Post on 28-Dec-2015
Process Safety Management Marketing Plan
Updated: August 17, 2011
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Safety Resources Strategic Sweet Spot
Behavior-based
management & system
consulting
Operations Risk Consulting
(PSM)
Compliance, Audit
Providers,Basic skill-based tools
Unique DuPont position:
• Solutions combine PSM expertise with behavior-based, “culture-oriented” approaches and basic skill development
• Further differentiated by our real-world, “owner-operator” experience
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Safety Resources Strategy SummaryTo grow our safety business by 2016 (to $250mm), by offering service solutions to business clients to create outstanding value in reducing risk and saving lives and livelihoods. We will achieve this by aligning with emerging market and industry needs, leveraging the power of the DuPont brand in safety, building upon our owner-operator experience and through leading edge safety research.
How to CompeteWhere to Compete
Capabilities To WinGoals and Aspirations
Grow from $138mm in
2010 to $250mm in
2016
Thought and Innovation leader
DuPont Safety Brand
Fully Integrated L&D support program
Thought Leadership at leading edge of safety development
Leader in integrated PSM Management
World class methodologies
Develop value propositions for specific market segments:- Mature high performers
- Growing mid market players in emerging markets
Develop “sustain” phase offering
Develop offerings to support changing workforce
Develop validated field assessment techniques
Merge training production capability into strategic workforce capability development program
Develop in-house capability inTalent acquisition
Learning & Development of client-facing teams Workforce collaboration through knowledge management
Acquire deeper knowledge and content skills sets in PSM disciplines
Develop change management capabilities and model
Integrate modern instructional design into consulting methods: coaching & facilitation
Acquire project management and contractor management experience and skills
Employee, Process, and Contractor
Safety
Accelerate Growth in Emerging Regions
Energy, Construction, Mass Trans,
Metal / Chemical Processing
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Strategy
Strategy Statement:
To more than double the size of the PSM/ORM practice by 2014 (to $75mm), by offering service solutions to business clients to assist them in managing their operational risk to prevent process related injuries and incidents.
We will achieve this by leveraging the power of the DuPont brand in safety, building upon our owner-operator experience in implementing PSM and applying our proven management system and set of tools, technologies, training, and practices.
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM will drive 70% of DSR growth between 2011 and 2016
17
67
13
153
170
237250 250
2011 Employee Safety Process Safety Contractor Safety 2016
DSR 2011-2016 Revenue Objective ($MM)
16%25%3%’11-’16 CAGR
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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High-risk process industries will continue to drive PSM growth
Oil and Gas, Chemicals
• Support existing customers (RIL, Suncor, PRSI, CCRL, CNPC, Husky, GALP, Pemex, etc.)
• Increase emphasis on Upstream O&G
• Focus on national oil companies, growth companies with proven reserves, and JV’s
• Serve market created by US OSHA’s Chemicals National Emphasis Program
Non-traditional, high risk process industries
• Mining and Metals Processing
• Power Generation
Regions with plentiful resources and where there is new process industry investment
• In A/P: India, China, Indonesia, Malaysia and Vietnam
• In EMEA: Central Europe (Caspian Basin, Poland, etc.), Russia and CIS, Middle East (Abu-Dhabi, Kuwait, Saudi Arabia and Qatar), Pakistan and Sub-Saharan Africa
• In LA: Mexico and Brazil
• In USC: Canada
Trends
• Increasing corporate focus on risk mitigation
• Continued tightening of regulations/enforcement eg. OSHA NEP program
• Greater societal implications for major incidents – e.g. Texas City, Deepwater Horizon
• Developing world is further behind in regulation, but mitigation of catastrophic failures and asset losses are often of primary concern (over employee safety)
Key Industries & Regions
Oil and Gas, Chemicals
• Support existing customers (RIL, Suncor, PRSI, CCRL, CNPC, Husky, GALP, Pemex, etc.)
