Strategic Considerations for a New Business

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Tamavic Promotions cc NETWORK

description

A client has requested a communication strategy for an unconsidered business. This proposal recommends pre-comm considerations.

Transcript of Strategic Considerations for a New Business

Page 1: Strategic Considerations for a New Business

Tamavic Promotions ccNETWORK

Page 2: Strategic Considerations for a New Business

Tamavic Promotions cc Network (hereafter referred to as TPN) has approached

RippleComm Communication cc, with the objective of developing a communication

proposal for the launch of this new entity

The process that I normally entertain, would take the following format:

Brief

Strategic Audit

Current Climate

Understanding your Micro Environment

Understanding your Macro Environment

Identification of KSI (Key Strategic Issues)

Developing a cohesive, manageable and achievable proposal, utilising your company’s:

Values

Mission

Vision

Presentation & Buy-in

Identification of Projects

Allocating People & Resources to Projects in order to enable the strategy

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A strategic audit takes a “Snapshot” of your current environment (internally and externally), looks realistically what can be identified as key communication and position issues that could assist in meeting the company objectives

TPN have as yet not developed the fundamental objectives of the company, with the following specific criteria:

Product , too broad - yet to be defined

Place, distribution – direct influencers are

Your Customer (Target Market)

Your Customer’s Target Market

Your Customer’s Channels to Market

Price, as yet to be determined – based on competitive environment, key influencer:

Product Value Proposition

People – Your Target Market

Promotion – Creating awareness, to create momentum, to develop credibility

TPN have identified a broad industry segment that you have identified as something you “like to do”

You are, to date, unaware of the trading environment of this industry segment, or whether you are able to penetrate this market

Without any of this key information, which I will look at separately, the most I can do, is assist you in the identification and repackaging of your product and a communication plan

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TPN have identified the following products (from Provantage) as their own product offering:

Transit Taxi, Train & Bus Advertising

Vehicle Branding

Rank Activation

Blitz Teams

Leaflet & Sample Distribution

Activation Mall Activation

Shoppa Shows

Instore Activation

Brand Vans

Task Force & Special Projects

School & Campus Activation

Intersection Activation

Transit TV

Events Product Launches

Roadshows

Conferences

Publicity Stunts

Staff Incentives

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TPN have to decide which of these product categories you wish to focus on, based on the following criteria:

Offer “Unique Value” Can you provide a service or deliver a product that has a USP (Unique Selling Proposition)?

Based on the above, do you have the necessary knowledge and insight of the competitive environment, in order to deliver an extraordinary PVP (Product Value Proposition)?

Knowledge of the specific sub category Do you have the necessary “intellectual property” to launch all of the categories, within each intended

products?

Resources It must be clearly understood that each of the sub categories, within each product, require dedicated

resources or teams, to fulfil each of these functions – WITH AUTHORITY!

Serviceability If you were to launch each and every product and sub category, will you:

Be able to sustain the product and grow each product into substantial businesses

Consistently add value to your client’s business

Deliverables Based on your idea of what each product and sub category should deliver (bearing in mind your

competitors deliverables), can you consistently deliver a comparable (if not better) product?

Viability Will each of your selected “modules” translate to:

A viable business proposition and consistently assist in a positive growth to company

A positive ROI (Return on Investment), through sound strategic product development (my recommendation would be to create product modules, with a “set price” for base services, and escalating

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The following illustration shows the depth of insight and knowledge you will require,

should you wish to “speak from a position of Authority”

Your Target Market

Client or Client’s

Comm. AgencyAgency's Client

Client (if direct)

Client’s Target Market

Consumer’s Buying Behaviour

Consumer’s Playground

The above illustrates the knowledge of the various markets you require in order to provide your

clients with a valuable service

Bear in mind that the relationship you create may not be one with the actual brand, but would

probably be with the advertising agency or communication company, on behalf of the client

These entities have existing relationships in place, and securing business is going to be difficult

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One of the key factors in selecting the services of a company, such as the industry you wish

to pursue, is price

You will need to secure the pricing structure of all your competitor’s product modules, in order

to develop a competitively-priced product

You do not have to present a “discounted” product in order to secure business, but may want

to look at adding value to your product, at the same price – which has the perception of

being more cost-effective – as they are “getting more for their Rand”

This comes back to your Value Proposition

Is the value going to be apparent to the client, before and after the “deal”?

Is your product strong enough, so that a client would select your company, as opposed to that of, say

Primedia, Provantage, etc?

Will you be able to populate the promise with the experience (simply put, will the customers get what

you promised them)?

Understand that your business will be enabled by people, NOT technology and NOT product

The people you select are the diplomats for the brand

The BIG QUESTION...

Would you pay the amount you are asking your client to pay, for your services?

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How are you going to create the awareness required, in order to generate the

momentum which would assist in building the character of your brand, resulting in

networking opportunities?

This is where I should be focusing my service delivery

The challenge is to communicate the following:

The right product

At the right time

To the correctly targeted customer

Using the most efficient and effective mediums

Thereby capturing and maintaining their attention

For a period, determined by you

Thereby allowing you to “Define the Terms of the Relationship”

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Other factors that are equally as important as the above mentioned are:

Is there a need for the goods and/or services you are going to offer?

Are you equipped to fill the need?

Will there be a market for your product in the future?

