Business plan, goals, focus & action items for the India set up of an international POD*

software company.

By: Soumya P. Dhar

India 15th May 2008

*Print on Demand

AgendaMarket Situation Analysis

ProductVDPMarketTarget Customer Segments

Strategy, plan and action pointsProcess flowGoalsBusiness strategyDistribution & ProspectsSales & Action PlansProjections

The productvariable data publishing (VDP)

Johannes Gensfleisch Gutenberg

Personalised marketing communication.

VDPVariable-data printing (VDP)

a form of on-demand printingtext, graphics, images are manipulated from one printed piece to another without stopping or slowing down the printing process.using information from a database or external file.

A set of personalized letters, each with the same basic layout, can be printed with a different name and address on each letter.

The NeedOn Demand PublishingDirect Marketing & FulfilmentTransactional Communication

The marketIndian printing market to grow to €11 billion by 2010 from € 8 billion in 2005 - Pira International, UK estimates.HP projects print market in India at € 12.81 billion (Rs 69,315 crore) by 2008, a growth of 47.5 % from 2003. INDIA fastest growing print industry after China for HP’s Imaging & Printing Group.Digital printing is growing faster.Xerox estimates Indian digital market will grow from €300 million in 2007 to €1 billon by 2012”. VDP is around 3% of the total market.Three “mega trends” in the industry Personalization, Collaboration and Digitisation” - Ursula Burns, President, Xerox in a recent visit to India.

Target Customer SegmentsPrint Service Providers

Direct Marketing CompaniesFinancial ServicesInsuranceUtilities & TelecomGovernmentPostalMedia

AgendaStrategy, plan and action points

Process flowGoalsBusiness strategyDistribution & ProspectsSales & Action PlansProjectionsVision

Business process flow

CapabilityAssessment

Status- Review

Industry Trends

Competitive Analysis Financial

AnalysisGrowth Opportunity Prioritization

Phase I

Phase IIPhase

III

Validated by primary

market research

Financial Implications• Market Potential• Pro forma financials• Profitability

Existing products, distribution and

pricing

Market overview

Competitive landscape Hypo-thesis

Business options &

partnership strategy

Partner screening

& selection

Partnership Strategy & Partner Selection

MARKETMARKETENTRY &ENTRY &GROWTHGROWTH

GoalsDouble current sales. (€120,000 in ’07)

Increase & strengthen distribution.Create ‘financial’ wins (have at least 5 prospects by the end of the year.)

Office and demo set up.Build successful industry partnerships. (HW vendors, industry associations.)

Distribution FocusValue Added Resellers (VARs)ISV (Independent Software Vendors)Systems Integrators for the printing/publishing industry.Printing & publishing firms.Target segment specific partnerships.

Prospect FocusHardware manufacturer relationships – HP, Xerox.POD service providers like Printo at Bangalore.Marketing and mail order fulfilment service providers.All GSM and CDMA service providers.Private utility service providers.Key global customers in Insurance & Financial services.

Business Strategy• Grow distribution – target partners of ‘mail

stream’ co.s like Pitney Bowes etc. strengthen and assist current partner

• Marketing – build case studies like Mega Calibre; create reference points– participate in trade fairs– PR; media coverage

• Industry & Trade association and member ships: NPES - The Association for Suppliers of Printing, Publishing and Converting Technologies.

• Drive the concept of the ‘Transactional Promotion’ Transpromo into new segments like finance.

Sales plans• High touch sales

model, work closely with partner with a regular business plan and follow up.

• Develop new partners to widen access to target customer base.

• Competition accounts of HP Exstream, PrintSoft, EMC Document Sciences, EFI.

Action Items• Send information pack with a

request to meet to all 96 members of Indian Printers association.

• Follow up with direct in person contact & presentation with at least the top 20.

• Similar approach for distributors list.

• Sales & tech support team to be set up for effective pre & post sale coordination and service delivery.

P&L Budget € India - HY 2008

2008 Q1 Q2 Q3 Q4Revenues

RS. 24 26 22 28 Total Revenues 240,000 15,573,600 57,600 62,400 52,800 67,200

Gross ProfitGross Profit 96,000 6,229,440 23,040 24,960 21,120 26,880 Gross Margin 40.0 % 40 40.0 % 40.0 % 40.0 %

Salary CostsSalaries, social sec, pensions 80,000 5,191,200 20,000 20,000 20,000 20,000

Operating ExpensesMarketing 10,000 648,900 2,400 2,600 2,200 2,800 Travel and Entertainment 10,000 648,900 2,400 2,600 2,200 2,800 Rental costs 30,000 1,946,700 7,200 7,800 6,600 8,400 Communication costs 10,000 648,900 2,400 2,600 2,200 2,800 Consulting, auditing, lawyers 15,000 973,350 3,600 3,900 3,300 4,200 Other Operating Expenses 20,000 1,297,800 4,800 5,200 4,400 5,600 Total Operating Expenses 175,000 11,355,750 42,800 44,700 40,900 46,600

Operating ProfitOperating Profit (79,000) (19,760) (19,740) (19,780) (19,720) Operating Margin -32.9 % -34.3 % -31.6 % -37.5 % -29.3 %

Expense RatiosSG&A in % of Revenues 106 109.0 % 103.7 % 115.3 % 99.1 %G&A in % of Revenues 72.9 % 74.3 % 71.6 % 77.5 % 69.3 %Salaries in % of Revenues 33.3 % 34.7 % 32.1 % 37.9 % 29.8 %

P&L Budget € India - FY 2009

2009 Q1 Q2 Q3 Q4Revenues

RS. 24 26 22 28 Total Revenues 369,000 23,944,410 88,560 95,940 81,180 103,320

Gross ProfitGross Profit 147,600 9,577,764 35,424 38,376 32,472 41,328 Gross Margin 40.0 % 40 40.0 % 40.0 % 40.0 %

Salary CostsSalaries, social sec, pensions 100,000 6,489,000 25,000 25,000 25,000 25,000

Operating ExpensesMarketing 20,000 1,297,800 4,800 5,200 4,400 5,600 Travel and Entertainment 15,000 973,350 3,600 3,900 3,300 4,200 Rental costs 20,000 1,297,800 4,800 5,200 4,400 5,600 Communication costs 15,000 973,350 3,600 3,900 3,300 4,200 Consulting, auditing, lawyers 5,000 324,450 1,200 1,300 1,100 1,400 Other Operating Expenses 25,000 1,622,250 6,000 6,500 5,500 7,000 Total Operating Expenses 200,000 12,978,000 49,000 51,000 47,000 53,000

Operating ProfitOperating Profit (52,400) (13,576) (12,624) (14,528) (11,672) Operating Margin -14.2 % -15.3 % -13.2 % -17.9 % -11.3 %

Expense RatiosSG&A in % of Revenues 81 83.6 % 79.2 % 88.7 % 75.5 %G&A in % of Revenues 54.2 % 55.3 % 53.2 % 57.9 % 51.3 %Salaries in % of Revenues 27.1 % 28.2 % 26.1 % 30.8 % 24.2 %

Manpower:

Headcount 2009 Q1 Q2 Q3 Q4Country manager - - - - Sales 2 - - 1 Support 1 ChannelsMarketing 1 Other - - - - Total 3 1 - 1

Headcount 2008 Q1 Q2 Q3 Q4Country manager - 1 - Sales - - 1 Support 1 ChannelsMarketingOther - - - - Total - - 1 2

Vision INDIA • Sales and marketing office• Off shore SW Development;

R&D Centre• Support & Maintenance

contact centres.• 5year horizon entry strategy.