lovetorprint reloaded - business plan critically analyzed

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL

27/11/2009 | Tutor: Prof. Raffaello Balocco | Author: Caecilie Hechtel | [email protected]

Love2Print Reloaded

Author: Caecilie Olive Hechtel

Tutor: Prof. Raffaello Balocco

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Review and improve (reload) the LovetoPrint businessplan by applying the newly acquired competences.

Prove that the LovetoPrint Reloaded would have led to asuccessful business venture.

Objective of the project work

Problems cannot be solved at the same level of awareness that created them.

Albert Einstein

2

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


The structure of the project work

Italy Germany Project work

2006-2007 2008 2009

Introduce theaudience totheLove2Printproductsdescribingthe Italianexperience

Describe theexperience inGermanyfrom thedecision towrite thebusinessplan to itseffects.

Revisit theBusinessPlan

Compare to theReference Model andidentify areas ofimprovement

Reload thebusiness plan

Share lessonslearnt

3

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


The Italian business experience

A selection of six success stories describes bestLove2Print’s business opportunity.

4

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Bayer HealthCare (2006)

This 3D counter displayaccompanied the TVadvertising for the launch ofthe new instant Aspirin®.

500 units have beendeveloped creatively,produced, assembled anddelivered to one address.

Lead time from firstpresentation to production: 6months.

Number of visits/ meetings: 3

Click on the image to viewthe pitch presentation.

Slide with a link

5

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Lufthansa (2006-2008)

Lufthansa was looking for ways to communicate differently than beforeand welcomed a more pragmatic creativity. Also, they just came from abad experience with an agency that repeated a project with acompetitor.

In three years I was able to run 6 different projects with this samecustomer. All of these were addressed to special business areas suchas:

- Private jet flyers (250 leather notebooks)- HON members (250 leather notebooks with their name printed on it)- Travel agencies (350 weekly desk agendas with the name of the contactperson on each week page and on the cover, different oover for men/women)- Companies registering online to Star Alliance Company Plus Programme(3.000 notebooks with packaging)

This information card has been ordered twice (20.000 units totally)

6

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Car dealers of Fiat Group (2007)

5 car dealers of FIAT (Milan and Torino) teamed up to make acommon gift to all people who visited them during the week end oflaunch of the Fiat 500. They chose the ultrathin mouse pad (calledipad).

3.000 pieces were produced in 5 batches with the different names ofthe car dealers. They were also delivered separately last minute toeach car dealer.We had only 2 weeks to make a proposal, prepare the artowrk anddeliver.on tima.

The iSticker (Platinum) was developed to be distributed in the centreof city just before Christmas during the presentation of the newLancia ypsilon in Saronno.Again the challenge was to be fast as we were given only two weeksto “invent” the gadget and produce it.

7

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Tucano (2008)

Tucano was looking for amore consistent way ofpresenting their newproducts to the press and ofpresenting offers to biggerreatil accounts abroad suchas Dixons for example.

They produced 1.000 piecesand reordered again.The artwork was provided bythem (they hav an internaloffice).

8

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


The challenge (mid 2007)

In April 2007 I moved to Berlin (Germany) for personalreasons and (intuitively) planned a new “start up”based on the successful track record in Italy.

Despite the advantage of speaking the language (mothertongue), the start up in Germany was challengingbecause:

• No network• Little money• Little knowledge about the new market

9

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


The response to the challenge (end 2007)

• No networkparticipate to a business plan competition

• No moneysubmit the business plan to the bank

• Little knowledge about the German marketthe preparatory discussions with the tutors of the business plan competition, the

bank consultants and my German fiscal advisor helped me understand theacceptance of Love2Print on the German market

10

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Achieved results (mid 2008)

Business plan competitionranked 16th out of 143 participants

Bankreceived approval for a credit of 10.000 €

Neonred, Tucano and Easibind contributed(each 2.000 €) to the OnePieceMailer directmailing action

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Approach to the review

Compare the content of the Love2Print Business Plan with theReference Model suggested by Prof. Raffaello Balocco (CorporateStrategy);

Identify the areas of improvement, select three of them and revisitthem according to models and methodology learnt from the relevantcourses.

