Strategies

on Transforming Eco Water’s

Small Business into Large Enterprise
Presenting Complex Material
Contents

I. Introduction

II. Criteria Selection

III. Potential Alternatives

IV. Recommendations

I. Implementation Roadmap

1
Introduction

With limited financial resources and inadequate manpower, Eco Water Inc. (Eco) needs to adopt new strategies in order
to expand its business and to achieve larger profits.

Background Challenge
Eco Water Inc. (Eco) is a small-sized company that Eco is far from reaching its full market potential
distributes PURITY II, a product designed to purify and there are several attractive business
drinking water. opportunities emerged recently.

PURITY II uses the most effective technology for However, as a small start-up company with limited
improving drinking water, which makes water financial resources and insufficient manpower, Eco
tastes better and is capable of removing is facing challenges in terms of expanding its
potentially harmful foreign substances. Currently, business in a broader geographic area and
customers are satisfied with the product and Eco’s exploring new markets such as potential new
business is growing smoothly. commercial, institutional and residential builders.

What are the strategies that Eco can adopt to expand its business and increase profits?

2
Criteria Selection

Based on the ultimate goals, plausible alternatives can be assessed from the following four perspectives: team building,
market expansion, greater customer awareness and larger customer base.

Ultimate Goals:
Business Expansion and Profit Increasing

A larger customer base would potentially leads to more purchases, which

will ultimately help Eco achieve its business expansion and profits increase

Larger
Customer Base
Greater customer awareness would
potentially lead to a large customer base
Greater Customer
Awareness
Effective market expansion would contribute to
greater customer awareness
Market Expansion
Having an efficient and cohesive team is the cornerstone
for a market expansion plan to work successfully
Team Building

3
Available Alternatives

Potentially there are three alternatives that are available for Eco; and their impacts on the company’s business
development vary largely in terms of customer base, customer awareness, market expansion and team efficiency.

Alternative 1 Alternative 2 Alternative 3

To maintain the Status Quo: To expand promotion efforts and to To increase team motivation and
develop new markets: efficiency, expand promotion efforts and
• The profits would continue to develop new markets:
increase as currently most of the • There would be broader product
consumers are satisfied with the awareness and increasing consumer • Both awareness and demand on the
PURITY II system demand with the expanding product would be increased
promotional efforts were made considerably due to expanding
• However, brand and product promotion efforts
awareness would remain limited • By developing new markets, Eco
could target a larger market size and • Developing new markets would
• There would be no market expansion would earn larger market share, contribute to an larger customer base
and Eco will maintain the current which would lead to a larger
consumers that they have customer base • Having an efficient sales team and
maintain that healthy team
• The turnover would keep being high • Sales team might experience more environment would be key of
as no changes were made regarding stress due to the business expansion securing an increasing profits and
low employee compensation and promotional events having expanding business

4
Recommendations

Eco should pursue alternative 3 since it is the only option that meets all of the four criteria.

ALTERNATIVE 1 ALTERNATIVE 2 ALTERNATIVE 3

Larger Customer Base

Greater Awareness

Market Expansion

Team Building

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Recommendations – Summary of Initiatives

In general, Eco should enhance team efficiency and motivation, expand promotion efforts and develop new markets in
order to tackle the challenges it is facing and to capture the emerging business opportunities.

Enhance Team Efficiency and

Motivation Expand Promotion Efforts Develop New Markets

• Increase employee • Set a marketing plan on • Create a business plan on

compensation advertising and promotion market expansion

• Adopt customer relationship
management (CRM) into
business operation
• Build positive team
environment
• Buy media space and time • Explore new markets
geographically
• Introduce marketing
automation tools • Diversify sales channels

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Recommendations - Initiative I: Enhance Team Efficiency and Motivation

The costs of building a high-performance team are offset by the benefits it brings, since enhanced compensation plan
increases motivation, investment on CRM software improves team efficiency and healthy team dynamics help build trust.

INCREASE EMPLOYEE ADOPT CRM TOOL INTO BUILD POSITIVE TEAM

COMPENSATION BUSINESS OPERATION ENVIRONMENT

• Increase full-time employees’ • Install a Customer Relationship • Collaborate with the secretary to
salaries and compensation plans by Management (CRM) software that is organize team building events during
increasing monthly spending suitable for Eco Water special occasions

• Cut the two part-time positions in
order to reduce unnecessary labor
costs
• Develop quarterly bonus plan to the
sales team based on their sales •
performance
• Provide sufficient trainings for the
sales team to support them in
managing customers and sales more
efficiently
Build a shared customer database to
ensure data integrity within the
company
• Clarify and review team members’
roles on an annual basis to create
efficiency and flexibility
• Set transparent ground rules for the
team in order to better evaluate
team performance as well as
individual performance

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Recommendations - Initiative II: Expand Promotion Efforts

After a comprehensive marketing plan has been settled, Eco should increase its spending on advertising and promotion
more progressively and introduce marketing automation tools to make the process more cost-efficient.

SET A MARKETING PLAN ON INTRODUCE MARKETING

BUY MEDIA SPACE AND TIME
ADVERTISING/PROMOTION AUTOMATION TOOLS

• Identify PURITY II’s competitive advantages • Send taps of commercials to various • Provide sufficient trainings for the sales
and gain insights on competitive dynamics radio and TV stations to create greater team on using telemarketing software
awareness
• Set feasible marketing plans based on • Draft email campaign content and utilize
marketing costs and annual revenue • Purchase advertising space on relevant email campaign management software to
newspapers and magazines send out monthly newsletters
• Decide on suitable channels for advertising
and implement based on the marketing • Build Eco Water’s own website and set • Monitor consumer data on a monthly
plans up accounts for different social media basis to keep track on any progress made
platforms to promote PURITY II with by introducing the tools
minimum costs

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Recommendations - Initiative III: Develop New Markets

Meanwhile with a solid market expansion plan, Eco should expand its target market in broader geographic areas and
diversify its sales channels by reaching out to customers from different segments

CREATE A BUSINESS PLAN ON EXPLORE NEW MARKETS

DIVERSIFY SALES CHANNELS
MARKET EXPANSION GEOGRAPHICALLY

• Identify potential target markets
both domestically and
internationally
• Prioritize the expansion process
based on existing resources and the
return on investments
• Set implementation plan and
evaluation criteria in order to
effectively monitor the progress
• Work with Environmental Control Inc. •
to obtain the distribution rights in
northern Mexico
• Build partnership with more
companies within Texas
• Expand business in other states
outside Texas
Expand customer base among
residential area such as
condominium apartments, single-
family communities etc.
• Develop business relationship with
restaurants and taverns
• Promote PURITY II among different
institution such as schools and
hospitals

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 Implementation Roadmap
Main resources should be allocated to team re-organization and strategic marketing planning during the initial phase;
while progressive efforts on promotion and new markets development should be made throughout the following years.

2018 2019 2020

JAN - JUN JUL – DEC JAN - JUN JUL – DEC JAN - JUN JUL – DEC
INCREASE EMPLOYEE
COMPENSATION
ADOPT CRM INTO BUSINESS
OPERATION
BUILD POSITIVE TEAM
ENVIRONMENT

SET A MARKETING PLAN ON

ADVERTISING/PROMOTION

BUY MEDIA SPACE AND TIME

INTRODUCE MARKETING
AUTOMATION TOOLS

CREATE A BUSINESS PLAN ON

MARKET EXPANSION
EXPLORE NEW MARKETS
GEOGRAPHICALLY

DIVERSIFY SALES CHANNELS

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