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Description of Company & Industry
Netherlands has 15 main shipyards
These specialize in larger yachts over 24 Mt
market leader is that of the Large Flybridge over 150 feet (≈50Mt)
Definite Market leader in sailing yachts
Dutch yards demonstrate high competitive ability
They Build an estimate €500 million worth in luxury ships
Ship building industry is worth over €5 billion world wide
The last shipbuilding year the market has grown for an overall value of $1,22 billion
World order book equal to 651 units and an overall length of 75.996 feet (2004-2005)
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Description of Company & Industry (cont’d)
Top 10 yacht builders 2004 (projects, average length in meters)
1. Azimut Benetti (It), 56 yachts, 35 m.2. Feretti (It), 38 yachts, 31 m.3. Rodrigues (It), 27 yachts, 31 m.4. Sunseeker (UK), 24 yachts, 28 m.5. Lürssen (Du), 7 yachts, 86 m.6. Royal Denship (Den), 15 yachts, 39 m.7. Feadship (Nl), 9 yachts, 63 m.8. Maiora (It), 14 yachts, 30 m.9. Amels (Nl), 7 yachts, 59 m.10. Horizon (Taiw), 12 yachts, 30 m.
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What is our business? Offering custom built super and mega yachts in the sailing and motor segment
Who are the customers?
High Net Worth Individuals (HNWI)
People constantly looking for high quality.
The gentleman's sportsman
Willing to spend that extra penny
What is value to the customer?
We offer high quality customizable yachts with unique design and handling capabilities
What will our business be?
We design, produce, and sell high quality yachts and provide extensive after sales services
What should our business be?
Production and design of customized mega sailing yachts in a all inclusive package. (after sales services)
Corporate Mission Worksheet
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Mission statement
Building an unrivaled yachting experience for the demanding
yachtsman through innovative design and technology.
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The Macro-Environmental Matrix (Global)
Factor Trend Implication Strategy
Economic Interest rates in the US. 3.50%
Interest rates in the EU Zone 2.00%
Exchange rates
USD 0.797371 EUR 1.000000
European ship builders are growing faster and are more attractive to the consumer
Competitive pricing by using international interest rates and exchange rates.
(Take advantage of fluctuations in the monetary market while doing sales.)
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Factor Trend Implication Strategy
Demographic 691 billionaires worth $2.2 trillion
7.1 million millionaires worth 35.2 billion (up 3%)
A wide range of individuals with the necessary purchasing abilities.
Offer entry packages to lower initial purchasing barriers.
Technological Fast development in R&D and improvements in carbon-fiber usage etc. etc
Customers demand the best and latest / technology
Better usage/ gain competitive edge through R&D
The Macro-Environmental Matrix (Global)
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Factor Trend Implication Strategy
Legal and Political Dutch regulations now make sailing under NL flag more attractive. New IMO class ratings
No need to register in foreign countries.
Netherlands already follows IMO classification
Press the tax and cost advantages.
Cultural and Social Yachts are a more popular way to show prestige
Larger demand for expensive toys
Promote the Prestige and exclusivity of a Dutch yacht.
The Macro-Environmental Matrix (Global)
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Factor Trend Implication Strategy
Distribution Dealers and Channels
No exclusivity anymore
Other companies have the same type of product options.
Differentiate own product more. Try to lock in certain dealers. (brokers)
Suppliers Getting more competitive with each other (depending on import duties)
Cheaper supplies Make use of competing suppliers, get better pricing from them.
Competitors Many different types of ships are being offered
There are more gaps between price and quality
Maintain high quality image
The Micro-Environmental Matrix(Industry)
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Factor Trend Implication Strategy
Customers A need to have the biggest and the best/ growing amount of HNWI
Growing market all around the world/ More $ to spend
A good marketing campaign that reaches all (potential) upscale customers
Regulatory Agencies Stricter regulations in EU and US
Can drive up costs if not managed well
Good relationships with agencies and provide better services to keep track of implementation of the rules
The Micro-Environmental Matrix(Industry)
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Strategies to Take Advantage of the External Environment
Promote the high quality and craftsmanship of Dutch built yachts.
