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The Essentials of Strategic Consulting for SMEs Case study « GREEN WATER » Navin Agarwal
Analysis of targeted marketsand associated key successfactors
Targeted markets, factors of influence and KSFClients needs and Key Success Factors (KSF) ofthe SBA Within 20 years, the water world demand could increase by 650% Save The demand of water is set to increase Water as a Increase awareness among communities to have resource judicious use of water Sporting authorities to decrease the use of waterClien Private gardens need automatic watering equipment owing to the shortage of watert Water remains an important expenditure: 42% of theNeed sums invoiced in 2006 by the services of water and Save sanitation are supported by communitiess Expense Drinking water used for irrigation which is expensive on Water The lawn, which accounts for 15% of gardening business, represents the most consuming water zone in a garden Watering represents an important expenditure in the market of private gardening
Targeted markets, factors of influence and KSFClients needs and Key Success Factors (KSF) ofthe SBA KSF to be managed To provide remote watering solutions to both individual and institutions Remote monitoring and maintenance without human intervention. GPRS and SMS based solution to enable easy management Products/Servi remotely ces Customized solution for various categories i.e. Lawn, Landscaping, Sporting, Agriculture etc.Design, Set up Information system to inform people about the benefits ofproduction, the solutions.and Differentiated Pricing for different customersmarketing of Price People with second homes have higher incomes.a solution of Institutions and luxury sports will pay premium. Farmers may not pay premiumremote Turn Key projects- Providing end to end solutions to the customermonitoring Reaching out to the Landscaping Designers and be a partner infor automatic their assignments.watering Distribution/Sal Partner the ground monitoring agencies in the various sportssystems via es Team up with irrigation system suppliers for agriculture to provide the automated solutions. Target the concentrated regions.Internet and Team with sporting bodies to encourage use of the system by theGPRS affiliated members Communicating directly to the owners of second homes (Pensioners) by sending them newsletters.
Strategic positioning of GREEN WATER project Synthesis of Market Analysis Solution of remote monitoring for automatic Attractivene watering ss Clients, The Targeted applications are multiple. Customers’ awareness on the importance to save water has grown targeted significantly. External factors(sustainable development, 5 Markets environmental quality, cost savings ) are favorable. Programming devices for lawns represent 18,3 million euros whereas the connections and terminals account for 4 30,4 million euros, i.e. 6% of the lawn marketContingenci 90% of the French have a gardening space (garden, terrace and balcony) and 60% of the households have a es, 4 garden. Only 4% of private gardens are equipped withOpportunitie systems of integrated watering.( Beginning of the Industrys & Threats Life Cycle) Between 2001 and 2006, the turnover of landscaping 4 companies has increased of 28% to reach 4,3 billion euros (Development of the Related Industry Life Cycle) Large and the contractual suppliers offer seriousCompetition competitions. The maintenance contracts offered by them is 2 s competitive too. An overall value chain with the development, distribution and 5 Types of
Strategic positioning of GREEN WATER project Key Success Factors of Franchise SBA GREEN KSF to be managed WATER Comments project Provide remote watering solutions to both individual and 5 Core of the Project institutions Remote monitoring and maintenance without human Product intervention. GPRS and SMS based solution to enable easy 4 Core of the Project management remotely s/Servic Customized solution for various categories i.e. Lawn, 5 Differentiatedsolution es Landscaping, Sporting, Agriculture etc. offeringsof Set up Information system to inform people about the 3remote benefits of the solutions. On demandmonitori Informationng for Differentiated Pricing for different customers 4 Concept of theautomat People with second homes have higher Projectic incomes. Price Institutions and luxury sports will paywateringSystem premium. Farmers may not pay premiums:Ranking Turn Key projects- Providing end to end solutions to the 3 Concept to be workof customer out Reaching out to the Landscaping Designers and be a 4GREEN partner in their assignments. Important partnershipWATER Distribut Partner the ground monitoring agencies in the various 3Project ion/Sale sports 4 Important partnershipvs KSF s Team up with irrigation system suppliers for agriculture to Important partnership provide the automated solutions. Target the concentrated 3 regions. Important partnership Team with sporting bodies to encourage use of the system by the affiliated members
