Strategic Growth Recommendations for Blueland by Telfer Consulting
BLUELAND
a Disruptive Innovator
University of Ottawa – Telfer School of Management
TELFER CONSULTING
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It's not often that you see companies actually solve a
problem and also be aspirational and aesthetically
compelling on social media!
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AGENDA
1.
EXECUTIVE SUMMARY
2.
ANALYSIS & RECOMMENDATION
3.
IMPLEMENTATION
4.
FINANCIAL ANALYSIS & RISK ASSESSMENT
5.
CONCLUSION
TELFER CONSULTING
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Executive Summary
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Situation
Blueland wants to pursue
higher growth in
cleaning products sector,
come up with new additions
to its product line and
overcome its competitors
At the same time Blueland
is trying to target customers
and sell its products in
beauty and personal care
segment
Strategy
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Spend time and money in
research on Personal Care
and Beauty care products
•
Concentrate increasing the
sales of existing products
•
Market your products
aggressively and
spread your mission
Results
by employing this strategy,
it expected to have:
400% growth each year
NPV of $65 million in 5
years
TELFER CONSULTING
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Analysis & Recommendation
TELFER CONSULTING
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Customer Preference and Product Innovation
need to be considered based on 3C model
Customer
Company
Competition
Price
War
Competitive
Advantage
Competitor’s
Advantage
Conflict
About your company
•
Multiple products in cleaning +2
personal care products
•
40 patents
•
DTC mode with online subscription
•
Making high profits in cleaning
•
Online Customers only
Know your customers
•
The younger they are , the
more preference for
sustainable products
•
Customer preference for
Mass Retailer’s Store &
Beauty Retail’s website and
store
•
Strong brand preference in
personal care categoty
Know your competitors
•
Big competitors get involved
•
Similar- function products in
cleaning
•
Segmented products
Competitive Advantages:
innovative
products, Eco-friendly certification from
many organzition
Price War:
lower price than competitors,
Conflict
:
similar products
Competitors Advantages:
more segmented
products- cleaners for kitchen sink, floor,
etc.; concentrated liquid products- easier
to use
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TELFER CONSULTING
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Having more cleaning products to
building a comprehensive cleaning
products line with more channels to
distribute will have Blueland make
more revenue and profits
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Growing NO of costumers for
sustainable products in US beauty
and personal care industry shows the
market potential benefit for
expanding in this segement
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TELFER CONSULTING
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Two factors transfer into strategies have been figured out to be most suitable to Blueland–
each of the derived strategies has different scope and impact
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Maintain growth and focus on
growing the cleaning products by
R&D and find new distribution
channels
Increasing cleaning products
revenue by find new distribution
channels and introduce personal
care products in a slow-phased
manner by R&D
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Social Responsibility
TELFER CONSULTING
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TELFER CONSULTING
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Implementation
RSM approach
Spend time and money in research on
Personal Care and Beauty care products.
Research
Market your products aggressively and spread your
mission.
Market
Concentrate increasing the sales
of existing products.
Sell
TELFER CONSULTING
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16
HOW
WHEN
KPIs
WHY
•
The personal care and beauty market
size is $81.1 billion and will reach
$128.7 billion by 2030.
•
Consumers are buying fewer makeup
products and more skin care products.
•
Shoppers across all generations are
seeking sustainable products.
1.
Hire SMEs for R&D
2.
Create product line of Skin care products
and launch 2 products annually.
3.
Create a product line of makeup
products and launch 2 products after we
are done with skin care.
4. File patents if required.
•
Q
4
2
0
2
2
t
i
l
l
Q
4
2
0
2
5
1.
No. Of Products (6 skin care 6 make up
products )
Invest in R&D in personal care and beauty products.
17
HOW
WHEN
KPIs
WHY
•
Blue land has a unique product and
400% growth.
•
Customer life value has increased by
80%.
1.
Hire Specialist CMO.
2.
Start a digital marketing campaign.
3.
Hire Social Media Influencers.
4. Make kiosks in retail stores and do on
site marketing.
•
Q
4
2
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2
t
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l
Q
4
2
0
2
7
.
1.
Engagement on social media posts. (7
million is ideal)
2.
MROI(5:1 is ideal)
Market your products aggressively.
18
HOW
WHEN
KPIs
WHY
•
There is a huge demand for
sustainable
1.
Hire a VP of sales and 2 sales managers
and 10 sales associates to start in big
cities first, then expand.
2.
Hire a data analysis expert to focus on
optimizing online sales.
•
Q
4
2
0
2
2
t
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Q
4
2
0
2
7
.
1.
Increase in Total revenue
generated.(maintain 400%)
Focus on increasing Sales.
TELFER CONSULTING
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Implementation Timeline
TELFER CONSULTING
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Implementation Timeline
TELFER CONSULTING
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Financial Analysis & Risk Assessment
Finances
R
e
q
u
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e
m
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t
s
Total investment of $45 million
.