Promote Dutch naval architecture/design
Strengthen relationships with suppliers, brokers and other distribution channels
Include and further develop maintenance and ship management programs
Improve involvement of regulatory agencies (SI and RH) into the building process
Promote sailing under Dutch Flag (tax incentives)
Offer a transparent picture in pricing in both acquisition and operational costs.
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BCG Matrix
I talyI taly The NetherlandsThe Netherlands
U.S.A.U.S.A. U.K.U.K.
STAR ?
CASH COW DOG
Cantieri Navali di Lavagna Perini Navi CN S pertini Alalunga
Holland jacht bouwVittersHuism an
Palm er J ohnsonDelta Marine I ndustries
S unseekerDevonport Yachts
Relative Market S hare
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BCG Strategies
Keep building Mega Yachts but start putting more attention into Sailing yachts
Drive more attention to the benefits of having a yacht built in NL
Offer ship management and Crew placement
– Offer seasonal maintenance programs
– Offer quality control and assurance
– After Sales Department
– Developing a service network divided into warranty, maintenance, and refit & spare parts activities.
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GE Matrix
PROTECT POSITION
Amels
Heesen yachts
INVEST TO BUILD
Holland Jacht bouw
Vitters
BUILD
SELECTIVELY
BUILD
SELECTIVELY
Feadship
Royalhuisman
MANAGE FOR
EARNINING
Jongert
LIMITED EXPANSION or
HARVEST
PROTECT AND REFOCUS
MANAGE FOR EARNINGS
DIVEST
5.00
3.67
2.33
1.00
3.67 2.33 1.00
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GE Matrix
Holland Jacht Bouw and Vitters are both at a point where they have to work on their strengths and minimize their weaknesses.
Amels and Feadship are both growing at a steady pace. Feadships 2 yards are now both fully operational and should be used to their full potential.
Royalhuisman should try to work itself up to the point where it can start a direct fight for one of the foreign market leaders
A&F should build to fight the US. Builders, but wait with challenging the Italians.
Jongert has fallen a bit to the background in recent years but should try to get to build selectively box.
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GE Matrix Conclusion
Dutch shipbuilding operations have good representation in the global market but own a relatively small share in it. The industry itself is strong with the potential to gain a higher percentage of market share.
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Ansoff Matrix
MARKET PENETRATION
Existing Products to Existing Markets
Be present at more boat shows
Have more reviews in Magazines
Enter and compete in more and bigger regattas
PRODUCT DEVELOPMENT
New Products to Existing Markets
Add (expand) new services
Ship management training
Developing a service network divided into warranty, maintenance, and refit & spare parts activities.
MARKET DEVELOPMENT
Existing Products in New Markets
Engage in high-end charters &tours
Offer timeshare packages to corporate customers
DIVERSIFICATION
New Products in New Markets
Round the world cruisers
Start a new class of regatta and races
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Strengths and weakness checklist
MARKETINGMajor
StrengthMinor
StrengthMinor
weaknessMajor
weaknessVery
ImportantLess
Important
Industry Reputation Recognized around the world
Not enough presence (global)
Market Share Leader in S/Y production
Limited by production capabilities
Weak in M/Y production 100Ft<
Product Quality High product quality
Superior Quality inspection
Pricing Strategy Non-Price competition
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Strengths and weakness checklist
MARKETINGMajor
StrengthMinor
StrengthMinor
weaknessMajor
weaknessVery
ImportantLess
Important
Distribution Strategy Delivery time of product
Weak global sales force
Promotion Strategy Word of mouth
Always present in some form at boat shows
Innovation R&D Own R&D Partnerships with TU Delft etc.
