marketing report e2 consulting

7/29/2019 Marketing Report E2 Consulting

1/23

Emerging Enterprises Consulting

A Marketing Proposal Prepared By:

Cory Olson

For:

MKTG 630

Chadron State College

Spring 2011


2/23


3/23

1. Selling......................................................................................................................14

2. Advertising...............................................................................................................14

3. Sales Promotion.......................................................................................................15

4. Publicity................................................................................................................... 16

B. Methods.................................................................................................................................16

1. Informing, persuading or reminding........................................................................16

V. Pricing...................................................................................................................................................17

Pricing objectives strategies............................................................................................................ 17

Pricing Goal and Market Strategy....................................................................................................18

1. Built in profit............................................................................................................19

2. Discounts, allowances deals..................................................................................19

Summary and Expectations.................................................................................................................. .....20

How does it all tie together? ..........................................................................................................20

B. Timing and Critical Dates.......................................................................................................20

Feedback and Future Planning........................................................................................................21

Bibliography: .............................................................................................................................................22


4/23

I. The Market

A. Target market segmentation

target market segment is US companies beginning, or with current, interests in

emerging markets, particularly in Asia. There will be two distinct segments of consultation.

First for small to medium sized businesses looking to establish overseas partnerships,

services will focus on company matching as well as legal and regulatory consultation to give

the information necessary for successful business relationships. For large companies looking

to establish or improve overseas subsidiaries in these markets, services will focus on

improving communication, cultural awareness, efficiency and profitability in these markets.

1. What are the needs?

While the specific needs of each client will vary greatly dependent on the situation, the

key need for all will be information. In order to be truly useful, this information needs to be

timely, precise and in context. Because each company scenario is different, this information isnot universal and therefor strong, useful information is not easy to find. Clients need

information customized for them, applicable to their situation and adaptable for the future.

An additional need that becomes apparent when venturing into and dealing with

emerging markets is communication. This constant need begins with initial contact and

extends throughout the life of the business relationship and several roadblocks exist to

successful interactions. For the small business, finding a business partner overseas is not as

simple as looking up the yellow pages or doing an internet search. With money and possibly

the survival of your business Is on the line, a knowledgeable facilitator is needed to make

initial contact, be a negotiating presence and set the course for a prosperous, and profitable,relationship. For larger companies, cultural barriers are the primary obstacle to successful

communication. In this case, strategies are needed to improve the situation. The unique need

of these strategies to be simultaneously in keeping with the corporate culture of a company

and the local environment of the market means an outside perspective may be key to

successful development and implementation.

2. Who are they?

In this case, the target market is not necessary a person, but rather an entity. In thedays of globalization, even small companies most likely have some overseas connections or

could see increased revenues and efficiencies by developing them. The most likely small

business client will be one looking for direct sourcing of goods from suppliers in emerging

markets. This direct sourcing can save up to 70% over working through middlemen or

4


5/23

brokers. However, cultural and regulatory differences can make developing such a

relationship daunting, requiring some outside intervention to make it successful. On the other

end of the spectrum, there are also clients in the form of large corporations with subsidiaries

in overseas markets. These clients are also in need of communication assistance, but in the

form of strategies and recommendations for operating directly in the emerging market

effectively.

3. Where are they?

These clients will exist and have primary business operations within the United States

of America. For small company customers, they will likely be hard-good sellers ranging from

storefronts to regional or online distributors with product lines possibly manufactured

overseas. Large company clients will be based in the US, or other Western markets, with

direct operations in emerging markets. Likely businesses include those involved in consumer

goods, manufacturing, communication and technology.

4. CharacteristicsSmall business clients will range from new start-ups to well established companies.

They will be involved in the sales or distribution of hard goods manufactured or otherwise

obtained through international markets. Decision makers are likely knowledgeable and

experienced in their business, however have not had exposure to direct international business

environments. They are likely not risk adverse in business practices and in a beginning or

expansion phase of operations. The target segment within these businesses will be primary

those firms engaged in Retail Trade (NAICS codes 44-45). By the census numbers, there are

693,137 of these firms operating in the United States with 90.7% of them having fewer than

20 employees. By even conservative estimates at least 15%-20% of these firms sell products

that are, or could be, sourced from overseas, leaving a large number possible clients.

Large business clients will be well established Western firms either establishing or

currently conducting direct operations in emerging markets. They likely have vast knowledge,

experience and success within their home market, however performance in emerging markets

is either in it's infancy or not meeting expectations. They likely have several layers of

management and structure creating high risk aversion and large scale change difficult to

implement.

