Hansen Financial Services Inc.

Integrative Marketing Case

Challenge
TEAM 1
http://www.youtube.com/watch?v=M1owcncKCHg

EXECUTIVE SUMMARY
Key Recommendations
Allocation of funds
Time frame
Benefits

Bottom Line
FinancialMeasures

2009

2008

2007

(changes)

(estimated))

(estimated)

Budgetedtotalrevenuesforyear
Actualtotalrevenues(TR)

2005

2004

2003

850,000

800,000

700,000

700,000

550,000

608,000

679,000

694,000

622,000

610,000

72%

85%

99%

89%

111%

587,000

561,000

564,000

417,000

397,000

19,000

20,000

49,000

19,000

18,000

8,500

5,500

29,000

109%

97%

83%

81%

67%

65%

46,000

21,000

118,000

130,000

205,000

213,000

9%

3%

17%

19%

33%

35%

541,000

Acutal:BudgtedTR
Totalexpenses+commissions

2006

587,000

subtotalannualmarketingexpenses(golf,
meals,seminars)

subtotalannualwebsiterelatedexpenses

Totalexpenses+commissions:totalrevenues
Netprofits
%netprofit

Etc

CORPORATE CULTURE - ISSUES

Internal process
Need clear leadership that is fully
committed
Focus on the core business
Time management
Undefined roles

Recommendation #1

Identify a clear corporate vision that focuses on

rewarding behaviour that positively impacts sales
and customer relations.

Total Revenues

Increase to hours worked

800000
700000
600000
500000
400000
300000
200000
100000
0

$752,000

Jan
Muneer
Donna
Total

Current
Hours

Add. 5 hrs

Add. 10 hrs

Hours Worked

40
hour/week

Recommendation #2

Develop and define roles and responsibilities within

the organization more clearly.
Hansen Financial Services Inc.
Senior Partner
Jan Hansen
Partner
Muneer Mufi

Office Manager

Junior Partner

Diana Seymour

Donna Abella

Reception
Ti Lee

Recommendation #3
Process Improvement/Time
Management Initiatives

CLIENT MANAGEMENT - ISSUES

CRM data base not used

Client analysis not performed
Website is not being used to full
potential
Clients lost, wonwho knows.

Recommendation #1

Undertake full market analysis

Recommendation #2

Invest in website revival

Recommendation #3

Identify the value of services,

product and investment
offerings

Proposed Investment
Summary

Compensation Changes

- $20,000
Image Consultant $1,000 (day)
Customer Service
Training - $5,000
Incorporation of CRM
database - $2,000
Professional Business /
Leadership Coaching $10,000
Market Analysis $30,000
Website Revival $20,000

Total = $88,000

Choice, not chance,

determines destiny!
http://www.moviesoun
ds.com/austin/1million.
wav

MORE THAN PAINTING THE TRIM

HFSI Case Presentation

Its all about delivering value . . .

Focus more on
quality of service

Value =

Quality
(Price Cost)

Drive & maintain a

premium price through
differentiation

Remove BAD costs

Long term strategic planning . . .

Total Solution
Product, Service,
Experience

Product

Price

Augmented Product

Consumer

Promotion

Place

Core Product
(YOU ARE HERE)

Executive Summary

Key Challenges:
Underdeveloped Sales and Marketing Techniques
Lack of Networking and No Brand
Budget: $150,000
Timeline: 6 months
Key Outcomes: Increased relevance, understanding
of consumers, revenue, customer base and loyalty.

Looking In

Key Challenge #1: Underdeveloped Sales and

Marketing Techniques

How did you get here?

No documented marketing plan

Not meeting targeted business objectives (sales, new clients)
Market research and tracking not used
Lack of sales focus
Internal conflict on business model (i.e. Fee-based versus Commissions)
Underutilised communication and leads management tools

Evidence

Profit per client is in sharp decline.

