EMBA PROJECT REVIEW

EMBA 2008 PT PROJECT WORK CAECILIE HECHTEL

Love2Print Reloaded

Author: Caecilie Olive Hechtel
Tutor: Prof. Raffaello Balocco

27/11/2009 | Tutor: Prof. Raffaello Balocco | Author: Caecilie Hechtel | cecilia@lovetoprint.de

2
Objective of the project work

Review and improve (reload) the LovetoPrint business
plan by applying the newly acquired competences.
Prove that the LovetoPrint Reloaded would have led to a
successful business venture.

Problems cannot be solved at the same level of awareness that created them.
Albert Einstein


3
The structure of the project work

Italy Germany Project work

Compare to the
Reference Model and
identify areas of
improvement
Introduce the Describe the Revisit the
audience to experience in Business
the Germany
Plan Reload the
Love2Print from the
business plan
products decision to
describing write the
the Italian business
experience plan to its
effects.
Share lessons
learnt

2006-2007 2008 2009


4
The Italian business experience

A selection of six success stories describes best
Love2Print’s business opportunity.


5
Bayer HealthCare (2006)

This 3D counter display
accompanied the TV
advertising for the launch of
the new instant Aspirin®.

500 units have been
developed creatively,
produced, assembled and
delivered to one address.

Lead time from ﬁrst
presentation to production: 6
months.

Number of visits/ meetings: 3

Click on the image to view
the pitch presentation.

Slide with a link

6
Lufthansa (2006-2008)

Lufthansa was looking for ways to communicate differently than before
and welcomed a more pragmatic creativity. Also, they just came from a
bad experience with an agency that repeated a project with a
competitor.

In three years I was able to run 6 different projects with this same
customer. All of these were addressed to special business areas such
as:
- Private jet ﬂyers (250 leather notebooks)
- HON members (250 leather notebooks with their name printed on it)
- Travel agencies (350 weekly desk agendas with the name of the contact
person on each week page and on the cover, different oover for men/
women)
- Companies registering online to Star Alliance Company Plus Programme
(3.000 notebooks with packaging)

This information card has been ordered twice (20.000 units totally)


7
Car dealers of Fiat Group (2007)

5 car dealers of FIAT (Milan and Torino) teamed up to make a
common gift to all people who visited them during the week end of
launch of the Fiat 500. They chose the ultrathin mouse pad (called
ipad).

3.000 pieces were produced in 5 batches with the different names of
the car dealers. They were also delivered separately last minute to
each car dealer.
We had only 2 weeks to make a proposal, prepare the artowrk and
deliver.on tima.

The iSticker (Platinum) was developed to be distributed in the centre
of city just before Christmas during the presentation of the new
Lancia ypsilon in Saronno.
Again the challenge was to be fast as we were given only two weeks
to “invent” the gadget and produce it.


8
Tucano (2008)

Tucano was looking for a
more consistent way of
presenting their new
products to the press and of
presenting offers to bigger
reatil accounts abroad such
as Dixons for example.

They produced 1.000 pieces
and reordered again.
The artwork was provided by
them (they hav an internal
ofﬁce).


9
The challenge (mid 2007)

In April 2007 I moved to Berlin (Germany) for personal
reasons and (intuitively) planned a new “start up”
based on the successful track record in Italy.
Despite the advantage of speaking the language (mother
tongue), the start up in Germany was challenging
because:

• No network
• Little money
• Little knowledge about the new market


10
The response to the challenge (end 2007)

• No network
participate to a business plan competition

• No money
submit the business plan to the bank

• Little knowledge about the German market
the preparatory discussions with the tutors of the business plan competition, the
bank consultants and my German ﬁscal advisor helped me understand the
acceptance of Love2Print on the German market


Achieved results (mid 2008)

 Business plan competition
ranked 16th out of 143 participants

 Bank
received approval for a credit of 10.000 €

 Neonred, Tucano and Easibind contributed
(each 2.000 €) to the OnePieceMailer direct
mailing action


12
Approach to the review

 Compare the content of the Love2Print Business Plan with the
Reference Model suggested by Prof. Raffaello Balocco (Corporate
Strategy);

 Identify the areas of improvement, select three of them and revisit
them according to models and methodology learnt from the relevant
courses.

 Reload the business plan


13
Compare the business plans

Transfer the structure of the Reference Model to Excel including titles and
excluding descriptions

Evaluate for each area of the Reference Model how the content of the
LovetoPrint Business can be considered complete:
– Green background means that the content is ok
– Yellow background means that the content can be improved
– Red background means that the content is missing

The areas of improvement can be identiﬁed visually.