5. Attitudes

For the small business client attitudes will likely have been influenced by attempted

direct interaction with emerging market partners with poor results. Such interactions likely left

them frustrated and unsure about their ability to conduct business with emerging markets.

Additionally, they may be confused or unaware of the business and regulatory environments

affecting their situation and may have negative or distorted opinions of the emerging markets

5


6/23

and their culture based on the interactions and preconceived ideas about them. In this case, a

successful relationship will have to begin with the abandonment prior beliefs and attitudes

towards these markets in order to create one based on knowledge, understanding and mutual

benefit. Common complaints within this field usually revolve around consultants who took on

a one-size fits all approach with their clients, applying the same templates to each business

without consideration to the unique situation and characteristics of the client situation. For

large scale firms, a sign of a negative relationship is failed adoption of the consultants

recommendations. The number one cause of such failed adoption is when such changes

cause strong disruption or wholly eliminate long standing business cultures and beliefs. To

this end it is necessary for the sake of successful relationships that plans be both tailored to

the situation and in keeping with, or at the very least more slowly change, current long-term

business procedures.

6


7/23

II. The Product/Service

The objective of this marketing plan is to introduce a new consulting service into the

market. This service will initially be geared towards small businesses operating within the

United States doing business, usually in the form of direct product sourcing, with companies

in emerging markets. Secondary objectives are the expansion of this service to large

companies with direct subsidiary companies located in emerging markets.

A. Quality

The definition of quality meeting client requirements provides the basics of any consulting

program. Management Consultingby Milan Kubr

The primary basis for perceived quality of consulting services is proven results based

on both hard numbers and positive client referral. Quality data can be shown in the form of

increased sales, revenue and profits as well as increased performance reviews after

consultant recommendations have been integrated. In a newly started consulting venture, the

lack of proven past success can be mitigated through the experience, knowledge and the

personal attributes of the consultant.

In this case, meeting client requirements deals specifically with working in emerging

markets. The quality of the consultants will be based on their abilities in these areas. Skills

key to this will be communication, including local languages, cultural and regulatory

knowledge and on the ground experience in these countries. To stand out from the

competition in the consulting field this company will have to consistently generate results,

meet client requirements and gain important experience in emerging markets.

B. Services Provided

The services provided to small business owners are intended to help the client from

the infancy of partnership with overseas firms and continue throughout the relationship.

1st. Company Matching Through face-to-face meetings with a consultant within the US, a

specific needs profile will be produced for the client. This profile will then be matched against

a database of manufacturers and service providers located overseas. When a strong fit isfound, an agent (local whenever possible) will conduct an on-site review of overseas

operations to ensure the can meet the clients needs.

2nd. Negotiation and Legal Services With an overseas company, our consultants can assist

the small business owner through negotiations and contracts. Additionally, our firm will ensure

7


8/23

any legal standards and business regulations of the other country are met. Finally, the client

will be coached on the business cultures and the regulatory environments of their new

overseas partnership in order to eliminate any surprises in the future.

3rd. Continued Monitoring and Support To keep a firm grasp on the partnership, and just in

case any of those surprises do happen, our firm will provide methods of continued support

after the contracts have been signed. Done primary through a custom web portal, each clientwill be able to review production stats, receive up to date information and news which could

affect their business and request on-site review or meetings with their overseas partners with

a local agent acting on their behalf.

C. Attractiveness

By numbers alone, most anything involved in emerging markets rates high in

attractiveness. Developing economies make up some 86% of the world population. Known

economic powers China and India alone making up 35% of this number. Additionally, the

market power of these people are growing as well. It is predicted that by 2015, emerging

markets will comprise 26% of world economic activity. Over the past decade, these markets

have grown by an average of 5.6% annually, through the recession, as compared to just 2.6%

for developed nations. For large, multinational companies, it is expected that up to 70% of

revenue will be generated in emerging markets.

While the numbers show that companies can find great resources and revenue in

developing countries, additional statistics also paint the need for outside assistance, making it

an attractive market for consulting services as well. In such nations, near 70% of all formal

business is conducted through micro, small and medium sized companies. Do to this, there

can be great difficulty for a US business to even contact possible partners, not even

mentioning communicating needs and vetting for quality.

D. Shape, material, design, color and copy

The vision of a globalized word brings to mind images of the cutting edge, technology

and change. To be connected to this vision, the visual representations of the company will

have to match these ideas. Marketing materials will be done professionally through a design

firm to ensure the highest quality work in the correct tone is presented to potential clients.

High impact tones such as cobalt blue will be used in conjunction with grays and blacks to be

both visually appealing and non-distracting. Where as in the past, technology has been

represented by sharp lines and contrast, our branding will feature more rounded, smooth linesand blended colors to be more evocative of the current technologies such as iPhones and

tablet computers.

