bossard

Bossard Asia PacificCan it Make Its CRM Strategy Work?

Presented by:

Mehadi Nawaz 2K91/M/26 Ajay Prabhu 2K91/M/32Shabir Hussain 2K91/M/47U.Prabir Jaiswal 2K91/M/61Ashutosh Sharma 2K91/M/67

HISTORY

• Founded in 1831 from a local handwork business in Zug to a Swiss industrial business and an international trading concern.

• The business is being run by the 7th generation in the Bossard family.

• Around 1400 employees, engaged in the global procurement and sale of every type of fastening element.

• Bossard also provides engineering and logistical services associated with these products.

HISTORY

• Core Competence-Fastening Technology• Over 75 affiliates in 3 regions namely-

Europe America Asia/Pacific

• USP – Technical advice on Engineering & Technology

• The three-stage service package: Products, Engineering and Logistics

NEED FOR CRM

• Due to tremendous competition

• Cost of Customer Acquisition rising

• Margins started eroding

• Highly Distributed Operations

BENEFITS OF CRM

• Minimal data entry and migration.

• Compatibility to existing ERP systems.

• Customized according to Bossard strategy.

• Additional flexibility.

FIVE KEY STRATEGIES WITH CRM

1. Focus on existing customers• Retain the right customers• Maximize customer profitability

2. Maximize revenue• Opportunities evaluate the marketing mix• Re-prioritize sales• Investments

FIVE KEY STRATEGIES WITH CRM

3. Do more with less• Streamline business• Processes• Improve personal• Productivity

4. Reduce operational costs• Right-size service costs• Reduce costs through• Consolidation

5. Optimize existing it assets• Maximize the value of existing systems

CRM INITIATIVE IN BOSSARD

• Initiative was taken to face the increasing competition in Asia

• Pacific region and to reduce the cost of customer acquisition.

• Move towards a Dashboard CRM – driven Strategy.Implementation RiskHigh cost involved

DCRM

• Describes a CRM implementation where customer related information and key data points are organized in dashboards at a glance.

• It contains Contact details, Number of visit, Key profitability indicators such as margin contribution charts.

• Important indicators such as KPI are captured in the system.

• Could be seen as a sophisticated sales management tool.

DCRM

USES OF CRM

• Being used for Market identification, segmentation and

• Customer tracking• Use of HYMC Screen as a part of DCRM• Separate screen to analyse whether a company

growing, shrinking in conjunction with the margin trend.

• Includes a report about new working and market• Opportunity analyzing the pipeline trend.• As a knowledge base and sales force management

tool.

CHALLENGES OF DCRM STRATEGY IMPLEMENTATION

• Development process takes longer.

• Sufficient manpower is required for operating the system which may be a difficulty for a mid size company like Bossard.

• Continuous input from the market is necessary to improve and upgrade the system.

SWOT ANALYSIS

STRENGTHS:• Scott’s confidence on

his employees.• Low cost in developing

an internal internet based solution.

• Bossard employees who have a strong understanding of the business model.

• Compatibility to existing ERP systems

WEAKNESSES:• Lack of support from

Bossard’s headquarters in switzerland.

• Employees from the development team have to be taken out from their regular duties.

• Lack of experience of DCRM among the employees.

SWOT ANALYSIS

OPPORTUNITY:• Facilitates the sales

person knowledge.• Strong customer base.• High yield margin

contribution (HYMC).• Increase company's

future growth potential.• Improved technology.

THREATS:• Huge cost involved.• Uncooperation from top

to bottom level due to past beliefs and miscommunication.

• Cut throat Competition.

QUESTION 1

What role can the CRM system potentially play in Bossard’s marketing strategy? How will it help Bossard to segment existing markets and develop new ones?

ROLE OF CRM IN MARKETING STRATEGY

• Customer-oriented skills will be enhanced

• Tracks prospective customer

• Providing Value Added Services

• DCRM – Converting expenditure to opportunity

SEGMENTING

• Separate screen used for analyzing whether a company was growing or shrinking

• Powerful tool to understand in which company Bossard should invest

• Pipeline report – overview of potential customers

QUESTION 2

What are the likely problems Scott will face with his CRM roll-out and what are the main opportunities the CRM system will offer?

PROBLEMS

• Initial investment may seem to be high

• Proper employee training is required forsmooth functioning of the proposedsystem

• Improper usage of the customer data

OPPORTUNITIES

• Readymade information about the company ‘s performance to the employees

• Good track record of customer data

• Not dependent on one employee

• Saves cost

• Consumes less time

QUESTION 3

Based on the information provided, how would you recommend Bossard to develop its marketing strategy and the CRM systems to support it?

RECOMMENDATIONS• Implementation of the DCRM strategy.

• Segmenting the market• • Implementation of the HYMC• • Training of the employees and customers

• Involvement of the entire management

• Communicate the value proposition of DCRM

RECOMMENDATIONS

• Focus on the existing customerRetain the right customers Maximise customer profitability

• Maximise revenue

Evaluate the Marketing Mix • Reduce Operational cost • Optimal use of the existing assets

Thank you!