Final Presentation: Develop An Effective Operational Plan And Market Strategy For The Cad Services Business Unit Of Xxx

FINAL PRESENTATION Develop an effective operational plan and market strategy for the CAD services business unit of XXX

Recommendations • • • • •

Change the workforce structure from seven-to-one to a six-to-two arrangement. Organize a small training program for the drafters Develop the interface so as to achieve maximum transparency Concentrate on a direct personalized marketing approach. XXXX should offer red-lining of drawings as an added service offering

Agenda XXXX Now Operational Analysis Market Analysis Market Plan Measures of Success http://www.businessmarketingblog.org/how-to-create-a-marketing-plan/

Agenda XXXX Now Operational Analysis Market Analysis Market Plan Measures of Success http://www.businessmarketingblog.org/how-to-create-a-marketing-plan/

XXXX is linked to a variety of industries through its other businesses PHARMACEUTICAL

BIOTECHNOLOGY

XXXX

HEALTHCARE

XXXX Now

Operational Analysis

Market Analysis

CHEMICAL

Market Plan

Measures of Success

XXXX's CAD services business forms less than 1% of the total business revenue

Other Businesses CAD services

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

XXXX’s targeted revenue from the business is $500,000 by 2015

XXXX Now

XXXX Now

2013

Operational Analysis

$500,000

2014

Market Analysis

Market Plan

Measures of Success

Agenda XXXX Now Operational Analysis Market Analysis Market Plan Measures of Success

XXXX’s current operational structure needs development

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

The study of XXXX’s operational structure indicates 4 major problem areas

•Irregular demand •In-efficient communication •Client-interface •No bottleneck identification XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

XXXX plans to introduce an additional product offering

• The original product offering

involving editing of red-lined drawings • The new product offering involving red-lining of the drawings along with editing

Input of the new web-based interface has led to a new process flow

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

Red-lining of the drawings leads to variations in the process flow

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

The process flow is to be divided into three parts

• Pre-Agreement • Agreement • Post- Agreement

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

XXXX should offer four types of contracts for CAD services

• Fixed Price, Lump sum • Cost plus fixed fee • Milestone-based payment

schedule • Monthly payment XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

For the post-agreement stage, the process is classified into three categories

• Easy • Average • Difficult

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

Task breakdown reveals that quality control is a major bottleneck Task% Agreement%and%pre5agreement% Editing% Quality%Control% Client%Approval% %

Time%(minutes/drawing)% 3.1% 32.1% 45% NA%

*Assuming 1000 drawings per project

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

It is essential to send high quality work into the quality control step • Bottlenecks dictate the throughput

rate of the process • If time at the bottleneck is increased the total throughput rate decreases • Hence, a training program for the drafters is a good idea XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

Changing the structure from 7/1 to a six-to-two distribution shows great improvement in the throughput rate for existing offering Project Type

7/1 Allocation

6/2 Allocation

(Drawings/week)

(Drawings/week)

Easy

68

87

Average

60

64

Difficult

43

50

!

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

The new product offering has certain other criteria to be considered while changing the workforce allocation • The bottleneck stage is the on-site

sketching of drawings • Increasing capacity at this point would increase the on-site cost. • The hourly cost too is greater • However, the profit per employee to the company too, is greater. • Hence, a cost benefit analysis is required XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

Agenda XXXX Now Operational Analysis Market Analysis Market Plan Measures of Success

The CAD services market potential in the US is around $5.26 billion CAD services

$5.26 Engineering Services

$15.12 Engineering Design

$183.1 *GRABCAD. Engineering Sevices. International Federation of Consulting Engineers. Industry as a partner for sustainable development. Laussane. Hewitt, A. (2012, February 21). 11.9% salary increase for India Inc in 2012; marginally lower than 2011. Economic Times .

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

XXXX’s location in the north-east is ideal for bio-pharmaceutical services

Bioinformant. (n.d.). List of Pharamaceutical Companies. Retrieved from www.bioinformant.com: http://www.bioinformant.com/list-of-pharmaceuticalcompanies.html

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

The analysis of the target market shows a major unmet need in the sector • Few engineering companies with

CAD departments • Low-expertise on CAD front • FDA enforcement • Insurance requirement

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

The current market scenario indicates a high level of market sophistication • The market is not inclined to believe advertisements directly • It is essential to convince them of the uniqueness of the services • It shifts emphasis from what the service does, to how it does it. http://conversionlove.com/decode-your-market-sophistication-consistently-deliver-marketing-that-sells/

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

Agenda XXXX Now Operational Analysis Market Analysis Market Plan Measures of Success

A study of the market reveal 3 major promotional tactics

• Advertising • Public relations and Direct

Marketing • Social Media Marketing

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

XXXX foresees three major advantages of personalized marketing • Development of trust • Opportunity to directly assess the

client-need and develop the offering accordingly • Developing relations for future use

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

Website development strategy is aimed at developing the client interface and achieving basic advertising • Revamp of overall website • Addition of CAD services tab to the services section • Search Engine optimization process • Development of inbound links • Prominent location of CAD services on company website XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

The sales forecast involves the following assumptions • •

• • •

The total available market size is considered an accurate estimate. The adoption rate of similar services can be applied to CAD services with a contingency factor of 50%. Thus, the adoption rate used is 1%. The proposed marketing plan has the desired effect and results There is a steady increase in client awareness for the service The sales double in the first year of operation due to major marketing efforts and increase by a reducing factor in subsequent years.

