Download - Erp branding & advertising
Integrated Brand
Communication Presentation
For
“a leading ERP provider” *
* - original name masked out
The Task
SME - Market Overview
Provider’s Offering
Target Industry Segments
Direct Interviews
Findings
Approach to Provider’s branding & communication
CONTENTS
To successfully position and communicate
“Provider’s”
offering in the ERP space
To create awareness among the target public
TASK
All firms with an investment of over Rs. 5 cr. but less than Rs 10 cr. in plant and machinery are called Small and Medium Enterprises
But private and foreign banks have their own definitions of SMEs, which can be a turnover of anything between Rs 10 cr. and Rs 700 cr.
SMEs employ more than 28 million people
SMEs contribute 40% of gross industrial value addition
SMEs account for 50% of direct and indirect exports
Indian SMEs expected average growth rate of 32% over the next two years.
SME – OVERVIEW
Xyz 1
Xyz 2
Xyz 3
PROVIDER’S PRODUCT OFFERING
Provider’s ERP solution is priced at Rs. 1.2 Lakhs
Xyz 4
Xyz 5
Xyz 6
PRICING
Discrete manufacturing units
Sheet metal component manufacturing enterprises
Process industries
Auto component manufacturing enterprises
Special purpose machine manufacturers
TARGET INDUSTRY SEGMENTS
DIRECT INTERVIEWS
Direct Interviews were conducted with Managing Directors
of select SMEs who operate in the Target Industry
segments to get a better understanding of,
Their purchasing behavior when it comes to decision support software
Their perceptions and expectations with regard to ERP
Their software and media habits
FINDINGS
PERCEPTION TOWARDS ERP
SMEs have a strong opinion that a decent ERP
will burn a hole in their pocket
SMEs do not want to be seen investing in a hi-fi
software to manage their small businesses
SMEs strongly feel that they do not need an ERP
to run their business
SMEs have a decent understanding of an ERP,
but they do not specifically know how they can
profit from it
SMEs have over time generated a phobia towards
ERP vendors. They suffer from “Say NO”
syndrome to all the efforts of ERP vendors.
PERCEPTION TOWARDS ERP
COMMON FEARS OF SME
Complex project management
Change management
User resistance
Training
New personnel
Upgradation issues
Compatibility issues with the present hardware
These were some of the fears aired by people who were positive towards opting for an ERP apart from apprehensions with pricing.
Sales outstanding/Collections
Purchase outstanding
Shortage & stock-out
Employees management
BOM
Delivery schedules
Forecasting
TOP PAIN AREAS
Materials planning & Despatch
Financial planning
Inability to generate timely business reports, which would help them know the business health of the enterprise
SME’s face a lot of difficulties monitoring the following vital areas of their business.
1. Solution to pain areas/User friendly features
2. Lesser implementation & migration time
3. Service – expert service provider and not a call-center guy
4. Price & Pricing Policy
5. Ease of use by our existing staff
6. Fixed project cost
SELECTION CRITERIA FOR AN ERP
SMEs selection of a particular ERP will depend on the following.
Note: „1‟ signifies highest importance & „6‟ least
Tally
MS Excel
MS Word
MS Projects
MS Powerpoint
Online ERP access given by Clients
SOFTWARE EXPOSURE OF SME
List of software packages that they use in their enterprise.
Yahoo Messenger (Minimal)
Custom-made software based
on their requirements
Local/Regional ERP brands
Print Media
The Hindu
Economic Times
Business Standard
Daily Thanthi
Dinakaran
MEDIA HABITS OF SME
List of various media brands that they spend time with
TV
Sun TV
Vijay TV
NDTV
Radio
Radio Mirchi
Big FM
Internet
Google for search
Yahoo for mail
Magazines
Limited to their industry specific magazines
Some Common Trends
None of the mentioned media brands are given particular
attention to
There is a common grazing behavior spotted, where they just
focus on articles related to their business in newspapers
TV is strictly limited to a timeframe of 9 – 10 at night
Radio is 100% limited to their travel to & from office
The new generation (son/daughter of the M.D.) who is taking
charge is more Internet savvy
MEDIA HABITS OF SME
BRAND AWARENESS
SAP enjoys a good brand equity among the target
group
Tally enjoys a unique place in the minds of the TG –
They very well know the limitations of Tally, but they
still perceive it to be the ERP that is made for them
Oracle is known to some, but they are a bit confused
associating Oracle with ERP on the first go
6-6:30
Wake-up
8-9 Travel to office
9-9:30 Start work
Lunch between 1
& 3
3-5 High pressure
zone
>6 Pending activities
and discussion
>8 Leaves office/plant
9-10 Dinner &
TV
>10 Goes to bed
A TYPICAL BIZ DAY
Note:
This is a person who has
“NO” time for anyone
A typical day in the
life of an entrepreneur
KEY DECISION MAKER(S)
The SME Owner/Managing Director is the final
decision maker
Since most of the SMEs are family run businesses &
partnership firms, there is a close associate in the
form of son/daughter/first or second degree
relative/partner also playing the role of a joint
decision maker
INFLUENCERS
SME Managing Director
Friends from the industry who have 1st
hand experience of ERP
Finance Department
IT Services Personnel
Clients
Family Members
VERBATIM COMMENTS
I will be interested to invest in producing more rubber rather than
spending lakhs of rupees on ERP
- Mr. XYZ
- Organization XYZ
My accounts and finance persons are the one’s who are going to
provide me with reports and they will strongly oppose if I force
them to change from Tally
- Mr. XYZ
- Organization XYZ
Approach to Provider’s
Branding & Communication
ASPIRATION
Addressing this aspiration quotient through all our
communication targeted at SMEs
Communicating the fact that we can enhance their
decision making skills, in turn pushing growth at a
faster pace
There is always a strong aspiration to grow among the
SMEs.
Raising the question “Do you want to grow at a
better pace or not?”
BENEFITS
Through all our communication efforts, we will only talk
about the benefits that an SME can derive from
Provider’s offering
Taking the “Benefits” route will help us focus all our
communication efforts on what we have to offer and how
our offering will make a change for the SMEs
Communicating the benefits that Provider can provide
the SMEs
“We provide you with timely information that will
help you plan every step of your business on time”
FEAR FACTOR
The danger of running out of business, simply because
there was lack of information to take timely decisions
Converting all the small problems that a SME faces into
dangerous alarm signals that draws the attention of
SME
Every business enterprise faces a lot of threats – and
our communication will amplify these threats.
Just because I did not have the updated material
costing, I quoted a higher rate and “lost a huge
contract ”
REGULAR PROBLEMS
Our communication will specifically revolve around day-
to-day problems that a SME faces and it can range
anywhere from stock outs to collection mismanagement
to an incorrect sales forecast
Since most of the SMEs are problem prone, our
communication efforts can be focused on highlighting
these problems
“The production guy thought that there was
enough stock, and the stock guy did not know the
SIH, ultimately the production line is waiting for
lack of stock”
MONETARY BENEFIT
Optimal utilization of all your resources with the help of
Provider’s offering will definitely lead to increased
savings
Save more, increase your savings, and expand your
business
Bringing to fore the monetary benefit that Provider’s
offering can provide a SME
“Do you really know
how to save with what you have at hand?”
MEDIA VEHICLES
Direct Mailers
Product inserts
Trade magazines (Target industry specific)
IT Magazines (visibility)
Partnering opportunities with Industry Regulatory
bodies/Associations/Promotion councils
Industrial estate specific activities
Radio
Associate visibility
THANK YOU