15%
31. 2011 2012 2013
Italy +1% +1,2% +1,5%
EU +1,5% +1,7% +1,9%
USA 2,5%-3% 2,7-3,2% 2,9-3,5%
R.O.W +5%-9% 5,2-9,2% 5,4-9,4%
32.
33. ⢠Has a higher level of technology than
the majority of the competitors
⢠5th position in the rank for Technical
Performance/Quality/Reliability
⢠Unclear strategic direction
⢠Weak image
⢠Lack of managerial depth and talent
⢠Missing essential skills and competences
⢠Poor track record
⢠High internal operating problems
⢠Vulnerable to competitive pressures
⢠Competitive disadvantages
⢠Obsolete facilities
⢠Frail workforce management
⢠Enter new markets (China, Brazil, India and
Japan)
⢠Expand services to meet broader range of
customer needs
⢠Diversify into related products or services
⢠Add complementary products of services
⢠Risk of entrance of new competitors
⢠Growing competitive pressures
⢠Growing bargaining power of customers
and suppliers
⢠Economic uncertainty
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
34.
35. 1. WE ANALYZED THE INFORMATION AND FOUND PROBLEMS
2. WE FOUND MULTIPLE REASONS THAT PROVOKED THEM
3. NOW WE WILL FIND THE SOLUTIONS
36.
37. WE ARE GOING TO SET THE MISSION AND GOALS FOR THE YEARS 2011, 2012 & 2013
38. 1. FIX THE PROBLEMS IN TWO YEARS (2011, 2012)
2. TRY TO GROW A BIT IN THE THIRD (2013)
3. OPTIONAL: ADD 2 YEARS MORE AND KEEP A GROWING STRATEGY
WE CHOSE THIS KEY POINTS TO FOCUS ON:
⢠MARKET SHARE
⢠BUDGET (EXPECTED UNITS TO SELL, UNITARY PRICE, EBIT & UNITARY COSTS)
39. 2011 2012 2013
World Wide +1% +2.5% +2.5%
Italy +2.5%
(Regain old MS)
+2.5%
(Regain old MS)
+5%
(Gain new MS)
Europe +1% + 4% +5%
France +0.4%
(Regain old MS)
+0.4%
(Regain old MS)
+0.4%
(Gain new MS)
Germany +0.1%
(Regain old MS)
+0.1%
(Regain old MS)
+0.1%
(Gain new MS)
UK +0.25%
(Regain old MS)
+0.25%
(Regain old MS)
+1%
(Gain new MS)
Spain +0%
(maintain MS)
+3%
(Gain new MS)
+3%
(Gain new MS)
North America +0%
(maintain MS)
+0.5%
(Gain new MS)
+0.5%
(Gain new MS)
Rest of the World +0%
(maintain MS)
+0.5%
(Gain new MS)
+0.5%
(Gain new MS)
40. 2011 2012 2013
EXPECTED N. OF UNIT SOLD 2,670,000 2,800,000 2,860,000
AVERAGE EXPECTED UNIT PRICE 38 40 42
TOTAL EXPECTED REVENUES 101.460.000 112.000.000 120.120.000
EXPECTED COSTS 92.531.520 101.920.000 100.708.600
EBIT 8.928.480 10.080.000 11.411.400
EBIT % 8,80 9 9,5
EXPECTED COSTS PER UNIT 34,66 36,40 38,01
41. STOP UNDERSELLING
INCREASE THE PRICE PER UNIT
IN ORDER TO BETTER REFLECT THE VALUE OF THE PRODUCTS AND COVER THE
INCREASED INVESTMENT COSTS
CONSIDERED THE FACT THAT THE NUMBER OF UNIT SOLD IS EXPECTED TO INCREASE,
THE COMPANY IS NOT FORCED TO SET A VERY HIGH PRICE FOR THE PRODUCT
THIS WILL FACILITATE THE PENETRATION OF THE ITALIAN MARKET AND THE INCREASE
IN MARKET SHARE IN R.O.W. THE INCREASE IN MARGIN IS DUE TO THE FACT THAT THE
COMPANY EXPECT TO SELL MORE UNITS AT A HIGHER PRICE SINCE ITS STRATEGY IS
SUSTAINED BY A HIGHER DEMAND OF GOODS AND PRICES.
