Willian Buck Services: Marketing Plan - Essay Example

?William Buck Services Ltd. Marketing Plan TABLE OF CONTENTS TABLE OF CONTENTS 1.0 COMPANY ANALYSIS 2 1 About the Company 2 2 Goal of the Company 3 1.3 Target Segment 3 1.4 Products and Offerings 3 1.5 SWOT Analysis 4 2.0 COMPETITION ANALYSIS 6 2.1 Porter’s Five Forces Model 6 3.0 MARKETING STRATEGY & MARKETING MIX 7 3.1 Product 8 3.2 Place 9 3.3 Price 10 3.4 Promotion 10 3.5 Process 11 3.6 People 12 3.7 Physical Environment 12 4.0 COMMUNICATION STRATEGY 12 5.0 REFERENCES 15 1.0 COMPANY ANALYSIS 1.1 About the Company William Buck BPO Services Ltd. is a small sized internet based accounting firm affiliated with William Buck and Associates however specializing in accounting/bookkeeping and other valuable services. It will specialize in offering customized services to its existing and new clients related to outsourced accounting and payroll management problems. The offerings of the company save time, resources and efforts on the part of the client in managing the accounting and payroll operations by providing value based services. William Buck will join with a Business Process Outsourcing firm based out of India (ie. Genpact), providing value to its customers by savings costs incurred on their internal accounting and payroll operations in Australia and other countries. Bookkeeping and Payroll management can be a substantial cost to small and mid-sized firms due to lack of scales in operations. William Buck(WB) Services provides them cost effective services by sourcing the accounting and payroll operations at a lower cost. 1.2 Goal of the Company The Goal of the company is to provide value to its customers by offering professional and quality payroll and accounting services at a lower cost. The company believes in maintaining the highest standards of quality and ensuring that client’s expectations are exceeded. 1.3 Target Segment The target segment for a firm in the industry is the set of customers or potential market that the firm has decided to focus its marketing efforts and the product offering(Porter, 1980). The target segment is chosen after careful analysis of the various customer segments and the profitability based on various factors like competition, entry barriers and cost. The target segment for William Buck BPO Services are small and medium (SME) sized businesses operating in Australia, where the labor costs are high, making accounting and payroll operations for small sized firms relatively costly. The firms can use outsourcing as a tool to reduce cost of operations and focus their efforts on the core business operations. Outsourcing provides these companies with strategic advantages of lower cost in operations hence a rise in the profitability margins of the clients. 1.4 Products and Offerings The company offers products and offerings to cater to the accounting, book keeping and payroll process outsourcing needs of its clients. The company offers complete solutions to clients by providing end-to-end operations outsourcing. The services provided include the under mentioned: Accounting Sales Invoicing Accounting Reconciliation Sales Ledger Control General Ledger Maintenance Finance Bank Reconciliation Credit Control and Reconciliation Cash Flow Management Taxation Operations Payroll Processing Inventory Management 1.5 SWOT Analysis The SWOT Analysis is an analytical tool that can be used to gauge the internal strengths and weakness of the firm as well as study the external opportunities and threats the firm is facing. The SWOT analysis involves specifying the objectives of the organization and identifying the internal and external factors that may affect achieving the objectives in a favorable or unfavorable manner (Hill and Westbrook, 1997). The SWOT Analysis of William Buck Services Ltd. shows the internal and external factors that influence the company’s profitability and growth. Strengths: These are the characteristics of firm that helps them to gain a strategic advantage over their competitors. The company’s strength includes the under mentioned Low cost of operations Better focus on providing quality services Providing services with a faster turn-around-time (TAT). The cost advantage it provides to its clients. In developed markets firms hire accountants and book-keepers incurring cost of $40-150 per hour for these basic services however affiliated company (in India) charges as low as $5/hour. Wide geographic reach as the company uses internet to reach out to its customers therefore clients can be nation wide. Weakness: They are internal characteristics of a firm that place them at a disadvantage to the competitors. The company also has some weaknesses as are mentioned below The company faces competition from existing and new players, as the outsourcing model can easily be emulated by other firms. The company is yet to standardize its processes and operations to quality norms – a trialing period using multiple sources would be implemented. The company has small managements and low headcount. The business is yet to be established. The company would require a Quality Control (QC) checker and Internet Business Developer to develop the website. Opportunities: These are external factors that present a chance to the business to make greater profits and sales. The potential opportunities available to the company includes Increase in market share – adding value/products for existing clients and attaining new clients. Lower overhead costs due to scaling up of operation Creating a strategic advantage which is difficult to be emulated by competition. An advanced website set-up for functionality in order for clients to upload source