Proposal 1 - Online Distribution Channel Strategy

Wine at the Hyatt

First proposal that I helped around with in drafting.

Duration/Members/W&L Balance:

I was staffed on proposal helping for 5 days, and joined around 2 days into the first prep work, where 3 other members have already been helping out. In total, it was a team of 5 (1+4), and the final deck was longer than expected, with a higher level of detail than I had originally thought was needed.

Work hours were pretty bad, as we worked generally from 9:30 AM ~ 02:00 AM, and the last day prior to submitting the proposal we ended at 4~5 AM ish (Proposal was due next day EOD, so we took the final day to just refine content and polish it, to receive feedback from our partner-level). Despite the short amount of time involved in this, we were able to crank out a lot of material, making slides from practically nothing.

Project Background:

The RFP was issued by a client in the consumer goods industry (food product, also pertaining to the nutrition/supplement industry), and we were invited, along with 2 other competitors, with detailed directions on the topic, and the content they wanted to review in the proposal. The expected project was in regards to creating a channel strategy  for their online distribution platform.

The project was directed towards how to grow its online business, increasing its internal capabilities on selling its goods on its own client mall (Direct-to-Customer), while simultaneously aiming to decrease its reliance on external online commerce/shopping malls and distributors.

That would allow for greater control over its brand reputation, and the customer experience in purchase their products. Having a fragmented channel strategy approach would lead to separate internet based companies and platforms to yield greater power over the client's product and brand, which could adversely affect its growth in the long term.

As the market trends change in the health foods industry, where consumers are more likely to through a longer customer journey in regards to awareness and the actual conversion of sale, it is also important to recognize that the spread of information is also different, as consumers base their decisions more so on shared information (i.e. social reviews), rather than going through a direct established source (i.e. doctor,).

Combining this with the directive of securing sustainable growth, we would be required to diving into maximizing customer lifetime value as well. We aimed to provide a consolidated approach in creating a strong backbone structure (Strategic framework) that would harmonize the the client's online/offline channels, while making sure that customer data is collected and stored (function/enablers), and be used in a way where we can focus on customer retention, and realizing long-term value.

Many leading players in retail and consumer goods have carried out similar strategies (think Nike, Starbucks, etc.), and we aimed to provide a new perspective by providing a more apt benchmark target for the client to base an experience off of.

Method of work:

As I was the late joiner to this team by 2 days, I didn't have the sufficient knowledge or depth that the rest of the team had (as they probably conducted more in-depth research the first two days). I was more tasked with slide production, and logically framing the backbone structure mentioned above. Of course, the consolidation approach to its on/offline channels won't be accomplished immediately, so we had to see how the phased approach would look from the client's perspective.

I think I averaged around 6~8 slides a day, with half of them having a little bit of direction provided by the PM, while the rest being forged from scratch.

Thoughts:

Not sure on how the outcome would look like (actually, I have a negative feeling on the proposal, as it just seemed the proposed benchmark case was not really agreeable, and it seemed somewhat lacking in detail pertaining to the client itself, despite the strategic content being okay), but it was a refreshing topic, at it was a well known consumer good in the industry, and it definitely seemed like a project that the client would require amidst the current situations where the 'untact' market trend is bound to remain throughout the current covid-19 pandemic.

Consulting lingo and possible work modules:

• Formulating omnichannel strategy to respond to market demand changes (combating the trend of commodification of healthcare products)

• Understanding behavioral changes in the consumer (vertical to horizontal information spread)

• Targeting new segments in the customer population (younger generations are now more likely to purchase nutrition/supplement type products

• Combating the change in the power balance between internet retailers, platforms, and the client's direct online channel.