vnc-case-study-in-strategy-execution

1、Objectives of Transformation,Double the Turnover of the company Scale up current products using effective trade marketing, distribution & brand building strategies Consolidation in current markets Gaining share in weak potential markets : Chennai, Kerela, Hyderabad Launch of new brands targeting the

2、 hardware channel Manufacturing Cost Efficiencies & Capacity Expansion Transform the culture of the company from passive & reactive to proactive & result oriented Balanced Scorecard Implementation Trade marketing strategic framework implementation Channel partner management framework Brand portfolio

3、 management strategic framework Capability development,VNC Group Case Study,Transformational Change Objectives Transformation : Brand Management Transformation : Manufacturing Transformation : Sales & Distribution Transformation : PRM Transformation : Trade Marketing Transformation : Vision,Brand Ma

4、nagement,Differentiated Branding & Portfolio Management Specific branding positions for products Design on dialogue branding as well as image branding Power Brands : Welding, Fencing, Construction Systemized customer feedback Identification of vacant brand spaces for Bestwire & Bestarc brand of prod

5、ucts New Brand Launches Launch of new brands like Bestfence Barbed Wire. Extension to Bestfence Chain Link Re-launch of Bestwire with a Differentiated “Moustache Wire” Bestarc extending to Special Electrodes & Welding Consumables Brand Performance Management Brand scorecard & performance management

6、systems Segment specific communication development Loyalty programme management,BESTARC : Weld for Life,Business results Brand retails at a premium of 15-25% as compared to organized competition (regional players) Leader in Tamil Nadu & Kerela Strong platform of quality & welding strength Brand regi

7、stered gains in weak markets like Karnataka & AP Brand Extension into include low hydrogen & special electrodes,BESTFENCE : Your Lakshman Rekha,Business Results Barbed Wires Grew from 0 to 120 Tonnes per month in just six months after launch Rural activation exercise through agri-fairs Direct Sales

8、through intermediaries like bar benders, stone pillar makers, contractors Strong brand differentiation in a commodity market Successful launch of Chain Link,Bestwire : Wired with Trust,Business Results “Moustache Wire” First attempt to brand an unorganized , low involvement category Attracts a price

9、 premium of 20-30% over unorganized competitors Since Brand Launch the demand has outstripped supply necessitating a capacity expansion,VNC Group Case Study,Transformational Change Objectives Transformation : Brand Management Transformation : Manufacturing Transformation : Sales & Distribution Trans

10、formation : PRM Transformation : Trade Marketing Transformation : Vision,Manufacturing,Cost Efficiencies Design on utilization , efficiency & waste Design on saving by each supervisor Improving productivity New Product Development From Make to Buy/Assemble Development of new specialized electrodes D

11、evelopment of unique barbed wire & chain link products Capacity expansion for a few existing products Performance Management & Employee Involvement Balanced scorecard implementation Target setting & performance planning Root cause analysis, 5 Why analysis & Value Loss Analysis Employee Incentivizati

12、on based on target achievement Kaizen based employee involvement 5 S Implementation,Make vs. Buy Alignment,VNC Group Case Study,Transformational Change Objectives Transformation : Brand Management Transformation : Manufacturing Transformation : Sales & Distribution Transformation : PRM Transformatio

13、n : Trade Marketing Transformation : Vision,From Long to Hybrid : Mix of Long & Short,Market Prioritization On Retail Credit &Industrial Development Index,Hybrid Strategy,From Distributor Only to Hybrid Strategy Adopted: Direct Sales & Distributors Market prioritization A Class markets under direct

14、sales or to high performing distributors Non-performing distributors in A class markets like Hyderabad & Chennai replaced with Direct Sales Kerela moved to direct sales Low potential districts within Kerala being given to distributors For markets like Hyderabad : Distributors co-exist with Direct Sa

15、les with a territory-wise demarcations,Indirect to Direct Sales,More than 95% of sales through the direct channel Removal of the indirect channel so as to reduce undercutting & territory violations Removal of wholesalers from the network resulting in temporary loss of sales Close monitoring & auditi

16、ng of price in key wholesale markets like Chennai, Trivandrum,Disciplines: Anywhere One Price,RCP fixed after calculating the Distributor P & L: Profit margin of 3% Dealer margins rationalized to 5.25% from 2% Significantly lower than competition margins of 15-30%,Administering a fixed price & preve

17、nting under-cutting in a general purpose electrode market was a key challenge,Distribution Score Card,Goal alignment, Target setting & Monthly review of performance,Key Account Management,Key Accounts Management by Company Key accounts most profitable due to high margins & high exit barrier Cohesive

18、 key account strategy Specific sales people trained & ear-marked for key account management Key account management by company sales force Channel incentivized for business development/servicing Distributor/dealer commission for leads Credibility : Design on certifications, approvals & referrals Targ

19、eting industry associations for endorsements Product line being aligned to changing needs Designed sales collateral,Key Account Management :Framework,Sales Strategy Framework,Sales Management Control System,SPIN Approach To Selling,Sales Force Management,Incentive Planning,Sales Meeting & Everyday E