Years of relevant experience
Industry Example
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Strengths and weakness checklist
FINANCEMajor
StrengthMinor
StrengthMinor
weaknessMajor
weaknessVery
ImportantLess
Important
Availability of capital
Work on project basis
Limits series production of mainstream hulls
Cash flow Irregular flow of €/$
Financial Stability
Profit loss situation
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Strengths and weakness checklist
PRODUCTIONMajor
StrengthMinor
StrengthMinor
weaknessMajor
weaknessVery
ImportantLess
Important
Facilities Located along the North sea
Economies of Scale
Not involved yet in series production
80Ft<
Capacity 30-40 ships p/y
Fast production
Waiting lists for orders
Not much room to expand
Work Force Work together with other shipyards
Local and educated workforce
Country has a history in ship building
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Strengths and weakness checklist
PRODUCTIONMajor
StrengthMinor
StrengthMinor
weaknessMajor
weaknessVery
ImportantLess
Important
Production reliability Constant production flow
Production Efficiency History of good logistical organization
Not much need for long distance outsource.
Use of Technology Key player in new innovation
More work with Carbon Fiber
Must keep up with the competitor
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Strengths and weakness checklist
ORGANISATION and LEADERSHIP
Major Strength
Minor Strength
Minor weakness
Major weakness
Very Important
Less Important
Visionary Leadership
Excellent management teams
Dedicated Employees
Very engaged workforce
Unions
Flexibility and Responsiveness
Entrepreneurial orientation
They are Dutch
They are still Dutch
Corporate Culture High corporate values, craftsmanship
Quality driven, innovative
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Strategies to Take Advantage of the Internal Environment
Use Strengths Soften/Eliminate Weaknesses
Recognized around the world
Delivery time of product
(local) Technological development
Limited by production capabilities
Weak in M/Y production 100Ft<
Not involved yet in series production
80Ft<
Weak global sales force
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Goals & Objectives
Short-term Long-term
Sales Steady sales More growth in sales
Profits Slight down turn Steady Growth
Sales Growth Orders: 55 Orders 65 (up 18%)
Market Share Sail yachts 23.7%Motor Yachts 5.2%
Sail yachts 26%Motor Yachts 7%
Customer Satisfaction Keeping them satisfied Highly satisfied
Cost of Goods Sold Will not likely change change due to R&D
Capacity Utilization Fully use capacity Expand capacity
Strategic Partnerships Build on existing partners Create a stronger united industry
Brand Equity €600 million €750 million
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Number of Sellers and Degree of Differentiation
Monopolistic Competition
Alternative products are available but not of the same quality and perfection
Entry Barriers Production Facilities and Locations
Licensing and Patent acquisition
Distributor and Supplier cooperation
Branding (recognition/ Loyalty)
Exit Barriers Service contracts
Industry Concept of Competition Worksheet
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Industry Concept of Competition Worksheet (cont’d)
Degree of vertical integration
Backward integration
Tend to have strong and long relationships with distribution/supply networks
Degree of globalization Very well known in sailing/yacht community
sales offices world wide
Present at all major boat shows
Cost
Structures
Market worth €6 billion (up 20% in 2 years)
COGS is about ¼ of the cost to build
Profit margins around 8%
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Competition worksheet
Italy USAType of Competitor & Market Share
Motoryachts SailingYachts
40 % 16.9%
Motoryachts SailingYachts
16 % 6.4%
Cost Structures Private holdings
COGS is ±1/3 of sales price
Private holdings
COGS is ±1/3 of sales price
Target
Markets
Motor Mega yachts
Sailing super yachts
Ultra HNWI
Motor mega yachts
Smaller Sailing yachts
Very HNWI
USP's &
Positioning
Design / Made in Italy
Very strong presence at events
Took over as leader
Cover all segments of market
Strong presence at events
Was Market leader until 2000
Product Strategies & Tactics
Focuses on super yachts >24M Builds a lot of Yachts <24M(sports fishing) and trying to keep hold of some >24M market
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Competition worksheet
Pricing Strategies
& Tactics
Not lowering prices but adding extra services
Not lowering prices but adding extra services
Distribution Strategies
& Tactics
Out source production to Turkey.