• Increase emphasis on Upstream O&G
• Focus on national oil companies, growth companies with proven reserves, and JV’s
• Serve market created by US OSHA’s Chemicals National Emphasis Program
Non-traditional, high risk process industries
• Mining and Metals Processing
• Power Generation
Regions with plentiful resources and where there is new process industry investment
• In A/P: India, China, Indonesia, Malaysia and Vietnam
• In EMEA: Central Europe (Caspian Basin, Poland, etc.), Russia and CIS, Middle East (Abu-Dhabi, Kuwait, Saudi Arabia and Qatar), Pakistan and Sub-Saharan Africa
• In LA: Mexico and Brazil
• In USC: Canada
Trends
• Increasing corporate focus on risk mitigation
• Continued tightening of regulations/enforcement eg. OSHA NEP program
• Greater societal implications for major incidents – e.g. Texas City, Deepwater Horizon
• Developing world is further behind in regulation, but mitigation of catastrophic failures and asset losses are often of primary concern (over employee safety)
Key Industries & Regions
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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The addressable competitive market for Safety Consulting is $3.2B with PSM representing about $1.9B
DSR Addressable Market($3.2B)
Source: Kennedy Information Advisors
$1.93bn
$1.23bn
Employee &Contractor
PSM
• Detailed Market Research by KIA in Q1 2011 has identified substantially greater revenue opportunity in the PSM space
• Total safety consulting ‘addressable’ market remains even larger as many potential clients “do-it-themselves”
• Addressable competitive market now estimated at $3.2bn – with PSM representing nearly 2/3
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Detailed Analysis by KIA of the PSM Addressable Market has identified new players in both PSM and overall Safety Consulting
Emphasis on Contractor/Construction Safety & embedded within project work
Source: Kennedy Information Advisors
Comprehensive List of Firms PSM Revenue Employee & Contractor Safety Total
DNV $ 105.0 $ 56.0 $ 161.0
DuPont $ 24.0 $ 114.0 $ 138.0
ERM (Environmental Resources Management) $ 61.0 $ 74.0 $ 135.0
Bechtel $ 42.0 $ 82.0 $ 124.0
ABS Consulting $ 90.0 $ 33.0 $ 123.0
Shell Global Solutions $ 85.3 $ 23.5 $ 108.8
Bureau Veritas $ 85.0 $ 20.3 $ 105.3
Deloitte $ 51.0 $ 47.4 $ 98.4
Jacobs Engineering $ 50.0 $ 45.0 $ 95.0
ABB $ 87.0 $ - $ 87.0
Aon Consulting $ 30.0 $ 55.0 $ 85.0
Fluor $ 19.0 $ 60.0 $ 79.0
Siemens $ 35.0 $ 40.0 $ 75.0
Hima Paul Hildebrandt GmbH $ 45.0 $ 25.0 $ 70.0
Allianz $ 60.0 $ 60.0
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Competitive Insights
1. Of Top 15 overall safety consulting players, DuPont is 2nd largest, but 14th largest in PSM revenues
2. None of the specialist behavioral safety competitors – BST, JMJ etc – make the top 15
3. Significant number of EPC players – revenues estimated for services performed within larger major projects. Aligns with our CSM/Cap Effectiveness practice
4. In PSM, insurers are significant players, one, Aon has made a specific strategic move to provide consulting support for PSM improvement. Others, Allianz, Marsh, Liberty Mutual etc appear more opportunistic
5. DuPont, together with Shell, remain as one of the few owner operators, but the acquisition of CoreMedia by Caterpillar – although small – validates the attractiveness of the service offer
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Services Continuum
Process Innovation / Renovation
Best Practices Workshops
Assessments / Benchmarks
Corporate PSM Strategy Development
Asset PSM Improvement Plan Development
Plan / Design / Development
OperationsSupport &
Implementation
Continuous Improvement
Governance and Organizational Design
PSM Design Facilitate PSM
Standards/Procedures/Processes
Organizational Development
Expert Skills Augmentation
Delivery Execution Partnering
What To DoWhat To Do Help BuildHelp Build Help RunHelp Run Help SustainHelp Sustain
Focus Areas
1.Integrated PSM Mgt Systems
2.Operational Discipline
3.PSM Performance Management
Decision Makers
VP Level: Ops, Plant Mgr, COO
Influencers
Technology Mgr
Engineering Mgr
Dir of Safety or Op Risk Mgt
Services Business
Competency
“Assisting clients manage
their operational risk to prevent process related
injuries and incidents.”