Client revenues are flat to declining and expenses are rising year over
year.
Have not hit new client target in 4 years

HFSI is becoming a Not for Profit

$900.00
$800.00
$700.00
$600.00
$500.00

Rev per Client

Expenses per Client
Margin per client

$400.00
$300.00
$200.00
$100.00
$-

2003

2004

2005

2006

2007

Where you are headed?

Looking Out

Key Challenge #2: Lack of Networking and No Brand

How did you get here?

Reliance on tangible assets to grow business

Characteristics of a sales driven organization
Not using existing networks
Lack of positioning in the marketplace

Evidence

For the longest time I havent had to formally market for business
J. Hansen
Inconsistent messaging in marketing materials (i.e. brochures and
web site)
Consumers do not know what value you offer to them and how
you are unique in the marketplace

Implementation Plan Growth through

Market Penetration
Who

What

How

Budget

Outcome

Queens MBATeam

Clearly definebusiness
strategy

Generate amarketingplan:
DefineObjectives
DevelopStrategies
ExecutePrograms

$0

Direction/Focus
Benchmarks
PerformanceImprovement

Donna /Jan,Researchfirm

IncreaseMarketshare

$55,000
Shortterm:Directeffortsonwomen
andclubs/associations
Newclientevents
Longterm: MarketResearch:
segmentation,profiling,targeting,what
areyourintangibles?

Increaseclientbase
Increaserevenue
Focusonthegoodclients,
dropthebad

$30,000
OutsourcePropertyManagement
Reviewandalignexistingorganization
structure(i.e. Keyresponsibilities)
Reassign receptionistpositiontofocus
onfulltimeinsidesalerelationship
management
Hireofficemanagerreplacement(for
maternityleave)

Increasedproductivity
Increasedcustomerloyalty
IncreasedSales
Full occupancy
Improvedcorporateculture
Moretimeforclients

HFSI,PropertyManagement Focusoncorecompetencies
Group

SalesRelationship position

Farming &Huntingthrough Trainingfromexternalprovider

CRM
Instituteinternalprocessforregular
maintenance

$8,000

Leverageservice offering
portfolio
Existingcustomerbase
segmentedandscored
Badclientsdropped
Nurture relationships

Implementation Plan Growth through

Market Penetration
Who

What

How

Budget

HFSI

Becomecustomercentric
oriented

$0
Beavailableduringcoreofficehours
Callpeopleback
Realizethatyouhaveaproduct,service
andexperiencetomarket

HFSI/AdvertisingAgency

BrandingStrategy

Defineyourvalueproposition
Define yourpromisetoconsumers
Developadvertising,collateral,special
events,andwebsitetoreinforceHFSI
brand

$65,000

Outcome
Increasedcustomerloyalty
Increasedtimewith
customers

Awareness and
understandinginthemarket
place

In closing

Having a Plan supported by research is priority #1

- Without knowing segment sizes and related values
its impossible for us to tell you who to go after and
what your value proposition should be
Go for low hanging fruit in the interim
Hunting:

Women, Clubs & Associations

Farming: More money from A-listers, more B-listers into
A-listers
Youre in the experience (i.e. freedom & dreams)
industry

Audience Profiling
Audience

Existing
Consumers

NeedsBenefits

FeatureDrivers

GoodFinancial Service
Advice
oriented
Reassurance business
onbeingapart
ofHFSI
Women
Female
Financial
representatives
planning
Financial
Personalized
independence approachto
Education & planning
information
NewAlisters via Good
The right
ClubMembers Financial Advice productset
Service
oriented
business

FearsorConcerns

Barriers

Beingneglected Perceived
neglect

Uncertainty

Lackof
awareness

Levelofservice Existing
Lack offinancial financial
stability
planner

Brief

Target Audience: Women

Communication Objectives:

Know: Raise awareness of HFSI among women

Feel: Secure, Confident, Relationship
Act: Setup a Face to Face Consultation

Value Prop: We understand your distinct financial needs

Brand Character: Trustworthy, Dependable, Knowledgeable
Focus on Sale: HFSI understands your financial needs and the
importance of relationships you are more than a client number
Taking financial planning beyond the numbers
Benefit: We understand the distinct needs of women investors
Support: Community & association involvement, proven track record
Mandatories: Imagery of women, HFSI logo, web address

Medium and Money

YourPlatinumOpportunity
Preparedfor:
HansenFinancialServicesInc.

