Advanced Portfolio Planning ACCO Personal Shredders

Transcription

Advanced Portfolio Planning
ACCO Personal Shredders
1
ACCO Personal Shredders - Stelios Makridis
Market Landscape
Company
Customer
Strong foothold in corporate market.
Longstanding experience.
Undifferentiated products.
Loosing ground in US segments.
Extended product range.
Strong in developing markets.
Providing adequate security
is taken for granted.
Being strong in the corporate
market you can help the home
office segment.
Competition
Extensive “Me 2”.
Extremely fragmented.
Intensity erodes margins and pricing growth.
Emerging alliances(IPSA)
Expected consolidation.
Low manufacturing margins.
Low barriers to entry.
Good return on capital.
Retailers entering / control (SP Richards).
Hundreds local outsourcing operators.
Low brand loyalty.
Lifecycle needs.
Increasingly demanding.
Budget sensitive.
Increasingly misinformed.
Increased time constraints.
Multitasking.
Frustrated by their first shredder.
Products
Highly “engineered”.
No frills.
They solve A problem.
Unintegrated in space.
Noisy. Messy. Bulky
2
The “visible proof” of big share=more products does not always translate to
profitability potential.
Most of the competition chooses to be present in all segments, even with
limited profitability and market share.
ACCO has a relatively good base to expand in products along with room for 15
growth in market share and profitability.
Competition
5
ACCO
ALLEGHENY
ATTIVA
AURORA
CLARY SCHLEINER
CUMMINS
Home/Family($15-$50)
SOHO($50-$150)
Office/Executive($100-$300)
Personal Business($250-$800)
DAHLE
FELLOWES
3
HSM
MARTIN YALE
0
MBM
OZTEC
STAPLES
Number of products
10
Current Product Portfolio
$15-25
$26-75
$76-200
$201-500
Home
Home/Office
Executive
SmallOffice
$501-1200
Department
$1200-2500
Large Office
$2500+
Bulk
Market segmentation is driven mainly by price range
rather than distinct user characteristics and needs. A lot
of overlaps between products with similar
characteristics even amongst the same product
portfolio. Amazon offers more than 300 products in this
category, while every price comparison portal refers to
at least 200.
Strong foothold in the large size, category as a
reliable, qualitative and good value for money
provider. This position, is much clearer than what
the market is struggling to define in the personal
segment. Potentially, those brand attributes can
be a strong leverage for ACCO in claiming new
markets with new platform ideas for the personal
segment.
4
Personal Shredders Current Market Segmentation
Segment
Home
(Family)
SOHO
Work office
(executive)
Personal
Business
Qty used Frequency Security
pages
of use
Need
15-30
30-50
30-60
60+
Decision
Driver
Users
Purchase Primary
How they buy
Decision Source of info
3-4/week
“Put it out of Low price,
the way”
Low noise
Parents, kids Wife
4-5/week
“Organize
information
securely”
Low price,
High Speed
Professional
Owner
Individual
Daily
“Protect my
position”
Executive
High capacity,
Assistant/
High Speed.
Employee.
Daily
“Protect my
information
assets”
Value for
Owner,
money.
assistant.
Dependability
Executive
Assistant
Business
Owner
Catalog, friends,
internet, work
experience
Internet
comparisons,
other SOHOs
Catalogs,
internet, others in
the office
Paper supplier,
on-line
Retailer,
Internet,
Retailer,
Internet,
Internet
Big Retailer,
Specialized
shops
Based on a sample of 2 families, 1
The above segments are more clearly identifiable in terms of their differentiation in the following criteria:
SOHO, 1 executive, 2 personal
- Intensity of use
business
- Their appreciation of their security need
- The decision drivers
- The decision maker
We choose to focus in two variables that justify future directions for the existing shredder portfolio as well as new product/markets penetration:
Security need, decision driver.
5
A new view on segmentation
Existing Relative Level of Security (High)
Corporate/Commercial/
Big Department - High
Security NSA cut
Currently assumption:
relative higher capacity = relative
higher security level. That has led
to a focus in offering the best and
most reliant technology towards
the top tier of the market, because
at that level, companies can claim a
higher premium.
Executive office
Strip or x-cut
High Size,
capacity of product
Low Size,
capacity of product
Lower part of the spectrum, has
