Case Study Presentation

Term 5- PGXPM6

Grey World Wide: Strategic Repositioning

through CRM

Team: KadhiravanKarimPushkarSwamiIlavarasan

Background Established in 1978, Grey Worldwide Hong Kong

and China is in Communication industry:- Focus on Communications- Wide range of marketing

16 global partner companies across the world Delivers integrated marketing expertise

Objective Build Customer equity

and Expand Brand equity

Integrated marketing approach

Create customer value through GRM

Develop Skills for setting realistic

Shift focus from Brand equity to Customer Equity

Shift from generalization to specialization model

Strengthen integrated customer knowledge database

Arrive at measurable ROI goals

Take CRM platforms across the organization

Opportunity Strengthen the

existing customer based knowledge on technology to server customer better

Growth in Asian Market – paradigm shift to customer service into customer service era due to emergence of e-Commerce and Internet. With high growth in China

High growth in China Focus on GRM to

provide best solutions

One-one to customer Relationship

One stop support management

Issue, Objective and OpportunityIssues Increasing

competition from management consultants, marketing businesses and competition

Rising customer expectations

Strong price pressure New technology

resulting in low price competitors

High caliber People migrating to clients

Rising customer expectations

Increasing cost of acquiring new customers

Pure online-players producing competitive high quality products at lower prices

Smaller Asian market Transactional Marketing

Philosophy

Facts and Figures Dip in commissions from 15% to 2% Only 50% of sales are accounted CRM performance Cost to acquire new customer is 5 times than retaining the new

customer Only 11 customers can be acquired by spending 3,500 USD as

compared retaining 23 customers for same cost CRM in Asia:

CRM industry would be ~ UD 17 B by 2003 – AMR research Smaller Market 14 times (7%) growth is expected between 1986 to 1999 Including CRM for 600 million is more difficult then for 60

million Avaya is investing between 80 to100 million USD for

opportunity in data networking and IP Telephony

Ö Do not compete on cost with competitionÖ Build a better, efficient and cost effective

CRM strategyÖ Reposition with defined e-marketingÖ Data mining and customer profiling as

key focus areaÖ To Differentiate from competitors through

CRM preposition

Strategy

CRM Solution for GreyCustomer management plan:

Risk Manage

ment

Risk Manage

mentRisk

Management

Risk Manage

ment

Philosophy: An holistic approach to customer management Create, identify, evaluate, capture, enhance, share and apply

Grey’s IP capital 4-point philosophy for customer management focus

Build brands Develop and manage customers Create positive brand experience for customers Build bran through knowledge about the customer

through constant dialogue Shift to Specialization from generalization

Tools: Brand Futures+ and GRM Charter – GRM implementation Data mining and customer profiling Integrated Marketing Approach with Technology as enabler

to support the functional groups

CRM Solution for Grey

Plan/Steps to be followed: Prepare new management structure and top management

participation Perform customer analysis, segmentation and market analysis Elevation of senior executives to parent company

New structure used by GRM charter to serve targeted customers

Grey’s companies benefited from their wisdom and experience

Know more about customers faster than the competition and turn that learning into action faster than the competition with the help of technology

Campaigns and programmes leading towards CRM strategy On-line and Off-line consulting (Strategic) Participation from GD, GI and BI teams Build market share through direct presence and distributor

partner Educating customers about the products and benefits/risks Look for external opportunities to raise revenues instead of

looking at in-ward process to as part of cost cutting Develop new strategies and products to retain existing

customers and acquire new customers by laddering technique GRM focus on communications GRM philosophy training to employees

CRM Solution for Grey

Plan/Steps to be followed: Redefine customer value Deploy Key Account Managers to service high highly qualified

and prestigious customers with help of KM by looking at cost reduction opportunities

New management structure and top management participation

Differentiation Technique: Customization for different customers Employ DW and DM techniques Deliver the customer centric strategy by Integrating and evolution

of strong feedback mechanism Interaction with customer should be through CRM, One stop

helpdesk support from the centralized front-end Process optimization in the front-end and back-end office

systems Build organizational culture around GRM framework model as

part of organizational change

Position itself as trusted, sustainable partner among its clients for long time

CRM solution should be customizable to support future expansion of Grey WW Hong Kong and China

CRM Solution for Grey

Assessment of CRM Strategy on periodic basis:

CRM Solution for Grey

Category Assessment description

People

1. Dedicated teams for CRM implementation2. Development of management talent to capture the benefits and build it into system

LearningEnables learning environment for customer facing departments and people

Customer ValueWill result into customer value creation and customer satisfaction

Alignment Aligning the CRM strategy with business strategy

Implementation Cost, Time and Effectiveness

Technology Availability of technological capabilities internally

Marketing Plan: Cost effective Marketing e-Marketing (use of PDA's, 3G mobile,

IP TV and Internet) Use brand name to build relationships

with other service providers in ASIA Deliver value to customer by creating,

communicating and delivering value to customers and for managing customer relationships

Handle risks: Dramatically changing industry cost

structure Understand specific market forces

driven by media and communication Identify how the business model can

be changed to be competitive Attract good talent to run operations

and strategy Customer retention & loyalty focused

initiative Long Term: Database used to segment

customer, determining profitable customer, analyzing business strategy

Focus on key profitable customer Relational Marketing Philosophy

CRM Solution for Grey

Grey WW HK/China CRM implementation

Integrated approach to create, identify, evaluate, capture, enhance

Grey IP External

Institutionalize key processes and strategies that are developed through customer interaction

Internal Change management through making people

part of building team for GRM philosophy rather than adapting to it

Cross functional skill development for team

GRM Philosophy

Build brands Develop and manage customers Create a positive brand experience for clients Build brand through knowledge about the

customer through constant dialogue

Grey Relationship Management

GRM Framework

Grey Relationship Management

Grey WW/HK and China GRM tools Integrated

GRM Charter:Targets companies that has strong marketing and brand but want to develop the CRM vision and Plan

Brand Futures+:

Target companies that had traditional marketing needs

Brand equity Financial value of the brand Market share and ROI Brand extension Brand Value to the company

Customer loyalty Repurchase rate and value by customer Lifetime customer value

Customer retention Retention rate

Measurement of CRM implementation

LTV of Customer

Market Share - ROI

Source: Profit Impact of Marketing Strategy (PIMS)

Thank You!!!!