Reload the business plan

12

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Compare the business plans

Transfer the structure of the Reference Model to Excel including titles andexcluding descriptions

Evaluate for each area of the Reference Model how the content of theLovetoPrint Business can be considered complete:– Green background means that the content is ok– Yellow background means that the content can be improved– Red background means that the content is missing

The areas of improvement can be identified visually.

13

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Areas of major improvement

Reference Model1. Executive summary2. Description of the enterprise3. Description of the product4. Strategy plan5. Marketing plan6. Operational plan7. Organizational plan8. Financial structure9. Economical & financial

Simulation10. Start up Roadmap

Red text: areas where incomplete/missing content is higherthan the “ok” content.

Level of Detail 0 Level of detail 1 Level of detail 2

summary business idea

summary attrattività dell'area di business

summary risorse/ competenze

summary risultati previstisummary obiettivi del business plan

description of the enterprise competitive positioning (abel)

description of the enterprise value chaindescription of the enterprise enterprise group

description of the product physical description of the product

description of the product usage

description of the product unique selling proposition

description of the product product readiness

strategy plan vision

strategy plan mission

strategy plan objectives and constraints

strategy plan SWOT external macro external variables

strategy plan SWOT external strategic segmentation

strategy plan SWOT external competition in extended terms

strategy plan SWOT external internal rivalry

strategy plan SWOT external potential new players

strategy plan SWOT external subsitution products

strategy plan SWOT internal start up - competencies availablestrategy plan SWOT internal start up - competencies to develop

marketing plan market evaulation available market (bottom up)

marketing plan market evaulation sources of information

marketing plan marketing mix product

marketing plan marketing mix price

marketing plan marketing mix placement

marketing plan marketing mix promotionmarketing plan marketing budget

Operational and organizational plan key processes identify key processes

Operational and organizational plan key processes identify border processes

Operational and organizational plan key processes

consistency of output against competitive

positioning

Operational and organizational plan key processes management logics

Operational and organizational plan key processes process mapping

Operational and organizational plan ressources and input assets

Operational and organizational plan ressources and input input

Operational and organizational plan ressources and input suppliers

Operational and organizational plan ressources and input cost modelling

Operational and organizational plan organization and personell people

Operational and organizational plan organization and personell organization

Operational and organizational plan organization and personell people managament systemOperational and organizational plan organization and personell staff and development

financial structure type of business entity

financial structure sources of financing

financial structure financial requirements

economical and financial projections hyothesis/ assumptions

economical and financial projections

projected balance sheet and profitability/ cash

flow

economical and financial projections net cash flow

economical and financial projections financial requirements

economical and financial projections financial and economical risk

Missing

Incomplete/ can be improved

Ok Slide with a link

14

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


StrategyVision, Mission & ObjectivesCompetitive positioning (Abell)Product clusteringExternal analysis (5 competitive forces)PEST analysis (strategic segmentation)Internal analysis (value chain model)Management team and company set up

Marketing planMarket analysisMarketing mix

Economics

Reload core parts of the business plan



15

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Approach to the Reloading

• The content of the business plan has been translated into English(from German)

• The areas of improvement previously identified have been (a)structured according to the chosen methodology and (b)“reloaded” to fix the issues that became visible thanks to the“methodological filter”

• The result is a sequence of original/ reloaded versions of thesame problem.

• Each section is divided by an “index slide”• At the end of each section there is a summarizing slide

16

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


StrategyVision, Mission & ObjectivesCompetitive positioning (Abell)Product descriptionExternal analysis (5 competitive forces)PEST analysis (strategic segmentation)Internal analysis (value chain model)Enterprise structure


Economics




17

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Vision, Mission and business objectives

Vision/ MissionObjectives/ Constraints

External analysis- 5 forces

Internal analysis-resources & competences

SWOT analysis

Strategic plan

Issue:This statement is insufficient because it does not

describe the future vision of the industry, notdoes it show the way to this future vision.