been relatively neglected in terms
of the level of security and peace of
mind that the bigger clients enjoy.
Despite the fact that technology
evolves fast, it does not attract
innovative, big investment to
enhance security for individual and
small office business.
Home/Personal/
SoHo/Personal
Business/Strip
Cut
Existing Relative Level of Security (Low)
6
The market dynamics
“In 2009, a total of 11.1 million U.S. Adults had become
victims of some form of identity fraud, with an aggregate
loss of USD $54 billion.”
Federal Trade Commission, 2010
“In 2009 the mean fraud consumer cost was USD
$4,841 and the mean time to resolve the identify fraud
was 21 hours per victim.”
Javelin report, 2010
“73% of victims indicated the crime involved the
thief acquiring data thru some type of payment.”
7
Javelin report, 2010
The opportunity - 1st Option
Platform direction - Enhanced Security
Existing Relative Level of Security (High)
Opportunity exists in improving the
security offering to the individual and
small business owner, who remains
extremely vulnerable against id theft
and data security breach. This is a new
area that ACCO can claim a “firstmover” advantage both with the
shredder product and a new platform.
Low Size,
capacity of product
Corporate/Commercial/
Big Department - High
Security NSA cut
Higher Security level for
small capacity user.
!
Executive office
Strip or x-cut
High Size,
capacity of product
Home/Personal/
SoHo/Personal
Business/Strip
Cut
Existing Relative Level of Security (Low)
8
The opportunity - 1st Option
Platform direction - Enhanced Security
Product
Features
Super NSA 5+ Grinds up to the
level of
security
pulverization.
pulverizer.
New standard.
Super NSA 5+
security
pulverizer.
New standard.
Grinds up to the
level of
pulverization.
Mobile laser
eraser
Light aluminum
base, low impact
laser beam. Pen
size. Rechargeable
battery.
Target User
Cost
Adoption hurdles
100% secure. No
reconstruction is
possible. Strip down
light aluminum version.
$ 350
Pulverized
material can
be used for
other uses.
Pulverized material
might spread in the
air easier.
100% secure. No
reconstruction is
possible. Selection
of color and cover
material for space
integration.
$ 150
Pulverized
material can
be used for
other uses
(e.g. Fertilizer)
Price. Needs strong
brand and distribution
support. Pulverized
material might spread
in the air easier.
Value proposition
Executive
Households,
SOHO.
Individual on the move
for payments with
receipt. Personal data
erased from
documents, receipts.
9
Security extended
and enhanced.
Fast, easy to use.
Addresses biggest
ID theft issue.
$ 50
Negative laser
connotations. Fear of
loosing. Fear of misuse or kids
interference at home.
The opportunity - 2nd Option
Platform direction - Expanded Capabilities
Paper, CD
Food and perishables
Other non-perishables
(plastics, rubber, fabric)
Average household wastes 20% of its food, an average of 500 pounds and a value of $1200 per year(*). In total in the
US we have a $55.2 billion of household food waste ending up in food landfills. This also accumulates to a total of
34% of total methane transmissions in the country.
A new platform for ACCO, lies adjunct to the current line of business and builds on the current shredding technology
but enhanced with special operational features that allow the product to be fitted in the structural elements of the
house and perform extended grinding/shredding for food and other perishables.
(*):University of Arizona in 2006, CBS Special Report 2008
10
The opportunity - 2nd Option
Platform direction - Expanded Capabilities
Product
Super NSA
5+ security
pulverizer or
incinerator.
Features
Target User
Central building
collection
system leading
to incinerator
or pulverizer.
Value proposition
Cost
$ 85,000 for a 3
story building.
Covered thru
monthly rent or
longterm
leasing option.
Cost might be
an issue if not
all building
occupants
choose to
share. Unit cost
decreases by
increase of use.
$ 1200 + (Cost of
fixture not included).
Monthly return in
discounts or cash
backs from recycling
and reuse of
pulverized materials.
Structural
change and cost
on a wall or a
permanent
fixture might be
a hurdle.
Executive,
No need to look for
personal business the best security
option. A
centralized
solution offers
seamless equal
level of protection.