The sales forecast indicates that the targeted revenue figures are achievable Year

Estimated sales ($)

1

$181,500

2

$363,000

3

$617,100

4

$802,230

5

$962,000

!

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

Agenda XXXX Now Operational Analysis Market Analysis Market Plan Measures of Success

Final Recommendations • • • • •

Change the workforce structure from seven-to-one to a six-to-two arrangement. Organize a small training program for the drafters Develop the interface so as to achieve maximum transparency Concentrate on a direct personalized marketing approach. XXXX should offer red-lining of drawings as an added service offering

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

Measures of Success •

Change of the workforce allocation show encouraging results: Project Type

6/2 Allocation (Expected)

6/2 Allocation (Actual)

(Drawings/week)

(Drawings/week)

Easy

87

81

Average

64

61

Difficult

50

43

!

•

XXXX has obtained one new red-lining project through the personalized marketing approach

XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

Contingency plans • Diversion of staff to other engineering

projects depending on need • Providing CAD support to other engineering projects • Intensive advertising –based marketing in case the personalized approach leads to slower growth in sales XXXX Now

Operational Analysis

Market Analysis

Market Plan

Measures of Success

References • • •

•

•

GRABCAD. Engineering Sevices. International Federation of Consulting Engineers. Industry as a partner for sustainable development. Laussane. Hewitt, A. (2012, February 21). 11.9% salary increase for India Inc in 2012; marginally lower than 2011. Economic Times . Bioinformant. (n.d.). List of Pharamaceutical Companies. Retrieved from www.bioinformant.com: http://www.bioinformant.com/list-of-pharmaceuticalcompanies.html http://conversionlove.com/decode-your-marketsophistication-consistently-deliver-marketing-that-sells/

APPENDICES

Throughput time for existing product offering

!

Type of Project

Throughput time (hrs.)

Easy

4.2

Average

5.1

Difficult

6.24

Throughput rates for existing product offering

!

Type of Project

Throughput rate (drawings/week)

Easy

68

Average

60

Difficult

43

Throughput time for suggested product offering

!

Type of Project

Throughput time (hrs.)

Easy

10.19

Average

11.6

Difficult

13.23

Throughput rates for suggested product offering

!

Type of Project

Throughput rate (drawings/week)

Easy

6

Average

6

Difficult

5

Client-view of the process

Task-break up Time required (Minutes) Task no.

Activity Easy

A B C D E F G H I J K L M N O P Q R S T U V W X Y

Understanding the inquiry Documenting the inquiry Responding to the inquiry Collaboration with prospective client Documenting actual nature of the need Calculate time and cost incurred Decide on profit margin based on client Prepare quote Collaborate with client and lawyer to draft agreement Sign sales agreement Document details on the project monitoring worksheet Generate cloud username and password Receive original files Generate access code for CAD office Look over instructions Make necessary changes Title block check Document completion Update to quality control Look up instructions Match changes to instructions Title block model space check Document completion Upload to Cloud Client return !

60 10 10 240 60 480 360 120 1200 120 120 30 960 30 60 120 15 15 15 15 15 5 10 5 NA

Average 60 10 10 240 61 480 360 120 1200 120 120 31 960 30 75 180 15 15 15 15 20 5 10 5 NA

Difficult 60 10 10 240 62 480 360 120 1200 120 120 32 960 30 75 240 15 15 15 30 35 5 10 5 NA

Methodology of market study • Company marketing information,

advertising, website development. • On-line research including third party references. • Various private industry sources • One on one interview with the marketing and sales team.

AHP procedure Cost Cost Reliability Quality Delivery !

1 0.5 1 0.5

Reliability Quality Delivery Weight 2 1 2 0.33 1 0.5 1 0.16 2 1 2 0.33 1 0.5 1 0.16

Implementation Schedule Sr.No

Marketing Activity

Start Date

End Date

1

Advertising-Print

09/17/2012

10/01/2012

2

Advertising-Website

09/12/2012

-

3

Sales calls

08/10/2012

-

4

Lunch and learn

09/13/2012

09/13/2012

5

LinkedIn Page

08/02/2012

08/13/2012

6

Facebook Page

08/13/2012

08/20/2012

7

Forum Listing

09/02/2012

09/22/2012

8

Website

08/10/2012

09/18/2012

Development !