Thursday, July 15, 2010

leave the dovey lovey feeling away

Steve Job - Design is not just what it looks like and feels like. Design is how it works.

Steve Job has successfully design a touch screen revolution into the industry with cutting edge technology and artistic design.

I believe he sees potential and create market through his creative marketing.

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Creative marketing

Form my observation, aggresive marketiers will try to conquer market share by killing competition or lobbying to add more barriers for new entrants thus make the industry less attractive to enter.

However, creative marketiers sees above approach is not practical because limited resources says manpower, financial, physical (building and technology) and time. Therefore creative marketies always sees potential from competitors.

Lets say an airline company from FarEast will need partnership from an airline company from North Africa to support network operation in both regions by using Interline Agreement (codeshare or SPA agreement).

Taking the same example, I see there is potential for improvement in SME industry where intelligent shared partnership can be formed to utilise and maximise resource.

In my own experience, I did CBA (cost benefit analysis) and SWOT Analysis by listing all my challenges, and oppurtunity.

I realised that limited capital to purchase a high end dry cleaning machine and dry cleaning operation knowledge are two main challenges for me to operate a dry cleaning centre.

And my oppurtunity is intelligent partnership with other dry cleaning centre and the potential chosen location.

MY OPPURTUNITY.

I tried to sell this idea to a friend, its not actually my idea but what I have learned from my work.

I took him to 2 different dry cleaning centres that have the dry cleaning machine (note: 1 machine cost around MYR 45k).

Dry Cleaning Centre A -

Is a professional centre in a huge residence area. The dry cleaning centre customer is 80% walk in customers and 20% from smaller laundry centre who sent dry cleaning items. The revenue is generated from dry cleaning (45%), wash and dry (15%^) and ironing (40%).

The owner is in the expanding stage where he wants to operate more feeder centre to collect and send dry cleaning items to his main branch. The objective is to build a network but has limited capital and manpower to operate new branch.

He tried to offer a "win-win" situation and his offer was -

Operate as his feeder point, earn commission from dry cleaning items and he support with knowledge.

Honestly, I see this offer is one way benefit agreement where, he can utilise his dry cleaning machine and not my normal washing machine. And so, I decided not to continue but to establish rapport to fit as plan B.

Dry Cleaning Centre B -

Is located near KL triangle next to condominium project. His customer is 65% B2B (hotels and etc for towels, blankets, pillow case and etc) and 35% walk in. However he stops his B2B segment because of limited manpower and only focus on walk in which is 100% wash and dry (low margin). He has not been utilising his dry cleaning machine and resulted slow return from the capital.

His main challenge is MANPOWER and slow return from his dry cleaning machine investment.

I tried to offer him a "win-win" situation, and my offer was-

He can still maintain his major revenue by maintaining B2B business by subcon to my centre and I will support dry cleaning items (as my targetted shop area is high end residence area) to his centre for him to get return from his investment.

In glance, his centre will make more money as dry cleaning margin is higher than B2B cleaning items however, I will save up to MYR 60k from investing for new dry cleaning machine and avoid operation risk.

Like my creative marketing concept? Hahahaha, well it was sold to my friend...

I hope he will translate my idea into real dry cleaning operation as I am not able to do so....

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