Promo Strategies
& Tactics
New advertising campaign in magazines and renewal of their website
Promoting “made in USA”
Strengths Have a long standing reputation and a large amount of shipyards
Weaknesses Becoming to much main stream “made in Italy”
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Positioning Map
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Porter Model
Potential Entrants
Established brands
Need skilled workforce
Locations
Suppliers
Well organized
Excellent businesspeople
Industry
Customization
Less competition then with smaller boats
Buyers
Customized ships
HNWI’s
Waiting lists, hard to get
Substitutes
Motor yachts
Private jets
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Porter Model (cont’d)
Suppliers ranked 6
– Can have a lot of influence on delivery time and pricing (margins)
Industry ranked 5
– It is not that easy to get kicked out of the industry but there is strong competition
Buyers ranked 8
– The buyers have the power and money to make or brake you
Substitutes ranked 3
– There are not many substitutes if any for a mega yacht
Potential entrants ranked 4
– It is very difficult to suddenly enter this market because of this it can be considered a minor element.
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Strategic Square
Defensive
Marketing
Offensive
Marketing
Flanking
Marketing
Local
Marketing
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Frontal Attack
Attack the market leader’s product, price, place and promotion
(strength against strength)
The Dutch market allows for higher quality of yachts.
Why buy a Italian yacht? Been there done that, so try a Dutch one!
Dutch Flag offers more tax incentives
Flanking Attack
Attack the leader’s weaker areas – either geographic or by serving uncovered market needs (strength against weakness)
The competition has a greater share in motorized yacht’s, giving the Dutch yacht market the opportunity to expand into the sailing yacht sector.
Market Challenger Strategic Worksheet
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Encirclement Attack
Blitz the leader by launching a grand offensive on several fronts, makes sense when challenger has superior resources
Try to push through the in the smaller Motor Yacht market
Attack the mid-sized segment as well
Possible once all attacking units are in place (a combination of our frontal and flanking strategies.)
Bypass Attack
Avoid the market leader and diversify into unrelated products, new geographic markets, or new technologies
Possible to work together with high tech firms for racing yachts ( involvement with N.A.S.A?)
Bypass attack would not be useful for the Dutch
Guerilla Attack
Waging small, intermittent attacks to harass, demoralize and secure new footholds
Unethical, it is not the Dutch way (really!)
Quite useless and would not work well for the industry reputation. (the Dutch are businessmen)
Is something the Chinese might try, should worry more about them than trying it ourselves.
Market Challenger Strategic Worksheet cont.
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Strategies to take advantage of the competitive environment
The Dutch are not strong enough to wage a full frontal attack but they can start Flanking the Italians by pushing deeper into the S/Y segment.
An option to go heads on with some of the competition is possible by using new tax related price advantages.
It should be possible to bypass some competition by diversifying into the smaller yacht segment (80<Ft)
Eventually this and more will lead to a encirclement attack, but first we need to place our selves correctly as can be seen above.
