A Study Of Marketing-oriented Digital Transformation Of Company ABC

This research studies the digital transformation of Company ABC,a LED lighting retailer from Colombia.The company was born in 1983 to satisfy the lighting demand in the city of Cartagena.Over time,they have opened to new lighting technologies such as LEDs,and currently starting to market products with IoT technology.After more than 10 years of the transformation from halogen lighting to LED and having worked on several residential projects,the company has decreased its sales margin considerably in the last 5 years.The way products are promoted is not the same as it was years ago.One of the main reasons sales have been affected is because the company is not able to effectively respond to its target market or have meaningful insights to understand their target customer.The consumption habits of people have changed,consumers buying decisions and companies have been impacted by digital technologies.Due to the inability to effectively respond to market expectations and offer a multi-channel experience,new competitors in the market,hypermarkets and even manufacturers are starting to transform their business models.Previously,a manufacturer did not access the end user,but eCommerce has allowed them to do so through digital channels.The paper first analyzes the important insights of many researchers about digital transformation,and finds that the McKinsey 7S digital marketing model is an effective tool to help companies like ABC to mobilize its resources for stable yet fast digital transformation.Then the paper analyzes the internal and external situation of ABC to explore the current situation and establish the importance of digital transformation for the company.The paper proceeds to a McKinsey 7S analysis on ABC and finds that while it is weak in all the seven aspects,it scores the lowest in three aspects,namely Strategy,Skills and Shared Values.Based on the 7S Model assessment,the paper puts forward a digital transformation plan for the company: as ABC should focus on selling to individual customers visiting physical stores with immediate needs,the first problem identified is that the acquisition of new customers is too low,followed by the lack of a digital marketing strategy.The solution proposed on the thesis suggests to the studied company to shift their current product-oriented strategy into a Customer-Oriented Strategy.In this way,the segmentation was divided into three groups identified for ABC,residential,corporate and real state.The implementation plan proposed to ABC is based on the most critical factors that were identified in the 7S model assessment: As are the need for break down silos through interdepartmental communication and shift the current organizational structure into a Market-Based structure.It was forecasted that the sales funnel transformation can achieve an ROI of up to 3 times what is invested if the company manages to execute the plan correctly.Firstly,it is recommended to prioritize in improving the capture of potential corporate customers(B2B),called real state in the segmentation.For this,it is necessary to adopt a Lead Nurturing Strategy through multiple online channels,analyzing their behaviors,pain points and nurture them through valuable information and solutions.Implementing attractive calls to action and a good user experience across multiple channels and devices can subsequently improve the sales performance with the support of the sales department.Both departments can share common KPIs,which helps to minimize the bottlenecks in the B2 B sale process.The digital transformation study may not only help ABC more actively adapt to new market situation,but also offer reference to other companies facing similar challenges.