Fads, technology, and innovations all affect the opportunity for any business to be and remain successful

Lack of management experience accounts for nearly all of small business failures.

This does not mean that all small business managers have poor management skills.

More accurately it refers to the person's ability to deal with the "unknown" that is likely to occur

Desire and persistence along with innovative thinking improve the odds

In tough times, a small business can quickly change direction by introducing new ideas and creating better methods to help move its product and sustain an adequate income

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Why are you starting up a business? Setting up and running a business is a time consuming task - you need to be

dedicated and focused and able to structure your time in order to be successful

The rewards of starting up your own business can be great, but think carefully if you have the attributes and right sort of personality to cope with going it alone

Company Structure You will need to decide what business structure you will trade under (sole trader,

limited company, LLP or partnership) and what obligations and responsibilities you will have as the owner of a new business

Skills Identify your skills and particularly your weaknesses

Be honest and ask friends and colleagues for input

If you are less hot in certain areas, hire people with complimentary skills or seek professional advice when you need it

Funding Even if you have the best idea in the world, you are unlikely to make a killing instantly

Be conservative with your funding estimates and either save enough money to keep you going while the business goes through its initial stages, or present your bank manager with a well thought out business plan and request sufficient start up funds

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Competition Never underestimate it!

Thoroughly research the competitors in your chosen industry

Identify any weaknesses they may have and try to ensure your product or service is a cut above theirs

Competition is a very healthy thing, but you need to do constant research and never be complacent

Marketplace Make sure that there is a market for your product or service

Just as Texaco wouldn't build a petrol station next door to two others, a start-up business should ensure that the market for buyers or users is strong in the area he intends to set up in.

Business Plan Never underestimate how helpful this stage can be

Even if you never consult the plan again, it is amazing how many thoughts and ideas can evolve if you put all your thoughts down on paper in a structured format

Not only will you require a well thought-out plan when seeking funding or new business partners, but a decent plan will help you focus on your goals and ensure you are less likely to stray from your real priorities

You can read our Business Plan Guides for ideas

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Staff

As your business expands, you may well need to hire people to manage certain

aspects of your operation. You need to ensure they have the right skills for the

job. Above all, you need to be able to "click" with the people you work with - this

simply cannot be underestimated.

Seek Professional Advice

When running your business, a few words with a trusted adviser (accountant,

lawyer, business adviser) can make the difference between success and failure

Before hiring a professional, you should visit several to compare and don't

necessarily make the decision based purely on price.

Biggest causes of failure

The biggest causes of failure for start ups are - setting your sights too high, not

researching your market thoroughly, hiring the wrong staff and not putting enough

funds aside for contingency

Keep an eye on these potential pitfalls at all times

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Please bear in mind that I am not “sales” and do not undertake the responsibility of generating business or business leads for you – this is not and has never been a primary marketing function (the spin off of awareness does, by default, generate business

This is the focus of key management, as well as a sound “sales strategy”

I will assist with the following: The creation of a platform for your brand, from which to launch your services into the

marketplace

Guidance with routes to market

The tone and manner of the look and feel of your brand

The way in which your brand is presented

The sustenance and maintenance of a relevant and consistent communication plan

Equipping your “sales team” with tools in which to capture and hold potential client’s attention

The management of your communication with potential, new and existing clients

Bearing the above in mind, as I cannot enter into a risk agreement with Tamavic Promotions Network cc, we will need to discuss a mutually accepted fee structure

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Should I chose to undertake this project, in order to commence I recommend following

process:

Research the environment

Decide on viability of the services you wish to offer

Define your product

The product should define the embodiment of the communication, not via versa

Once this is achieved, I will be able to commence with a communication plan, which

includes

1. Relooking your corporate identity (this is essential, as your logo represents a

“technologically-driven environment”, as opposed to a “people-driven environment”, and

does not communicate the “results of your intentions”)

2. Packaging your brand, products , categories and sub categories – in such a way as to be

appealing to your intended audience

3. Develop a sound communication platform (with a tangible and real product selection), from

which to launch your brand

4. Secure targeted databases with which to communicate relevant information

5. Develop a launch and maintenance communication strategy

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It would be simple to take the specifications from Provantage and repackage the

products, but in this market it would be completely transparent and will work against

you

Bear in mind that if you choose to launch with everything that Provantage has in

their stable, you will be spreading yourself thin, and I assure you, you will not be

able to offer the services required in order to sustain (never mind launch) this

platform

The flow plan and costs that follow, are based on you launching the entire stable of

products to the market

These are my hard costs and have not been marked up

Please remember that the “building” of the web portal is just a shell, and that I

would be populating the site with strategic content that would ultimately “sell” your

brand, which has not been factored into

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Design and development of the front end of the website, which includes: Website look and feel and navigation template R 600.00

Home page R 300.00

Design of about us page R 300.00

Contact us page R 350.00

Customer registration page. R 600.00

Customer login page R 400.00

Customer login template R 350.00

Page for customers to view and edit their details R 600.00

Total R3500.00

Design and development of the back end of the website: (Optional) Setup of the SQL Server database with tables to hold information for administrators,

customers, products, customer orders, general enquiries R 2 400.00

Design of Administration Applications Pages: (Optional) Login page R 800.00

Login template page R 800.00

Home page R 800.00

View all products that are currently on the website R 800.00

List all customers that have registered on the website R 800.00

View website traffic statistics R 800.00

All prices exclude VAT.