ExecutiveSummary
HansenFinancialServicesInc
SolidCustomerBase
Financialperformancebelowexpectations
RecentDevelopments
NewEquityPartner
NewBuilding,Website,CRMsystem

Group3sRecommendations
MaximizeCoreCompetencies
RedefineCorporateCulture

MarketingPriorities
TargetCurrentCustomers
BuildSolidClientRelations
ExpandHFSIsshareofwallet
2

HansensEarlySuccess
ASolidBusiness,in2003/2004
Revenuewasgrowing
CustomerBasewasgrowing
Profitwassteady

ExistingStrengths

StrongPortfolioofProducts
SolidCustomerBase
InternalExpertise
MediumBrandRecognition
PartnershipswithLawyers/Accounting

CustomersGrowing
RevenueandProfitDeclining
$800,000.00

940

$700,000.00

920

$600,000.00

900

$500,000.00

880

$400,000.00
860

$300,000.00

840

$200,000.00
$100,000.00

820

$0.00

800
2003

2004

2005

2006

2007

Rev.PerCustomer:$718$712$780$751$662
$500,000.00

Profit

$0.00
2003

2004

2005

2006

2007

#ofCustomers
Revenue

MarketResearchKeyLearnings*
CustomerDissatisfaction Customers
feelingneglectedduetoshiftincorporate
prioritiesandculture
BusinessModelLackingStrategy Theskill
setsofthefinancialadvisorsandscopeof
productofferingsarenotbeingleveraged
Choice,notChance,DeterminesDestiny
*MarketResearch:MBAAnalysis,EmployeeandExitInterviews, IndustryBestPractice
5

ImmediateActionPlan
RedefineRelationships
External
FocusfirstonAListCustomers

Internal
Settheguidelinesforinternalcommunications

RedefineRolesandResponsibilities
FocusSalesEffortsonsuiteofproductofferings

Execution

Relationships
OpenHouse
Coaching

Outsource
PropertyManagement
ITResponsibilities

RolesandResponsibilities
JanandManeer:
Focustimeonexistingclients,startbuildingprofiletoincreaseservicesperclient
SpendreclaimedtimementoringDonna

Donna:
FocustimeontransitioningBillsAlistandfemalecustomers
TransitionfemaleclientbasefromJanandManeer

NewHire
ExperiencedOfficeManagertoReplaceDiana
Willoverseeoutsourcingcontracts
WillmentorTiLee

BiggerShareofWallet
$900,000.00

980

$800,000.00

960

$700,000.00

940
920

$600,000.00

900

$500,000.00

880

$400,000.00

860

$300,000.00

840

$200,000.00

820

$100,000.00

800

$0.00

780
2003

2004

2005

2006

2007

'08Proj

'09Proj

Rev.PerCustomer:$718$712$780$751$662$785$850
$500,000.00

Profit

$0.00
2003

2004

2005

2006

2007

'08Proj

'09Proj

#ofCustomers
Revenue

BudgetandTimelines
Item

Cost

Time

OpenHouse

$7,500

1 month(October)

PropertyManagement

N/A(offset by33%rental
revenueincrease)

36months 100%
commitment/occupancy

ITServices(Web/CRM)

$2,500/month

StartingOctober

HireOfficeManager

Incremental $20,000

StartingOctober

CorporateCoach

$6,400

SeptemberNovember

Annualized Total

$63,900*

*Surplusof$83,100plusincrementalrentalrevenue,
tobeusedforfuturemarketing/hiringactivities
9

