OBI (англ) лучшее решение

Finally found by Ekaterina Palamar Sergey Staroverov Nikolay Ageev Tatiana Kan

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Let the Hunt begin!

OBI TREASURE MAP

2

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

The Integrated Minds are experienced enough to lead the Hunt for the most valuable OBI treasure

Nikolay Ageev

Sergey Staroverov

Tatiana Kan

Ekaterina Palamar

Store Director

HR Director

Marketing Director

Commercial (procurement) Director

Champion of Cup Moscow » 2014

Team Founder of Integrated Minds

Champion of Cup Moscow » 2014

Semi-finalist of Cup Moscow » 2014

Russia

Spain

Korea

Belgium

Published 2 books

Runs 20 km in 2 hours

Draws for 20 years

2nd Miss Fin University

Changellenge >> Cup Russia 2015 >> Integrated Minds

3

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

The Treasure Hunt solution will drive the current OBI strategy to the greatest potential by changing its approach towards customers, products and employees OBI treasures customers

1

A new marketing program will position OBI clients as valuable treasures rather than quarry OBI treasures products

2

A change in procurement & sales will turn OBI goods from dusty stocks into priceless treasures 3

OBI treasures employees

A modern HR policy will open up the hidden potential of OBI staff and satisfy their human needs

K E Y F A C T O R S

At all times, OBI should value their customers, products and employees as the main success factors New marketing, procurement & sales and HR policies will be introduced to fulfill the principles

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

4

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

The Treasure Hunt strategy will increase number of visitors by 10 %, ARPU by 30%, conversion rate by 3 % and mystery shopper pass rate by 10 % The influx of new visitors by 10% & buyers by 5% People, thousands

1

+ 10%

1,8

2

The conversion rate rise of more than 3%!

2014 May-July 2015 May-July

1,2

2014 May-June

+5%

2015 May-June

+3%

50

0,6 0

Conversion rate

number of visitors 3

47

number of buyers

The increase in the ARPU of 30 %

4

The mystery shopper pass rate over 95 %

2015 May-July 2014 May-July Average revenue per user

+10%

+30%

0

500

1 000

1 500

2 000

85%

2 500

95 %

Overall, the Treasure Hunt results in a 10% increase of the number of visitors, a 3 % conversion rate rise, a 30% ARPU surge and a 10 % improvement in the mystery pass rate due to a new approach to clients, products & staff

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

5

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Marketing

OBI TREASURE MAP

6

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

10% influx of store visitors can be attained through qualitative approach to consumers’ needs and customer acquisition channels Needs Channels Tendency Cottagers (3,6 mln)

• Variety of specialty •

tools Wide range of seeds, flowers and other items

Russians’ preferences about summer holidays

→ Billboards → Underground advertisements → Social nets, websites, weblog

33%

Datcha Work Home Oversea

OBI can increase the number of store visitors due to market tendencies and advanced customer acquisition channels such as contextual advertising, e-catalogues, web blogs etc.

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

7

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

10% influx of store visitors can be attained through qualitative approach to consumers’ needs and customer acquisition channels Needs Channels Tendency (3,6 mln)

• Variety of specialty •

Self repairer

tools Wide range of seeds, flowers and other items

Russians’ preferences about summer holidays

→ Billboards → Underground advertisements → Social nets, websites, weblog

• Moderate

(1,1 mln)

• •

prices Wide range of construction goods Professional consultation

→ Master classes → Electronic catalogues → OBI website

Datcha Work Home Oversea

33%

Real income, RUR

Cottagers

26 000

24 000

22 000 2013

2014

2015

OBI can increase the number of store visitors due to market tendencies and advanced customer acquisition channels such as contextual advertising, e-catalogues, web blogs etc.

