VLM

1 . Overview

At the end of 1999 VLM Managing Director, Declan Malone and Marketing Director, Gerry Malone, decided to fundamentally change the way they did business. As a print provider, VLM’s margins were being squeezed due to advances in software development. They decided to develop an integrated online printing system that would allow customers to quickly build documents and order them, without any interaction from VLM. This unique offering would provide VLM with the competitive advantage they needed in order to enter the highly attractive, yet highly competitive, UK estate agent market.

All development and design work was carried out in-house by VLM’s IT team. They developed a core system, which caters for 80% of customer requirements. The remaining 20% is then customised based on individual customer needs. The result of this development is that each customer can access their own secure web site, which contains customised templates for their specific marketing material.

VLM’s integrated online printing system has enabled customers to realised significant cost savings by consolidating their entire printing requirements with one supplier. Customers have greater control over ensuring that all their marketing collateral is consistent with their brand guidelines and head office has access to VLM’s management information system in order to keep track of printing costs. It has allowed VLM to complete orders in record time, eliminate errors and lock customers into long-term relationships.

This project has been a huge success for VLM, and has enabled them to compete in the UK, however far from resting on their laurels, they see this as just the beginning and are currently making plans to target other industries such as financial services & travel.

2 . Background

2.1 Company

Graphic Reproductions was set up by Gerard Malone (Senior) in 1967, as a traditional print shop. They have a history of investing in the latest technologies, dating back to 1976, when the company bought the first automated Scanner in Europe.

In 1988 Graphic Reproductions developed a computerised colouring system for the American Comic Book market with assistance from the Industrial Development Authority. This developed into a separate trading company, Graphic Color Works Ltd, in 1990, specifically to service the comic book industry.

The old manual skills used in the pre-print business were being de-skilled due to advances in software. Graphic Reproductions’ pre-print margins were being squeezed. In 1997, they invested in Digital Print technology, while at the same time maintaining their pre-print business. Virtual Literature Management (VLM) was created in 1998 when Graphic Reproductions and Graphic Color Works merged.

2.2 Market Information

The digital print market is a highly competitive one and has very small margins. VLM however, consider their main competitors to be in-house printers and not other print companies. The cost of printing in-house is high and the quality is low.

VLM’s primary market is the estate agent market and they service a large number of Irish estate agents. The UK market is much bigger and more attractive for two main reasons:

• Demographics; the UK population is approximately 20 times that of Ireland
• Turnover; People move on average every 8 years this is compare with every 15-20 years in Ireland.

The UK market is so competitive that in many cases estate agents will not display the address of a property in their window, in order to prevent another agent approaching the property owners to chase the business. Due to the fundamental differences in the Irish and English market, auctioneers in the UK are more aggressive than here. If they’re not selling, head office expects them to do marketing. This competitiveness is in VLM’s favour as their products give estate agents a competitive advantage. They produce higher quality brochures and their in-house designers create unique, customisable marketing collateral.

VLM set their sights, on the UK market and more specifically, the large estate agents, with 40 or more branches. The obvious question however was, what could a small digital printing company, based in Dublin, offer these companies that a local printer couldn’t? The answer was an integrated online printing system, the subject of this case study.