The Principle of "Customer - Centered Analysis and Planning"
To achieve the objective of being Customer Driven, Customer Focussed or to Satisfy Customer Needs, all audit, analysis and planning processes must start with the customer. A quick review of current practices and accepted literature will show that we are still product and market focused. The rush to embrace the customer has not been translated from Corporate Strategy to Business Audit, Analysis and Planning. The Johnson Agency has developed a new "Global Customer Focussed Strategy" that drives all company planning and opportunity development to ensure that corporate objectives are directly translated into functional plans for those companies who are committed to expand in the Global marketplace. Each step in the process assumes a high level of contact with the markets of interest to develop data and a hands-on awareness of the unique characteristics and rules that govern the sale. We have found through long experience that there is no substitute for first hand knowledge in Global Marketing.
Objective: To identify all potential customers on a global scale.
Active Market Locations/Market Share
Strategic Importance
Operational Style and Strategic Fit
Level of Trust/Reliability
Overall Attractiveness
Objective: To precisely define the company's commitment to Global Market development. Resulting plans must match the results of this audit
Are we committed to a customer-focused strategy?
Do the Board/Majority owners endorse the commitment?
Has this objective been incorporated in the current planning process?
What is our Sustainable Competitive Advantage?
What is the profit formula?
Does the company have a Global business objective?
What is the stated global growth objective outside of your national market?
What percentages of sales/profits are generated outside of your national market?
What percentage of equity is outside of your national market?
What resources are now committed/available for Global Market Development?
Staff, Locations, Job Descriptions, Prior Training for Position, Experience
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Teams, Tasks/Scope. Achievements. Competency reports for all.
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Budget. Year to date. Five year projections.
Global Organizational Structure.
Objective: Research to determine preliminary attractiveness
Relevant Economic Indicators
Does category, do similar products exist in market?
State of Market development relative to your market
State of Product development relative to your market
Promotional Methods employed
Selling Methods employed
Objective: To determine if your products will be competitive at retail
Collect samples of all directly and indirectly competitive product, customer pricing, packaging and promotional materials
Analyse competitive product using industry standards plus consumer features and advantages
Develop matrix axis's based on actual market conditions
Plot all product categories by competitor.
Create competitor profiles based on market information and customer feedback
Objective: To determine key consumer benefits, purchase behaviour and frequency
Estimate rate of sale, seasonality by product category
Determine fashion sense/current styles and colour, tastes or competitive specifications
Analyse differences in product use
Rank benefits sought
Define purchase behaviour by product type:
Frequency/time of purchase
Quantities/sizes purchased
Combination of products purchased
Time spent on purchase - considered or not
Individual or couple or group decision
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Identify preferred purchase locations
Determine all services offered in addition to product
Analyse actual on-site behaviour through observation to note any special needs:
Touching, smelling, squeezing, tasting
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Packaging needs for transport, re-use, multiples, promotion
Objective: To create a potential product line/collection for launch. To conduct a preliminary margin test to determine viable markets for entry
Using the competitive product analysis results, select a targeted product/s for evaluation
Build a costing formula using all identified costs to create an in-market price to the customer
Modify product production cost within acceptable customer/competitor limits to achieve acceptable target margins
Eliminate those products that are not viable for margin or strategic reasons
Objective: To analyse if the company has the capacity to supply, both short term and long term and to what degree current deliverables can be transferred, what new deliverables are needed at what cost and time to produce.
Capacity
Using the approved collection, analyse current unused factory capacity
Identify all planned changes in capacity, plus and minus for 5 years out
Identify opportunities to divert current production
Identify all sub-contract opportunities
Analyse final shipping unit to determine if investments are required for Global transport
Deliverables
Identify all existing materials/plans/events that are of use
Define stocks available
Analyse legal/strategic availability. Get written releases
Estimate all changes required by product by market. Do detailed cost/time estimates.
Identify all other non-existing deliverables required. Do detailed cost/time estimates.
Objective: To identify the availability, estimated cost and time line of the distribution channel from factory to customer. To ensure that a viable alternative exists.
Current method of distribution for similar goods
Pipeline time line ex - factory to customer. Identify any problem points
Special crating requirements and costs
Additional entry paper, clearance costs, payment process and time required
Unique tax, tax on tax, one time tax, withholding tax possibilities
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Quality/range of services available: cleanliness, shrinkage, pick & pack
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Need/cost of in-market warehousing
Quality of management services available
Adoption of tracking/inventory management technology
Definition of point of transfer of title
Estimates of space requirement/transaction analysis - on a monthly basis
Proposals for services required
Cost estimate based on a preliminary sales volume forecast
Calculation of distribution cost per product SKU
Legal Audit of all existing distribution, representation, commercial agent agreements
Objective: To determine if your products will generate acceptable margins and be competitive as if you were competing with the local competition on a delivered in-market basis
Compute Delivered costs per product SKU by market
Model sell-in inventory and forecast turns
Create pricing scenarios based on expected customer margins and promotional plans
Evaluate product positioning based on final price/ quality
Objective: To identify a realistic entry plan that matches the company's capabilities
Identify and rank target markets for first step and roll-out
Select all sub-contract suppliers and agree to all terms for doing business
Create an activity based PERC chart showing all key development steps and deadlines
Cost all activities and estimate cash flow requirements
Present to all Internal and External partners for approval and commitment to perform
Objective: To develop a complete Customer Centered Business Opportunity Plan.
Present a strategic overview showing how this opportunity fits corporate objectives
Identify the customer-centered focus of the plan and future growth implications
List all attractive customers in the target markets, their market positions and plans
Present analyses identifying the current and long term strategic and financial potential
Create spreadsheets forecasting volume, per product SKU, per month, per year for 3 years
Compute revenue, cash flow and margin production per month, per year for 3 years
Identify all venture partners and their roles, contract terms and operational goals
Develop an internal organizational plan that will grow to manage the new business
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