Web presence will be a primary focus and should be strong as well as up to date. The

newest technologies will be used to ensure content is both interactive and intuitive leaving a

8


9/23

positive user experience even for just a casual website visitor. Currently some 80% of

personal computers in the US have some level of Adobe Flash player installed, so visual

presentation will be coded in this format in order to provide engaging and visually appealing

content to the broadest number of possible clients without the need to download new

software. Additionally, a mirror low-res site will be available for users who prefer this format as

well as a mobile-centered site with information and content designed for usage on smart

phones. Branding should be sharp and striking with international and multicultural themes.

Symbols and languages from the markets the firm is connected with will be incorporated into

designs as well. Things like Chinese characters and Thai script can be both visually appealing

and create an exotic feel. However, all materials using such will first be vetted through native

language speakers to ensure that, when read, such designs are not offensive, embarrassing

or nonsensical.

E. Brand

The objectives that a good brand will achieve include:;

delivers the message clearly Confirms your credibility

The quality and credibility of our company will be displayed through the professionalpresentation of our brand. The time and effort put into branding will pay dividends in that itwill show prospective clients that such time and effort will be spent on their service as well.

Connects your target prospects emotionally

By connecting our brand with new technologies, this will create a perception of being on theglobal edge. This will connect with clients seeking to do business in emerging markets as

these are the new frontiers of the business world.

Motivates the buyer

Our branding will represent the possibilities presented by emerging markets to the Westernbusiness audience. Given the fast-paced nature of such markets, this will motivate the cli-ent to be a part of it or risk losing out.

Differentiation from the competition will be through on the ground resources of

consultants working directly in emerging markets. This is done to gain greater advantage and

insight over business trip style consultancy where where resources are only on-site during

the job. Whenever possible, our consultants will be ethnically part of the emerging market, but

educated in Western business. At the least all consultants would have spent time living and

working in these markets. The idea in both cases is to have resources that can communicate

easily with both the client and the target population, in turn generating greater results and

providing competencies most competition won't have.

9


10/23

Additional differentiation will come from a focus on small businesses. This segment is

frequently overlooked and under-represented by major consulting players, but still have needs

for specialized services and reliable information.

F. Competition

Corporate consulting is a well established business environment with well established

competitors. The largest and most well-known of these competitors are known as the Big 5

they include:

1. Accenture A member of the Fortune 500, with over 200,000 employees in 200

locations in 60 countries. Considered to be at the cutting edge of technology

consulting and experts in international markets.

2. Deloitte With a presence in more than 150 countries, it is the widest spread

professional services firm in the world. Services are primary based in the tax,

financial advisory and enterprise risk fields.

3. Ernst & Young - Like others on this list besides Accenture, Ernst & Young is

also one of the Big 4 auditors. It's management consulting services have been

growing, however, through it's global network of more than 100 countries.

4. KPMG Large professional services firm, stated goals of the advisory division

to provide personalized service with the support of a global network.

5. PriceWaterhouseCoopers Advisory division generated $6 billion in revenue for

2010. Ranked as the 7th largest privately held company in the US.

Additional, and perhaps more direct, competition is also found in the form of boutique

consulting firms. These micro to small sized companies primary focus on a specific goal or

strategy. Oftentimes, such firms when successful are absorbed and have their methods

adopted by the larger companies.

G. Classification -

This company would be classified under NAICS code #541611, Administrative

Management and General Management Consulting Services, with additional services that

may be defined under code #541614, Process, Physical Distribution, and Logistics ConsultingServices, when consulting on matters of product sourcing and distribution.

10


11/23

H. Where is your product on the product life cycle

Consulting services dealing with emerging markets are currently in the growth stage of

the product life cycle.

Growth Stage:

o Focus on growing market share.

As this will be a completely new venture, the acquisition of any clients will begin ourcreation of market share. As the playing field is largely dominated by major corporate firms,this will mean discovering and tapping a segment of the market whose needs aren't or can'tbe met by such firms. In this case, we feel we can find both establishment and growth by ser-vicing small businesses.

o Increase brand preference: focus on product features, advantages and be-

nefits.In order to develop our target market, we must tailor our services to offer advantage

over our competitors. The primary feature to appeal to our clients will be price. Usually to

have on the ground agents in a foreign country would be prohibitively expensive. Our sys-tem of having locally based consultants within the foreign countries will give many of thesame benefits to our clients at a greatly decreased cost. Additionally the transmission of in-formation through technology will make resources easier to access at the convenience of ourclient. Such features should increase preference in our brand over competition.

o Product quality must be good. Awareness of quality focus must be a com-

munication message.In the consulting business, the job truly can't be considered done until it is done to the

preference of the clients. This means that by doing things right the first time, it means the jobis done at the lowest cost with best possible client satisfaction. By giving low quality servicewe don't just hurt our image, but most likely have to incur higher costs to complete the project.