14
Areas of major improvement

Level of Detail 0 Level of detail 1 Level of detail 2
summary business idea
summary
summary
summary
attrattività dell'area di business
risorse/ competenze
risultati previsti
Reference Model
summary obiettivi del business plan
description of the enterprise
description of the enterprise
competitive positioning (abel)
value chain
1. Executive summary
description of the enterprise enterprise group
description of the product
physical description of the product
usage
2. Description of the enterprise
description of the product unique selling proposition
strategy plan
product readiness
vision
3. Description of the product
strategy plan mission
strategy plan
strategy plan
objectives and constraints
SWOT external macro external variables
4. Strategy plan
strategy plan SWOT external strategic segmentation
strategy plan
strategy plan
SWOT external
SWOT external
competition in extended terms
internal rivalry
5. Marketing plan
strategy plan SWOT external potential new players
strategy plan
strategy plan
SWOT external
SWOT internal
subsitution products
start up - competencies available
6. Operational plan
strategy plan SWOT internal start up - competencies to develop
marketing plan
marketing plan
market evaulation
market evaulation
available market (bottom up)
sources of information
7. Organizational plan
marketing plan marketing mix product
marketing plan
marketing plan
marketing mix
marketing mix
price
placement
8. Financial structure
marketing plan marketing mix promotion
marketing plan
Operational and organizational plan
marketing budget
key processes identify key processes
9. Economical & ﬁnancial
Operational and organizational plan key processes identify border processes
consistency of output against competitive Simulation
Operational and organizational plan key processes positioning
key processes
key processes
management logics
process mapping 10. Start up Roadmap
Operational and organizational plan ressources and input assets
Operational and organizational plan ressources and input input
Operational and organizational plan ressources and input suppliers
Operational and organizational plan ressources and input cost modelling

Red text: areas where incomplete/
Operational and organizational plan organization and personell people
Operational and organizational plan organization and personell organization
Operational and organizational plan organization and personell people managament system
financial structure
financial structure
organization and personell
type of business entity
sources of financing
staff and development
missing content is higher
financial structure
economical and financial projections
financial requirements
hyothesis/ assumptions
projected balance sheet and profitability/ cash
than the “ok” content.
economical and financial projections flow
economical and financial projections net cash flow
economical and financial projections financial requirements
economical and financial projections financial and economical risk

Missing
Incomplete/ can be improved
Ok
Slide with a link

15
Reload core parts of the business plan

Reference Model
Strategy
2. Description of the enterprise Vision, Mission & Objectives
3. Description of the product Competitive positioning (Abell)
4. Strategy plan
Product clustering
5. Marketing plan
6. Operational plan External analysis (5 competitive forces)
7. Organizational plan PEST analysis (strategic segmentation)
8. Financial structure Internal analysis (value chain model)
Simulation Management team and company set up
10. Start up Roadmap

Marketing plan
Market analysis
Marketing mix

Economics


16
Approach to the Reloading

• The content of the business plan has been translated into English
(from German)
• The areas of improvement previously identified have been (a)
structured according to the chosen methodology and (b)
“reloaded” to fix the issues that became visible thanks to the
“methodological filter”
• The result is a sequence of original/ reloaded versions of the
same problem.
• Each section is divided by an “index slide”
• At the end of each section there is a summarizing slide


17

Reference Model
Strategy
4. Strategy plan
Product description
5. Marketing plan
Simulation Enterprise structure

Marketing plan
Market analysis
Marketing mix

Economics


18
Vision, Mission and business objectives

Vision/ Mission Issue:
Objectives/ Constraints
This statement is insufficient because it does not
describe the future vision of the industry, not
SWOT analysis
does it show the way to this future vision.
Definition of the business objectives to realize the
External analysis Internal analysis
- 5 forces -resources & competences financial and economical results is missing.

Strategic plan


19
Vision and Mission Reloaded

Vision: From a standard gadget to an affordable and effective corporate
design item which is attractive and (environmentally) intelligent at the same
time.

Mission: Maximise the effect of branded material, reduce its expenditure to
the core without compromise on quality or effectiveness and last but not
least enable the introduction of environmentally friendly solutions.

Objectives:
- 1st mover to replace laminated printed products
- Reach a customer base of 10 customers per year that spend 20.000 €/
each or 50 customers that spend 4.000 €/ each;
- Reach a gross margin higher than 40% at each order;
- Pay back in 4 years.