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Consumer Segmentation MatrixStatus Seeking
IndividualsChic sheiks
Overindulgent Seniors
Midlife Crises
Segment Size & Spending Patterns
10%
40% of Income
20%
> 3% of income
15%
50% of income
55%
25% of income
Age & Gender Analysis 80% Male
30 – 45
98% Male
20+
70% Male
60+
95% Male
45-55
Psychographic Lifestyles Pleasurist Traditionalist
Trendsetters
Rationalist Pleasurist
Personality
Traits
Insecure
Stressed/ Desperate
Attention Freaks
Careless (Money Wise)
Impulsive buyers
Comfort Seeking
Enjoying Life
Adventurous
Desperate
Benefits Sought (POD’s/USPs)
Pricing
Brand
Size
Add-ons
Quality
Comfort
Easy Handling
Pricing
Quality
Brand
Behavioral Analysis Brand Aware
Attention Seekers
Ridged Family Structure
Indulge themselves
Cautious Risk Takers
Relaxed
Big Spenders
Attention Seekers
Brand Aware
Overall Segment Rank 3 5 3 7
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Consumer Analysis
Status Seeking Individuals are insecure and stressed people. They feel that they have to buy boats or other expensive things to express their wealth or simply to fit in and get attention. They are mainly young males because they still don’t have their own opinion and they don’t feel comfortable in their skin. This is why they want to most eye catching and flashy yachts, just so they can show it off to their friends. They spend big percentages of their incomes and don’t care if it’s too much as long as they portrait a certain image.
The chic sheiks individuals are also mainly to not say all male. They too spend a lot of money on boats, the difference is that for these people it’s not that much of their overall income. For them the size of the boat is very important since it expresses their status. The main person has the biggest the son has a smaller etcetera. It’s all very hierarchical. Since these people are literally drowning in oil money they aren’t exactly planned buyers. They are more likely to wake up one day and simply buy a boat and ask for the biggest one out there, so they are basically impulse buyers.
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Consumer Analysis (cont’d)
Overindulgent seniors ( 70% male) are classified age 60 and up, they fall under the category of rationalists because they have an ability to cope with unpredictable and complex situations. To them Personal fulfillment is more about self- expression than financial award. As they’ve already set a goal in life which was there career ,now they just want to enjoy life in any way possible. They search for a comfort and relaxation. They strive to be adventurous and take risks to obtain enjoyment. Owning a yacht in this case is there distraction and new objective in life. Their overall segment ranking on a scale of 1 – 10 would have to be a 3.
Midlife crisis millionaires / showoffs ( 95% male ) age 45- 55, fall under the category of Pleasurist because they emphasize sensual, emotional experiences preferring non-hierarchical groups built around self- reliance and regulation. As the name already says that these man are experiencing their midlife crisis. They are desperate man in need of attention, they need something remarkable to make them feel special and important. They don’t have any problems spending millions. They want to impress possibly young women with their yachts and show off that they are drained with money. Anything that is expensive, flashy, and has many gadgets attracts them that’s why they are the perfect candidates for these type of yacht. Their overall segment ranking on a scale of 1- 10 is a 7.
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Coverage Strategy Analysis
We cover a selective range of products for certain sections of society’s more elite individuals. These individuals are divided into several autonomous segments with their own needs and desires that must be catered to ensure customer delight and a high quality product.
This relates to: SELECTIVE SPECIALIZATION
Target a number of segments. There may be little or no synergy but each segment promises to be a money-maker (Differentiated)
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P.O.D. Analysis
P.O.D True customer involvement in the design and building process
Shorter delivery times
The pleasure of working with a Dutch Yacht builder
Our ships are build to last
We set a new standard for after-sales support and involvement
Continuous innovation
State of the art production line
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P.O.P. Analysis (cont’d)
High quality
Customer customization
After sales support
Exterior styling
Hi-Tech components
Innovative design/engineering/layout
High Price/High Prestige
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Differentiation Matrix
Netherlands Italy USA
Product Differentiation
form, features, performance quality, conformance quality, durability, reliability, reparability, style, design
Classic style and design.
High Performance/ reliability
Modern design
High Performance
Very technological
Follower in design
High Performance
Very technological
Durable
Channel Differentiation
coverage, direct, exclusive, corporate, expertise
Hiswa Boatshow/
International boat shows
Magazines
International boat shows
Magazines
Fort Lauderdale/ International Boat Shows
Magazines
Personnel Differentiation
Services levels, approach
Offer world wide service /assistance and management
Responsive/knowledgeable
Service programs
(based in IT)
Service programs
(based in the US)
Image Differentiation
symbols, media, atmosphere, and events
Classic but not old/
Built to compete
Fast and modern “made in Italy”
Less unique, more main stream but still high end.