documents and other accounting needs for completion. Threats: These are external factors that affect the business negatively.The threats to the business of the company include the following Competition from existing and new players. Lower spending by clients as a result of political and economical turmoil in developed nations leading to a cut on outsourcing. The challenge of scaling up operations and maintaining the quality. Threat of the business model being emulated by competitors and new entrants leading to disappearing of the competitive advantage. The company is in technology industry, therefore, technological changes and new developments can impact the profitability in a large way. 2.0 COMPETITION ANALYSIS 2.1 Porter’s Five Forces Model Porter’s Five Forces Modelis a business strategy tool that helps to analyze the attractiveness of the industry the firm is operating in. It helps to ascertain the position of the firm in terms of the competitive scenario in the industry and the potential for it in future (Porter, 1993). The model assumes there are five competitive forces that identify the competitive power in a business environment. The model can be used to analyze William Buck competition and factors that can influence the profitability and growth of the company. These competitive forces are mentioned below 1. Threat of substitute products The substitute products and services include alternate platforms and services that the client uses for similar operations. These include the software, services, new technologies like cloud computing etc. The adoption of these substitute products can impact the viability and growth potential of William Buck. Any new technological development or fall in prices of these substitutes will result in shrinking of margins for the BPO firms. 2. Threat of new entrants The Business Process Outsourcing (BPO) industry is based on low cost of labor and operations. The industry has low barriers to entry for new firms looking for growth opportunities. The entry of new firms in the industry providing similar services will lead to higher competition and lower profit margins for the existing players. 3. Intense competition among existing players William buck identifies the set of potential and actual competitors. It identifies them on the basis of brand competition, industry competition and generic competition. In terms of these competition ,they recognize those that offer similar services, similar prices and those that compete for the budgetary attention of the consumers income respectively. The competition from existing players include specialized large consulting and outsourcing firms in developing markets like India and Pakistan and new emerging markets. Existing players like Delloite and KPMG, and mid-sized IT firms operating in emerging markets like India provide stiff competition to the emerging BPOs like William Buck. 4. Bargaining power of suppliers There is not much competition from supplier side as William Buck is offering services in accounting and payroll management. Though, increase in wages of employees and cost of operations including the real estate cost and other overheads will impact the business in a negative manner. 5. Bargaining powers of buyers With rising competition among service providers and pressure on businesses in the developed markets against outsourcing of business operations outside the country, the bargaining power of buyers has increased. This is leading to lower margins for the BPO firms. 3.0 MARKETING STRATEGY & MARKETING MIX The marketing strategy will include focusing on an internet marketing campaign to establish and promote the business of the firm. The internet marketing campaign will include website enhancement for a more professional look and feel, use of internet marketing tools like Search engine Operations (SEO), constant investments in Advertising on the internet focused on reaching out to the target customers and constant evaluation. The 7P’s of marketing is a tool to design and evaluate a marketing strategy plan(Porter, 2008). The seven Ps include Product, Place, Price, Promotion, People, Processes and Physical Environment. The Seven Ps of the marketing strategy for William Buck BPO Services Ltd. has been discussed below. Figure: 7Ps of Marketing Strategy Source: Internet 3.1 Product William Buck BPO Services are in the business of providing Outsourced services to its clients related to Accounting, Finance, Business operations and Payroll management. The product offered by William Buck is based on its ability to replicate services and operations of its target customers at a substantially lower cost without compromising on the quality of the work. The product offerings have a competitive advantage over the existing firms that provide similar services to the target customers. William Buck’s cost for an outsourced accountant is $5 per hour as compared to $40-150 of the competitors and substitutes. This is based on its backend operation in India. It is important for the company to develop an offering that continues to maintain its strategic advantage over the competitor’s offering in order to gain market share. William Buck provides services from remote locations that increase its ability to capture and serve a much wider geographical region without the constraint of having a physical presence at the location. Though, the growth and future scalability of the company will depend on the ability of the company in adapting to the technological changes in the industry and continued service quality and providing its target customers with value in terms of cost savings and quality service(Mehta, 2000). The offering of the company include Sales Invoicing, Accounting Reconciliation, Sales Ledger Control, General Ledger Maintenance, Bank Reconciliation, Credit Control and Reconciliation, Cash Flow Management, VAT Calculation, Taxation, Payroll Processing and Inventory Management services. 