StrategyOfCorporateSalesApril8th,2002BeijingInvestmentConsultantsInc.

1businessdefinitionQuestionsandIssuesOurApproach項(xiàng)目管理 某著名企業(yè)簡(jiǎn)介Q&A 16:30-17:00Agenda16:15-16:30Simon2ExtranetStrategyandImplementationPlanCanMotorolaregainclearmarketleadershipinChina?-realisticpotentialintheshorttomediumterm-longertermpotentialWhatactionsandinitiativesarerequired?Whataretheyworthintermsofmarketshare,salesandprofits?Developaclearstrategyandactionplanto:GainclearmarketleadershipforcellularsubscriberunitsGrowprofitsbeforetaxbyatleast15%p.a.FocusonkeystrategiccitiessuchasGuangzhouKeyQuestionsandObjectives3ExtranetStrategyandImplementationPlanKeyLeverstoImproveMarketPosition

MatchbrandingtocustomersegmentneedsBuildcustomerloyaltyAdjustpricingtoreflectperceivedvalueLeadinemergingchannels

LaunchA&pprogramtobuildappropriateimage

ConsolidatedistributorstoControlpricesandinventoryImprovemarketposition4ExtranetStrategyandImplementationPlanIssuesProductandServiceStrategyCustomerLoyaltySupplyChainandDemandForecasting

BrandingDistributionandRetailPricingAdvertisingandPromotionsOverallStrategyCustomerSegmentationExpectedindustrystructureBroadvsnicheFinancialobjectivesStrategicobjectivesGloballinkagesLinkagetonon-cellularbusinesses-paging-semiconductors-lrridiumValueofloyaltybysegmentLoyaltydriversPrioritisedinitiativesNewvs“mature”productsHowtoforecastHowtominimisetheneedtoforecastSupplychainperformance-inventoryturns-stockouts-leadtime-productflowAppropriatenumberofdistributorsWhichdistributors?Whatincentives?Retailsupport/incentivesMetchandisingNewChannelsTargetSOV/SOMTargetspend%ofsalesAdvertisingvspromotionmixAdvertisingmixbyproductsegmentWhatarethecost/priceexperiencecurves?Appropriatetargetpremiums-vssegmentaverage-vsbestsubstitute-vsEricssonAppropriateprice-settingprocess-triggerpoints-specialpromotionsWhatisvalueofMotorola?Product“number”vspropername(e.g.388vsstarTAC)Lineextensionsvsstand-aloneCo-brandwithpaging?Howdocustomerssegment(demographics,psychographics,productpreferences,actualpurchasses)Howattractivearesegments(size,growth,loyalty,value)?WhichsegmentsshouldMotorolatarget,participatein,andexit?Whatisthecorevaluepropositionintargetsegments?Whataretherightproductsbycustomersegment-statedpreferencepetitiveouesWhattechnologiesbyproductline?NumberofSKUs?Howdoesthecurrent/projectedproductportfoliomaptosegmentpreferences?Whatistheappropriatemigrationpath?Whatistheaccessoriesstrategy?Whatisthereliability/innovationtrade-off?Whatareappropriatewarranty/servicelevelsbyproduct/customersegment?5ExtranetStrategyandImplementationPlan

“Classic”StrategyTools

proprietaryResearch/AnalysisStrategicFrameworkDevelopmentLessonsfromOtherIndustriesCellularHandset“RulesoftheGame”CountryRegionalGlobalCountryStrategiesSingaporeMalaysiaChinaInitiativesInitiativesInitiatives-3months-3months-3months-12months-12months-12months-3years-3years-3yearsInsightsforMotorola-Global-RegionalApproachRulesoftheGameOutput6ExtranetStrategyandImplementationPlanBrandingMarchbrandingtocustomersegment-young-premiumRealignmentpricingtoP.V.EstablishpremiumpositionineachpricesegmentIncreasespend-segmentgrowth-geographicsplit-content&mediaConsolidationofdistributors

CorporatesalesOperatorrelationshipNon-captiveCaptiveAffinityPricingA&PDistributionNewChannelsLoyaltyInitiatives1999Profitimpact2X1X1.0-1.5X0.5X1.0-1.5X0.5XResponsibilityMr_________Mr_________Ms__________Ms____________________________________________________________________7ExtranetStrategyandImplementationPlanNewvs.ReplacementPurchasesCustomersophisticationriseswithincreasingreplacementpurchasesUnits(MM)

CAGRFY97-FY99E37%90%15%PercentageNewputers:~95%77%68%55%ReplacementpurchasesNewpurchases8ExtranetStrategyandImplementationPlan