Services Business
Competency
“Assisting clients manage
their operational risk to prevent process related
injuries and incidents.”
PSM Audits Operating
Discipline Assessments
Learning and Development curriculum
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Offering Statement
The Process Safety Management (PSM) offering from DuPont Sustainable Solutions is a proven, multifaceted and comprehensive process that helps organizations manage their operational risk to:
Prevent process-related injuries and incidents
Sustain right-to-operate status and positive reputation among all stakeholders
Achieve sustainable improvements in business continuity, asset productivity
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Value Proposition
Promise: A proven managing system to enable sustainable improvements in process safety and to avoid loss of life, property, business and environmental image
Target Audience:
• Decision Makers-COO & VP level in Ops, Plant Management
• Decision Influencers: Dir of Safety or ORM, Technical and Engineering Management
Differentiation:
• Owners and operators of high hazard processes all over the world with 200+ years of experience
• A complete, integrated management system for PSM at corporate and site levels
• Technical knowledge and content, linking behavioral elements of employee safety as a foundation for effective PSM
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Value Proposition – cont.
Reasons to Believe:
• Extensive internal PSM expertise recognized by Industry recognition
• Proven results in delivering improved PSM performance with external clients
• Routine interactions and applied experience with senior leadership on PSM systems, performance and continuous improvement
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Strengths and Unique Attributes
• A manufacturing company and brand recognized as a leader in Safety with specific PSM responsibilities, operating systems and leadership practices
• Extensive internal PSM technical expertise, experience, and systems in developing, maintaining and improving PSM
• Extensive PSM management and technical consulting experience and capabilities with external clients
• Routine interactions and applied experience with senior leadership on PSM systems, performance and continuous improvement – translational capability to engage leaders and connect to PSM
• Ability to engage with and influence PSM within other manufacturing companies across the supply chain (raw materials , products, distribution)
• Actual experience in PSM training and mentoring for executive leaders (internal and external clients)
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Capabilities to win
• DuPont Brand and Safety Leadership directly transfers to PSM
• Knowledge and ability to apply tools of PSM; essential for interpretation of PSM Studies results and configuration of Software Solutions
• Ability to articulate the simplified, de-mystified value proposition
• Gifted, capable, experienced, practical people (delivery) MI, PHA,
• Knowledge sharing and collaboration; key to introduction of new PSM Training Offering
• Solutions Design; essential to move client from assessment phase to envision, plan and implementation phases which brings a ~20X revenue multiplier
• Regional capabilities: ME (Weak), CIS (Weak), Brazil and Mexico (Med), India and China (Strong), Canada, US, (Strong) W. Europe (Med)
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Segmentation
Market Segment Selection Criteria
• High risk industries with focus on Major Incident prevention
• Significant operations: equipment, people sensitive and capital intensive
• Growing areas with money to spend
• PSM applicability
• Ability for DuPont to capture more share due to our combination of content, approach and owner-operator experience
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM/ORM Industry Potential & Development
Rel
ativ
eM
kt A
ttra
ctiv
enes
s
Relative Business Strength
Hi
Lo
Lo Hi
O&G
Utilities
Metals Processing
ChemicalsFood
Rail/Mass Trans
Mining (sub-s)
Mining (open)
Healthcare
Hospitality
Phase I Development
Phase II
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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4 Target Industries with significant operational risk from PSM-type incidents
Applicability of Potential Offerings by Industry
Leadership and Management
Systems TrainingPSM Software
ServicesPSM Studies /
Analytics
Oil and Gas H H H H
Chemicals H H H H
Metals & Mining H H M M
Power Generation
M H M L
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Target Market Segments
Target segment
Description Needs Rationale
Chemicals Core segment, High hazardous, small & med-size players,
Understand concepts but need support on “how to do it” and establish procedures to protect from loss of expertise due to aging workforce
Core business, recognized leader, can leverage existing relationships, brand strength, previous work in WPS to extend to PSM
Oil and Gas-Upstream and Downstream
Core segment, small & Med independents, NOCs, in developing regions where reserves exist and investment occurring (India, China, Russia, ME)
Understand concepts but need support on “how to do it”, need to establish operating discipline
Extensive client experience to be leveraged, strong DuPont brand credibility, no established PSM management system, less regulated but wanting to play in global economy so PSM is critical to growth
Power Generation
New growth area – power generation from traditional sources – primary coal fired thermal power plants
Understand concepts but need support on “how to do it”, need to establish operating discipline, need help to adapt PSM principles to specific Industry dynamics
PSM applicability and meets other selection criteria as noted, can leverage existing relationships, brand strength, previous work in WPS to extend to PSM
Metals Processing
New Growth Area Understand concepts but need support on “how to do it”, need to establish operating discipline, need help to adapt PSM principles to specific Industry dynamics
PSM applicability and meets other selection criteria as noted, can leverage existing relationships, brand strength, previous work in WPS to extend to PSM
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Segment Strategic Intent and Goals
Segment Where we are Strategic Intent Where we want to be Value Proposition
Chemicals Recognized PSM SME, growing awareness of commercial offering (“I didn’t know DuPont did this!”)