42. WE HAVE TO STIMULATE THE SALES FORCE BY OFFERING THEM
A SMALL PERCENTAGE INCREASE IN THEIR COMISSION AFTER THEY
HAVE REACHED A CERTAIN AMOUNT OF SALES WHICH WILL BE
SPECIFIED IN THEIR CONTRACTS
DEPENDING OF THE RESULTS AT THE END OF THE YEAR, THE EMPLOYEES
WILL BE GIVEN EXTRA NON WORKING DAYS, THAT WILL BE CHOOSEN
BETWEEN EACH LOW SALES SEASON
43. THE COMPANY SHOULD DEFINE THE MAIN PRODUCT FEATURES
1. Near zero backlash
2. Added right angle
3. Indexer design
44. STRENGHTS OF THE COMPANY
⢠HIGHER LEVEL OF TECHNOLOGY THAN THE MAJORITY OF COMPETITORS
⢠RANKS 5 IN TECHNICAL PERFORMANCE, QUALITY AND RELIABILITY
POSITIONING STATEMENT
⢠SIGNIFICANT
⢠SHARED
⢠OUTWARDLY COMMUNICABLE
⢠ABLE TO CLEARLY TRANSFER THE BRAND VALUE
WE WANT TO POSITION THE COMPANY AS MARKET LEADER,
BUT IN 3 YEARS WE CANâT DO THAT, INSTEAD, WE ARE GOING TO
TRY TO FIX THE PROBLEMS AND TRY TO CLEAN ITS IMAGE
45. ADOPT THE BRAND STRATEGY CREATING A SUITABLE HIERARCHY
CREATE SYMBOLS NOT TIED TO THE PRODUCT
USE MARKETING COMMUNICATION TOOLS
PROMOTE THE USE OF FACEBOOK AND LINKEDIN
MAKE EVENTS,FAIRS AND COMPANY VISITS, TO EXPLAIN HOW THE PRODUCT WORKS,
AND SHOW THE REAL VALUE TO THE CUSTOMERS
EXPLOIT THE NAME & VALUE OF OTHER CUSTOMER COMPANIES
USE THE GOOD NAME OR VALUE OF THE BIG CUSTOMERS AS A BRIDGE
BETWEEN THE COMPANY AND POTENCIAL CUSTOMERS
DEVELOP BRANDING PER SEGMENT
ANALYZE AND UNDERSTAND WELL THE NEEDS OF THE SEGMENTS TO BE ABLE
TO OFFER THEM A BETTER AND MORE âCUSTOMIZEDâ VALUE
46.
47. WE SHOULD KEEP THIS STRATEGY,
NOT ONLY STOPPING AFTER
FIXING THE PROBLEM, BUT IMPROVING SLOWLY
AND CONTINUOUSLY
48.
49. NEW PRODUCTS
STAY TUNED; INNOVATING
ADVERTISING
PROMOTE OUR PRODUCTS, SPECIALLY NEW ONES
CUSTOMER SHARE INCREASE
THE SALES FORCE COMMUNICATES WELL THE VALUE TO THE CUSTOMERS
NOT STOPPING AFTER HAVING A GOOD RELATIONSHIP WITH A CUSTOMER, BUT MAINTAINING IT
AND IMPROVING IT DAY BY DAY
DEFINE VERY WELL WHO EXECUTE THE PLAN, THE TIMING & THE BUDGET
FEEDBACK
COLLECT DURING THE PROCESS AND AFTER, TO BE SURE OF ACHIEVING THE GOALS, AND KNOW
HOW TO IMPROVE IN THE FUTURE
50.
51. 30/12/2010 30/12/2011 30/12/2012 30/12/2013
1,71$= 1⏠1,54$= 1⏠1,54$= 1⏠1,54$= 1âŹ
DOLLAR DEVALUATION
+1% IT
+1,5% EU
2,5-3% USA
5-9% ROW
+1,2% IT
+1,7% EU
2,7-3,2% USA
5,2-9,2% ROW
+1,5% IT
+1,9% EU
2,9-3,5% USA
5,4-9,4% ROW
GROSS NATIONAL PRODUCT EVOLUTION
USA EU EU
CHINESE COMPETITOR ENTRANCE
52.
53.
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55.
56. INNOVATION
⢠MUCH OF THE DIFFERENTIATION IS AT THE MARGIN RATHER THAN ANYTHING
TRANSFORMATIONAL
⢠THEREâS A PROBLEM WITH A PRODUCT-CENTRIC VIEW OF DIFFERENTIATION
FOCUSED TOO MUCH ON THE ACTUAL PHYSICAL FORM OF THE PRODUCT
⢠THE PRODUCT IS COMMODIZATED
BY MISSING THE TOTALITY OF THE VALUE AND ITSâ RELATED AUGMENTED BENEFITS AND SERVICES
PROVIDED
DIFFERENTIATION
⢠INCREASING CHALLENGES WITH DIFFERENTIATION
⢠GROWING EASE WITH WHICH PRODUCTS CAN BE COPIED AND LESS
EXPENSIVELY MANUFACTURED IN ASIA
⢠PRODUCT PROLIFERATION
57.
58.
59. ONCE REALIZED HOW TO DIFFERENCIATE THE PRODUCT AND RELATED SERVICES, WE
CAN ADD ANOTHER BIG DIFFERENCIATIOR: COMMUNICATION
OUT-COMMUNICATING THE COMPETITORS, WE CAN SOLVE THE
MISTERY OF HOW TO DIFFERENTIATE A PARITY PRODUCT. AND GET
THE 3 CORNERSTONE BENEFITS OF EFFECTIVE B2B MARKETING:
⢠LOWER OVERALL COST OF SALES
⢠IMPROVED GROSS MARGINS
⢠EASIER SELLING PROCESS
THIS CAN BE ACHIEVED THROUGH ALL THE AVAILABLE DIGITAL PLATFORMS BY
BUILDING AN INNOVATIVE COMMUNICATION PROGRAM THAT
CAN SERVE AS AN INTEGRATED PART OF THE AUGMENTED PRODUCT
60. It will help to gain insights more quickly into changing customer needs and
become more competitive by taking advantage of the real time research that
exists on the Web regarding attitudes, awareness and usage of products by
their customers as well their competitorsâ customers
UNDERSTAND THE SOCIAL MEDIA AS A PART OF THE AUGMENTED PRODUCT
THIS MEANS: ADDED VALUE
BENEFITS FOR THE COMPANY & THE CUSTOMER COMPANIES