Acquired through funds rinsing
A
s
s
u
m
p
t
i
o
n
s
400% growth each year
Margin of goods sell : 15%
Discount rate of 8%
2% share to our fund risers
R
e
s
u
l
t
s
NPV of $65 billion in 5 years
A net profit starting from the 4 year of
investment
TELFER CONSULTING
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TELFER CONSULTING
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Risk Matrix & Response
A
B
C
D
TELFER CONSULTING
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W
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L
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:
R – Responsible // A – Accountable // C – Consulted // I - Informed
25
TELFER CONSULTING
Conclusion
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TELFER CONSULTING
26
Situation
Blueland wants to pursue
higher growth in
cleaning products sector,
come up with new additions
to its product line and
overcome its competitors
At the same time Blueland
is trying to target customers
and sell its products in
beauty and personal care
segment
Strategy
M
a
i
n
t
a
i
n
g
r
o
w
t
h
i
n
c
l
e
a
n
i
n
g
p
r
o
d
u
c
t
s
s
e
g
m
e
n
t
a
n
d
i
n
t
r
o
d
u
c
e
p
e
r
s
o
n
a
l
c
a
r
e
p
r
o
d
u
c
t
s
i
n
a
s
l
o
w
p
h
a
s
e
d
m
a
n
n
e
r
•
Spend time and money in
research on Personal Care
and Beauty care products
•
Concentrate increasing the
sales of existing products
•
Market your products
aggressively and
spread your mission
Results
by employing this strategy,
it expected to have:
400% growth each year
NPV of $65 million in 5
years
Blueland aims for 400% annual growth and $65 million NPV in 5 years by expanding into personal care products while maintaining growth in cleaning. Telfer Consulting suggests market research, aggressive marketing, and a phased approach to product introductions for success.
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Presentation Transcript
BLUELAND a Disruptive Innovator University of Ottawa Telfer School of Management
TELFER CONSULTING REDA BAKADDOUR JASJOT SINGH SIQIN LI EHSAN POOLADI TELFER CONSULTING 2
It's not often that you see companies actually solve a problem and also be aspirational and aesthetically compelling on social media! TELFER CONSULTING 3
AGENDA 1. EXECUTIVE SUMMARY 2. ANALYSIS & RECOMMENDATION 3. IMPLEMENTATION 4. FINANCIAL ANALYSIS & RISK ASSESSMENT 5. CONCLUSION TELFER CONSULTING 4
Executive Summary TELFER CONSULTING 5
Maintaining growth in cleaning products segment and introducing personal care products in a slow phased manner is recommended to achieve 400% growth each year and have NPV of $65 million in 5 years Situation Strategy Results Blueland wants to pursue higher growth in cleaning products sector, come up with new additions to its product line and overcome its competitors At the same time Blueland is trying to target customers and sell its products in beauty and personal care segment by employing this strategy, it expected to have: 400% growth each year NPV of $65 million in 5 years Maintain growth in cleaning products segment and introduce personal care products in a slow phased manner Spend time and money in research on Personal Care and Beauty care products Concentrate increasing the sales of existing products Market your products aggressively and spread your mission TELFER CONSULTING 6
Analysis & Recommendation TELFER CONSULTING 7
Customer Preference and Product Innovation need to be considered based on 3C model Know your customers The younger they are , the more preference for sustainable products Customer preference for Mass Retailer s Store & Beauty Retail s website and store Strong brand preference in personal care categoty About your company Multiple products in cleaning +2 personal care products 40 patents DTC mode with online subscription Making high profits in cleaning Online Customers only Competitive Advantage Company Customer Price War Competitor s Advantage Conflict Competitive Advantages: innovative products, Eco-friendly certification from many organzition Competition Know your competitors Big competitors get involved Similar- function products in cleaning Segmented products Price War: lower price than competitors, Conflict: similar products Competitors Advantages: more segmented products- cleaners for kitchen sink, floor, etc.; concentrated liquid products- easier to use TELFER CONSULTING 8
Both DTC and Physical Retailers have different advantages regarding- direct feedback, and shopping preference Benefits Drawbacks Criteria Direct line of communication to get feedback from customers Easy to subscription Ways to educate customers about eco- friendly knowledge Lower cost preference to buy from the companies websites compared to purchasing on e-commerce website(Amazon) Smaller NO. of potential customers who prefer purchasing online DTC The potential for a bigger customer pool to get Blueland products while regular pick-up shopping at stores also witnessed an increase Lower profit Hard to get direct feedback Physical Retailers TELFER CONSULTING 9
These critical factors can target two options-Eco Friendly Cleaning Giant, Personal Care Innovator to optimize Blueland s development strategy Critical Factors Having more cleaning products to building a comprehensive cleaning products line with more channels to distribute will have Blueland make more revenue and profits Growing NO of costumers for sustainable products in US beauty and personal care industry shows the market potential benefit for expanding in this segement Options Eco-Friendly Cleaning Giant Personal Care Innovator TELFER CONSULTING 10
Two factors transfer into strategies have been figured out to be most suitable to Blueland each of the derived strategies has different scope and impact Options Eco-Friendly Cleaning Giant Personal Care Innovator Strategies Maintain growth and focus on growing the cleaning products by R&D and find new distribution channels Increasing cleaning products revenue by find new distribution channels and introduce personal care products in a slow-phased manner by R&D Outcomes Consolidate Blueland s leading position in cleaning products and ensure the growth Make profits by expanding in personal care segment and be prepared for being a global brand across a wide range of categories TELFER CONSULTING 11