20
Abell matrix

Issue:
Customer need - Customer needs are
deﬁned in an ambiguous

Tpo multinational companies
way (cannot be measured
nor accessed)

Top National companies
Innovate the image of the company - Customer groups are not
homogenous
Acquire tangibility

Agencies
Improve consistency with the mission

Customer groups
Polypropylene

Care for their image

Technically innovative

Sell virtual products

Hihg public visibility
Laminated paper

Electronic media

Alternative technology


21
Abell matrix Reloaded

- Customer needs are deﬁned
Customer need precisely
- Customer groups are
homogenous
To promote a new product

Hospitals/ Pharma industry

Transportation companies
This positioning allows to:
To educate and train users
- identify customers uniquely

Banks/ Insurances
- communicate consistently to

Business Schools
High Technology
the industry
To document - measure the attractiveness
of the market
To reward personel or customers
Customer groups
Polypropylene

Laminated paper

Electronic media

Alternative technology


22
Enterprise structure

Love2print is agent of two leading producers who have committed to provide
their customers with a highly personalized, functional and innovative
corporate product.

EASIBIND INTERNATIONAL/ the innovative & unconventional
leader in high brand corporate products

the leading PC apparel company

Love2print is to be owned by:

51% Caecilie Hechtel/ general manager, 12 years experience
in international corporate world and digital printing market

49% Fabio Piva/ ﬁnancing partner, 25 years experience in
marketing across industries.


23
Enterprise structure Reloaded

As a result of the internal analysis, Love2print becomes a business unit and a trademark
of the multimedia communication agency Neonred that deals with printed material.
Caecilie Hechtel is hired by Neonred with an option to become partner as soon as the
lovetoprint business reaches break even.

Slide with a link

24
Macro environment

Issue:
The strategic segmentation is missing. Important
information is disconnected (parts are under
“products” and other parts are in the
“executive summary”). The identiﬁcation of the
macro segments and the focus when deﬁning
the marketing plan gets lost.


25
Macro environment Reloaded

Political Taxation of environmental impact (carbon footprint)
European countries to reach 30% reduction in carbon
footprint by 2012.

Economical Uncertain demand across industries (leads to reduced advertising
budgets).
Growing non-classical advertising market
(Industry Report of Dresdner Bank)).

Sociodemographic Increasing attention and commitment to Corporate
Social Responsibility issues (McKinsey Quarterly Report
“Addressing Consumer concerns on Climate Change”.)

Increasing attention to hygienic issues.

Technological Digital silk screen technology reaches offset like color print quality
Polyprolyene can be coated with Biocote® or Extraprotect@ to reach
higher hygiene levels and last longer

Slide with a link

26
Macro segmentation Reloaded

PUBLIC VISIBILITY LEVELS OF HYGIENE
COMMITMENT TO THE ENVIRONMENT

LIFETIME OF THE INFORMATION

LONG
HIGH

SHORT
LOW
Laminated product

HIGH LOW HIGH LOW

Thanks to the information about the product features it is possible to position the target market
(segment) on a strategic level clearly by combining relevant characteristics of the market
players. When deﬁning the marketing plan it will be easier to be focused.


27
Competitive positioning Reloaded

This result shows a strong focus on the side of the suppliers (owners of technology). LovetoPrint as
new entrant without production is very weak within this net of competitive forces. If LovetoPrint
partners up with one of the key suppliers it can strengthen its competitive position signiﬁcantly.

The contact with suppliers is indirect (normally
through agencies). Customers are not
knowledgeable about the different alternatives:
The negotiation happens on a higher level.

3.000 agencies serve
potential 382.000 customers
(130 customers each agency)
Few print companies have enough volume to
pay it back quickly enough. The cost of
technolgy is very high (> 1 mio Euro), risk of
obscolescence of technology too, high
volumes are needed + experience and
Alternative products cost until
competence to print on PP is needed too.
50% of the price of a PP
product, costs of creativity
excluded.


28
Internal analysis (value chain)

Customers

Agency
Suppliers 100%
new acquisitions

Buy Make
Graphic design Communication
Prototyping Sales
Final product Assembly
Transport

Identified issue:
- Unbalanced share between primary and supporting activities suggests to insource
activities to improve margins and competitiveness (resources & competences);
-The costs of maintaining the firm infrastructure risk to be higher than the sales. This
positioning is long term insufficient to sustain and grow the business.


29
Internal analysis (value chain) Reloaded

Customers

100%
Suppliers new acquisitions

Neonred customers
(see on the web)

Buy Make
Final product Communication
Transport Sales
Assembly Partners

Graphic design
Prototyping

Opportunity:
Insource creative “buy” activities:
- improve resources and competencies
- increase value added of internal primary activities
- save on infrastructure costs (ofﬁce/ legal advisory/ ﬁscal advisory/ admin)
- acquire an existing customer base to start from
Slide with a link

30
SWOT analysis

Issue:

This result shows a strong focus on the side of
the suppliers (owners of technology).
LovetoPrint as new entrant without production
is very weak within this net of competitive
forces. If LovetoPrint partners up with one of the
key suppliers it can strengthen its competitive
position signiﬁcantly.