FutureMarketingPlans
Objective:DriveawarenessofHansenssuite
ofFinancialServices
LaunchMarketingcampaignlateQ2/earlyQ3,
2009

Newtactics
CommunityNewspaperarticlesandads
Customertestimonials
Referralcampaign,wincashprize
IntegratingWebwithTestimonialcontent
10

Questions

11

Marketing
Creating Strategic Impressions

IMPROVEMENT OF BUSINESS
PERFORMANCE THROUGH MARKETING

prepared for
Hansen Financial Services Inc. (HFSI)
Team 4

The Case

To identify ways to improve the branding, marketing and sales of

HFSIs products and services
Available budget $150,000
Objective:

Increase Revenue
Increase Profit
Increase Share of Wallet with A-List Customers

Strategy:

Target marketing efforts at A-list clients

Position HFSI as a trusted provider of a comprehensive suite of financial
services

Marketing

Creating Strategic Impressions

The Crime Scene

Full suite of financial products and services

Market size : 360,000 people
6 competitors
5 Employees : 3 partners with more than 35 years combined
experience
: 2 administrative staff
Steady revenue shortfall of 50%
Eroding net profits
Increasing expense ratio

Marketing

Creating Strategic Impressions

Diagnosis
1.

Enhancing customer intelligence

2.

Maximizing customer profitability

Marketing

Creating Strategic Impressions

Enhancing Customer Intelligence

Cause:

Not fully leveraging

CRM system

Importance:

Deliver customer value

Improve customer
retention

Maximize customer
profitability

Lack of competitive
analysis
Website capabilities not
fully utilized

Marketing

Creating Strategic Impressions

Evidence
Client Attrition

Total Revenue
$720,000

12

$700,000
10
$680,000
8
$660,000
6

$640,000

$620,000
4
$600,000
2
$580,000
0

$560,000
2003

2004

2005

2006

Actual clients lost during year

Marketing

2007

2003

2004

2005

2006

2007

Actual total revenues (TR)

Creating Strategic Impressions

Maximizing Customer Profitability

Cause:

Lack of bandwidth to
increase customer base

Importance:

Increase profit

Create brand loyalty

Increase share of wallet

Attracting strategically
aligned customers

Limited lead generation

No clear value
proposition

Marketing

Creating Strategic Impressions

Evidence
Revenue vs. Expenses

Client Mix
1000

$800,000

# o f C li e n t s

800

$600,000

600

$400,000

400
200

$200,000

$0

2003
Actual total revenues (TR) Total expenses and commissions

Marketing

2004

2005

2006

2007

Other Clients Female Clients A-list Clients

Creating Strategic Impressions

The Verdict
Description

PIC

Timing

Budget

Feed CRM System

BDM

October

$3,000

Implement Client Feedback

Program

BDM

October

$1,000

Segment Client Base

Queens MBA Students

November

$5,000

Build Website Portal

Marketing CSI

November

$50,000

Marketing Plan

Marketing CSI

December

$30,000

Develop Lead Generation

Strategy

Marketing CSI

December

$10,000

Client Appreciation
Program

BDM

January

$25,000

$124,000.00

Marketing

Creating Strategic Impressions

Cross Examination

Marketing

Creating Strategic Impressions

Audience Profile
AUDIENCE

A-List

NEED

Women

high service
level
feel important
options
make money
24-hour access
to information
Financial
security

DRIVERS

Personalized service
Maximum return
Keep up with The
Jones
Financial freedom
Asset protection

FEARS

Losing money
Losing status
Protecting family
Future economic
stability
Losing control

BARRIERS

Dont have enough

information
Lack of financial
knowledge
Not all receiving highlevel of personal
service