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Positioning Analysis & Positioning Statements
We operate in the very upper top segment of a luxury industry following a long, proud shipbuilding tradition (It’s lonely at the top… very very lonely).
The elite segment of society can enjoy the exhilaration that comes from sailing our fully customized state-of-the-art ships made by the highest possible construction standards – the pleasure of putting your pleasure first…
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Product Strategies & Tactics Matrix
Strategies TacticsOffer a transparent picture in pricing in both acquisition and operational costs.
Directly involve the customer with the help of a custom sales and production team
Offer customization (design) packages Link certain designers (interior and exterior) to offer design packages
Get returning customers (retain +90%) Offer customers a good brokerage to re-sell and free service on a second ship.
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Levels of a Product Analysis
Status Seeking Individuals
Chic sheiks Overindulgent
SeniorsMidlife Crises
CORE
PRODUCT
They will get full exposure
Have a luxury retreat
A place to enjoy their last few years
strong desire for change
BASIC/EXPECTEDPRODUCT
A yacht never goes unnoticed
Offers a secluded place
A nice comfy retreat after years of work
Full fills the desire for change
AUGMENTED
PRODUCT
Can make a yacht as flashy as you want
Has everything a villa has and more
Don’t have to worry about the kids
Can customize the ship to his/her specs
POTENTIAL
PRODUCT
Party place to show off
become meeting points
Home away from home
Can do what you want in privacy
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Product-Mix and Product-Line Mapping
80’< Ft 80-99’ Ft 100-149’ Ft 150’+ Ft
MY Not really present in current line
Not really present in current line
SY
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Product Line Analysis
<80’Ft: Dutch have a very small and limited presence.
– Should add new products (Down market stretch)
80-99’Ft: Also a very small and limited presence.
– Should add new products (Down market stretch)
100-149’Ft:Have fairly good coverage in this segment
– The Current yachts (finished and in production) are at the top of the line and in high demand.
150’+Ft: The Dutch are the Market leaders in this segment for sailing yachts but should try to cover the M/Y better
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Brand Analysis
Hutting Yachts
Standfast Yachts
Conavroegh B.V.
Van Dam Nordia Yachts
Conyplex
Amels Holland
Jongert
Heesen Yachts
Hakvoort Shipyard
Holland Jachtbouw
Vitters
Royal Huisman
Royal Van Lent scheepsbouw
De Vries scheepsbouw
Bloemsma & Van Breemen Shipyard
Mulder Shipyard
OceAnco
The Dutch have several Big Brands/ Company's
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Brand Analysis (cont’d)
Collectively these brand represent:
– Perfection = An investment in itself
– Total reliability = Raising quality standards
The Dutch has come to stand for durability, security, beauty, comfort, and lasting value. They signify some of the finest luxury yachts that people and machines can build together.
– Nothing is "typical" of an Dutch yacht . . . except that it's a masterpiece.
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Niche/Unrealized Potential Leadership
New/Unfocused Eroding
Bra
nd
Str
en
gth
Diff
ere
nti
ati
on
& R
ele
van
ce
Brand StatureEsteem & Knowledge
Brand Strength vs. Stature Analysis
Declining
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Brand Strength vs. Stature Analysis
As for luxury sailing super yachts, various countries jostle for leadership.
In general the Dutch yards demonstrate high competitive ability especially in the over 120 feet micro segment
While France is highly competitive in the 100 to 120 feet category.
In this case too Italy attracts attention with an average competitive strength, its best competitive performance being in the micro segment of sailing super yachts over 150 feet.
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Product Life Cycle Analysis
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Product Life Cycle Analysis (cont’d)
Currently the Dutch are growing steadily after a slight decline in growth. If the industry follows this marketing plan it can be expected that they will have a long and prosperous future.
