Beekeeper: Path to Growth

Beekeeper: Path to Growth

Beekeeper: Path to Growth HEC Montreal CSC Consulting Olivier Cohen, Brandon Jacobs, Jessica Drolet, Richard Wallace Introduction Analysis Alternatives Strategy Implementation Conclusion Problem Statement How can Beekeeper realign its targets and operations to drive sustainable long-term growth while resolving its recent growing pains? Introduction Analysis Alternatives Strategy Implementation Conclusion Key Issues 1 Lack of focus on key target market 2

No clear strategy over tailor-made or standardized product 3 Organizational misalignment and growing pains 4 Lack of corporate credibility for risk-averse clients Introduction Analysis Alternatives Strategy Implementation Conclusion Key Recommendations 1. Focus on 3 core industries 2. Target non-desk employee clients 3. Standardize product offering 4. Create marketing and communication plan Introduction Analysis Alternatives Strategy Implementation Conclusion Internal / External Strength Unique product offering Only player concentrating on deskless employee

clients Large corporate clients already on the books Weaknesses Loss of synergy due to rapid growth Satellite offices difficult to manage Customizations impeding product development Opportunities Big corporations present highly-potential customers Highly-scalable GDPR driving clients to Beekeeper Threats Multiple highly-popular messaging apps already in use across various industries Lack of differentiation may impact growth Beekeeper well-positioned, but must leverage core strengths to drive growth Introduction Analysis Alternatives Strategy Implementation Conclusion Alternatives 1. Focus on key industries with customized solutions Leverages resources on key markets Tailor-made solutions to attract clients 2. Focus on key industries with standardized product

Simplify operations Specialize in key segments Introduction Analysis Alternatives Strategy Implementation Conclusion Alternatives 3. Expand to new industries with customized solutions Increases potential market Improves value prop. to clients 4. Expand to new industries with standardized product Opens new markets for growth Simplifies development Introduction Analysis Alternatives Strategy Implementation Conclusion

Decision Matrix Alternative Target key customer Simplifies product base dev. and operations Reduce internal Build corporate Total inefficiencies credibility with and costs clients 1. Custom in key industries 2. Standardized in key industries 3. Custom in new industries 4. Standardized in new industries 1: Low, 4: High Introduction Analysis Alternatives Strategy Implementation Conclusion Decision Matrix Alternative Target key customer Simplifies product base dev. and operations Reduce internal Build corporate Total inefficiencies

credibility with and costs clients 1 3 10 1. Custom in key industries 4 2 2. Standardized in key industries 4 4 3 4 15 3. Custom in new industries 2 1 1 1 5 4. Standardized in new industries 2

3 3 2 10 1: Low, 4: High Introduction Analysis Alternatives Strategy Implementation Conclusion Decision Matrix Alternative Target key customer Simplifies product base dev. and operations Reduce internal Build corporate Total inefficiencies credibility with and costs clients 1 3 10 1. Custom in key industries 4 2

2. Standardized in key industries 4 4 3 4 15 3. Custom in new industries 2 1 1 1 5 4. Standardized in new industries 2 3 3 2 10 1: Low, 4: High Introduction Analysis

Alternatives Strategy Implementation Conclusion Key Recommendations 1. Focus on 3 core industries Hospitality Retail Manufacturing 2. Target non-desk employee clients Maximize value proposition around this feature 3. Standardize product offering 4. Implement marketing and communication plan Streamline core development Offer variants to specific industries Address client concerns Build brand confidence Introduction Analysis Alternatives Strategy Implementation Conclusion 1. Target Key Industries

Hospitality, Retail, Manufacturing Provide 80% of current revenues - targets main revenue generators Enables greater industry specialization, building operational efficiency and greater corporate credibility Reduced risk of macro-economic trends through diversification Introduction Analysis Alternatives Strategy Implementation Conclusion 2. Target Key Clients Focus on non-desk employee clients where BeeKeeper product is most effective Increases potential value-add, growing revenue generation capacity Reduces resources spent on low-impact, low-return products Introduction Analysis Alternatives Strategy Implementation Conclusion 3. Product Standardization Centre development on 1 core product with 3 main variants Pre-engineered options to allow some flexibility for customers Provides an effective off-the-shelf solution improving quality and stability Allows engineering to concentrate on core development Introduction