Definition of the business objectives to realize thefinancial and economical results is missing.

18

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Vision and Mission Reloaded

Vision: From a standard gadget to an affordable and effective corporatedesign item which is attractive and (environmentally) intelligent at the sametime.

Mission: Maximise the effect of branded material, reduce its expenditure tothe core without compromise on quality or effectiveness and last but notleast enable the introduction of environmentally friendly solutions.

Objectives:- 1st mover to replace laminated printed products- Reach a customer base of 10 customers per year that spend 20.000 €/each or 50 customers that spend 4.000 €/ each;- Reach a gross margin higher than 40% at each order;- Pay back in 4 years.

19

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Abell matrix

Customer need

Customer groups

Alternative technology

Laminated paper

Polypropylene

Issue:- Customer needs aredefined in an ambiguousway (cannot be measurednor accessed)- Customer groups are nothomogenous

Agencies

Top National com

panies

Tpo multinational com

paniesElectronic media

Innovate the image of the company

Acquire tangibility

Improve consistency with the missionH

ihg public visibility

Sell virtual products

Technically innovative

Care for their im

age

20

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Abell matrix Reloaded

Customer need

Customer groups

Alternative technology

Laminated paper

Polypropylene

To promote a new product

To educate and train users

To document

To reward personel or customers

Hospitals/ P

harma industry

Transportation companies

High Technology

Banks/ Insurances

Business S

chools

- Customer needs are definedprecisely- Customer groups arehomogenous

This positioning allows to:- identify customers uniquely- communicate consistently tothe industry- measure the attractivenessof the market

Electronic media

21

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Enterprise structure

Love2print is agent of two leading producers who have committed to providetheir customers with a highly personalized, functional and innovativecorporate product.

EASIBIND INTERNATIONAL/ the innovative & unconventionalleader in high brand corporate products

the leading PC apparel company

Love2print is to be owned by:

51% Caecilie Hechtel/ general manager, 12 years experiencein international corporate world and digital printing market

49% Fabio Piva/ financing partner, 25 years experience inmarketing across industries.

22

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Enterprise structure Reloaded

As a result of the internal analysis, Love2print becomes a business unit and a trademarkof the multimedia communication agency Neonred that deals with printed material.Caecilie Hechtel is hired by Neonred with an option to become partner as soon as thelovetoprint business reaches break even.

Slide with a link

23

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Macro environment

Issue:The strategic segmentation is missing. Important

information is disconnected (parts are under“products” and other parts are in the“executive summary”). The identification of themacro segments and the focus when definingthe marketing plan gets lost.

24

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Macro environment Reloaded

Political Taxation of environmental impact (carbon footprint)European countries to reach 30% reduction in carbon footprint by 2012.

Economical Uncertain demand across industries (leads to reduced advertising budgets).Growing non-classical advertising market(Industry Report of Dresdner Bank)).

Sociodemographic Increasing attention and commitment to Corporate Social Responsibility issues (McKinsey Quarterly Report “Addressing Consumer concerns on Climate Change”.)

Increasing attention to hygienic issues.

Technological Digital silk screen technology reaches offset like color print qualityPolyprolyene can be coated with Biocote® or Extraprotect@ to reach higher hygiene levels and last longer

Slide with a link

25

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Macro segmentation Reloaded

HIG

HLO

W

HIGH LOW

PUBLIC VISIBILITY

CO

MM

ITM

EN

T T

O T

HE

EN

VIR

ON

ME

NT

LO

NG

SH

OR

T

HIGH LOW

LEVELS OF HYGIENE

LIF

ETIM

E O

F T

HE

IN

FO

RM

ATIO

N

Thanks to the information about the product features it is possible to position the target market(segment) on a strategic level clearly by combining relevant characteristics of the marketplayers. When defining the marketing plan it will be easier to be focused.

