More Related Content Similar to Lean Marketing (20) Lean Marketing2. Agenda
• Role of Marketing
• Factors Impacting Marketing
• Lean Marketing:
– Vendor Management
– Creative Development Management
– Low Cost Country Sourcing
– Brand Asset Management
– Production / Fulfillment Management
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3. The Role of Marketing
Companies are looking to Marketing to drive organic growth and
shareholder value.
Future Value
This is the value
that the market
60% believes will be
delivered from
assets in the future
100%
Current Value
This is the value
40% that is expected
from the current
assets performing
as they are today
Enterprise Intrinsic Premium
Value Value
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4. Marketing Spread/Growth
Marketing must drive growth efficiently and effectively to impact
shareholder value.
Spread / Growth Matrix
50%
Market
40% Risky Growth
Leaders
30%
Revenue
Compound 20% Unprofitable Revenue
Annual Growth
Growth Rate
10% PEER AVERAGE
Profitable
0% Value
‘Bond-like’
Destroyers
Returns
-10%
-4% -2% 0% 2% 4% 6% 8% 10% 12%
Average Spread (ROIC-WACC)
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5. External Marketing Challenges
The external environment is becoming more precarious.
Marketing Geography Product Segment Marketing Channel
• Increasing
Investment Mix Mix Mix Mix Mix
Media Advertising, Print, Radio, Online,
Outdoor, Direct Mail
Complexity
Price
$$$ Direct
Promotions Online, In/Outbound Call Centre,
On-Premise, Mobile, Mail, Billing
Distribution
Sales Force
100%
23% • Globalization
Products/Services
Growth Range of
80% … 23% of
organizations said
60% 16% the number of No
products / services Growth
40% (12%)
25% they offered more
than doubled in the Decrease
20% (2%)
19% last five years. No
reply
• Product / Service
0%
0% 20% 40% 60% 80% 100%
1010
Increasing technological innovation
4G
Proliferation
109
Power density 256M 1G
64M
108 Memory Itanium TM
Microprocessor 4M
107 Pentium ® 4
1M
106 Pentium III®
256K Pentium II®
105 64K TM
486 Pentium ®
104 1K
• Rapid Innovation
386TM
103 8086 80286
8080
102 4004
101
1970 1975 1980 1985 1990 1995 2000 2005 2010
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6. Internal Marketing Challenges
Marketing is struggling to deliver growth efficiently.
Strategy Planning Implementation
Ability to develop Ability to plan end-to- Ability to execute quickly
growth initiatives end implementation and stay ahead of
competitors
63% 41% 30%
Strong Strong Strong
Source: Innovation & Growth, March 2006; The Economist Intelligence Unit
• Increasing Costs • RIF/Headcount Freezes
• Declining Budgets • Increased Accountability
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7. Lean Production
Over 20 years ago, manufacturing / operations used lean techniques to
address similar environmental conditions.
• Eliminate waste at every phase of production
• Streamlined workflow for improved efficiency and effectiveness
• Increased flexibility to handle frequent changes – including new
product introductions
• Access live, current data to eliminate information gaps that delay
decision making
• Meet customer demand for higher quality products and lower
costs, using less labor, less space and less inventory
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8. Lean Marketing
Now is the time for Marketing to learn from production and apply ‘lean’
principles.
Time to market is critical
Capability to move from idea
conception to in-field execution
rapidly
• Current value = Capability to revise in-field
campaigns to improve effectiveness
cost reduction SPEED
ILLUSTRATIVE
Marketing Geography Product Segment Marketing
Investment Mix Mix Mix Mix
Capability to move marketing
• Future value = $$$
Price
Direct
money and resources across
brand, geographies, etc. to
pursue opportunities of greatest
cost reduction, Distribution
Sales Force
value
speed, flexibility FLEXIBIITY
Campaign Capability to produce
and throughput Wave 1
Campaign
more marketing
campaigns allowing
Wave 2 them to take full
advantage of customer
Campaign
Wave 3 segmentation and
Campaign
targeting, and support
Segmentation Management expanding portfolios
THROUGHPUT
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9. Marketing Production Value Chain
We see early adopters begin to apply lean principles to the Marketing
Production Value Chain.
Plan & Vendor Media / Create Produce Transport / Fulfillment Reorder
Forecast Mgt. Raw Content Materials Warehouse
Materials
• Need to produce more without spending more
• Increased pressure on CMO to justify decisions to organization
• Proven effectiveness of lean strategies / tactics in other areas of the firm
• Opportunity to leverage new technologies and global sourcing
• Need for greater SOX controls
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10. Plan & Vendor Media / Create Produce Transport / Fulfillment Reorder
Forecast Mgt. Raw Content Materials Warehouse
Materials
Procurement
Procurement departments are becoming increasingly more involved in
marketing purchases and vendor selection.
