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