3.2 Place The website of the company will be enhanced for a better and professional look and feel. The markets in Australia are still naive and untapped by BPO firms offering outsourcing in financial, accounting and payroll management services. The mid-sized and small-sized firms incur substantial cost on their non key operations. There is vast opportunity for business in major Australian Cities like Sydney and Melbourne. The target companies will include retail firms, accounting firms and manufacturing companies with a employee count of less than 100 people. The Company should have a sales office in major cities like Sydney and Melbourne to source and expand its presence in the key market segments. The local sales and service offices would be useful in sourcing business opportunities and maintaining existing relationships. The company should look forward towards developing the marketing and sales channels with a dedicated team for pre sales and post sales service to the clients. The presales can be taken care from India using technology tools like presentations and video conferences. The backend office should continue to operate and expand in India. The product also provides the customers with a lesser turnaround time for the operations and business processes, thereby improving the efficiency and profitability of the business. 3.3 Price Pricing is an important aspect of the marketing strategy planning. It includes the strategic and tactical decisions about the average price level to be charged for the company’s services, discounts structure, terms of payment and the extent to which price discrimination between different types of customers is to take place. The pricing of the product and service offerings should be cut-throat so as to position the company as a low cost provider of quality outsourced Accounting and payroll management services. The current pricing of the services is $5 per hour of work, which is extremely low as compared to the existing rates for hiring a professional which costs $40 – 150 per hour. The pricing gap allows for substantial savings on the part of the clients in running their operations and creating a strategic advantage on their competitors. Low pricing strategy will help the firm gain market share in the initial period of its growth; coupled with quality service provided to the clients will help in creating brand equity. The company will work on maintaining the low pricing and develop it as its strategic advantage to ward off competition and penetrate new markets. 3.4 Promotion The promotion strategy will involve a string of activities and promotion to reach and position the product offerings in the mind and hearts of the target segments (Baker, 2008). The business is to be positioned as a low cost provider of quality accounting and payroll management services to mid and small sized firms in the target geographical regions of Australia. The promotional strategy will include a well targeted promotional campaign to the target potential customers in Australian markets. Strategies are used to communicate the benefits of the firms’ service to potential consumers and already existing clients. The campaign will run across multiple communication platforms like the internet, print media and other promotional magazines and journals. The promotional strategy will be continuously evaluated and updated to incorporate changes. The campaign will include promotional offers for free services and evaluation of the product offering by clients for a limited period as well as extended services for new clients. The campaign will focus on the savings the clients stand to make if they choose to do business with William Buck. The products will be promoted through internet campaigns and by the dedicated lead generation and sales team based out of India. The online marketing strategy will inolve constant website development and improvement, Search Engine Operations (SEO) optimizations and use of internet advertising campaigns. 3.5 Process Process is important part of the marketing mix in firms offering services to their customers. The efficiency of a process is provides a marketing advantage for the firm. Services are given in a sequential manner and therefore a certain process is adopted while delivering a process. The variables include procedure, speed and policies. The services firms market their processes to the customers. Therefore it is important to standardize the process flow in the organization. William Buck BPO will have to standardize its business processes and operations to match the global quality standards. The company will aim in adhering to stringent quality standards and getting accredited to global quality standards in business process and customer service. The company will aim to achieve ISO quality certifications for various processes. The processes also require innovations and customizations for the customers to be satisfied. It is important to provide customers with efficient results in delivery of services. The processes of the company should be defined in a manner that best suites customer interests and satisfaction. 