Accountsarecategorizedbysizeofestimatedannualpurchasevolume-industryputerizationrations,replacementcyclesandputerizationgrowthratesareusedalongwithathenumberofemployeestocalculateexpectedannualpurchasevolume-surveyresultsareusedtoverifyandscreenoutindustryspecificdifferencesAccountsaresplitintomega,largeandtransactionsegmentsForeachofthepanieswhomeetseachsegment’saccountsizecriteriaMNCsareprioritisedfollowedbyJointVenturesandStateOwnedEnterprisesSystemIntensiveSalesRequirementsChannelSwitchingServiceIntensiveAccountisprioritisedif:Doesnotrequiresystemintegrationornetworkdesign,implementation,serviceandmaintenancecapabilitiesfromvendororPurchasesbundledproductsfromonlyonevendorCurrently

buysvirtualdirect/directfromamanufacturerorCurrentlybuysfromdealerorstoreandwouldswitchtoadirectchannelInstalledserverwithalargeinternalITstaff(>3ITpeopleper100installedPCs)orPreviouslyusedtelephonesupportAccountsizing

:OwnershipType:AccountPriortisationMethodology9ExtranetStrategyandImplementationPlanDirectModelDellshouldsetuplocalmanufacturingtofullylegitimizeDirectModeloperationandreducelogisiticsleadtimeaswellasproductandinventorycostsLocalManufacturingLegalProductCostLogisiticsleadTimeandinventoryCostFulllegalstandingformarketing,selling,delivery,inventory,collection,partsdistributionandservicingoperationsEliminatesexposureassociatedwithdistributors’parallelimportpracticeEnsuresreliableproductsupplynotsubjecttopotentialcrackdownongreychannelimportsLowestcostoptiongivenlocalsourcingofMB,HDDandCRT,puls25%VATincentiveKeysubassembliescanbesourcedlocallyfromhighqualityapprovedsuppliers-MB:Solectron(Suzhou)-HDD:Seagate(Shenzhen)-CRT:Seamsung(Tianjin)Ordertodeliverytimereducedfrom~8week(APCC)to1.5weekEstimatedinventoryfinancingcostsaving~2.8%ofrevenues10ExtranetStrategyandImplementationPlanCentral-mediumProvincial-megaLocal-megaProduettaribafesA&PChannelofpromotion11ExtranetStrategyandImplementationPlanPoteontiallistCentral-mediuPrvincila-megaLocal-mega12ExtranetStrategyandImplementationPlanGovernmentalSegmentOtherSmallMediumMegaMediumMediumMegaMegaSmall100%80%60%40%20%070012001100Total=3000unts

CentralprovinciallocalNote:megaagency>500employces,medium500>50,small<5013ExtranetStrategyandImplementationPlanCentralporantialMegaprovicialLocalConcentritionPasibiailityofCorportporcisingSize#oftangetsPurelungCriteriaMotoralaBravelrepalationClecisionUnker85%40%40000units1000QualityBrovelpricehighPurchsingDireefor75%

