hansen examples

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Hansen Financial Services Inc.

Integrative Marketing CaseChallenge

TEAM 1http://www.youtube.com/watch?v=M1owcncKCHg

http://www.youtube.com/watch?v=M1owcncKCHg

http://www.youtube.com/watch?v=M1owcncKCHg



EXECUTIVE SUMMARY • Key Recommendations

• Allocation of funds• Time frame

• Benefits



Financial Measures 2009(changes)

2008(estimated))

2007(estimated)

2006 2005 2004 2003

Budgeted total revenues for year 850,000 800,000 700,000 700,000 550,000

Actual total revenues (TR) 541,000 608,000 679,000 694,000 622,000 610,000

Acutal: Budgted TR 72% 85% 99% 89% 111%

Total expenses

+ commissions 587,000 587,000 561,000 564,000 417,000 397,000

‐ sub‐total annual marketing expenses (golf,

meals, seminars)

19,000 20,000 49,000 19,000 18,000

‐ sub‐total annual website related expenses

8,500 5,500 29,000

Total expenses + commissions: total revenues

109% 97% 83% 81% 67% 65%

Net profits Etc… ‐

46,000 21,000 118,000 130,000 205,000 213,000

% net profit ‐9% 3% 17% 19% 33% 35%

Bottom Line



CORPORATE CULTURE - ISSUES

• Internal process• Need clear leadership that is fullycommitted

• Focus on the core business

• Time management

• Undefined roles



Recommendation #1

Identify a clear corporate vision that focuses onrewarding behaviour that positively impacts salesand customer relations.



Increase to hours worked

0

100000

200000

300000

400000

500000600000

700000

800000

Current

Hours

Add. 5 hrs Add. 10 hrs 40

hour/week

Hours Worked

T o t a l R e v e n u e

s

Jan

Muneer

Donna

Total

$752,000



Recommendation #2


Senior Partner

Jan Hansen

Partner

Muneer Mufi

Office Manager

Diana Seymour

Reception

Ti Lee

Junior Partner

Donna Abella

Develop and define roles and responsibilities withinthe organization more clearly.



Recommendation #3Process Improvement/Time

Management Initiatives



CLIENT MANAGEMENT - ISSUES

•CRM data base not used•Client analysis not performed

•Website is not being used to fullpotential

•Clients lost, won…who knows….



Recommendation #1

Undertake full market analysis



Recommendation #2

Invest in website revival



Recommendation #3

Identify the value of services,product and investment

offerings



“Choice, not chance,

determines destiny!” http://www.moviesounds.com/austin/1million.wav

http://www.moviesounds.com/austin/1million.wav








MORE THAN PAINTING THE TRIM

HFSI Case Presentation



It’s all about delivering value . . .

Quality

(Price – Cost)Value =

Remove BAD costs

Focus more onquality of service

Drive & maintain a

premium price throughdifferentiation



Long term strategic planning . . .

Product Price

Promotion Place

Consumer

Total Solution –

Product, Service,Experience

Augmented Product

Core Product

(YOU ARE HERE)



Executive Summary

Key Challenges:

Underdeveloped Sales and Marketing Techniques Lack of Networking and No Brand

Budget: $150,000

Timeline: 6 months

Key Outcomes: Increased relevance, understanding

of consumers, revenue, customer base and loyalty.



Looking In



Key Challenge #1: Underdeveloped Sales and

Marketing Techniques

How did you get here?

No documented marketing plan

Not meeting targeted business objectives (sales, new clients)

Market research and tracking not used

Lack of sales focus

Internal conflict on business model (i.e. Fee-based versus Commissions)

Underutilised communication and leads management tools

Evidence

Profit per client is in sharp decline.

Client revenues are flat to declining and expenses are rising year overyear.

Have not hit new client target in 4 years



$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

$900.00

2003 2004 2005 2006 2007

Rev per Client

Expenses per Client

Margin per client

HFSI is becoming a Not for Profit



Where you are headed?