Personal Care Innovator scores best compared to other strategies especially due to its advantages regarding Innovation Development and Sustainability Criteria Cleaning Giant Personal Care Innovator Innovation Development Social Responsibility Sustainability Profitability Difficulty Overall score 15 17 Key: 1: not satisfied 5: fully satisfied TELFER CONSULTING 12
Personal Care Innovator is our recommendation for Blueland Options Eco-Friendly Cleaning Giant Personal Care Innovator Strategies Maintain growth and focus on growing the cleaning products by R&D and find new distribution channels Increasing cleaning products revenue by find new distribution channels and introduce personal care products in a slow-phased manner by R&D Outcomes Consolidate Blueland s leading position in cleaning products and ensure the growth Make profits by expanding in personal care segment and be prepared for being a global brand across a wide range of categories TELFER CONSULTING 13
Implementation TELFER CONSULTING 14
RSM approach Spend time and money in research on Personal Care and Beauty care products. Research Market your products aggressively and spread your mission. Market Concentrate increasing the sales of existing products. Sell TELFER CONSULTING 15
Invest in R&D in personal care and beauty products. HOW WHY The personal care and beauty market size is $81.1 billion and will reach $128.7 billion by 2030. Consumers are buying fewer makeup products and more skin care products. Shoppers across all generations are seeking sustainable products. 1. Hire SMEs for R&D 2. Create product line of Skin care products and launch 2 products annually. 3. Create a product line of makeup products and launch 2 products after we are done with skin care. 4. File patents if required. WHEN KPIs 1. No. Of Products (6 skin care 6 make up products ) Q4 2022 till Q4 2025 16
Market your products aggressively. HOW WHY Blue land has a unique product and 400% growth. Customer life value has increased by 80%. 1. Hire Specialist CMO. 2. Start a digital marketing campaign. 3. Hire Social Media Influencers. 4. Make kiosks in retail stores and do on site marketing. WHEN KPIs 1. Engagement on social media posts. (7 million is ideal) 2. MROI(5:1 is ideal) Q4 2022 till Q4 2027. 17
Focus on increasing Sales. HOW WHY There is a huge demand for sustainable 1. Hire a VP of sales and 2 sales managers and 10 sales associates to start in big cities first, then expand. 2. Hire a data analysis expert to focus on optimizing online sales. WHEN KPIs 1. Increase in Total revenue generated.(maintain 400%) Q4 2022 till Q4 2027. 18
Implementation Timeline Year 2022 2023 2024 2025 2026 2027 Quarter 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Invest in R&D in personal care and beauty products. Hire SMEs for R&D Create product line of Skin care products and launch 2 products annually. Create a product line of makeup products and launch 2 products after we are done with skin care. File patents if required. Market your products aggressively. Hire Specialist CMO. Start a digital marketing campaign. TELFER CONSULTING 19
Implementation Timeline Year 2021 2022 2023 2024 2025 2026 Quarter 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Market products aggressively Make kiosks in retail stores and do on site marketing. Hire a VP of sales and 2 sales managers and 10 sales associates to start in big cities first, then expand. Hire a data analysis expert to focus on optimizing online sales. TELFER CONSULTING 20
Financial Analysis & Risk Assessment TELFER CONSULTING 21
Finances Requirements Total investment of $45 million. Acquired through funds rinsing Results NPV of $65 billion in 5 years A net profit starting from the 4 year of investment Assumptions 400% growth each year Margin of goods sell : 15% Discount rate of 8% 2% share to our fund risers TELFER CONSULTING 22
Risk Matrix & Response Risk Response A Operation costs uncontrolled Monitored to be avoided by hiring just a relevant partners and investing on talents B Solvability of our retailers partners Mitigated by subscribing into insurances A B C Customer satisfaction unreached Avoided by keeping continuous customer track for continuous improvement D C D Disruptive innovation from competitors Keep an ongoing R&D investment and close watch on the markets evolution TELFER CONSULTING 23
Who Will Lead These Changes? R&D on beauty and personal care products C Make sales happening for the new products and keep growth A Role Marketing CEO COO R C A - Head of Products A C C Finance Department R - I Marketing and Sales Manager C R A Legend: R Responsible // A Accountable // C Consulted // I - Informed TELFER CONSULTING 24
Conclusion TELFER CONSULTING 25
Maintaining growth in cleaning products segment and introducing personal care products in a slow phased manner is recommended to achieve 400% growth each year and have NPV of $65 million in 5 years Situation Strategy Results Blueland wants to pursue higher growth in cleaning products sector, come up with new additions to its product line and overcome its competitors At the same time Blueland is trying to target customers and sell its products in beauty and personal care segment by employing this strategy, it expected to have: 400% growth each year NPV of $65 million in 5 years Maintain growth in cleaning products segment and introduce personal care products in a slow phased manner Spend time and money in research on Personal Care and Beauty care products Concentrate increasing the sales of existing products Market your products aggressively and spread your mission TELFER CONSULTING 26