Therefore quality service will be a message throughout the organization.o As product demand grows, stabilize pricing and ensure that the cost/price

relationship is valid AND also supported by the market.Stabilizing prices will be of importance to the success of our firm because of the emer-

ging markets we will operate within. In such markets, the currency value and exchange ratecan fluctuate greatly, which will affect our costs for providing service. When making proposalsto clients, we will have to be aware of the current situation in the market and forecast changesthat may affect our costs and adjust our bids accordingly.

o Enter additional markets.

Once we have capitalized on the small markets and expanding our service pool to anumber of emerging markets, the time may be right to move on to larger scale clients. Ideally

these clients would be multinational firms looking to establish a physical presence in theemerging markets and our service will provide training and support to help the client meettheir goals within those markets.

11


12/23

Other firms paved the way and set the standard in now established developing markets

such as China and this company would be considered a new competitor into the field.

Under these circumstances, the cost of the services provided is being lowered by a

number of factors. First, increased infrastructure and development of the emerging markets

lowers the costs of operating in them. Additionally, as more options become available to the

client to provide such services, the increased supply lowers the asking price. These loweringcosts should be more than offset, however, by the growing number of potential clients

desiring the service. Public awareness of emerging markets, and the opportunities within

them, is currently on the rise. It is becoming clear than even small business can benefit from

forging business relationships in these markets, however they are not so developed that they

can easily be navigated by the client alone.

At the stage of the lifecycle, the primary goal of this service will be expansion into

markets not currently covered by the pioneering companies. This includes areas such as

Southeast Asia, Eastern Europe and Latin America. Additional focus will be on improving

established techniques and competencies currently utilized in the field.

12


13/23

III. Place

A. Place / Distribution objectivesA broad reach and footprint will be a key to success for this company. To meet the

specific requirements of our clients, there will need to be people available with knowledge and

experience in a wide variety of countries and markets. As what is being offered is not a

physical product, traditional distribution analysis is not required, however this doesn't mean

there is nothing to be examined and utilized. The product being supplied is information and

while this isn't tangible, there are still multiple channels through which it can be distributed

and disseminated. This flow of information needs to be constant even if thousands of miles

are separating client and consultant, so to meet this need each client will have a customized

web portal through the company. This portal will provide up-to-date information, facilitate

communication such as messaging and web conferencing as well as provide a secure and

reliable source of continued support and services.

B. Channels of DistributionIn this firm, technology and telecommunications will be the primary channel through

which our service is delivered to our clients. Given the global nature of our endeavor, focus on

this channel is both far more efficient and cost effective for both the firm and our clients. Our

online presence will be a primary form of client acquisition as well as the largest source of

information and communication for them throughout the relationship. By having consultants

living as well as working in the emerging markets, costs advantage can be gained be gained

by utilizing virtual offices over traditional settings.

As said above, our primary source of client acquisition will be through direct interaction,

either through our online presence or other means. Additionally this firm will be available in

subcontract situations to provide specific services to meet needs that the contracting

company cannot. However, marketing will not be directed towards such clients and be

focused on our primary source of direct acquisition.

In the consulting field, the market is controlled mostly by the Big 5 firms mentioned

above. Through their large presence and vast resources they are able to firmly control market

perceptions about consulting services, what they should entail and pricing of the services.Additionally, despite the size of these firms, they do have a history of adapting to new

techniques and ideas, usually through model adoption or direct acquisition of smaller firms

employing these tactics. For boutique consulting firms such as this to be successful, they

have to operate in the corners of the market not under focus of the larger firms as well as be

prepared for the possibility of either working with or under these firms.

13


14/23

IV. Promotion

A. Promotion blend combinations of: 1. Selling

In this case, selling for the business means the official formation of a consultant/client

relationship with set parameters, expectations and compensation. Selling the service will be

done primarily through a direct-to-client method. The first step in this process will be getting

potential clients in the door either physically or virtually through our web presence. At this

stage the customer will likely be seeking further information and not looking to sign a contract

right away. Therefore the second stage will be continued contact. The decision to hire a

consultant is a process for most clients and there may be different channels and levels of

management to proceed through before services are accepted. Working our way up the

ladder of potential clients to the decision maker will be of great importance and must be done

as efficiently as possible. Finally, unlike many tangible products, there will need to be a greatdeal of negotiation and customization done before the contract is made. Because we will not

have one size fits all services, this will take time. These steps will take effort, time and

resources all without immediate return of revenue and therefore all must be done carefully

with great consideration to produce the best results.