Looking Out



Key Challenge #2: Lack of Networking and No Brand

How did you get here? Reliance on tangible assets to grow business

Characteristics of a sales driven organization Not using existing networks

Lack of positioning in the marketplace

Evidence

“For the longest time I haven’t had to formally market for business”J. Hansen

Inconsistent messaging in marketing materials (i.e. brochures andweb site)

Consumers do not know what value you offer to them and howyou are unique in the marketplace



Implementation Plan – Growth through

Market PenetrationWho What How Budget OutcomeQueens MBA Team Clearly define business

strategy

Generate a marketing plan:

• Define Objectives

• Develop Strategies

• Execute Programs

$0 Direction / Focus

Benchmarks

Performance Improvement

Donna /Jan, Research firm Increase Market share Short‐term: Direct efforts on women

and clubs / associations

New client events

Long‐term: Market Research:

segmentation, profiling,

targeting,

what

are your intangibles?

$55,000 Increase client base

Increase revenue

Focus on the good clients,

drop the bad

HFSI, Property Management

Group

Focus on core competencies •Outsource Property Management

•Review and align existing organization

structure (i.e. Key responsibilities)

•Re‐assign receptionist position to focus

on

full‐

time

inside

sale

relationship

management

•Hire office manager replacement (for

maternity leave)

$30,000 Increased productivity

Increased customer loyalty

Increased Sales

Full occupancy

Improved

corporate

cultureMore time for clients

Sales Relationship position Farming & Hunting through

CRM

Training from external provider

Institute internal process for regular

maintenance

$8,000 Leverage service offering

portfolio

Existing customer base

segmented and scored

Bad clients dropped

Nurture relationships



Implementation Plan – Growth through

Market PenetrationWho What How Budget Outcome

HFSI Become customer centric

oriented

Be available during core office hours

Call people back

Realize that

you

have

a product,

service

and experience to market

$0 Increased customer loyalty

Increased time with

customers

HFSI / Advertising Agency Branding Strategy Define your value proposition

Define your promise to consumer s

Develop advertising, collateral, special

events, and

website

to

reinforce

HFSI

brand

$65,000 Awareness and

understanding in the market

place



In closing

Having a Plan supported by research is priority #1

- Without knowing segment sizes and related valuesit’s impossible for us to tell you who to go after and

what your value proposition should be

Go for low hanging fruit in the interim Hunting: Women, Clubs & Associations

Farming: More money from A-listers, more B-listers intoA-listers

You’re in the experience (i.e. freedom & dreams)

industry



Audience Profiling

Audience Needs Benefits Feature Drivers Fears or Concerns Barriers

Existing

Consumers

•

Good

FinancialAdvice

• Reassurance

on being a part

of HFSI

•

Service

oriented

business

•

Being

neglected • Perceived

neglect

Women • Financial

planning

• Financial

independence

• Education &

information

• Female

representatives

• Personalized

approach to

planning

• Uncertainty • Lack of

awareness

New A‐listers via

Club Members

• Good

Financial Advice

• The right

product set

•

Service

oriented

business

• Level of service

• Lack of financial

stability

• Existing

financial

planner



Brief

Target Audience: Women

Communication Objectives:

Know: Raise awareness of HFSI among women Feel: Secure, Confident, Relationship

Act: Setup a Face to Face Consultation

Value Prop: We understand your distinct financial needs

Brand Character: Trustworthy, Dependable, Knowledgeable

Focus on Sale: HFSI understands your financial needs and theimportance of relationships – you are more than a client number – Taking financial planning beyond the numbers

Benefit: We understand the distinct needs of women investors

Support: Community & association involvement, proven track record

Mandatories: Imagery of women, HFSI logo, web address



Medium and Money



Your Platinum Opportunity

Prepared for:


1



Executive Summary

• Hansen Financial Services Inc – Solid Customer Base

– Financial performance

below

expectations

– Recent Developments• New Equity Partner

• New Building, Website, CRM system

• Group 3’s

Recommendations

– Maximize Core Competencies

– Re‐define Corporate Culture

•

Marketing Priorities

– Target Current Customers

– Build Solid Client Relations

– Expand HFSI’s share of wallet

2



Hansen’s Early Success

• A Solid Business, in 2003/2004

– Revenue was growing

– Customer Base

was

growing

– Profit was steady

• Existing Strengths

– Strong Portfolio of Products

– Solid Customer Base

–

Internal

Expertise – Medium Brand Recognition

– Partnerships with Lawyers / Accounting

3



Customers Growing

Revenue and

Profit

Declining

800

820

840

860

880

900

920

940

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

2003 2004 2005 2006 2007

# of Customers

Revenue

Rev.

