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Demand Generation

Demand Generation. Enterprise Competitiveness Council / Supply Chain Leadership Committee Meeting - Key Largo, FL April 25 - 29, 2007. Panel of Experts. Speakers Kathie DiChirico, President, Visionary Strategies Richard Lusk, VP, Operations, Vanity Fair Intimates

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Demand Generation

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  1. Demand Generation Enterprise Competitiveness Council / Supply Chain Leadership Committee Meeting - Key Largo, FL April 25 - 29, 2007

  2. Panel of Experts • Speakers • Kathie DiChirico, President, Visionary Strategies • Richard Lusk, VP, Operations, Vanity Fair Intimates • Jan Hilger, Dir of Product Development, HUGO BOSS • Committee Chair • Brett Mathes, VP, Engineering, Carhartt, Inc. • Moderator • Steven McLendon, VP, Sales, TradeCard, Inc.

  3. Session Overview • Introductory Comments • Kathie, Richard, and Jan’s Key Points • Summary

  4. Demand Generation Introduction • People Driven Process • No ONE right process for ALL • Collaboration minimizes risk • Do it with PASSION • Really Know Thy Customer!

  5. Market Orientation Kathie DiChirico • Proper Market Orientation Grows • Customer satisfaction & Loyalty • Company Size • Corporate Profitability • Customer Alignment Gives Right to Lead Market • Leverage Market Knowledge to Create Demand & Direction “I skate to where the puck is going, not to where it is.” Wayne Gretsky

  6. Indicators of Poor Understanding of Customers and Competition • Unfocused Competitive Position • We Have it Too--response • Excessive Customer Turnover • Market Share Instability • Inconsistent Profits • Accounting Maneuvers Drive Financial Results • Pressure for Short Term Profits

  7. What the Best Do! 1. CUSTOMER FOCUS: An obsession with understanding customer needs and delivering customer satisfaction. 2. COMPETITOR ORIENTATION: Continuous recognition of competitors’ sources of advantage, competitive position, and marketing strategies. 3. TEAM APPROACH: Cross-functional teams dedicated to developing and delivering customer solutions.

  8. Demand Generation:Take-A-Ways • Customer retention can lead to 50%+ growth in profitability with essentially no increase in market share of sales revenue required • Ensure your market knowledge creates a continuum spanning customer orientation, product positioning, presentation, distribution channels, product development, the product itself, and product/ customer service.

  9. Demand Generation Richard Lusk • Understanding, Creating & Seizing Consumer Demand • 17 Brands, 3 Distinct Channels, North American and Europe • Department/Chain Stores • Mass Merchants • Specialty • Segmentation By Customers Needs and Emotional Attachments

  10. Consumer Segmentation

  11. ERP Production System Capacity Management Material Availability Inventory Tools Richard Lusk PDM bill of material requirements Planning Engine Prioritized Demands Production Plan Customer Delivery

  12. Richard’s Take -A-Ways • Consumer-Centric Approach Drives Sustainable Growth • We Plan our Work, Work our Plan • Consumer Input • Macro Trends, Segmentation Refinement, Focus Groups, Proto Validation • Development Process • Innovative, True to Merchandising Theme, Production Worthy • How else could they be successful selling something that most women do not like the buying experience?

  13. Demand Generation Jan Hilger • HUGO BOSS • Branding that defines a fashion style and optimizes a lifestyle • Creating Unforgettable Experiences • The purchase is part of the prize • Master the 3 A’s—Adaptability, Alignment, Agility

  14. Demand Generation Jan Hilger BOSS Black Mens-/Womenswear Sophisticated business looks, elegant eveningwear and casual leisure outfits for modern woman and men needs Meticulous workmanship, beyond short-lived trends. • .

  15. Demand Generation Jan Hilger BOSS Green Menswear For athletes and active outdoor performers - each and every collection piece optimally fulfills its function.

  16. Service the Brand Jan Hilger • Campaigns • Licensing Partnerships • Events • Fashion Shows in Global Capitals • Formula One Racing • Golf Sponsorships • Supporting the Arts • BOSS Shops

  17. The Prize • Purchase Supports the Prize • Each Purchase to be your Prize

  18. Common Elements • Really Know Thy Customer • Collaboration is Key—extend visibility, gain market knowledge, know what we don’t know • Adapt—go where they are going • Alignment—product to customer, channel, partners, experience • People—they’ll tell you what they want, just ask and listen • Passion—spurs success, just like a smile is contagious

  19. Summary • Collaborate to extend your reach and minimize risk • While technology is the shovel, People are the drivers • There’s No ONE right answer • Each sell is the results of multiple sells—brand to retail, brand to consumer thru retailer • Deloitte Study indicates that a 2% increase in conversion from shopper to buyer increases sales by 10% • Customer retention is the most effective path to dramatically increase profits • KNOW THY CUSTOMER

  20. Thank you Kathie, Richard, & Jan Kathie DiChirico, President, Visionary Strategies Kdwdamarketing@aol.com Richard Lusk, VP, Operations, Vanity Fair Intimates Richard.Lusk@VFC.com Jan Hilger, Dir of Product Development, HUGO BOSS Jan_Hilger@hugoboss.com

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