20、ffectiveness,VNC Group Case Study,Transformational Change Objectives Transformation : Brand Management Transformation : Manufacturing Transformation : Sales & Distribution Transformation : PRM Transformation : Trade Marketing Transformation : Vision,Partnership Relationship Management (PRM),The Part

21、ner determines the quality of the Customer experience, and therefore has a fundamental impact on the relationship that exists with the Customer,PRM : Key Challenges,Key Challenges Maximize channel revenue & profitability Increase partner loyalty Gaining partner mindshare Risk of partners selling com

22、petitive products Improve collaborative sales, marketing and service Enhance visibility into channel performance Reduced control over the sales process Optimize resources across programs Complex forecasting process,VNC Channel Partnership :Processes Domains,Partner Program Management,Partner Lifecyc

23、le Management,Design Partner Program & Allocate Resources,Define Integrated Multi-channel Strategy,CollaborativeMarketing,Collaborative Sales,Collaborative Commerce,Collaborative Service,Partner Customer Self-Service, Verification, & Assignment,Establish Market Development Program,Manage Collaborati

24、ve Campaign,Establish Channel Promotions,Develop Channel Sales Strategy,Proactive FieldEngagement,Closed-loopLead management,ConflictManagement,ChannelForecasting,Establish Partner Incentive Program Agreements,Administer Partner Registration & Enrollment,Maintain Partner Relationship,Train Partners,

25、Manage Partner Performance,Partner Self-Service & Escalation,Partner Service Request Management,Partner Customer Service Feedback & Analysis,Launch New Product to Partners,Develop Channel Marketing Strategy,Partner Vision & Succession,Red: Little/No Movement Yellow : Partial Development Green : Good

26、 Development,Manage Partner Community,Partner Lifecycle Management,Understand the Partners Current Reality & Organization Structure Build a vision for the Future Create a relationship with the employees in your partners organization. Information is at the core of what partners want Deliver tools & t

27、echniques that will improve the productivity & effectiveness of your partners employees. Training the partners employees on sales call planning, trade marketing etc. If you make it easier for them to do their jobs, theyll reward you with their mind share,Partner Lifecycle Management,Create Community

28、 The ultimate goal of community is to create these ties. These relationships come in many forms. The basic one is the relationship your employees have formed with your partners employees A more sophisticated relationship is one that is formed between community members (partner to partner) These rela

29、tionships represent more than just the concept of friends. They also represent many other values It is easier to get information you need from a person you have a relationship with Community members also build business & personal linkages. This creates a high exit barrier for partners,Best Practice:

30、 Partner Performance Measurement,Best Practice Structured partner manager methodology (MCS Partner Portfolio Management) Partner Scorecards Expend resources ontop performing & high potential partners (As),Benefits Scalable, fair approach to managing partnerships Quantitative measure of partners tota

31、l contribution Aggregate portfolio performance improves Partner loyalty increases,PRM : VNC Current Reality,Current Practices Limited performance data Over reliance on revenue metric Subjective opportunity assessment Reactive deal support & inconsistent policy enforcement,Result Over/Under investmen

32、t Inability to measure overall contribution Inconsistent results Poor partner loyalty,Resource Allocation Drives Portfolio Performance,HIGH,LOW,HIGH,PartnerRevenue(Potential Actual),Resources,“Under Investment” (Opportunity cost),“Over Investment” (Cost of Sale),A Partners,A Partners,B Partners,C Pa

33、rtners,Partnership: Distributor Benchmarking,A Partners : Qualitative Assessment Commitment to continuous improvement Acceptance of innovation & change Design on cycle time reduction Utilization of quality management procedures Flexibility is seen as the prime goal Employees share common core values

34、 of customer concern Actively seek to improve communication,Partner Profiling,Technique where, instead of asking a subject many questions all at once, the researcher asks a few questions initially and then comes back later to gather additional information. By allowing the subjects profile to grow ov

35、er time, the profiling process becomes much less intrusive Profiles tend to be far more up-to-date and accurate than one accumulated in a single session Relevant for Distributors since Unwillingness to part with complete information on account of tax, competitive products, general mistrust Progressi

36、ve Profiling through Training, Incentive Programs, Surveys, Feedback forms, Informal Interactions, Field Visits,Retailer Engagement,Service : Doorstep Delivery with Loading & Unloading Crunched TATs from Order to Delivery : Logistics Plan, Sales Forecast & Rationalization of packaging & SKUs Retaile

37、r Contact Programmes Loyalty Rewarding Promotional Schemes Continuous Dialogue through Newsletters etc.,VNC Group Case Study,Transformational Change Objectives Transformation : Brand Management Transformation : Manufacturing Transformation : Sales & Distribution Transformation : PRM Transformation : Trade Marketing Transformation : Vision,3 Ps of Trade Marketing,If you are not there you dont sell: Presence If you are not at the right place you sell less: Position If you are not best presented you dont maximizes sales : Presentation,Trade Marketing:Position & Presentation,Bestarc rarely s