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

8

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

10% influx of store visitors can be attained through qualitative approach to consumers’ needs and customer acquisition channels Needs Channels Tendency • Variety of specialty •

Self repairer

• Moderate

(1,1 mln)

• • Professionals (0,6 mln)

tools Wide range of seeds, flowers and other items

→ Billboards → Underground advertisements → Social nets, websites, weblog

prices Wide range of construction goods Professional consultation

• Wide range of •

•

construction goods Variety of building tools Special offers

→ Master classes → Electronic catalogues → OBI website

26 000

24 000

22 000 2013

→ Contextual advertising → Construction websites → TV, radio ads

Datcha Work Home Oversea

33%

Real income, RUR

(3,6 mln)

Russians’ preferences about summer holidays

2014

37%

Growth of new housing supply

Cottagers

22%

2015

35%

17%

15%

7% Q1, 2013

Q1, 2014

Q1, 2015

OBI can increase the number of store visitors due to market tendencies and advanced customer acquisition channels such as contextual advertising, e-catalogues, web blogs etc.

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

9

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

The marketing cost distribution is an optimum solution for OBI to increase the number of store visitors

10000

8000

6000

2

Effective functioning of customer acquisition channels will bring great number of visitors

1700

1600

1500

4000

2000

1400

0

Average monthly number of visitors, thousand

OBI should allocate costs on Marketing to provide Pareto optimum solution‌ Marketing costs, thousand

1

+10%

1300

2014

2015

OBI can increase the number of store visitors by 10% through effective involvement of customer acquisition channels

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

10

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Lucky hours are efficient way to increase the number of visitors and the goods sold Gardening Day Weekday Time

Mon

1

2

3

Tue

4

5

6

7

Wed

8

9

10

11

Thu 12

13

14

Fri 15

16

17

Sat 18

19

20

Sun 21

22

23

24

Self-Repairer Day Weekday Time

Mon

1

2

3

Tue

4

5

6

7

Wed

8

9

10

11

Thu 12

13

14

Fri 15

16

17

Sat 18

19

20

Sun 21

22

23

24

Professional Day Week day Time

Mon

1

2

3

Tue

4

5

6

7

Wed

8

9

10

11

Thu 12

13

14

Fri 15

16

17

Sat 18

19

20

Sun 21

22

23

24

Mystery Day Weekday

Time

Mon

1

2 3

Tue

4

5

6

7

Wed

8

9

10

11

Thu 12

13

14

Fri 15

16

17

Sat 18

19

20

Sun 21

22

23

24

Carrying out OBI Gardening, Self-Repairer, Professional and Mystery days can kindle clients’ interest

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

11

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Procurement & Sales

OBI TREASURE MAP

12

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

To turn OBI visitors into clients production and information about services should be accessible as easily as possible Product

Easy to find

Navigation

Range

Available service

Complexity

Show the phone

Interesting queues

Informative price tag

Better info desks

Better navigation, demanded range and other ideas will help visitors find products easily; more information about services will stimulate their sales

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

13

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Navigation right at the entrance will improve visitor’s experience and a poster with the types of consultants can clarify him who to ask and what to expect

Entrance Where to go?

Who can help me?

A poster with different types of consultants

A map

Master-Consultant

A greeter

Seller

 Helps to choose  Helps to choose anything specified articles  Counts the amount of  Offers additional material service  Collects commodities for delivery

Merchandiser  Helps to choose specified articles

Both these solutions can solve the problems with active greeting, navigation and visitor’s misunderstanding of types of consultants

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

14

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Misbalance between procurement and demand result in monthly losses Solution Procurement department should take into account ideas of sellers and merchandisers as they know “hot� articles better Lacking of 500 W boilers results in 1 mil rub losses per month (esp. in may)

A special box for offers and wishes should be set

There is empty space for seasonal articles Taking into account ideas of junior staff will help to optimize procurement and sales

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

15

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Lacking of spares leads to failure of sales of all the complementary articles Lacking spares

Solution

Procurement should ensure that all the articles have essential spares

Visitors buy the whole expensive (50 000 rub!) construction somewhere else

That also can be controlled with the help of junior staff

Lacking spares block the sales of the whole construction Junior staff can help Procurement department to maintain all the spares and complementary articles and so to improve sales

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

16

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Sometimes it is difficult to find the phone even if you really want to

Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

17

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

It is completely hidden on the table‌

Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

18

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

‌but it can be clearly seen and easily accessed on the pillar

This will result in higher demand on master-consultants’ service and increase this way average purchase

Key Idea Sources: team analysis, case materials

19

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Huge price tags can be utilized more efficiently to create additional advertisements

We will teach you how to use it!