Laminated product

26

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Competitive positioning Reloaded

This result shows a strong focus on the side of the suppliers (owners of technology). LovetoPrint asnew entrant without production is very weak within this net of competitive forces. If LovetoPrintpartners up with one of the key suppliers it can strengthen its competitive position significantly.

3.000 agencies servepotential 382.000 customers(130 customers each agency)

Alternative products cost until50% of the price of a PPproduct, costs of creativityexcluded.

Few print companies have enough volume topay it back quickly enough. The cost oftechnolgy is very high (> 1 mio Euro), risk ofobscolescence of technology too, highvolumes are needed + experience andcompetence to print on PP is needed too.

The contact with suppliers is indirect (normallythrough agencies). Customers are notknowledgeable about the different alternatives:The negotiation happens on a higher level.

27

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Internal analysis (value chain)

Identified issue:- Unbalanced share between primary and supporting activities suggests to insourceactivities to improve margins and competitiveness (resources & competences);-The costs of maintaining the firm infrastructure risk to be higher than the sales. Thispositioning is long term insufficient to sustain and grow the business.

Buy

Graphic design

Prototyping

Final product

Transport

Make

Communication

Sales

Assembly

Suppliers

Customers

100% new acquisitions

Agency

28

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Internal analysis (value chain) Reloaded

Opportunity:Insource creative “buy” activities:- improve resources and competencies- increase value added of internal primary activities- save on infrastructure costs (office/ legal advisory/ fiscal advisory/ admin)- acquire an existing customer base to start from

Buy

Final product

Transport

Make

Communication

Sales

Assembly

Graphic design

Prototyping

Suppliers

Customers

100% new acquisitions

Neonred customers(see on the web)

Partners

Slide with a link

29

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


SWOT analysis

Issue:

This result shows a strong focus on the side ofthe suppliers (owners of technology).LovetoPrint as new entrant without productionis very weak within this net of competitiveforces. If LovetoPrint partners up with one of thekey suppliers it can strengthen its competitiveposition significantly.

30

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


SWOT analysis Reloaded

Strengths- First mover advantage (in D)- Sales Manager competence & experience- Experience & competence Neonred inMultimedia Technology- Cost efficiency of production, latesttechnology and experience of Easibind- International Team- Ability to fast realization- “One Stop Shop” (full service agency)

Weaknesses- Premium Price during recession times- Geographical distance of Neonred,Easibind and Caecilie Hechtel- Small (not main) unit within a biggerbusiness of Neonred- Production outsourced, margins driven byproduct development service mainly

Opportunities- No direct competition, unique proposition- Our products can contribute significantlyto companies’ “Carbon Footprintreduction” programme- Environmentally intelligent withoutcompromise on quality or effect- Through higher hygiene and durability ofthe material possibility to save on overallproduced volume

Threats- Long sales process with little room forinfluencing after the first pitch (firstimpression only counts)- Risk of substitution with cheaper solutions- Due to the complexity of the offer risk ofbeing misunderstood

31

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Strategy Plan Reloaded

Vision/ MissionObjectives/ Constraints

External analysis Internal analysis

Vision: From a standard gadget to anaffordable and effective corporate designitem which is attractive and(environmentally) intelligent at the sametime.Mission: Maximise the effect of brandedmaterial, reduce its expenditure to the corewithout compromise on quality oreffectiveness and last but not least enablethe introduction of environmentally friendlysolutions.