3.6 People People are important part of the marketing mix and service quality is not compromised at all. William Buck is an internet based company providing outsourcing to accounting and other firms looking out for cost savings in business processes in accounting, finance business operations functions. The people working in the company are important source of the marketing campaign. The selection and training of employees has a great impact on service delivery. If the service is not up to standard, there is a performance gap. The people of the company are marketers of the company themselves. The employees should be provided with the best facilities and amenities so as to make the work place more efficient and vibrant. The employees are assets to the firm. Continued up gradation of skills is key to survival of a internet based firm. The employees need to be trained regularly. 3.7 Physical Environment Outsourcing as a business is dependent on the capacity of the firm to raise its resources in order to bid for larger projects of business firms (Rainer and Turban, 2009). It is important that the physical environment at work is energetic and vibrant as it affects the efficiency of the employee as well as the morale. Facilities, and the physical environment for service exchange reflects the firm. Better work conditions, amenities to employees are key factors that influence the employee’s performance. Moreover, in an industry where training costs are particularly high along with the rates of attrition of employees, it is important that the physical environment matches the best in the industry. Customers perceive a greater risk in deciding whether or not to use a service and therefore the firm offers achance to the clients to see what the services will be like. 4.0 COMMUNICATION STRATEGY The Communication strategy involves an integrated approach to marketing communications. The company shall focus on developing an effective internet marketing strategy to establish its presence and gain market share. The communication strategy will focus on reaching to the target customers of William Buck BPO and communication the value proposition to the customers. This will include carefully monitored internet marketing and mailer campaigns. The integrated marketing communication strategy will focus on reaching to the target customers using an integrated marketing approach. The campaign will include different marketing channels to reach out to potential customers Internet Newspapers and journals Magazines Direct calling and sales References and lead generations Tie-ups and collaborations The internet marketing will be based on the website, SEO operations and promotions through banners and others tools of internet advertising. The print media advertsising includes articles and promotions through advertisements in relevant newspapers, journals and magazines reaching out to the target segment. The sales and business development team will work together on lead generation for business through direct customer calling as well as leads generated through the internet campaigns. The company will also look at potential of tie ups online as well as offline for promotional campaigns. Other strategies that can be used, especially in attracting clients online can be a fruitful way of getting new customers. Before embarking on the strategies to use, the company has to know of its target audience, the competition that is existing and the gap present. Factors that the firm needs to learn first are like the demographics regarding the population, income level and the age of the population targeted, their tastes and preferences and their buying habits. Online strategies for communicating about William Bucks company, if properly put into place will work amazing. These strategies can be, for example, communicating online with potential clientele, creating a blog on the company that even offers to give solutions to customers’ queries. A web and video conferencing at a cheap rate that is affordable to many people is an strategy too. If the firm has a cooperate WAN network it can offer free calls within the network. This can encourage customers to call in and receive services. Offering a ever present staff for the prospective clientele to deal with their accounting problems, offer advice, free try outs for them etc. Having a blog that is active and easily noticeable works the trick, quick, direct to the point solutions add on as an advantage. Clients need effective service and offering this attracts and maintains the already existing ones. A satisfied customer will advertise of the efficiency of the company. William buck company needs this strategies to inform the target market of their services, educate prospective clientele, persuade existing and potential customers to come to them for the services they need and remind them of the existing services. The use of emails can be used. 5.0 REFERENCES Armstrong, M. (1996), Management Processes and Functions, 1996, London CIPD Baker, M. (2008), The Strategic Marketing Plan Audit 2008. Coyne, K.P. and Balakrishnan, S. (1996), Bringing discipline to strategy, The McKinsey Quarterly, No.4. Hill, T. & R. Westbrook (1997). "SWOT Analysis: It’s Time for a Product Recall". Long Range Planning 30 (1): 46–52 Kotler, P. (1997), Marketing Management, Prentice-Hall, Inc. 1997 Mehta, S. (2000), Marketing Strategy, retrieved on 10th October, 2011 from http://www.shsu.edu/~mkt_ssm /mkt570/Chap04.ppt Miles, R. (2003), Organizational Strategy, Structure, and Process, Stanford: Stanford University Press. Porter, M.E. (1979), How Competitive Forces Shape Strategy, Harvard business Review, March/April 1979 Porter, M.E. (1980), Competitive Strategy, Free Press, New York, 1980. Porter, M.E. (2008), The Five Competitive Forces That Shape Strategy, Harvard business Review, January 2008 Rainer and Turban (2009), Introduction to Information Systems second edition, Wiley, 2009, pp 36–41 Read More