Other Clients

Marketing

Creating Strategic Impressions

SWOT Analysis
Strengths

Experience

Qualified

Customer base

Alliances with professional associations

Full portfolio of services

Website

CRM system

150K in capital

Referrals
Opportunities

Female market

Further penetration of A-list

Professional alliances

Fee-based services

Two empty offices

Deliver client information through website

Feeding Goldmine with right information

Increase promo activity

Membership in service organizations

Marketing

Weaknesses

Client info tracking lacking

Not using CRM

No customer research

No goal setting or metrics

Website sucks

No succession plans/no legal agreements

Ineffective internal processes

No sales process

No cross-selling

HFSI not well known

Internal conflicts

Brand loyalty
Threats

Increased competitor activity

Employee defecting to competition

Creating Strategic Impressions

Stayin Alive Consultants

Key Outcomes:
Drive HFSIs revenue to $1M within 1 year and $1.5M in 3 years
Restore profit margin to 35%

Key Recommendations:

Segment customer base

Focus on A list client services
Realign front-line human resources
Enhance customer service, website and CRM systems

Investment: $100,000

Timeframe: Immediate -12 months-3 years

Strong existing customer base

Experienced founding partners

Addition of accomplished new partner to focus on

new market segments

History of solid profitability

New CRM technology

New physical infrastructure with room for

expansion

`
`

`
`

Declining margins
(static revenue and rising expenses)
Limited understanding of current client base
Inconsistent customer service with little strategic
prioritization
Inefficient use of existing human resources
Ineffective use of technology to inform and engage
customers (website, CRM, etc)

Implement Three Key Marketing Strategies:

1. Segment customers to maximize revenue.
2. Enhance customer service.
3. Develop long-term strategic marketing plan.

Recommendation

Hire new Customer

Service Manager
(replaces mat leave)
with enhanced
operational & client
service tasks.

Investment

$20,000

Who

Jan
Muneer
Donna

Timeframe

3 mos.

Outcome/Benefit

Operational
management
expertise
improved
Enhanced
customer service
Client
segmentation
services
introduced

Recommendation

Customer
Segmentation:
A list: priority
B list: move to A
in 5 years
C list: reactive
Focus marketing
effort on serving
existing customer
base (80%)

Investment

$0

Who

Jan
Muneer
Donna
CSM

Jan
Muneer
Donna

Timeframe

Immediate
upon CSM
hire

Outcome/Benefit

Target $5,000 for

A list
Identification
of key accounts
to focus on
(A,B,C priorities)
CRM data
integrity is
achieved

Recommendation

Investment

Who

Using market
$25,000 Jan
Muneer
research, identify
Donna
new A list prospects
(20%)

Timeframe

6-12 mos.

Outcome/Benefit

New customers
identified for
future growth
Sales roles &
responsibilities
assigned for key
clients

Recommendation

Develop customer
service standards for
admin staff
Reassign front-line
admin
responsibilities to
receptionist
(supplies, kitchen,
refreshments).

Investment

$5,000

Who

CSM
Ti Lee

Timeframe

Outcome/Benefit

1 month
upon
CSM hire

Enhanced priority
on customer
service
Clearer
understanding of
admin roles and
responsibilities
Efficiencies from
streamlining
operational tasks

Recommendation

Investment

Hire expertise to
$20,000
per year
redesign and
improve website and
consult on CRM
implementation

Who

CSM

Timeframe

Outcome/Benefit

3 months

Fully functional
website offering
enhanced
customer
experience
Ongoing access
to technology
partner for
assistance
Organized and
easily accessible
database of key
customer info

Recommendation

Develop long-term
strategic marketing
plan

Investment

Who

Timeframe

$30,000

Jan
Muneer
Donna
CSM

12
months
out

Outcome/Benefit

Strategy set for

further growth
and customer
acquisition
Customized
messaging per
segment
Exploration and
analysis of new
markets for
expansion

Investment: $100,000

Key Recommendations:

Segment customer base

Focus on A list client services
Realign front-line human resources
Enhance customer service, website and CRM systems

Key Outcomes:
Drive HFSIs revenue to $1M and then $1.5M
Restore profit margin to 35%

Hamad Al Qahtani
Hilary Sirman
Stephen Williams
Zenon Woychyshyn
Lynn Wyton