Beekeeper: Path to Growth HEC Montreal CSC Consulting Olivier Cohen, Brandon Jacobs, Jessica Drolet, Richard Wallace

Problem Statement How can Beekeeper realign its targets and operations to drive sustainable long-term growth while resolving its recent growing pains?

1 2 3 4 Key Issues Lack of focus on key target market No clear strategy over tailor-made or standardized product 2 Organizational misalignment and growing pains 3 Lack of corporate credibility for risk-averse clients 4

Key Recommendations 1. Focus on 3 core industries 2. Target non-desk employee clients 3. Standardize product offering 4. Create marketing and communication plan

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

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

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

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

Decision Matrix Alternative Target key customer base Simplifies product dev. and operations Reduce internal inefficiencies and costs Build corporate credibility with clients Total 1. Custom in key industries 4 2 1 3 10 2. Standardized in key industries 15 3. Custom in new industries 5 4. Standardized in new industries 1: Low, 4: High

Decision Matrix Alternative Target key customer base Simplifies product dev. and operations Reduce internal inefficiencies and costs Build corporate credibility with clients Total 1. Custom in key industries 4 2 1 3 10 2. Standardized in key industries 15 3. Custom in new industries 5 4. Standardized in new industries 1: Low, 4: High

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

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

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

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

Middle manager weekend training 4. Communications Plan Employees Simplification Growth focus No longer a startup Aligned with values of collaboration and simplicity Hospitality clients HR, IT, Procurement Stories on improved rankings Retail clients Stories on better in-store experiences and higher sales Manufacturing clients Metrics on higher efficiency and cost reduction Who? What? Case studies Blog post Social media PR How? Middle manager weekend training Townhall meetings Emails Results to be shared with future investors Better focus Lower costs Lower operational inefficiencies Increased client retention and growth

Clear positioning statement 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

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

Timeline

Revenues Forecasts

Risks Risks Mitigation Loss of customers from standardization Grandfather the customizations into standard product over time GDPR increase complexity Work with regulatory authorities to meet requirements Lack of buy-in from satellite offices Regular executive visits and communication to unify culture

Conclusion 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 1. Focus on 3 core industries 2. Target non-desk employee clients 3. Standardize product offering 4. Implement marketing and communication plan

Questions?