Promotions will be focused mainly on client acquisition and brand recognition. As most

interactions through the course of the service will be done through technology and

telecommunications, the internet will also be the usual point of first contact and sales

generation.

Secondary sales will come from subcontracting or temporary work scenarios. In this

case a secondary, contracting company will contact us for a specific service or skill we can

provide acting as their agent under their brand. Contact and communication channels for this

situation will be kept separate from primary operations without branding or specific promotion.

2. AdvertisingWhen selling a service, the goal of advertising is first to generate awareness, just like

physical products, and additionally to create a need for the service in the minds of the

consumer. For any new venture, creating a recognizable and known brand is a pressing need

and strong challenge. In keeping with our services being technology based and in order toattract clients best suited to our firm's methods and style, advertising will also be principally

internet based. Space will be purchased from popular online publications such as

Fortune.com and the Wall Street Journal Online. Direct e-mail advertising will be done

through marketing contact lists of national small business associations such as the NSBA and

14


15/23

NFIB. Additional print advertising will be done through publications appealing to small

business owners such as Entrepreneur Magazine and quarterly small business journals. The

focus of these ads will all be to bring in potential clients to our web portal. Here they will find

an interactive system allowing them to explore the services and their benefits, reviews and

referrals as well as an online assessment tool to help determine their needs and how our firm

can meet them.

Additional brand promotion will be accomplished through brand presence at live events

including foreign product trade shows, business development seminars and business

association meetings.

The primary goal of these advertising efforts is not necessarily to sell the services

directly, but more so to get potential clients in the door and begin the sales process outlined

above. The basic strategy is to inform customers of the opportunities developing in emerging

markets, connect their own business objectives to these opportunities and set the expectation

of the effect on their business. These expectations may be idealized and somewhat

unrealistic, however to meet the need of getting clients in the door this image can beencouraged. Encouragement will not equal false promises, however, as advertising will be

focused on showing the best case scenario. Additionally, the roadblocks and issues to

achieving this best case should be presented as well to generate the need for the service in

potential clients.

3. Sales PromotionA core belief of this firm is that quality, needs-based consulting services can be given

through an almost entirely technology and virtually based system. This needs to be proven

from first click through to company portal until the end of the business relationship. Thisplaces an emphasis on having an informative, interactive and integrated online presence.

Success or failure will depend on these systems operating smoothly and as intended. In the

often scatter, global environment we will operate in, often in areas of low technological

infrastructure, it will be a challenge to meet this goal, so all possible resources and

innovations will have to be used.

It is also obvious that in order to attract clients to our services, there will have to be a

visible cost benefit to traditional consulting services through one of the larger competitors.

Many possible clients may not have even considered consulting services as an option due to

presumed costs. Tools such as the needs assessment on our web portal will provide themwith a free informational benefit as a low cost to the firm for client generation.

15


16/23

4. PublicityIt is a belief that the best publicity for this firm will not come from usual advertising

techniques and channels, but rather by providing timely, useful, and perhaps most

importantly, free information on our subject matter to possible clients, giving a taste and

impression of the services we can provide. To accomplish this, our firm will be proactive in

areas such as writing pieces on emerging market conditions and opportunities for onlinepublications, encouraging all staff members to keep informational, business based blogs and

make efforts to generate viewer hits to these blogs. Having this strong, diverse and useful

online presence can easily gain enough momentum to break into traditional media as well,

including magazine write-ups and television interviews. This combined strengthens the

perception of our company and its people as subject matter experts, as well as reliable and

desirable business partners for potential clients.

B. Methods 1. Informing, persuading or reminding

While the intent of our online presence is to make our brand mark across a wide range

of technologies and to the corners of the internet, like a spider-web it should all lead back to a

single originating source, that being the company web portal. Here consumers can search

and find expert blog posts, small business advice and columns as well as videos and other

tools. Beyond that, however, this portal should also be seen as an online meeting and

networking place for business individuals. By having by open forums and allowing users to

build business profiles, we will increase traffic and return visitors and increasing the amount of

visitors who become clients. Along with new client generation, a key to the success of a

consulting services firm is to retain and provide continued service to existing clients. Thisprovides a relatively stable source of revenue at a decreased expenditure of resources as the

situation is already known and developed. The individualized web portal should be effective at

keeping clients connected to our company after services have completed and this will be the

primary channel for offering new or continued services.