Per

Customer:

$718

$712

$780

$751

$662

$0.00

$500,000.00

2003 2004 2005 2006 2007

Profit

4



Market Research Key Learnings*

• Customer Dissatisfaction ‐ Customers

feeling neglected due to shift in corporate

priorities and

culture

• Business Model Lacking Strategy – The skill

sets of

the

financial

advisors

and

scope

of

product offerings are not being leveraged

“Choice,

not

Chance,

Determines

Destiny”

*Market Research: MBA Analysis, Employee and Exit Interviews, Industry Best Practice5



Immediate Action Plan

• Redefine Relationships

– External• Focus first on A‐List Customers

– Internal

• Set the guidelines for internal communications

• Redefine Roles and Responsibilities

– Focus Sales

Efforts

on

suite

of

product

offerings

6



Execution

• Relationships – Open House

– Coaching

• Outsource – Property Management

– IT Responsibilities

• Roles and Responsibilities – Jan

and

Maneer:

• Focus time on existing clients, start building profile to increase services per client

• Spend reclaimed time mentoring Donna

– Donna: • Focus time on transitioning Bill’s A‐list and female customers

• Transition female

client

base

from

Jan

and

Maneer

• New Hire – Experienced Office Manager to Replace Diana

• Will oversee outsourcing contracts

•

Will

mentor

Ti

Lee

7



Bigger Share of Wallet

780

800

820

840

860

880900

920

940

960

980

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

$900,000.00

2003 2004 2005 2006 2007 '08Proj '09Proj

# of

Customers

Revenue

Rev.

Per

Customer:

$718

$712

$780

$751

$662

$785

$850

$0.00

$500,000.00

2003 2004 2005 2006 2007 '08Proj '09Proj

Profit

8



Budget and TimelinesItem Cost Time

Open House $7,500 1 month (October)

Property Management N/A (offset by 33% rental

revenue increase)

3‐6 months ‐ 100%

commitment/occupancy

IT Services (Web/CRM) $2,500/month Starting October

Hire Office Manager Incremental $20,000 Starting October

Corporate Coach $6,400 September‐November

Annualized Total $63,900*

*Surplus of

$83,100

plus

incremental

rental

revenue,

to be used for future marketing/hiring activities

9



Future Marketing Plans

• Objective: Drive awareness of Hansen’s suite

of

Financial

Services

– Launch Marketing campaign late‐Q2/early‐Q3, 2009

• New tactics

– Community Newspaper articles and ads

– Customer testimonials

– Referral campaign, win cash prize

– Integrating Web with Testimonial content

10



Questions

11



IMPROVEMENT OF BUSINESS

PERFORMANCE THROUGH MARKETING

prepared for

Hansen Financial Services Inc. (HFSI)

Team 4

Marketing

Creating Strategic Impressions



Marketing Creating Strategic Impressions

The Case

To identify ways to improve the branding, marketing and sales ofHFSI’s products and services

Available budget $150,000 Objective:

Increase Revenue

Increase Profit

Increase Share of Wallet with A-List Customers

Strategy:

Target marketing efforts at A-list clients

Position HFSI as a trusted provider of a comprehensive suite of financialservices




Full suite of financial products and services

Market size : 360,000 people

6 competitors

5 Employees : 3 partners with more than 35 years combinedexperience

: 2 administrative staff Steady revenue shortfall of 50%

Eroding net profits

Increasing expense ratio

The Crime Scene




Diagnosis

1. Enhancing customer intelligence

2. Maximizing customer profitability




Enhancing Customer Intelligence

Cause:

Not fully leveragingCRM system

Lack of competitiveanalysis

Website capabilities notfully utilized

Importance:

Deliver customer value

Improve customerretention

Maximize customerprofitability




Evidence

Client Attrition

0

2

4

6

8

10

12

2003 2004 2005 2006 2007

Actual clients lost during year

`

Total Revenue

$560,000

$580,000

$600,000

$620,000

$640,000

$660,000

$680,000

$700,000

$720,000

2003 2004 2005 2006 2007

Actual total revenues (TR)




Maximizing Customer Profitability

Cause:

Lack of bandwidth toincrease customer base

Limited lead generation

No clear valueproposition

Importance:

Increase profit

Create brand loyalty

Increase share of wallet

Attracting strategicallyaligned customers




Evidence

Revenue vs. Expenses

$0

$200,000

$400,000

$600,000

$800,000

Actual total revenues (TR) Total expenses and commissions

Client Mix

0

200

400

600

800

1000

2003 2004 2005 2006 2007

Other Clients Female Clients A-list Clients




The Verdict

Description PIC Timing Budget

Feed CRM System BDM October $3,000

Implement Client FeedbackProgram

BDM October $1,000

Segment Client Base Queen’s MBA Students November $5,000

Build Website Portal Marketing CSI November $50,000

Marketing Plan Marketing CSI December $30,000

Develop Lead GenerationStrategy

Marketing CSI December $10,000

Client AppreciationProgram

BDM January $25,000

$124,000.00




Cross Examination




Audience Profile

AUDIENCE NEED DRIVERS FEARS BA RRIERS

A-List • high service

level• feel important• options• make money• 24-hour access

to information• Financial

security

Personalized service

Maximum returnKeep up with “The

Jones’”Financial freedom

Asset protection

Losing money

Losing statusProtecting familyFuture economic

stabilityLosing control

Don’t have enough

informationLack of financial

knowledgeNot all receiving high-

level of personalserviceWomen

Other Clients




SWOT Analysis

Strengths

Experience Qualified Customer base Alliances with professional associations Full portfolio of services Website CRM system 150K in capital Referrals

Opportunities

Female market Further penetration of A-list Professional alliances Fee-based services

Two empty offices Deliver client information through website Feeding Goldmine with right information Increase promo activity Membership in service organizations

Weaknesses

Client info tracking lacking Not using CRM No customer research No goal setting or metrics Website sucks No succession plans/no legal agreements Ineffective internal processes No sales process No cross-selling

HFSI not well known Internal conflicts Brand loyalty

Threats

Increased competitor activity

Employee defecting to competition



Stayin’ Alive Consultants



Key Outcomes:

◦ rive HFSI’s revenue to $1M within 1 year and $1.5M in 3 years◦ Restore profit margin to 35%

Key Recommendations:

◦ Segment customer base◦ Focus on A list client services◦ Realign front-line human resources◦ nhance customer service, website and CRM systems

Investment: $100,000

Timeframe: Immediate -12 months-3 years



Strong existing customer base

Experienced founding partners

Addition of accomplished new partner to focus onnew market segments

History of solid profitability

New CRM technology

New physical infrastructure with room forexpansion



Declining margins

(static revenue and rising expenses)

Limited understanding of current client base

Inconsistent customer service with little strategic

prioritization

Inefficient use of existing human resources

Ineffective use of technology to inform and engagecustomers (website, CRM, etc)



Implement Three Key Marketing Strategies:

1. Segment customers to maximize revenue.

2. Enhance customer service.

3. Develop long-term strategic marketing plan.



Recommendation Investment Who Timeframe Outcome Benefit

Hire new Customer

Service Manager

(replaces mat leave)

with enhancedoperational & client

service tasks.

$20,000 JanMuneerDonna

3 mos. Operationalmanagementexpertise

improved

Enhancedcustomer service

Clientsegmentationservicesintroduced




Customer

Segmentation:

•

A list: priority•B list: move to A

in 5 years

•C list: reactive

Focus marketing

effort on serving

existing customer

base (80%)

$0 JanMuneerDonnaCSM

JanMuneerDonna

Immediateupon CSMhire

Target $5,000 forA list

Identificationof key accountsto focus on(A,B,C priorities)

CRM dataintegrity isachieved




Using market

research, identify

new A list prospects

(20%)

$25,000 JanMuneer

Donna

6-12 mos. New customersidentified for

future growth

Sales roles &responsibilities

assigned for keyclients




Develop customer

service standards for

admin staff

Reassign front-line

admin

responsibilities toreceptionist

(supplies, kitchen,

refreshments).

$5,000 CSMTi Lee

1 monthupon

CSM hire

Enhanced priorityon customerservice

Clearerunderstanding ofadmin roles and

responsibilities

Efficiencies fromstreamlining

operational tasks




Develop long-term

strategic marketing

plan

$30,000 JanMuneerDonna

CSM

12months

out

Strategy set forfurther growthand customer

acquisition

Customizedmessaging per

segment

Exploration andanalysis of newmarkets forexpansion



Investment: $100,000

Key Recommendations:

◦ Segment customer base◦ Focus on A list client services◦

Realign front-line human resources◦ nhance customer service, website and CRM systems

Key Outcomes:

◦ rive HFSI’s revenue to $1M and then $1.5M◦ Restore profit margin to 35%



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