Business Objectives-1st mover to replace laminated printedproducts

- Reach a customer base of 10 customersper year that spend 20.000 €/ each or 50customers that spend 4.000 €/ each;

- Reach a gross margin higher than 40% ateach order;

- Pay back in year 4

HIG

HLO

W

HIGH LOW

PUBLIC VISIBILITY

CO

MM

ITM

EN

T T

O T

HE

EN

VIR

ON

ME

NT

LO

NG

SH

OR

T

HIGH LOW

LEVELS OF HYGIENE

LIF

ET

IME

OF T

HE

IN

FO

RM

AT

ION

T W

O S

32

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL




Economics




33

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


The market

Issues:

Market is inconsistent(too small) with thebusiness objectivespreviously defined.

According to thebusiness objectives(volume) LovetoPrintshould reach a marketshare of between 2%and 10% which is anunrealistic result for anew entrant with a weakcompetitive position.

34

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


The market Reloaded

Potential market382.000 advertising active companies

Available market10.075 exhibit at relevant fairs*

Served market971 employ more than 50 employees+ are ISO 14001 certified

Penetrated marketCustomers of LovetoPrint ItalyCustomers of Easibind UK with offices in DCustomers & prospects of NeonRed

*Relevant Fairs:ENTSORGACEBITIAA carsIAA trucks

Source of information:General CD addresses database of Deutsche Post (2007)B2B Catalogue of Deutsche Post (2009)

35

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Product

Issue:

It is visually difficult toidentify the hierarchy of thedifferent products/ services.

36

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Product hierarchy

Goods

Product family Product range Final product

Service

Ad Hoc Projects

Mix of standard products

Prototyping

Product development

standard product

Art work design

Assembly and distribution

Low environmentalimpact solutions

Trendy, technicaland functional high

end promotionalitems

Long Life

Short Life

Prepare the reload:

To better review theproduct definition Ihave describe theoriginal LovetoPrintproduct hierarchyvisually.

The weakness of theproduct definitionbecomes moreevident.

Lifetime (long/ short)of products is a toogeneral feature thatdoes not add valueto the producthierarchy.

37

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Product hierarchy Reloaded

Ad Hoc Projects

Mix of standard products

standard product

Product development

Prototyping

Art work design

Production

Assembly &distribution

Art work design

Production

Assembly & distribution

Final product

Trendy and functional promotional items (Tucano)products have been excluded from the official range ofproducts to improve focus of proposition and eliminaterisk of loss of credibility as Tucano products do not fulfillthe environmental claim.

Lifetime has been replaced with “application” on thecustomer’s side. This improves the proximity to theneeds of the market making it easier for customers toidentify their needs.

Promotional

Corporate Stationery

Point of Sale & Display

Response mail

Low environmental impact solutions

38

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Corporate StationeryNotebooks, Pouches, Wallets, Folders, Organisers

Point of Sale & DisplayLeaflet Dispensers, Wobblers, Hanging Displays, Window Stickers

PromotionalGift Boxes, Gizmos, Bundled Packs, Sleeves

Response MailOne Piece Mailer, Invitations, DL Inserts

Product range Reloaded 39

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Price

This definition doesnot show thestructure of a typicalproduct in a way thatis consistent with theoffer to the customerand to the producthierarchy.

There is a need todefine price n a waythat quick answerscan be given tointerested potentialcustomers with apreview of theperspective benefits.

40

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Price

+ 25% - 40%Final product

1:1 charge7 €/ hour for assembly

Assembly & Distribution

Fixed charge of 250,00 € minimumPrototyping

Minimum charge of 250,00 €Graphic Design

Minimum charge of 450,00 €Product Development

Issues:

Prices are calculatedfrom scratch every timea customer makes aninquiry and are notprecise because all finalvariables/ featuresbecome known after thefinal definition of allfeatures. Vicious circle.

All goods/ services(except ProductDevelopment) are “buy &sell”, this means that theproduct developmentservice is to carry allmargins otherwise thefinal solution is tooexpensive compared tothe market value of thesold product.