The Italians have/are doing very well but this has been going on for while and it does seem that compared to others they are reaching a state of maturity. Knowing the Italians they will though do anything they can to avoid becoming old.
The Americans have seen better days and it does seem like they are in a decline these days, ever since they lost the market leader position in 2000 they just haven't been able to make up for it.
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Pricing Strategy and Tactics Matrix
Strategies Tactics
Non-price competition(We do NOT compete on price!)
Efficient, thoroughly engineered building process
Provide maximum added value by focusing on services, such as consultancy, technical management, financial administration, etc
Use the “best of the best” in suppliers, architects, services, etc
Build more on the relationship with customers
Comply with and exceed all standards such as ISO9001, MCA, etc
Create real life results (regatta’s, boat shows, reviews, etc)
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Pricing Objectives
Using non-price competition we strive for:
– MAXIMUM SALES GROWTH by increasing perceived brand value and service
– PRODUCT-QUALITY LEADERSHIP
Setting the worldwide standard for ultimate yacht quality by using the highest quality materials, suppliers, quality management systems and leading naval architecture/design
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Price Elasticity Analysis
Effect Elasticity
UNIQUE VALUE EFFECT Inelastic –Due to the unique value, the demand is in no way effected by price changes
SUBSTITUTE AWARENESS EFFECT
Inelastic – There are no substitutes for luxury mega yachts. Slightly more elastic for our new smaller line (sports cars, private planes, etc).
DIFFICULT COMPARISON EFFECT
Elastic - The demand changes considerably. Different ships can be compared at boat shows, friend’s boats, etc
END BENEFIT EFFECT Inelastic - The demand hardly changes with a small change in price. The product is not price-sensitive, thus the purchase will not be price sensitive.
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Price Elasticity Analysis (cont’d)
Effect Elasticity
TOTAL EXPENDITURE EFFECT Inelastic – but not really relevant to our product (operational costs are high).
SHARED COST EFFECT Inelastic – Costs are not shared by others – our ships are bought on individual basis.
SUNK INVESTMENT EFFECT Inelastic - The demand hardly changes with a small change in price. Mega yacht retain their value (when maintained properly)
PRICE QUALITY EFFECT Elastic - The demand changes considerably. The demand changes considerably. Less sensitive when the product has more quality, prestige, exclusiveness, etc – like our ships!
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Cost Analysis
Variable costs
– Steel, Aluminum, Carbon material, wood (teak/mahogany)
– Labor costs ( steel/wood workers) range €75- €165 p/h
– Transportation of materials and products
Fixed costs
– Ship yards average maintenance cost €40 p /m² P/Y (excl operating costs)
– Office space cost €80 p /m² to maintain P/Y(excl operating costs)
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Competitors’ Cost, Prices and Offers Matrix
61
Pricing Methods Analysis and Final Price
Currently, the markup pricing method is used.
Prices are calculated on project basis.
Dutch Yacht industry does NOT compete on price
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Distribution Strategies and Tactics Matrix
Strategies Tactics
Set up a global sales and representation network (directly linked to us)
Open offices on every major continent with local representation (except Antarctica)
Use modern technology to improver customer service
Create online access to our service network (spare parts, knowledge database, etc)
Enable consumers to contact their “liaison officer” through the various methods, eg. The web, world phone, etc
Create exclusive dealing arrangements with suppliers
Lock in suppliers to get better pricing on materials and delivery time (JIT)
Create exclusive product lines together with the supplier
Start “franchising” sales offices Offer a franchise program that offers a commission to any sales/service contract made.
63
Push and Pull Analysis
Pull Strategies:
– Advertisement/articles in magazines (Boat International, Nautique, Yachting World, etc)
– Boat show presence (HISWA, Fort Lauderdale, SAIL, Monaco, etc)
Current Push Strategy:
– <none>
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Future Push and Pull Strategies
– Additional future Pull Strategies:
Initialization of a “Dutch Ship Owners Club”
Organize “Dutch Ship Regatta’s” i.e. Jongert regatta 2005
Increasing overall presence/exposure in boating related activities.
