Transcript Value Chain Strategies

Value Chain Strategies
Unleashing Organizational Sales Potential
WILSON OYLER GROUP
ASSESSMENT. STRATEGIES. SOLUTIONS
Presented by Thomas L. Oyler
Marketing and Customer Management Processes of the Future
Value Chain Strategies
Marketing and Customer Management Processes of the Future
INTRODUCTION
To Unleash Organizational Sales Potential your Company must
realize the importance of knowing and understanding your
client’s needs. In the past, top-tier landscape contractors had
their way in their markets.
Due to the rapid maturation of our industry, more and more
companies are competing for the same customer’s dollar. This
intense competitive dynamic has led to ever-increasing price and
loyalty pressure. The tried and true process of “high touch”
customer management is now being challenged.
This presentation will explore the marketing and customer
management processes of the future.
Value Chain Strategies
Facts To Consider
The industry is
rapidly maturing & in
mature industries all
top tier companies
look very much alike
to the consumer/end
user.
Value Chain Strategies
Facts To Consider
Many if not most
of the top tier
companies sell
and market very
similarly.
Marketing
Tools
Value Chain Strategies
Facts To Consider
Commoditization begins when
Consumer
Choices
consumers have multiple
product/service choices
competently delivered by
top tier companies.
Value Chain Strategies
Facts To Consider
Many companies in the Landscape trades use
comparative examples (comparing themselves to
the competitor) in an attempt to distinguish
themselves. This strategy is a lead indicator of
commoditization, i.e. consumer products.
Value Chain Strategies
Facts To Consider
Studies show that most
Organizations spend 7-10X more
time analyzing financial and
operational performance, than
they spend analyzing and
understanding their customer’s
business model.
(Spend more time on internal issues than
external issues)
Value Chain Strategies
Facts To Consider
All industries have
destructive habits.
Determining,
analyzing, &
overcoming
destructive habits
leads to market
leadership/
dominance.
Value Chain Strategies
Facts To Consider
Many/most companies
in the landscape trades
rely on relationships
rather than Innovation
to gain and retain
customers.
Value Chain Strategies
Facts To Consider
The Relationship
sales model have
been known to
struggle/fail. (Sears
Model)
Value Chain Strategies
Facts To Consider
Research has confirmed that
the most successful service
sector companies build
aggressive marketing
platforms and are ‘Total
Sales Organizations’
(Landstar Model)
Value Chain Strategies
SOLUTION –
Become A Value Innovator and
A Total Sales Organization
Value Chain Strategies
The Rules – The Total Sales Organization
The Entire Organization Must be Unified Around
a Simple Market Message and Market Identity
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Build the Story Line
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Dialogue at all levels of the organization
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Embed the Story Line at every level of the organization
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Create organizational alignment – align customer wants and
your business objectives
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Consistent execution of the message (high touch), with
consistent execution of service delivery (competency trust)
Value Chain Strategies
The Rules – The Total Sales Organization
Each and Every Employee Must be Empowered to
Represent the Company From the Sales Perspective
 Starts with social architecture
 Education – pricing strategies, service scheduling, service
offerings, dispute resolution, customer profiles and lessons
learned
 Challenge assumptions
 Create a vision – Long Range Planning.
 Constantly reaffirm the vision
Value Chain Strategies
The Rules – The Total Sales Organization
The Organization Must Deliver on Each and
Every Commitment and Promise Made by the
Organizations Sales Representatives (everyone)
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Consistent delivery of core competencies
Extremely high touch (low touch can be high touch)
Constantly reaffirm value
Absolutely no surprises
Speed Kills (the competitor)
Keep is Easy, Keep it simple
Organizational Reflection
Value Chain Strategies
The Rules – The Total Sales Organization
The Organization Must Build All of Its Operational, Sales,
Financial, and Social Tools and Architecture Around the
Customer, Starting with the Customer and Moving Back
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Understanding the Market Demand Chain
Understand the Customers Value Chain
Protect – Be the 3rd eye/cover the Customers ‘6’
Mutually Beneficial, Empathetically Engineered Relationships
Networking & Economic Ecosystem (Home Field Advantage)
External Focus
Exceed Expectations – (WWII)
Broaden the Vision – Internally & Externally
Value Chain Strategies
The Rules – The Value Innovators
The Organization Must Become a ‘Low Cost
Service Provider’
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Eliminate Waste – No Dumb Taxes
Treat the Customers $ Like it is your Own
No Surprises
Financial Rewards for All Parties
Exceptional Value for the Customer
‘Low Cost does not Mean the Lowest Price
Lower Cost means ‘Total/All-in Cost & Value of Products and
Services’
 Low Cost Service Providers Understand the Power of Leverage
Value Chain Strategies
The Rules – The Value Innovators
To Become a Value Innovator an Organization
Must Aim for Leap Frog Advantages
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Question everything your Industry is doing
Examine everything your customer is doing
Understand the Industry you are really in
Learn about the Industry you are really in
Modify/Change Organizational Vocabulary
Avoid Urgency Addiction – Strategically Plan & Reflect
Break the Grip of competitive imitation & pursuit
Develop an ‘Up or Out’ Culture
DO NOT GIVE UP
Value Chain Strategies
The Rules – The Value Innovators
Value Innovators Place the Customer at the
Center of Their Strategic Thinking,
Planning and Actions
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Do not Invest in Anything the Customer is not willing to pay for
Develop Customer Value Chains for every customer segment they serve
and service
Become Strategically Relevant to the Customers Business (move up the
value chain)
Develop Strategies that anticipate ‘Key Driver & Key Restrictors to your
Customers Business and Thiers (no surprises)
Develop Marketing & Sales ‘Networking’ Strategies that drives your
Customers Business and thiers.
Relentlessly pursue new innovations (no sacred cows found here)
Value Chain Strategies
Marketing and Customer Management Processes of the Future
What the Customer Thinks of When They Wake up
DEVELOPER
Site Selection
Financing
Marketing (Sales/Leasing)
Site Development
Vertical Construction
Horizontal Construction
REAL ESTATE
INVESTMENT TRUST
(Private Equity)
Location-Location-Location
ROIC
Acquisitions
Management
Maintenance
(Landscaping)
Management
REAL ESTATE
INVESTMENT TRUST
(Public Equity)
Share Price
Share Volume
Property Value (Resale)
Location-Location-Location
Management
Maintenance
Maintenance (Landscape)
MAINTENANCE
Cost (prices paid for services)
Control
Date/Knowledge(tracking and trending)
OBJECTIVE: MOVE UP THE VALUE CHAIN/BECOME STRATEGICALLY RELEVANT
Value Chain Strategies
Economic Facts to Consider
86% 0f All New Business Launches are ‘Line Extensions’
(me too products that are result of competitive improvements and/or
countermeasures to recent moves of the competition)
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These business launches account for only 62% of that lines sales
These business launches account for only 39% of the profits
The remaining 14% of the business launches (the value innovators)
attribute 38% of the revenue and 62% of the lines profits*
(determined in a US bases study by Kim Consulting & Instead International Management School)
Value Chain Strategies
Unleashing Organizational Sales Potential
Questions?
Contact 866.517.2272
Thomas L. Oyler
[email protected]
Marketing and Customer Management Processes of the Future