UK Consulting Case Study - CE Accessory
Time frame: 3 months (UK)

  • Background and Objectives COMPANY B is a developer of GSM, GPRS, 802.11 and CDPD wireless data solutions.  They had developed a product that provided wireless data capability through the GPRS network in the UK.  The target market was all PDA users in the UK.  At the time of the project, COMPANY B had no resources in the UK.  Levin Consulting UK worked with them to assess the opportunity for the product, develop a launch strategy, and get them in front of the key target accounts for the UK.

  • Project Activities
    Channel Understanding, Target Accounts & Profiling
    Levin Consulting conducted an analysis of the telecom channel appropriate for COMPANY B’s product. COMPANY B’s product required sales from resellers in the telecom channel.  This deliverable presented a list of some of the key target telecom resellers in the UK ideally suited for the product, and a description of each reseller's business models. The mobile networks in the UK were to be service providers for COMPANY B’s product, as well as potential targets as accounts (i.e. through their own stores).  An analysis of the network structure for similar products, their capabilities, and competitive information were provided.Levin Consulting’s analysis provided a thorough understanding of what the capabilities and recommended use of each network or channel player would be.
  • Opportunity Assessment
    Throughout the course of the research, Levin Consulting worked to validate and size the opportunity for PRODUCT B in the UK.  Target resellers and the mobile networks were interviewed to collect data and feedback on the product and business opportunity.  Levin Consulting also used the feedback from resellers and mobile networks to develop a sales forecast for the rest of the year (2002).
  • Identification of Potential Partners
    COMPANY B required a partner to completely manage the execution of the channel strategy in the UK. This needed to be a partner that would bring the product to market and potentially manage the sales, marketing, and customer support of the product.  The ideal objective was to find a partner that could expand into EMEA after the UK had been established.


Levin Consulting worked with COMPANY B to identify the potential partners (wireless carriers and other technology companies that drive products through the targeted channels), analyze their strengths and weaknesses as potential partners, and provide our recommendations on the best course of action.

Structure Requirements
The structure requirements to successfully compete in the channel were provided for the key areas (below). Information from the channel was used to develop the appropriate structure recommendations.  This included:

  • Pricing Model - the pricing model required to meet the requirements of the reseller, networks, and consumer was provided, including channel terms and conditions.
  • Activation - the recommended process and financial model for activations was provided.
    •
    Meetings
    Levin Consulting set and attended meetings with the majority of the targeted partners, key resellers, and the networks (all 4 of the majors in the UK).  The purpose of the meetings was to give COMPANY B direct access to the channel players important to their business development in the UK, and to begin the process of partnering where applicable.

    The Results
    Status at Beginning of Project:  COMPANY B had no placement, no relationships, and no knowledge of how the UK market for wireless products functioned, other than a relationship with distributor Hugh Symons on telematics boxes.

    At Completion of Project:  COMPANY B had a full blueprint and forecast for launching PRODUCT B in the UK through a partner.  Levin Consulting created relationships and had meetings (attended by COMPANY B) with the following companies, among many others:

    Retailers/Resellers
      • Carphone Warehouse
      • Dixons Stores Group (The Link)
      • Widget
      • Damovo
      • Finger Technology
      • Logical
      • ReadyCrest
      • Centia
    Carriers
      • Vodafone
        T-Mobile
      • Orange
      • O2 (BT)
    • COMPANY B had an in-depth understanding of the structure, objectives and future initiatives of each carrier, retailer, and reseller.  Levin Consulting provided a recommended plan of action for each target.  Finally, and most importantly, Levin Consulting gave a realistic view of the risk versus reward of launching full-scale through a partner, as had been intended at the outset of the project.In the end, through discussions with Levin Consulting and a better understanding of the full requirements of launching in this manner (versus the true opportunity), COMPANY B scaled back its efforts and focused on strengthening an already growing telematics business.  Though this was not the conclusion they had been anticipating at the outset of the project, it was a realistic conclusion based on the market requirements and opportunity.  The potential market opportunity and risk inherent to achieving the full sales level were not compatible.  In addition, the ongoing (and growing) competitive risk presented by products like the Treo and Blackberry was deemed too significant.

     

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