16


17/23

V. PricingPricing will be a primary point of differentiation between our company and large com-

petition such as Accenture and PWC. The prevalent sentiment among small business owners,be it real or perceived, is that consulting services are too expensive and result in reducedprofits for their company. By no means will what is provided be considered a budget service,

but rather it will be more in keeping with the scale of a small business. Outside of the intimida-tion of engaging a huge, multinational firm such as our competition, the scale of servicesprovided are simply too broad and varied to be ideal for our clients. Additionally, the focus onvirtual service delivery over traditional face-to-face means reduces costs while still able toprovide high quality information.

Once small business operations have been established and the reputation of the ser-vice has grown, it will then be time to expand services to large business clients. Such expan-sion should be coinciding with the increased development of emerging markets into viablelocations for physical expansion of these large companies and therefore our existing pres-ence in such locations make us ideal service providers. As these clients will most likely be re-quiring greater range and depth of service and support, costs and prices will rise to levels

more in keeping with the competitors listed above. However, our focus on technology use andvirtual systems will remain to provide continued cost and price advantage even at this largerscale.

Pricing objectives strategies

The pricing of consulting services usual falls into two categories with differentstrategies in each. The first, and most common for independent contracting situations, isper hour billing. In this case there is a flat per hour billing rate agreed upon between theclient and firm that the consultant bills for time spent on approved activities. However,noted corporate consultant William S. Frank has said that a common mistake of beginningfirms is to under-price their service by not considering the off the clock hours needed formost any consulting project. In our circumstances, it is strongly believed that a strategicper hour billing strategy could provide significant cost advantage to us, and lowered pricesto our customers, because of our use of local, in country resources. This is because whileour services will be priced and paid in US dollars, the on-the-ground resources in theemerging markets will be compensated on the scale of their local currency.

To give example, to cover the salary of a corporate consultant of around $100,000 peryear, a large firm may per hour rate based on this number divided by 2080 (the number ofhours worked per year), plus an additional 30%-40% for benefits, equals around $70 perhour. Additional to this, costs must be added for unbilled hours and other resources ne-cessary to the project. In a market such as India, an equivalent resource earns on aver-age 600,000 Indian rupees per year, or around $13,000. Even with an additional 25%salary increase to acquire a highly skilled asset (strong English skills, communication andtechnology ability, etc.) plus 40% for benefits, the same calculations as above produces

17


18/23

an hourly cost of just over $10. This raw cost is a strong advantage over the competitionand can allow for strong margins at an acceptable rate for small businesses.

The second form of pricing is set project fees. Here, the client will pay a single fee forthe entire project. This price will be based upon previous experiences of similar circum-stances and the expected labor and resources needed to complete the project. The bene-

fit of such pricing is that as experience in the service grows, the time needed to completethe tasks should decrease, which under an hourly billing would also reduce the revenue.Project pricing can guarantee reasonable revenue for projects that may be completed veryquickly. As our company gains experience and reputation in the industry, project pricingwill become our primary form of service pricing.

Pricing Goal and Market Strategy

Marketing Objective Expense

Development of online web portal and

communication systems.

Subcontracting IT firms/hiring in house

professionals. Hardware and software

acquisition. Hiring of on the ground business pro-

fessionals to work as consultants in

their native emerging market.

Recruiting and travel costs to select

candidates.

Creation of branding images and

styles.

Subcontracting design firm.

Ad placement in major small business

publications and web areas.

Advertising fees for magazines, busi-

ness journals and websites. Participation in small business events

and seminars.

Booth fees and speaking time fees.

The overall marketing strategy of the firm revolved around the use of local resources toprovide greater benefit and better results to our clients. A major part of this is the cost benefitthey can provide and the ability to pass that savings on to the client. This opens up a marketof small businesses who would have previously considered consulting services to be too ex-pensive or whose operations were simply too small to be handled effectively by large firms.

The key here, as it is in most business situations, is a cost to benefit ratio. Through our firm,clients can receive long term benefits at an acceptable cost and through our strategies to firmwill receive strong profit margins above the costs of providing the service to our clients. Thiswill make not only successful relationships with our clients, but allow the firm to grow with themarket.

18


19/23

1. Built in profit

A key point to the success of this firm will be the development of consulting anchorservices, or continued services which clients will continue to utilize and pay for even after theproject is completed. Such services create a constant, consistent stream of revenue that ex-ists even in periods of inactivity and should help balance the up and down nature of the con-sulting business. These services will be those provided through our web portal and are de-

tailed above. The key to the pricing of these services is the resources needed to providethem. Ideally they will require a bare minimum of work from our resources to maintain andprovide high quality information, so the workload of our staff dedicated to these services willbe around five hours per week. Clients will have access to these services based on an annualsubscription fee.