60%50000units2000BraelPriceQualityhighchief65%35%20000units10000Pricehighchief14ExtranetStrategyandImplementationPlanTargetGovernenfalaCentralProvincialLocalMegaMediumSmall15ExtranetStrategyandImplementationPlanMining/OilGovernmentProf.ServicesTransportationTV/MediaExplorationAerospaceEducationTelGov.TechServicesHighTechFinanceServiceSectorHeavyMFGConstructionRetail/DistributionHotelsAgricultureEnergy120%1008060200200400600puterizationRatio(PCs/1000Heads)GrowthRate(1996-98E)200,000EstimatedTotalAnnualPurchases(1996)16ExtranetStrategyandImplementationPlan17ExtranetStrategyandImplementationPlanBudgetsAndPriceCeilings(MegaSegment)Dellshouldpriceundercustomer’spriceceilingspaniesWhoBuyputersWithaPre-setputerBudgetPercentofTotalpaniesPriceCeilingForpaniesWhoUseaPre-setputerBudgets(US$1,807)15,000(US$2,409)20,000(US$4,5787)38,00018ExtranetStrategyandImplementationPlanPriceDiscountRequiredtoSwitchtoDirectChannel(megaSegment)A10%pricediscountwilllikelycapture~60%ofcustomersinterestedinbuyingdirectPercentageofTotalcustomersWhoareWillingtoSwitch11-20%6-10%0-5%21-30%>30%Same11-20%21-30%>30%0-5%Same6-10%6-10%>30%11-20%21-30%0-5%ExistingChannel19ExtranetStrategyandImplementationPlanChannelSwitching(MegaSegment)PercentofToalCustomers50-60%ofcustomersarewillingtopurchasedirectVirtalDirectFromManufacturerViaphoneorfaxVirtualDirectFromManufacturerViaSalesCallNoYesSalesCallFromDistributorOverPhone/FaxFromDistributorDearlerStore/RetailOutletNoYes20ExtranetStrategyandImplementationPlanChannelBehavior(Mega&Large)About55%ofrelationshipcustomerssaytheywouldswitchfromtheirexistingchannelstobuyingdirectfrommanufacturersPercentofTotalCustomersVirtualDirectFromManufacturerViaSalesCallVirtualDirectFromManufacturerViaPhone/FaxSalecallfromDistributorOverPhone/FaxFromDistributorDearlerRetailOutlet/StoreNoYes21ExtranetStrategyandImplementationPlanProductBunding(MegaandLargeSegments)TargetaccountswithbundledhardwarepurchasestooptimizesaleproductivityPercentofTotalCustomersPercentofTotalCustomersNoYesD:DesktopS:ServerN:NotebookSW:SoftwareMegaSegmentLargeSegmentD+N+S+SWD+N+SWD+N+S+SWD+N+SWD+S+SWD+S+SWD+SWD+SWD+N+SD+N+SD+ND+ND+SD+S22ExtranetStrategyandImplementationPlanConcentrationbyGovermentalCentralMediumLocalSmalleMedimMega75%85%90%700units3,000employee23ExtranetStrategyandImplementationPlanTransactionSegmentSizingWeestimateanaddressabletransactionsegmentof~4000accountsyielding~80kunitsPercentofTotalCustomersPotential~80,000highspecificationunits/yearpurchasedviatelephone/fax~35,000panies~7,000panies~4,050paniesP166orhigherP120/133P90/100P75orlowerWillseriouslyconsiderDon’tknowWouldnotconsider24ExtranetStrategyandImplementationPlanRelationshipAccountsTotalNumberofPotentialRelationshipAccountsTotalPotentialMegaAccounts=~1200TotalPotentialLargeAccounts=~7100FinaceDistributinLightIndustryTelConstructionMining/OilTransport.HightTechProf.ServiceTV/MediaEducationGovernmentExplorationEnergyGov.TechServiceSectorAgricultureAerospaceHotels HeavyMfg.25ExtranetStrategyandImplementationPlanTools&TechniquesWearebiningproprietarydatawithleadingedgetoolsandtechniquesProprietaryDatapanyResearchpetitorDiagnosticMarketReviewDistributorInterviewsRetailerSurveys&InterviewsCustomerSurveysInterviewsFocusGroupsProprietaryAnalysisRootCauseAnalysisClusteringAnalysisforCustomerSegmentationPriceExperienceCurveLoyaltyStrategyFrameworksMarketForecastModelProductLifecycleAnalysisBrandEquityFrameworksA&PEffectivenessAnalysisPricingvs.PerceivedValueAnalysis26ExtranetStrategyandImplementationPlanSomeApprovedvendorListsarealreadyinplaceApprovedVendorLists(MegaSegmet)PercentofTotalCustomersNoYesManufactureronlyBothMfr.AndDis.Distributoronly1-50%50-59%60-69%70-79%80-89%100%27ExtranetStrategyandImplementationPlanAccountConcentrationAround8,000largeandmegaaccountsareresponsibleforalmosthalfofthe“CorporateChina”putermarketPercentofTotalCustomersSmallBusinessMediumAnnualOrderVolume10-30AnnualOrderVolume30-100AnnualOrderVolume>100~200k~380k~660k~35,000Large~7,100~1,2001.65MM1.7MM~43,000panies~1.2MMUnitsMega“CorporateChina”AverageOrderSize(Unit)~180~50~2028ExtranetStrategyandImplementationPlanAddressableRelationshipSegmentOfthe~580K”CORPORATE”LARGEANDMEGAACCOUNTSVOLUME,THEDelladdressablerealtionshipsegmentisestimatedat405KUNITSPercentofTotalCustomers“CorporateChina”SmallbusinessHousehold>100putersPurchasedperyear30-100putersPurchasedPerYear<30puterPurchasedPerYearOtherGovernmentLightIndustryRetail/DistributionFinaceEducationandResearchInstitutesOtherGovernmentLightIndustryFinaceRetail/DistributionEducationandResearchInstitutesRestofchinaTop15Cities~285K~120K~2MM~1.2MMUnits~580KUnits~405KUnits~405KUnits29ExtranetStrategyandImplementationPlanIndustrySegments:BarriersCertainindustrieshavespecificcharateristicsthatlimittheaddressablepotential.Forexample,34%ofgovernmentpurchasersboughtonlylocalbrandsand46%ofeducationwillbuylowendmachinesPercentofTotalCustomersPercentofTotalCustomersOthersBoughtonlyLocalBrandsBoughtbothForgeinandLocalBrandsBoughtonlyForeignBrandsHPpaqIBMCloneGreatWallDellGovernmentP166P133P100486386P133P100486