IPRN AGM and conference, Milan 21.5.2009 Project of the year presentation

2. IPRN AGM and conference, Milan 21.5.2009 Project of the year presentation How to sell better to know how intensive Small and Medium Size Enterprises (SME’s) and How to get 7 new clients during last year  H&V Process concept™ Harkonsalo & Vesa, Karri Vesa

3. Short summary of Milan presentation Shortly described: It is a new approach to develop media relations work for Small and medium size enterprises. During last 13 months we have delievered this service package to about 10 expertise companies. And after the service package continued media relations work with normal retainer based co-operation. Now this new approach is the key competitive edge of our company when competing in the field of business to business clients. This productised concept has several advantages: we can invoice for planning work, making proposals has shorten dramatically, our billings overall has increased. During last year we have won all competitive pitches where we have presented this concept or service package.

4. Why concentrate on SME’s • Big BtoB companies are cutting budgets during recession • With SME’s we are discussing with decision makers – faster route to business • Selling to entrepreneurs or small companies’ directors needs different approach But they understand the strategic meaning of quality publicity to their company’s success – and they are willing to invest for it • Organizational structures are not there to disturb the cooperation • When we can sell to smaller enterprises, our client potential increases • All the competitors are selling to big ones – with Fortune 500 ranking • Budgets are not smaller – when compared to the time invested to cooperation

5. Objectives for the development project • Better differentiate Harkonsalo & Vesa from competitors • Increase cash flow • Better invoicing for the planning work which is done anyway – don’t give it free of charge • Making sales process faster and easier • For clients easier to purchase because the process is visible easier to trust on the promises • Make abstract service to a product

6. Solution • Systematical approach how to develope clients’ communication and bring them smoothly to publicity  H&V Process concept™

7. H&V Process concept™ to develope and implement know how intensive SME’s communication • Strategic workshop (according to H&V’s agenda) • Communication strategy (= direction, differentiation, targets, target groups and key messages of communication) (according to H&V’s agenda) • Tactical workshop (according to H&V’s agenda) • Media relations activities program • Background information package release for journalists • Media training session for key personnel • Continuous media relations work based on ”Media relations activities program”

8. Clients • Huge potential: smallest clients have been smaller than Harkonsalo & Vesa while started. • Biggest clients have had turnover of 20-30 million euros. (exception: TietoEnator) • Typical client is a know how intensive ict company with turnover between 0.7-10 million euros. Many of them are aiming to become international players. • Altogether 18 new clients during last 3 years have started cooperation according to the H&V Process concept ™

9. Budgets • H&V Process concept™ phases from 1 to 6, altogether 5000 – 10 000 euros depending on the size of the company • Sizes of retainer budgets for operational media relations work vary from 15 000 – 45 000 euros annually

10. Objectives achieved, unique concept • Differentiation: all the competitive pitches have been won during last couple of years. • If they haven’t become a client, what they remember afterwards was something like ”You had this process concept” • Some clients’ have said: ”Your competitors didn’t have that kind of clear process” 2. BtoB sector of Harkonsalo & Vesa has been growing: 20072008 turnover growth of BtoB was 28 % 2008/1-32009/1-3 turnover growth of BtoB was 17 % (at the same period Finland’s GDP decreased by 11 %)

11. Objectives achieved, more money 3. Better invoicing for the planning work: • 2008: extra revenue 33 000 euros • 2009: extra revenue so far: 20 000 euros, estimate for the whole year 40-45 000 euros 4. Easier sales process - during a first presentation with the client, budget frames can be given - no need for presentation of proposal - making an offer needs less than 1 hour

12. Objectives achieved, more than expected 5. Bonuses: • Clients have been pleased to the opportunity that they can develope their company’s communication strategy within a structured framework together with other managers • This approach intensifies the starting phase of cooperation, which is very important • Several managers at our client’s side know better what we are doing – more commitment • By separating strategic and tactical planning, during planning phase it is easier to define when to speak about what (this is difficult for most of the clients and also for pr consultants)

13. How did this all start? A stupid client asked stupid questions like: How are you going to do the things you are promising to me? Show me how you do it and I pay for it.

14. But!!! Don’t fall in love with your process. When selling your company or your work already done, you have to remember to emphasise benefits client is getting.