Build off our client successes, leverage the brand and our existing relationships in Safety, establish position as Thought Leader
Established as a player in PSM consulting
Tried and true, operating discipline to sustain improvements
Oil and Gas Recognized PSM SME, growing awareness of commercial offering (“I didn’t know DuPont did this!”)
Build off our client successes, leverage the brand and our existing relationships in Safety, establish position as Thought Leader
Established as a player in PSM consulting
Tried and true, operating discipline to sustain improvements
Power Generation
Not recognized as PSM/ORM expert for Power Generation.
Demonstrate ability to apply PSM principles to Power Generation specific Ops Risk management needs, leverage Thought Leader position in Chem and O&G
Codified, adapted approach, ready to scale. Recognized as credible player in Power Generation
Tried and true principles adapted to clients’ specific industry dynamic and issues
Metals Processing
Recognized PSM expert, opportunistic engagements, handful of “first of kinds”
Demonstrate ability to apply PSM principles to needs of Metals Processing Ops Risk management, leverage Thought Leader position in Chem and O&G
Codified, adapted approach, ready to scale. Recognized as credible player in Rail
Tried and true principles adapted to clients’ specific industry dynamic and issues
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Key Market Issues
1. Lack of awareness that we have an offering in this area
2. DuPont's comprehensive approach is viewed as a lack of understanding of the client’s unique situation • Need to adapt our approach to the industry and client strategy (where the client is
in the journey)• Most Customers lack the resources to integrate a “DuPont approach” • Need to start with most urgent needs
3. Perceived to have missed an opportunity after the BP Texas City incident • ...many companies came forward with their capabilities to help prevent incidents in
future, DuPont was noticeably absent
4. Different business challenge in process- (Chemicals, O&G) vs. non-process (Transit) industries• In regulated industries, PSM is an established discipline, so our goal is to establish
awareness of DSS as a player• In non-regulated industries, there is no established discipline, so our goal is to first
create awareness about “low frequency, high impact” incidents and at the same time, position DSS as a player
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Marketing Plan Overview
1. Recap of PSM Strategy Statement (and Key Messages)
2. Situation Analysis (Market Drivers and Competitive Dynamics)
3. Offering Description and Positioning
4. Customer Segment Overview and Strategies Review
5. Key Issues
6. Marketing Objectives and Tactics
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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PSM Objectives/Marketing Strategies & Tactics
• Attain $73 mn in annual revenue by 2014
• Establish DSS as a Thought Leader in PSM/ORM
Objectives
Create awareness of PSM/ORM Offering
Develop market through client involvement and education
Position offering as flexible and adaptable to specific segment and client needs
Strategies Tactics
1. Print advertisements & articles in Trade Publications
2. Online content (DSS Website)3. Search Engine Optimization4. Presence at events
1. Speaking Engagements2. White papers3. Workshops4. Case Studies
1. Create global message platform2. Develop collateral3. Develop high interest offerings4. Create sales tools
Support growth in new industry segments and regions
1. Develop Industry specific messaging 2. Apply needs based segmentation 3. Support regional execution4. Gather regional insights