41

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Price Reloaded

+ 25% - 40%Final product

1:1 charge7 €/ hour for assembly

Assembly & Distribution

Fixed charge of 250,00 € minimumPrototyping

Minimum charge of 250,00 €Graphic Design

Minimum charge of 450,00 €Product Development

Standard products

A Pricelist will be defined according to a selection of TOP 50 most sold applications

Prices to include:Product Development Graphic Design

Disounts are granted at second and third reorder ofsame product

Ad hoc project

Depending on the strategicrelevance of the project being part of NEONRED agency here is more room for cuttin margins.

42

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Place

Direct sales viacold acquisition

Direct sales to all (agencies included).All are considered “customers” at the same level of distribution and pay same price.

Issue:As Product Development costs carry the most part of the margin they have be charged to agencies too. This has apenalizing effect on the final price that the target customer will pay because the agency as intermediate player willcharge their own services + uplift the cost of our product development cost, too. The final price becomes tooexpensive to have a real chance on the market. For this reason agencies cannot be considered neither a distributionchannel nor part of the target group.

Served market

Penetrated market

43

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Place Reloaded


Cross selling to NR customers

Aided Direct sales

The served market will be addressed via Direct SalesThe penetrated market will be addressed through Cross Selling and through aided Direct SalesThe aid consists of existing graphic material (used for other projects that can be adapted to make a more personalizedfirst contact), contact names and overl knowledge about & experience with the target customer.

Served market

Penetrated market

44

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Promotion Mix

Direct mailing

Electronic presentation

Sample pack

Networking

Ads on specializedMagazine W&V

Sales Promotion

Advertising

Sales Force

Public Relations

Direct Mail Telemarketing, Web

Explicative Folder

Web page

Mail Teaser Magazines Website

Issues:

Too complex andexpensive comparedto the distibutionchannel made of onlydirect sales withoutsales force (one manshow)

Testing of theeffectiveness of thecommunicationcontent is missing.

45

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Promotion Mix Reloaded

Direct mailing

Sales Promotion

Advertising

Sales Force

Public Relations

Direct Mail Telemarketing, Web

Micro web page (click)

We sinergize with Neonred’s existing activities

OPM’s role is to enter the customer’s “castle of awareness” like a troyian horse. OPM allows to submit a quotequickly (all prices are known beforehand in a material/quantity matrix) and to keep prices low as costs of productdevelopment are saved.This set up also allows to benefit from the existing infrastrucutre of Neonred.

46

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Marketing strategy

ProductsServices

Price

Promotion mix Distribution channels Targetcustomers

Direct mailing

Electronic company presentation

Sample pack

PR Networking

Ads on specializedmagazines


Top int companiesTop nat companies

BanksCompaniesAgencies

L2P Sells In

AgencySells out

47

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Marketing strategy Reloaded

ProductsServices

Price

Promotion mix Distribution channels Targetcustomers


Aided Direct sales

Cross selling

Direct mailing

Micro web page (click)

Ad Hoc proposal (click)

48

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL




Economics




49

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


P&L first 3 years Reloaded

2008 2009 2010 Year 1 Year 2 Year 3

! ! ! ! ! !

Sales

a) Easibind (Ware) 40.000,00 120.000,00 180.000,00 60.000,00 72.000,00 86.400,00

b) Tucano (Provision) 5.500,00 24.000,00 36.000,00 0,00 0,00 0,00

c) Services 6.000,00 12.000,00 12.000,00 60.000,00 66.000,00 72.600,00

51.500,00 156.000,00 228.000,00 435.500,00 120.000,00 138.000,00 159.000,00 417.000,00

Cost of Goods sold 30.000,00 90.000,00 135.000,00 42.857,14 51.428,57 61.714,29

Gross margin 21.500,00 66.000,00 93.000,00 180.500,00 77.142,86 86.571,43 97.285,71 261.000,00

42% 42% 41% 64% 63% 61%

Personel 14.000,00 24.000,00 24.000,00 62.000,00 54.000,00 54.000,00 54.000,00 162.000,00