– Possible future Push Strategies:
Try out days (for smaller production yachts)
Recruit brand agents (like Maybach)
Penetrate the charter market (with smaller production yachts)
65
Distribution Channel Level Diagram
ManufacturerThe shipyards build fully customized mega yachts and
therefore work directly with the consumer.
ConsumerEnd product is delivered directly to the customer
LEVEL – 0/1
Agent
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VMS Analysis
The Dutch industry is mainly based on Contractual VMS systems.
– It would be wise for them to add HMS to their lines. i.e. adding other “brands” and products.
– A possibility would be to add Gaastra on the websites and sponsor some events.
– If possible also get premium brands like ROLEX or TAG HEURE involved.
– Connect on different levels of premium luxury
The Dutch Yachting Industry uses a combination of a corporate VMS.
– They use the corporate VMS because they combine successive stages of production and distribution under single ownership. In fact, it’s just one in one company (the shipyards) where they build and sell these yachts.
– These shipyards hardly make any super yachts in advance, since they are almost all custom-made.
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Promotion Strategies & Tactics Matrix
Strategies Tactics
Create awareness of “Dutch Yacht building”
Advertise in leading luxury & boating magazines such as Nautique, Yacht & Boating World, Millionaire, etc etc
Establish presence at major boat shows and other boating related events
Become a sponsor of major regatta’s and events
Create the “Exclusive Dutch Quality” label
Every outing of Dutch Yachtbuiling should have “a quality feeling” to it
Create high end brochures, have luxury stands at boat exhibitions (such as HISWA, BOOT, New Port Boat show, etc)
Offer luxury charter services to let potential customers “experience”
Win long-distance races
Focus on interpersonal customer relations
Create personal account managers that solve our clients every boat related need (based on the Maybach model)
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Promotional Mix Worksheet
Q1 Q2 Q3 Q4
Advertising
S ales Prom otion
Public Relations &Publicity
Events & Experience
Direct Marketing
Personal S elling
Advertising
S ales Prom otion
Public Relations &Publicity
Events & Experience
Direct Marketing
Personal S elling
Magazines: Nautique, Yacht & Boating World, etc; Additional in Regatta season
I nternet: Websites, Online VR Tours
New Port Boat S how
R egatta & Events Sponsorsh ip
HeinekenRegatta
Volvo Ocean Race
I MF OffshoreCham pionship
AntiguaRegatta
"Sail Events" : S ail Am sterdam , S ail Anterpen, S ail Moscow, etc
Press K its
Charter Experience : convince potential customers into buying a superiour product
E x h ib i t i o n s
Brochures : I ndividual ships, S hipyards, Design Bureau's, etc.
DVD's : V irtual Tours of Boats, S hipyards, etc.
Booklets for specific yachts : Offering refits and addintions for yachts
Personal Account Manager : each custom er has his own personal contact;
who provides total service to the custom er (Maybach m odel)
BOOT Düsseldorf Paris Boat S howExponautice (Madrid)
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Promotional Prototypes #1: Magazine Ad
A4 ad for glossy magazines
Aims to create awareness
Aiming for a “clean, modern & stylish” look
Focus on the “added services value” of Dutch Yachts
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Promotional Prototypes #2: Magazine Ad
A4 ad for glossy magazines
Aims to promote the “Charter Experience”
Aiming for a “clean, modern & stylish” look
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Promotional Prototypes #3: Journal Ad
ad for industry journals/books
Aims to promote the industrial side of shipbuilding
Aiming for a “clean, modern & stylish” look
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Promotional Prototypes #4: Website
“The portal” if you want a ship/refit/boat related services from the Netherlands
