31. Understanding buyer values helps prove or disprove current hypotheses as well as generate strategy solutions. Approach Identify Buyer Value Segments Situation Assessment Hypothesis List Development Survey Collection Data Coding and Utility Calculation Instrument Design and Testing Sample Quota Design and List Pull Data Analysis Market Research & Visioning Conceptual Design Detailed Design & Pilot Implementation (phased) Systems Development/ Enhancement Field Administration Preparation
32. Organizational beliefs and strategy alternatives identified in the situation assessment are translated into hypotheses for testing. Hypothesis Development Situation Assessment Hypothesis List Development Survey Collection Data Coding and Utility Calculation Instrument Design and Testing Field Administration Preparation Sample Quota Design and List Pull Data Analysis
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34. Value based segment strategies can produce incremental revenues of $700 million and reduce costs up to $150 million. Benefits — Quantitative Identify Buyer Value Segments - Quantifiable Benefits - These cost savings will be offset by the $52 million increase in central delivery unit costs... By 1999, even after absorbing significant implementation/infrastructure costs, project can contribute over $700 million pre-tax annually . . . $493 $670 $309 The shareholder value effect can be significant. Year Branch and City Administration annual operating costs will be reduced by nearly $200 million . . . $MM ILLUSTRATIVE
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36. With traditional research, when you ask how important any particular feature is individually, consumers tend to say each is very important. 1 2 3 4 5 6 7 8 9 10 Styling Price Speed Reliability Not at all important Very important Instrument Design
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38. These groups or segments of consumers not only have different profit potentials... — Investment Buyer Value Segments — % of Market (Consumers) — Investment Buyer Value Segments — % of Market ($) — Average Investment Balance Per Value Segment — Source: Andersen Consulting National Buyer Values Study for Retail Financial Services Consumers Value Segment Channel Rate / Speed Liquidity / Access Sensitive Speed Avg.. Investment Balance $77,725 $92,264 $96,335 $68,212 Case Study Channelists Speed Liquidity / Access Sensitive 34% Rate / Speed Sensitive 16% Speed Liquidity / Access Channel Rate / Speed
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42. Consolidated results for the markets - from a market attractiveness perspective. - i.e. looking at market size, growth, competition, market entry (i.e. distribution opportunity) from a current and future perspective. Entry Priority High Medium-High Medium Medium - Low Low Market Size Strategic View Distribution Opportunity Competition Market Growth Market Overview Source: AC market investigations Beijing Nanjing Hangzhou Jinan Changsha Chongqing
43. From the sales offices and warehouses established in these several markets, strategic nodes can be established to allow access to nearby markets. Market Overview Source: AC market investigations High Priority Medium to High Priority Medium Priority Medium to Low Priority Cities to be covered Cities Requiring Investigation Year One Beyond Year One Beijing Jinan Nanjing Shanghai Hangzhou Changsha Shenzhen Chongqing Tianjin ShijiaZhuang (Hebei) Zhengzhou (Henan) Qingdao Hefei (Anhui) Suzhou Chengdu Shantou Xiamen Wuhan Xi’an (Shaanxi) Zhanjiang Guiyang Kunming