Write off 350,00 600,00 600,00 1.550,00 0,00 0,00 0,00 0,00

Rent 6.650,00 11.400,00 11.400,00 29.450,00 0,00 0,00 0,00 0,00

Gas, Electricity, Water, ecc 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Insurancs 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Various charges 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Maintenance equiment 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Car insurance 350,00 600,00 600,00 1.550,00 0,00 0,00 0,00 0,00

Car tax 175,00 300,00 300,00 775,00 0,00 0,00 0,00 0,00

Car Repair 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Car costs 1.484,00 2.544,00 2.544,00 6.572,00 0,00 0,00 0,00 0,00

Advertising costs 13.800,00 5.650,00 5.650,00 25.100,00 10.000,00 5.000,00 5.000,00 20.000,00

Travel expenses 3.500,00 6.000,00 6.000,00 15.500,00 6.000,00 6.000,00 6.000,00 18.000,00

Representation costs 1.750,00 3.000,00 3.000,00 7.750,00 0,00 0,00 0,00 0,00

Postage 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Telefon, Fax, Internet 1.400,00 2.400,00 2.400,00 6.200,00 2.400,00 2.400,00 2.400,00 7.200,00

Bookkeeping, tax advisor 2.050,00 3.000,00 3.000,00 8.050,00 0,00 3.000,00 3.000,00 6.000,00

Fouding costs (one time) 9.500,00 0,00 0,00 9.500,00 0,00 0,00 0,00 0,00

Cost of money -15,00 -30,00 -100,00 -145,00 0,00 0,00 0,00 0,00

Literature 450,00 600,00 600,00 1.650,00 0,00 0,00 0,00 0,00

Office supply 450,00 600,00 600,00 1.650,00 0,00 0,00 0,00 0,00

Interests (long term credit) 1.764,00 3.024,00 2.969,44 7.757,44 0,00 0,00 0,00 0,00

Interest (short term credit) 352,00 50,00 0,00 402,00 0,00 0,00 0,00 0,00

Other costs 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00

Total costs 58.010,00 63.738,00 63.563,44 185.311,44 72.400,00 70.400,00 70.400,00 213.200,00

Profit/ Loss -36.510,00 2.262,00 29.436,56 -4.811,44 4.742,86 16.171,43 26.885,71 47.800,00

-71% 1% 13% 4% 12% 17%

RELOADED

The enterprisestructure combinedto the marketingmix of the reloadedbusiness planshows importantimprovements interms of

gross margin(+45%/ +80.500 €)andgross profit(+50.000 €)

with comparablelevels of sales.

50

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Cash Flow Reloaded

The cash flow of the original lovetoprintbusiness plan showed a higher need forexternal credit

The Reloaded cash flow is improved.

51

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


The structure of the project work

Italy Germany Project work

2006-2007 2008 2009

Introduce theaudience totheLove2Printproductsdescribingthe Italianexperience

Describe theexperience inGermanyfrom thedecision towrite thebusinessplan to itseffects.

Revisit theBusinessPlan

Compare to theReference Model andidentify areas ofimprovement

Reload thebusiness plan

Share lessonslearnt

52

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Lessons learnt (running my own business)

• Save money (fixed costs) to gain time. Gain time to give time a chance toshow results.

• Build on success and resist the temptation to accept any challenge. Setspecific targets to know when the efforts are (chronically) higher than theachieved results.

• Be extremely selective before choosing your partners and extremelyconfident after to benefit fully from their experience and competence.

• Walk ahead alone only exceptionally. Ensure commitment is aligned andmanage “ownership and empowerment” as a stand alone key elementto the overall success of the business.

EM

BA

200

8 P

T P

RO

JEC

T W

OR

K C

AE

CIL

IE H

EC

HT

EL


Backup

54

lovetorprint reloaded - business plan critically analyzed

Documents

caecilie hechtel cecilia

raffaello balocco author

caecilie olive hechteltutor

project workproblems

raffaello baloccoemba

business plan competition

special business areas

asuccessful business