31
SWOT analysis Reloaded

Strengths Weaknesses
- First mover advantage (in D) - Premium Price during recession times
- Sales Manager competence & experience - Geographical distance of Neonred,
- Experience & competence Neonred in Easibind and Caecilie Hechtel
Multimedia Technology - Small (not main) unit within a bigger
- Cost efficiency of production, latest business of Neonred
technology and experience of Easibind - Production outsourced, margins driven by
- International Team product development service mainly
- Ability to fast realization
- “One Stop Shop” (full service agency)

Opportunities Threats
- No direct competition, unique proposition - Long sales process with little room for
- Our products can contribute significantly influencing after the first pitch (first
to companies’ “Carbon Footprint impression only counts)
reduction” programme - Risk of substitution with cheaper solutions
- Environmentally intelligent without - Due to the complexity of the offer risk of
compromise on quality or effect being misunderstood
- Through higher hygiene and durability of
the material possibility to save on overall
produced volume


32
Strategy Plan Reloaded

Vision/ Mission External analysis Internal analysis
Objectives/ Constraints
Vision: From a standard gadget to an
affordable and effective corporate design
item which is attractive and
(environmentally) intelligent at the same
time.
Mission: Maximise the effect of branded LEVELS OF HYGIENE PUBLIC VISIBILITY

material, reduce its expenditure to the core

COMMITMENT TO THE ENVIRONMENT
LIFETIME OF THE INFORMATION

LONG

HIGH
without compromise on quality or
effectiveness and last but not least enable

SHORT

LOW
the introduction of environmentally friendly HIGH LOW HIGH LOW

solutions.

Business Objectives
-1st mover to replace laminated printed
products

- Reach a customer base of 10 customers T W
per year that spend 20.000 €/ each or 50
customers that spend 4.000 €/ each;

- Reach a gross margin higher than 40% at
each order;

- Pay back in year 4 O S


33

Reference Model
Strategy
4. Strategy plan
Product description
5. Marketing plan
Simulation Enterprise structure

Marketing plan
Market analysis
Marketing mix

Economics


34
The market

Issues:

Market is inconsistent
(too small) with the
business objectives
previously deﬁned.

According to the
business objectives
(volume) LovetoPrint
should reach a market
share of between 2%
and 10% which is an
unrealistic result for a
new entrant with a weak
competitive position.


35
The market Reloaded

Potential market
382.000 advertising active companies

Available market
10.075 exhibit at relevant fairs*

Served market
971 employ more than 50 employees
+ are ISO 14001 certiﬁed

Penetrated market
Customers of LovetoPrint Italy
Customers of Easibind UK with ofﬁces in D
Customers & prospects of NeonRed
*Relevant Fairs:
ENTSORGA
CEBIT
IAA cars
IAA trucks

Source of information:
General CD addresses database of Deutsche Post (2007)
B2B Catalogue of Deutsche Post (2009)


36
Product

Issue:

It is visually difﬁcult to
identify the hierarchy of the
different products/ services.


37
Product hierarchy

Prepare the reload:

To better review the
Goods
Ad Hoc Projects product deﬁnition I
Low environmental have describe the
impact solutions Long Life original LovetoPrint
Mix of standard products
product hierarchy
Short Life visually.
standard product
Trendy, technical The weakness of the
and functional high product deﬁnition
end promotional becomes more
items evident.
Service Prototyping

Lifetime (long/ short)
Product development of products is a too
general feature that
does not add value
Art work design
to the product
hierarchy.
Assembly and distribution

Product family Product range Final product


38
Product hierarchy Reloaded

Product
development
Low environmental impact solutions Final product
Prototyping

Corporate Stationery
Art work design
Point of Sale
& Display Production
Promotional Assembly
&distribution
Ad Hoc Projects
Response mail

Mix of
standard products
Trendy and functional promotional items (Tucano)
products have been excluded from the ofﬁcial range of Art work design
standard product
products to improve focus of proposition and eliminate
risk of loss of credibility as Tucano products do not fulﬁll
Production
the environmental claim.
Assembly
Lifetime has been replaced with “application” on the & distribution
customer’s side. This improves the proximity to the
needs of the market making it easier for customers to
identify their needs.


39
Product range Reloaded

Corporate Stationery
Notebooks, Pouches, Wallets, Folders, Organisers

Point of Sale & Display
Leaﬂet Dispensers, Wobblers, Hanging Displays, Window Stickers

Promotional
Gift Boxes, Gizmos, Bundled Packs, Sleeves

Response Mail
One Piece Mailer, Invitations, DL Inserts


40
Price

This definition does
not show the
structure of a typical
product in a way that
is consistent with the
offer to the customer
and to the product
hierarchy.

There is a need to
define price n a way
that quick answers
can be given to
interested potential
customers with a
preview of the
perspective benefits.


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