The break even point will be different for each client project based upon the servicesrequired and will need to be determined when pricing each project. An example break evenanalysis is below.

In this case, profit would be generated at a price points above $745 dollars for the pro-ject plus client acquisition costs.

2. Discounts, allowances dealsInitially, discounts and reduced prices to the client will come from repeat and reoccur-

ring services. As service packages will be customized, available ala carte based on theneeds and desires of the client, adding services to the package will reduce the cost of each.

As the firm moves more towards a project pricing model, discounts will then be directed to-wards the anchor services, essentially the larger the project, the more anchor services will beprovided at reduced to no additional cost.

19

Project XYZ ChinaCost Analysis

Expected Billable Hours:

Contact 10

Negotiation 10

Contract 5

Misc. 5 Billable Rate Labor

Total 30 $19 USD $570 USD

Misc. Costs

Web Server $350

Communications $500

Supplies and Materials $200 Expected Clients Client Share

Total $1050 6 $175

Project Costs:

$745


20/23

Summary and Expectations

How does it all tie together?

Since the beginning, my marketing objectives have been to create a consulting firmthat is able to meet a currently untapped need in the market place. I feel this market can befound in small businesses looking to form business partnerships overseas in emergingmarkets. To accomplish this objective I set my perceived requirements to a successful serviceas being, a. cost effective to the client, b. able to provide customized and tailored service andc. strongly utilize technology to efficiently conduct business.

The lynchpin to meeting the above goals as well as differentiating us from thecompetition will be our use of consultants native to, and currently living in, the targetedemerging markets. The very strong cost benefit to such an arrangement is detailed above andit is strongly believed that using such people will generate better results and more satisfactionfor our clients.

The second key to the success of this firm will be the use of technology. While theworld has figuratively grown smaller, sending people and physical packages across it can stillbe an expensive proposition. When combining our on-the-ground agents from above with thelatest information and communication technologies we mentioned earlier, it is felt that the firmcan get both personal interaction and fast, efficient information. Beyond the actual use oftechnology making this service more efficient and effective, studies have shown that theimage of technology in the consumers mind can increase perceived quality of a service whichin turn affects value judgments and future loyalty. To this end our branding and image willstrive to reflect technology and the global environment to connect these ideas to the firm inthe minds of potential consumers.

B. Timing and Critical DatesIt is thought that there are two gears in the consulting world, selling and completing

projects. This is especially true for smaller firms such as this where time and energy musteither be devoted to acquiring new clients (during which time there is little to no inflow ofrevenue) or working on projects to earn fees. This makes hitting the ground running ofincredible importance. To that end, the following time goals will be in place.

Within the 1st month:Development of the basic web portal

Acquire native consulting talent within China

Reach out to small businesses whose products are sourced from ChinaWithin the first six months:Further tech development focused on communication integrationFurther talent acquisition in China as dictated by project loadIncrease marketing activities and promotions

20


21/23

Within the first year:Develop web portal as a network for small businessesExpand services beyond China into other Asian emerging marketsBegin to offer continual services to create anchor clients

Feedback and Future Planning

The feedback systems of this firm will provide a 360 degree view and be centeredaround controlling the perception of our services to future clients. First and foremost, thenumber of projects we complete and the satisfaction of our clients on those jobs will raise ourprofile within the industry and increase word of mouth marketing that can provide clientswithout significant cost.

Second, as a firm deeply rooted in technology, we will also monitor and control ourvirtual perception. This means tracking not only the users of our web portal, but also mentionsin social and business network portals such as LinkedIn and Twitter, re-posts and track-backsof material put on our blog and other forms of information dissemination on the internet. Ourgoal is to be a leader within our market in web presence and perception.

While our clients may be domestic, our service is global. We must monitor ournetwork and continually expand to new emerging markets to increase the number of potentialclients to our firm. Additionally, we must ensure we are creating positive interactions with ourinternational connections to ensure continual access to their markets.

21

Future ClientsWeb presence

and positive

mention

Completed

projects and

Client

satisfaction

Global network

and connections

Brand

recognition


22/23

Bibliography:

Kurlantzick, J. (2005). ON FOREIGN SOIL. Entrepreneur, 33(6), 88-92

Eyring, M. J., Johnson, M. W., & Nair, H. (2011). New Business Models In Emerging Markets. Harvard

Business Review, 89(1/2), 88-95

Lunnan, R., Lervik, J., Traavik, L., Nilsen, S. M., Amdam, R., & Hennestad, B. W. (2005). Global transfer

of management practices across nations and MNC subcultures.Academy of Management Executive,

19(2), 77-80

Odell, C., & Spielman, C. (2009). Global Positioning: Managing the Far-Reaching Risks of an

International Assignment Program. Benefits Quarterly, 25(4), 23-29

Davenport, J., & Early, J. (2010). The Power-Influence Dynamics in a Consultant/Client Relationship.