This space can be used as an ad for services

Such price tags have much empty space

This will stimulate the demand on high-marginal OBI services and improve the average purchase

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

20

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

At service centers long queues often appear; to make waiting easier to bear OBI can place projectors to show training videos

Long queues make visitors leave dissatisfied

Projector with training videos can make them wait

This can improve customers’ experience and demand for services

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

21

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Sometimes info desks can’t provide visitors with relevant information; that leads to queues at the service center 1

When you want to know more about services, info staff sends you at service center

2

Answers to questions about services right at the info desks can improve clients’ experience

If staff at info desks answer questions about services, clients will save time and queues at service center will be shorter

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

22

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

All the detected problems have cheap and simple solutions and result in ARPU increase Problem

Solution

Costs 45 000

Result

Active greeting → 100%

1. Greeting

Greeter

2. Navigation

Map

700

ARPU ↑ Conversion ↑

3. Who can help

Poster with types of staff

700

ARPU ↑ Conversion ↑ ARPU ↑ Conversion ↑

4. Range

6 000

Box for offers and wishes

ARPU ↑ Conversion ↑

5. Complexity 6. Hidden phone

Hang in on a pillar

10 000

ARPU ↑

7. Blank tags

Additional info

20 000

ARPU ↑

8. Queues

Videos and better info stands

35 000

ARPU ↑ Conversion ↑

With total costs less than 150 000 rub OBI can reach the target 30% growth of ARPU

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

23

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

People Policy

OBI TREASURE MAP

24

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Control and improvement throughout the stages of employee work life 1

Complex approach will let OBI raise mystery shopper tests scores to the required level

Recruitment / New-role training

 Greetings

Day-to-day Work

65% >> 100%  Selling Process

60% >> 80%

Working conditions

 Extra Sale

70% >> 85% Performance Assessment

 Farewell

Personal Development

81% >> 95%

Excellent scores for the mystery shopper assessment can be achieved with a complex approach to improvements in people policy

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

25

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Right people should be hired in higher quantities to improve quality of service 1

Lack of salespeople should be fixed by carefully selecting outgoing people Personnel Capacity

Space for new people Filled positions

 Participate in Career Fairs  Organize events for vocational school students  Select outgoing people naturally do well in greetings and sales

Looking for people in the right places and making professional and personality tests will attract the right people

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

26

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Problems with mixed functionality should be overcome in order to increase the quality of service and work more efficiently 1

Unmotivated merchandisers do work of salespeople who are busy with less important tasks

SALESPEOPLE

MERCHANDISERS

 Do what they are not supposed to do  Hard to be found by customers

 Often do the job of salespeople  Not motivated to sell other suppliers’ products

WRONG! Salespeople should be working with customers

SOLUTION  Hire more salespeople  Optimize workday / responsibilities  Introduce individual bonuses for great performance More salespeople, motivational bonuses and clearly defined responsibilities will improve selling process

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

27

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Shortage of staff trainings leads to weak core competencies and as a result worsens selling process Staff training hours at OBI considerably less comparing to its main business rival

1

2

OBI should concentrate on motivational and professional trainings of personnel

Staff training, hours per staff 45 40 35 30 25 20 15 10 5 0

40 Leroy Merlin OBI

Motivation Sales Growth

3 Leroy Merlin

OBI

More training will ensure the competitive service quality justifying the higher margin and customer satisfaction, with selling process, extra sales making, greetings and farewell improving

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

28

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Career growth philosophy changes are necessary to satisfy our employees and improve their performance 1