Strategic positioning of GREEN WATER project Assets/Attractiveness Matrix Strengthen assets 5 MaintainSearch for alliances Strengthen assets positioning by all or and invest to grow SBA means exit (challenger) GREE (winner) (dilemma) N WATE0 Exit Maximize R Improve 5progressively profits carefully Positioning (risk) (acceptable) (supporter) Exit Exit and Double the progressively disinvest betting or exit (risk) (looser) (dilemma) 0
Strategic Choices of GREEN WATER project Scenarios Strategy 1- Direct Selling to Institutions and IndividualsProduct/Servic Pricing Commercializati Communicatio Associatedes Policy on n Marketing MeansDirect Selling • Premium • Direct Sales by • Product • 8 person forof customized Pricing since Agents especially for brochure Thesolutions to the product will landscaping • e commerce landscaping be used by business which has website with and secondInstitutions and institutions in a large no. of virtual process home clientsIndividuals growth stage or players. implementation •1 high worth • Since large sales and calculation of relationship individuals. agents required ROI executive for • However therefore its better •Sponsors of local tie up with pricing has to to have commercial sporting events or sporting take into agents for pre sales environmental bodies and account and then follow up conservation/awa environmenta competition by company agents reness drive l agencies • Referencing by • Advertising and/or NGOs landscape Budget • 2 Person for designers, sporting magazines technical bodies, water support and conservation maintenance,
Strategic Choices of GREEN WATER project Scenarios Strategy 2- Selling through gardening and landscaping designersProduct/Servic Pricing Commercializ Communicati Associatedes Policy ation on Marketing MeansSelling • Bundled • Provide • Product • Bundledthrough Pricing- The commercial brochure offeringsgardening and premium contracts to • Affiliated • 1 relationship pricing can be designers marketing executive tolandscaping charged for • e commerce forgetdesigners servicing • Distribution website with partnerships with contracts virtual process these agencies implementation •1 relationship and calculation executive for tie of ROI up with sporting •Sponsors of bodies and local sporting environmental events or agencies and/or environmental NGOs conservation/aw • 2 Person for areness drive technical support • Advertising in and
Strategic Choices of GREEN WATER project Example of matrix of ScenariosScenario Offerin Risk Coherence Pertinence Acceptabilit Operability Feasibility Total market culture, USP, y Technical Need for g growth, values, will sustainabili delay of means, financing, technological and ty ROI, impact HR, breakeven ruptures, reference of on schedule of point, competition framework positioning shareholde implementa availability of the coherence rs tion of leader of value resources, chain cash flowsS1: Direct Selling of 4 2 2 2 2 3Direct customizSale ed Frontal XXX Direct Delay of Rather Around 150 1.8 solutions reactions wishes to control of ROI on short K€ to from directly the relation sales force delay of commercial Institution competition sales in the with end- and recruitment expenses s and market users marketing , Individual efforts immediate s compensat implementa ed by a tion higher marginS2: Selling through 2 4 2 2 3 3Sale gardeningthroug and No Frontal Does not Relative Shorter Delay of Around 100 landscapi reactions Match with risk of ROI on contractuali K€h ng from XXX losing sales force sation commercial 2.7
Proposal of detailed action planfor implementation of selectedscenario
Implementation Plan of GREEN WATER projectOperations Q1 Resp Q2 Resp Q3 Resp Q4 Resp • Contact • Contract landscaping Finalisations designers and • Deployment withCommercial/ sporting agencies. landscaping •Deployme at additional • Selection and 1st landscape sales JNS+ and sports JNS + nt at contacts Sales and also at Salesadministratio DA bodies Legal around 20 with other around 10 •Drafting locations n installing agents contract of second •Formalization of homes guarantee and distribution service contract • Sale force • Creation of • communications Web site with Advertising • Leveraging Marketing / • Designing virtual in JNS through JNS +Communicati Affiliated JNS deployment Sales magazines + advertisement JNS marketing • Sponsoring • Targeting Sales s in soccor on campaigns environmental pension games events fairs • Drafting of sales • Recruitment rep & relationship of Sales • Hiring of executive job JNS representative additional HR description and JNS sales JNS • Publishing relationship executives executiveProduct and • Remote • Easily maintenance process • Ease of JNS customizable JNS solutions R&D operations