Households,
Integrated house Encased, metallic
SOHOs.
shredder, grinder skeleton with
backside discharge
mechanism for
external pick-up.
Pulverizes everything.
11
Security
extended and
enhanced. Fast,
easy to use.
Shreds, all paper
and food waste,
and perishables.
Adoption hurdles
The overall opportunity - Two Options
New product portfolio
Enhanced Security
Expanded Capabilities
Enhanced
Identity protection around
the clock
Single point, total waste
management for my
office and household
12
The overall opportunity - Two Options
Main Customer Adoption Strategy
Main Customer Adoption Strategy
“I do not have the resources to invest
in high end expensive technology to
protect my data, but I feel this is
something I increasingly need to take
care of. I trust ACCO’s long standing
expertise to provide me with the
peace of mind.”
“I realize there is an opportunity to
manage my overall waste in a way
that both reduces my impact on the
environment and creates a financial
benefit for me and my business or
household.”
“Seek the un-endowed”
“Finding believers”
Adoption Decision Aid
Adoption Decision Aid
ID theft insurance coverage and limited
customization.
Income back to the business/household.
13
The opportunity - Competition
Enhanced Security
Expanded Capabilities
Inertia: Especially Fellowes and Aurora are
Inertia: Right now there is no obvious
busy surviving the low end battle.
indication of competition looking to diversify.
Proprietary Technology: After ACCO
Early alliances: Finding the best players
finalizes the pulverization, and laser it will take
time for other players to come with something
very different.
for the new platforms XXXX can create a
disruption and can make next competitive move
more expensive to happen.
Europe and ROW business: Strong
Kick-back to the user: Most of the
position can be a test field for later adoption in US.
competitors rely heavily on retail wide
agreements and have now involvement in a 1-1
relationship with the users.
Staples:
voted #1 retailer in online office
products, can be an early distribution alliance.
Barriers to entry
Barriers to entry
14
New portfolio - Strategic Position
Existing Product
Existing Market
New Market
Personal
Shredders
New Product
Size of bubble =
expected value
Household
integrated
shredders
Office
building
piping
systems
15
Mobile
erasers
Overall Portfolio Evolution
Unfamiliar with Market,
Unfamiliar with product
Unfamiliar with Market, or
with product
Familiar with Market,
Familiar with product
Size of bubble =
expected value
Office
building
piping
systems
Office building
piping systems
Mobile
erasers
Mobile
erasers Household
integrated
shredders
Household
integrated
shredders
Personal
Shredders
Near Term
Mid Term
16
Personal
Shredders
LongTerm
New portfolio - New platform Differentiation
New to
The world
Disruptive
Office
building
piping
systems
Mobile
erasers
New to
our industry
Sustaining
Household
integrated
shredders
New to us
but exists
Incremental
5-20% +
in turnover
20% +
in turnover
17
double
in turnover
New portfolio - Priorities
s
r
e
Scoring: 1 (weaker), 5 (stronger)
Opportunity appeal
E
o
s
r
e
p
d
e
c
n
a
h
n
l
a
n
L
sh
er
s
a
r
E
r
e
as
r
e
d
d
d
re
g
e
Int
d
e
t
a
r
s
e
s
u
o
h
e
c
i
ff
5
3
3
4
Projected profitability
4
5
3
3
Expected market growth
3
5
4
3
Strength of existing competition
1
5
5
5
Opportunity for a platform
2
1
4
4
15
19
19
19
Fit with current capabilities
5
1
4
3
Fit with company’s vision
5
3
4
4
Fits with brand’s attributes
5
4
4
3
Fits existing distribution channels
5
5
2
1
Relative strength to competitors
3
3
3
3
23
14
17
15
38
34
36
33
Overall Score:
18
h
s
g
n
i
ld
i
u
b
d
d
re
O
Market size
Relative position
d
e
hr
s
r
e
New portfolio - Investment
Unit sales
Price
Revenue
COGS
Gross
margin
Operational
overheads
Profit
Spin-off A - Enhanced
personal shredder
32.000
150
4,800,000
1,200,000
3,600,000
-252.000
3,348,000
Platform B - Integrated
house Shredder
10.000
1.200
12,000,000
3,000,000
9,000,000
-500.400
8,499,600
Total:
42.000
16,800,000
4,200,000
12,600,000
-752.400
11,847,600
Assumptions:
1. First 1-2 years are ROW and Europe intensive
2. COGS: 25%
3. Discount Rate: 8%
4. Cummulative NPV achieved breakeven in 1 year
19

Advanced Portfolio Planning ACCO Personal Shredders

Transcription

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