- Sales Strategies in the Economy - The Promise
ticků ticků ticků Do you ever hear
that noise? That's the sound of your company's decreasing market share as customers
go online to buy from your competitors. As it becomes increasingly
more difficult for
a company to maintain a competitive advantage with its prices, services, and
products, the innovative use of alternative channels must be explored. The Internet
as well as Call Centers can be important channels for improving sales. Like
ERP systems, e-commerce subsystems reduce operating and transactions costs.
In addition, e-commerce benefits the organization by providing additional distribution
- An increase in
Marketing and Sales options and flexibility
- A reduction in
- An increase in
overall company value.
Increase Sales and Marketing options
- Increased marketing
options include general awareness, attracting customers to website,
and one-to-one marketing.
- Internet marketing
is less expensive and provides a wider reach than traditional media,
can be executed quickly, and offers a faster response time with
up-to-the-minute ROI reporting and measurements (especially when
integrated with ERP and CRM systems
- Increased customer
contact for existing customers and prospects ensures a greater likelihood
of sales. Cost per contact decreases allowing for more contacts.
(See diagram 1.0)
- A well-designed
e-commerce website integreated with a call center lets targetted
prospects obtain information and gain a sense that it is easy to
do business with a company. Additionally, these channels should
ensure happiness and retention of existing customers.
- Existing customers
can be sold complimentary products.
- The broad reach
of a 7/24 website with general marketing also attracts untargetted
prospects for sales.
Cost Per Contact
- E-commerce allows
companies to go after new customer segments that would have been cost
prohibitive, including new country markets, vertical end-users, partners,
smaller companies and more.
- Goods can be
marketed and sold at lower cost with faster time-to-market with an
e-commerce website (and a Call Center for non-commodity products and
- E-sales provide
additional revenues, increase a company's profitability, and enable
a company to respond faster to changing and unexpected market opportunities.
Reduction of Risk
- By adding an e-commerce
channel, companies are less susceptible to difficult distributors, field sales
force turnover, and market pressures for cost reduction.
- E-commerce allows for
quicker time-to-market in new verticals and new geographies - with new promotions,
programs and products. E -commerce enables cost reduction and programs that
add service for greater retention of existing customers. Companies are less
susceptible to adverse changes in competitive and economic conditions.
Increase in Overall Company Value
- The e-sales channel stabilizes
or increases revenues, lowers costs, and increases profits with proper channel
- E-commerce enhances your
distribution network, adds new customers, and strengthens customer relationships,
contributing real economic value to your company and its stock price.
OTP Software focuses on
e-commerce, call center and strategic procurement solutions that are customized
for your enterprise. (While we do offer less than full solution integration
services to fit customer demand, these services are described in other sections
of our website.) Here we introduce two hypothetical scenarios to illustrate
what we can do, "A to Z", and to what levels we are willing to participate with
#1 (Leveraging Your Business With the 'e' Channel)
A Foreign manufacturer
of gourmet kitchen stoves is entering the U.S. market. The European brand name
is known in the U.S. but market penetration is low due to high importation cost.
The manufacturer decides to correct these problems by relocating assembly, parts
and repair to Mexico and by intensifying U.S. Sales efforts, including opening
an East Coast Distribution Center and a Sales Office that utilizes a B2C Internet
sales channel. The manufacturer has an Oracle Supply-Chain and Financial System
installed in Europe.
- The relationship between
OTP and Manufacturer begins during development of the strategic U.S. Country
market entry plan.
- OTP assists in configuration
and implementation of Oracle multi-org for the Mexican manufacturing facility,
the East Coast Distribution Center and the Sales Office. OTP assists in development
of sales channel strategies including Internet sales strategies for the U.S.
- The front end for selling
stoves is implemented by OTP Software at a new U.S. Sales Office of the European
manufacturer. The electronic store front is used for B2C with U.S. consumers
and for B2B with building contractors. OTP also builds a call center, staffed
with English and Spanish speakers, at the new U.S. Office. Management for
this office came from the low-tech previous Master Distributor.
- OTP installs appropriate
EDI/ XML interfaces to key U.S. wholesalers' Procurement Systems that is connected
back to the Sales Office and to the ERP system at the Mexican Manufacturing
facility. OTP also installs interfaces between the storefront, in this case
IBM Net..Commerce, the Distribution Center and the ERP System at the Mexican
- Upon OTP's recommendation,
the U.S. Sales Office engages OTP's Internet Marketing Partner MediaPlex to
execute a targeted internet based marketing campaign to consumers and contractors.
OTP integrates the MediaPlex presales system to Net.Commerce and to the Oracle
ERP backend. In addition, a reporting system is implemented that provides
key information to marketing, sales and manufacturing people located in the
United States, Mexico and at HQ in Europe.
- OTP provides 40% of the
website administration and call center staff to the U.S. operation during
the first 9 months after go-live.
- OTP is available for
- U.S. revenues increase
to European sales volume levels 12 months after go-live and ahead of plan.
- European Manufacturer
has gained experience and is now better prepared to utilize the e-commerce
sales channel in their European home market and in other foreign markets.
#2 (The Entrepreneurial or Affinity Group Project)
resigns from his executive marketing position at a "Sailing Magazine"- equivalent.
The executive comes to OTP with a business plan and a proposal to partner in
bulding and owning a Internet-based sailboat reservation and sales company that
attracts highly targetable customers initially to the top 15 charter companies
in the world. They agree to work together on the following:
- Build an e-commerce site
- A Sailboat Rental
reservation system with more functionality than current Internet-based
airline ticket reservation systems.
- A description of
each boat in a charter company's fleet including up-to-date descriptions,
with pictures, of the condition and attributes of each boat. Why? Because
no two boats are the same (a non-commodity).
- A user forum on the
e-commerce site that allows potential renters to exchange experiences
with past renters about past voyages, trainers, skippers, etc.
- Partially through the
entrepreneur's connections in the sailing world, the Top 15 charter companies
will sign up for the reservation program.
- A Call Center hosted
and staffed by our new company will answer a wide range of questions, qualify
customers' sailing skills/certifications, and complete worldwide sales.
- Use magazine subcriber
lists and internet marketing systems of MediaPlex to expose the site and its
chartering services worldwide.
- Integrate our site and
Call Center with our ERP and strategic procurement systems to capture revenues
from the following areas.
Revenues are generated
from the following areas:
- Boat Rental Reservations,
Provisioning, and Other Travel Arrangements
- Sailing Training Classes,
either before the trip at sailing clubs or at the Sailboat Charter Companies
- ERP configuration and
hosting of Top 15 Sailboat Charter companies on our own systems or Oracle
- Establish a strategic
procurement system (B2B website) with boat manufacturers and marine suppliers.
The website will sell otherwise extremely high margin boat repair parts and
supply items at lower prices to affiliated charter companies because we buy
and set up in bulk.
- Attract tier-two and
tier-three boat rental companies to our program, provided they maintain our
quality and service standards
- Charter Companies usually
find boat buyers/investors to purchase vessels for their rental fleet. Boat
investors agree to purchase boats and to place them on charter company rental
programs for tax advantages and for the opportunity to own their boat free
and clear after approximately five years. OTP will work with the manufacturers
to get best availability and pricing and with charter companies to help plan
their fleets and develop the best prospective investment packages.
- Sales of used boats will
be brokered online through our new company, similar to advertising services
in Sailing Magazine.
- With revenue streams
coming from several product/service areas this affinity site becomes profitable
and niche dominant for the long term.