Journal of Financial Service Professionals, 64(1), 72-75

Grewal, Dhruv (2000), The Impact of Technology on the Quality-Value-Loyalty Chain, Journal of the

Academy of Marketing Science, Winter 2000, p. 168-174

Franks, William S., How to price consulting fees. Article created for careerlab.com.

http://www.careerlab.com/art_consulting_fees.htm

Franks, William S., 65 ways to market your professional services. Article created for careerlab.com.

http://www.careerlab.com/art_market.htm

Shavit, Yuval, How to develop an effective IT consulting marketing campaign. Article written for

SearchITChannel.com. http://searchitchannel.techtarget.com/feature/How-to-develop-an-effective-IT-

consulting-marketing-campaign

Crawford, Michael D. Market Yourself: Tips for High Tech Consultants. GoingWare Inc.

http://www.goingware.com/tips/marketing.html

Hansen, Kristine. Marketing tips for getting your new consulting firm up and running. Article written for

TechRepublic.com. http://www.techrepublic.com/article/marketing-tips-for-getting-your-new-consulting-firm-

up-and-running/5034927

Accenture Company Profile. http://www.accenture.com/us-en/company/overview/Pages/index.aspx

PriceWaterhouseCoopers Company Profile.

http://www.hoovers.com/company/PricewaterhouseCoopers_International_Limited/hkccyi-1.html

22
http://www.careerlab.com/art_consulting_fees.htmhttp://www.careerlab.com/art_market.htmhttp://searchitchannel.techtarget.com/feature/How-to-develop-an-effective-IT-consulting-marketing-campaignhttp://searchitchannel.techtarget.com/feature/How-to-develop-an-effective-IT-consulting-marketing-campaignhttp://www.goingware.com/tips/marketing.htmlhttp://www.techrepublic.com/article/marketing-tips-for-getting-your-new-consulting-firm-up-and-running/5034927http://www.techrepublic.com/article/marketing-tips-for-getting-your-new-consulting-firm-up-and-running/5034927http://www.accenture.com/us-en/company/overview/Pages/index.aspxhttp://www.hoovers.com/company/PricewaterhouseCoopers_International_Limited/hkccyi-1.htmlhttp://www.careerlab.com/art_market.htmhttp://searchitchannel.techtarget.com/feature/How-to-develop-an-effective-IT-consulting-marketing-campaignhttp://searchitchannel.techtarget.com/feature/How-to-develop-an-effective-IT-consulting-marketing-campaignhttp://www.goingware.com/tips/marketing.htmlhttp://www.techrepublic.com/article/marketing-tips-for-getting-your-new-consulting-firm-up-and-running/5034927http://www.techrepublic.com/article/marketing-tips-for-getting-your-new-consulting-firm-up-and-running/5034927http://www.accenture.com/us-en/company/overview/Pages/index.aspxhttp://www.hoovers.com/company/PricewaterhouseCoopers_International_Limited/hkccyi-1.htmlhttp://www.careerlab.com/art_consulting_fees.htm


23/23

Deloitte Company Profile. (PDF) http://www.deloitte.com/assets/Dcom-Indonesia/Local

%20Assets/Documents/OBS%20company%20profile%202009%20FINAL.pdf

Ernst & Young Company Profile. http://biz.yahoo.com/ic/40/40146.html

KMPG Company Profile. http://en.wikipedia.org/wiki/KPMG

23
http://www.deloitte.com/assets/Dcom-Indonesia/Local%20Assets/Documents/OBS%20company%20profile%202009%20FINAL.pdfhttp://www.deloitte.com/assets/Dcom-Indonesia/Local%20Assets/Documents/OBS%20company%20profile%202009%20FINAL.pdfhttp://biz.yahoo.com/ic/40/40146.htmlhttp://en.wikipedia.org/wiki/KPMGhttp://www.deloitte.com/assets/Dcom-Indonesia/Local%20Assets/Documents/OBS%20company%20profile%202009%20FINAL.pdfhttp://www.deloitte.com/assets/Dcom-Indonesia/Local%20Assets/Documents/OBS%20company%20profile%202009%20FINAL.pdfhttp://biz.yahoo.com/ic/40/40146.htmlhttp://en.wikipedia.org/wiki/KPMG