Situation Solutions
• Rationalized vendor set
Plan & Vendor Media /
Forecast Mgt. Raw
Materials • Preferred supplier base with clear SLAs
• Strategic sourcing including auctions
Poor Failure Inability
planning to bid to plan • Clear new item request processes
results in jobs prevents
rush jobs volume • Accurate demand aggregation
– 30% Poor buying
extra contract
terms Often
Limited / buy • Self service portal ensuring compliance and ability
visibility Too through to tailor to local needs
planning many a middle
leads to vendors man
failure to • Effectiveness measurement process
Existing
gang vendors
work for get work • Consistent quality of 3rd party management and
better not well
pricing qualified
service level
for
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11. Plan & Vendor Media / Create Produce Transport / Fulfillment Reorder
Forecast Mgt. Raw Content Materials Warehouse
Materials
Procurement Leading Practices
The application of analytics to sourcing is yielding major returns.
Use Procurement Analytics
/ Modeling
• Forecast / Demand Modeling
Implementation of sustainable
• Order Quantity Modeling marketing procurement process
• Procurement Optimization Brokers / Online Auctions
Modeling
• Model Impact of Creative Benchmarking
Elements
Performance Based Pricing
Vendor Rationalization/ Preferred
Vendor Set
Event Based Purchasing
Volume / Revenue Discounts
Vendor Bidding / RFP Process
Limited to No Sourcing Controls
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12. Plan & Vendor Media / Create Produce Transport / Fulfillment Reorder
Forecast Mgt. Raw Content Materials Warehouse
Materials
Creative Production
The creative development process is broken and riddled with hidden costs
and waste.
Situation Solutions
• Process standardization across brands &
Create Produce geographies
Content Materials
• Mandated brief developed by marketer
Utilize high Poor planning • Clear roles/responsibilities around creative
price resources limits ability development process
for low concept to off-shore
creative materials
• More early stage reviews
Failure to reuse Order
existing assets quantities
rarely • Project measures are in place and
Poor project rationalized
mgt. leads to efficiency/effectiveness is tracked
rush jobs – 30% Poor
extra scheduling • MRM software (supports workflow and automatic
limits ability
Review & to gang runs notification) is being implemented to drive greater
approvals control of program schedules, budgets and
process is
excessive – resources
often leads to
rework
12
13. Plan & Vendor Media / Create Produce Transport / Fulfillment Reorder
Forecast Mgt. Raw Content Materials Warehouse
Materials
Creative Production Leading Practices
Marketing creative process is being reshaped by technology which
supports asset reuse and low cost country sourcing.
1 New ways of working
• More collaborative and
standardised business 2 Low cost sourcing
processes to encourage • Low cost sourcing of marketing
content reuse content development activities
• Reduced content currently done by high cost,
reinvention – Increased re- onshore providers
use and leverage of • DA "Factory" given full
materials and assets accountability for content tagging
through DAL and repository management
Digital Asset
Development &
Solution
Repository Maintenance
Strategy & Design 3 Technology enablers
India
Germany • Brand asset solution
spanning digital
Brazil
materials/assets
China
24/7 Digital Asset • Search engine capability to
“Factory”
enable access to resources
US • MRM technology supports
on-the-fly material
Etc… Brand Asset Solution
development & JIP
Search production
13
14. Plan & Vendor Media / Create Produce Transport / Fulfillment Reorder
Forecast Mgt. Raw Content Materials Warehouse
Materials
Distribution
Focus is shifting to effective utilization of marketing materials as well as
effective distribution.
Situation Solutions
• Global strategy exists for physical inventory
management
Transport / Fulfillment Reorder
Warehouse • Formalized process and models for
determining demand - identify quantities
produced and shipping / storage logistics
Limited Lack of Inability to • Process and supporting technology in place
use of inventory track
best mgt. inventory to track and manage physical asset inventories
practices prevents leads to
in off-shore surprise • Replenishment is driven by actual material use
logistics kitting reorders
and forecast forward coverage
Materials Limited Difficulty
often held visibility retiring old • Data is shared real time among firm and
by printer into materials /
/ high where quantifying suppliers
storage materials waste
costs reside • Emphasis on materials usage as well as
delivery
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15. Plan & Vendor Media / Create Produce Transport / Fulfillment Reorder
Forecast Mgt. Raw Content Materials Warehouse
Materials
Distribution Leading Practices
Early adopters are applying physical inventory practices to the digital asset
management.
• Marketing assets are stored in centralized,
Create searchable repository
• Enterprise-wide marketing taxonomy is
employed to categorize assets and support
maintenance and search
• Asset rights and history are linked to each
DAM marketing asset
• Clear, published guidelines for using marketing
assets exits - standards manual / training exists
St
Asset use is tracked and measured
o
r •
ve
re
i
/
l
M
De • Asset library is well maintained - assets are
an
ag
updated, retired, versioned
e
• Download access to raw assets (photography,
copy, etc.) is restricted
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