Typical career ladder restricts promotion opportunities for the majority of employees

Employee relocations between departments makes regular growth possible for everyone

2

Director long time – no promotion Little motivation

Career horizon

higher qualification

Head of Department Motivating pay rise

Master consultant Yearly promotions More quality service

Salespeople

Happy and loyal workers Higher expertise

Easier and more frequent promotions will increase motivation and professionalism of the employees

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

29

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

Working conditions need to be maintained at the high quality level to achieve maximum efficiency Problem

Proof

Solution

Clean stores and easier communications between salespeople and managers/directors on a regular basis will maintain salespeople healthy and satisfied, which is eventually good for both managers and customers

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

30

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

What is inside the chest?

OBI TREASURE MAP

31

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

The Treasure Hunt strategy will run over the next three months and include a treasure box of initiatives in marketing, procurement & sales and people policies Schedule

May, 2015

June, 2015

July, 2015

Marketing

Billboards

Offline advertising Interactive promo

+ 10 % visitors

Social networking and contextual adds

Online advertising

Gardening Days

Underground campaign

TV

Pro Days

Repairer Days

Master classes

Procurement & Sales Optimum Procurement

Reconciliation

Passive Interaction

Greeting badges

Service sales

Map leaflets

Video waiting

Feedback

Replenishment

Replenishment

Master phones

Price tags

Info desk improvement

People policy Recruitment

Screening

Operations

Functional redistribution

Personal Development

Career Horizon

Training

Interview

Probation

Bonuses Individualization

Training

Promotion

Effect

Engagement Work conditions Assessment

+5% buyers + 30 % ARPU +3% conversion + 10 % mystery shopper pass rate

The Treasure Hunt will achieve a 10 and 5% increase in visitors and buyers, a 30% surge in ARPU , as well as a 3% and 5 % rise in the conversion rate and the mystery shopper pass rate in three months

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

32

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

The Treasure Hunting is full of dangers, but all the major risks involved are provided for by the solutions

High Moderate

1

Risk description

7

1. Worsening of economic situation

Economy on the most expensive steps

2

2. Missed deadlines and poor coordination at different implementation steps

Dynamic implementation plan with weekly progress check

3. Shortage of junior staff

Improvement of working conditions and career prospects

4. Late summer

Procurement of products for self-repairers

5. Opportunism of staff

Improvement of career prospects

6

6. Wrong timing for “lucky hours�

Flexible adjustments

7

7. The key to the treasure chest may be lost

A duplicate of the key

5 4

2

3

6 4 5 Low

Moderate

High

Probability - Internal risks

- External risks

Treatment strategy

1

3

Low

Impact significance

Risk matrix

The Treasure Hunt faces a number of external and internal risks that can be mitigated by the implementation of the timely treatment strategies

Key Idea Sources: team analysis, case materials

Changellenge >> Cup Russia 2015 >> Integrated Minds

33

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

OBI Treasure unlocked!

34

Treasure Hunters

Executive Summary

Marketing mix

Procurement & Sales

People policy

Total Effect

Team Resume

The Integrated Minds are experienced enough to lead the Hunt for the most valuable OBI treasure

Nikolay Ageev

Sergey Staroverov

Tatiana Kan

Ekaterina Palamar

Store Director

HR Director

Marketing Director

Commercial (procurement) Director

Champion of Cup Moscow Changellenge 2014

Team Founder of Integrated Minds

Champion of Cup Moscow Changellenge 2014

MGIMO Master’s 2nd year International Accounting

ESERP Business School Marketing Management

HSE Bachelor`s 3rd year Faculty of Economics

FU Bachelor`s 2nd year Faculty of Economics

89264220333 beovel@gmail.com

89639696350 serge.staroverov@gmail.com

89143174551 tiana_kan@mail.ru

89030136613 ekaterinica@gmail.com

Semi-finalist of Cup Moscow Changellenge`14

Changellenge >> Cup Russia 2015 >> Integrated Minds

35