Analysis Alternatives Strategy Implementation Conclusion 4. Communications Plan Who? What? How? Employees Simplification Growth focus No longer a startup Aligned with values of collaboration and simplicity Middle manager weekend training Townhall meetings Emails Hospitality clients HR, IT, Procurement Stories on improved rankings Retail clients Stories on better in-store experiences and higher sales Case studies Blog post Social media

PR Results to be shared with future investors Better focus Lower costs Lower operational inefficiencies Increased client retention and growth Manufacturing clients Metrics on higher efficiency and cost reduction Introduction Analysis Alternatives Strategy Implementation Conclusion 4. Marketing Plan Clear positioning statement The #1 communication platform for non-desk employees in hospitality, manufacturing and retail. SURVEYS Employee engagement and retention AWARDS Security, compliance, CSR METRICS Market share TESTED

SOLUTIONS PROVIDER Introduction Analysis Alternatives Strategy Implementation Conclusion 4. Marketing Plan Partnerships with mobile device manufacturers Pre-install Beekeeper and sell devices to B2B clients, especially in developing countries Free trial for new clients in 3 core verticals One month, 25 employees Then charge per-user subscription fee Discount on three-year agreements Introduction Analysis Alternatives Strategy Implementation Conclusion Timeline All numbers in 000 USD # Actions 2 Communication Campaign Content creation Middle manager weekend training

Townhall meetings Follow-up emails Define client ambassadors Business development leveraging new content 3 Marketing Campaign Launch new product with free trials and promotions Partnership with mobile manufacturers (pre-installation) Advertising Budget 600 200 200 50 100 50 1000 400 TBD 600 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 1 2 2 2 2 1 2 1 1 1 1

1 1 1 1 2 1 1 1 1 2 1 1 1 1 1 1 Introduction Analysis Alternatives Strategy All numbers in 000 USD # Actions 1 Standardizing product offe ring Assess data to build core product offe ring Refocus workforce towards 3 core industries (MKT + Engineering) Establish requirements for 3 variants

Hire engineers Develop the core product Pilot with new clients Data Analytics + Improvement 2 3 Implementation Budget 2020 1520 Communication Campaign Content creation Middle manager weekend training Townhall meetings Follow-up emails Define client ambassadors Business development leveraging new content 600 200 200 50 100 50 Marketing Campaign Launch new product with free trials and promotions Partnership with mobile manufacturers (pre-installation) Advertising 1000 400 TBD 600 TOTAL Budget Total Funding (13M) Last round (2017 - 8M) 2018

2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 1 1 200 300 3,620 28% 45% Conclusion 1 1 1 1 1 2 2 1 1 1 1 1 1 1 1 2 2 1 1 1

1 2 1 1 1 1 1 1 1 1 2 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1

1 1 1 2 1 1 1 1 2 1 1 1 1 1 1 2 2 2 1 2 Introduction Analysis Alternatives Strategy Implementation Conclusion

Revenues Forecasts Revenues Estimates %Revenues on Costs Expected growth on revenues 2018 2020 10,100,000 10,605,000 90% 5% 2021 12,700,000 Total Costs Total HR Costs Employees number Average Salary 11,260,000 13,800,150 7,080,000 9,000,150 118 150 60,000 60,001 15,880,350 10,500,350 175 60,002 Revenues Estimates 13,000,000 20% 12,500,000 12,000,000 11,500,000 11,000,000 10,500,000 Total Other Costs

IT Servers Offices (10k/employee) 4,180,000 3,000,000 1,180,000 Revenues Delta 4,800,000 3,300,000 1,500,000 5,380,000 3,630,000 1,750,000 505,000 2,095,000 10,000,000 9,500,000 9,000,000 8,500,000 Additional Revenues over 3 years 4,695,000 8,000,000 2018 ROI 30% 2020 2021 Introduction Analysis

Alternatives Strategy Implementation Conclusion Risks Risks Loss of customers from standardization GDPR increase complexity Lack of buy-in from satellite offices Mitigation Grandfather the customizations into standard product over time Work with regulatory authorities to meet requirements Regular executive visits and communication to unify culture Introduction Analysis Alternatives Strategy Implementation Conclusion Conclusion 1. Focus on 3 core industries 2. Target non-desk employee clients 3. Standardize product offering 4. Implement marketing and communication plan

Reduce exposure to macro-economic trends through diversification of industries Maintain engineering headcount Strengthen core DNA of Beekeeper but concentrating efforts on core development Keeping it simple Positive ROI over 3 years Introduction Analysis Alternatives Strategy Questions? Implementation Conclusion

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