Product Sales Logic

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Allows outside sales to configure customized products.
Enables companies to be customer centric.
Optimizes product/inventory/margin mix.

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  • 10/23/09
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  • Product Sales Logic

    1. 1. Product Development <ul><li>Empower your Business </li></ul>Orlando Moreno [email_address] 408.656.2498
    2. 2. THE PRODUCT <ul><li>Allows outside sales to configure customized products. </li></ul><ul><li>Enables companies to be customer centric. </li></ul><ul><li>Optimizes product/inventory/margin mix . </li></ul>Benefits [email_address] 408.656.2498
    3. 3. <ul><li>Utilizes a user-friendly graphical user interface that will assist with the sales force and management transition towards automation. </li></ul><ul><li>Provides a visible scope of increased profits within months of implementation. </li></ul><ul><li>Sales Logic has a strong story to tell with regards to product differentiation and objective. </li></ul>Strengths THE PRODUCT [email_address] 408.656.2498
    4. 4. THE PRODUCT <ul><li>While SFA/EMA are relatively young industries, Competitor (Siebel) has established itself as the early market leader; Sales Logic is an Unknown. </li></ul><ul><li>Necessary resources, both financial and man-power, to support such an ambitious product may not be available. </li></ul><ul><li>The product is still in development and has not been tested, therefore, any software bugs are unknown at this time. </li></ul>Weaknesses [email_address] 408.656.2498
    5. 5. THE PRODUCT <ul><li>The software package is heavily dependent upon data input, and hence, the accuracy and timeliness is susceptible to human error </li></ul><ul><li>Implementation time is an unknown and could pose a problem if not timely. </li></ul>Weaknesses [email_address] 408.656.2498
    6. 6. THE PRODUCT <ul><li>The booming high tech industry; manufacturing levels within the electronics and information technology industries are at an all time high. </li></ul><ul><li>Sales Force Automation software is an emerging market with numerous market segments open for entry. </li></ul><ul><li>The Sales Force Automation market is forecast to grow at rate of 30% per year. </li></ul>Opportunities [email_address] 408.656.2498
    7. 7. THE PRODUCT <ul><li>Sales Logic will have trouble competing with an established company like Siebel if competing for the same space. There is a tendency for customers to go with established market leaders. </li></ul><ul><li>Companies will customize and build there own in-house systems or there is not enough “pain” to build such a grandiose product. </li></ul><ul><li>Merger of a Sales Force Automation software company with an Enterprise Management software would diminish product position. </li></ul>Threats [email_address] 408.656.2498
    8. 8. THE PRODUCT <ul><li>Sales Automation: </li></ul><ul><ul><li>Vantive, Aurum, Siebel, Scopus </li></ul></ul><ul><li>Marketing Automation: </li></ul><ul><li> Rubric, MarketFirst, Epiphany </li></ul><ul><li>Configuration Software: </li></ul><ul><li>Trilogy, Selectica, Calico, Concentric, Oracle. </li></ul><ul><li>ERP Enterprise Wide Software: </li></ul><ul><li>Baan (acquired Aurum), SAP, Oracle Business Applications </li></ul>The Competition [email_address] 408.656.2498
    9. 9. The Complete Product <ul><li>Market Knowledge: Sales Logic understands our customer’s business and what will give them the competitive advantage. </li></ul><ul><li>Technology Leader: Sales Logic must be a technology leader in the SFA/EMA market. </li></ul><ul><li>Excellent Service: Our customers must trust that they will be proactively managed following sale and installation. </li></ul>[email_address] 408.656.2498
    10. 10. THE PRODUCT <ul><li>To thrive in the SFA/EMA industry we must continually make enhancements to our initial product offering. </li></ul><ul><li>Enhancements will provide opportunity for increased revenues from existing customer base as well as enable us to stay ahead of the competition. </li></ul>Product Life Cycle [email_address] 408.656.2498
    11. 11. THE MARKET <ul><li>Market Characteristics </li></ul>In the 1990’s the networking environment in the corporate enterprise and among telecommunications carrier has increased dramatically in complexity and performance. Telecommunications and enterprises networking have become two of the world’s largest and fastest growing sectors in the networking industry. [email_address] 408.656.2498
    12. 12. THE MARKET <ul><li>Market Characteristics </li></ul>Standard & Poor’s forecast growth for the global communication equipment industry is 13% annually to 2000, with data communications and wireless segments expected to show strongest growth. Communications Equipment Manufacturers –(Telecom and Data) Worldwide Communications Equipment Market Estimate for 1999 is $300 billion. [email_address] 408.656.2498
    13. 13. THE MARKET <ul><li>Manufacturers of Communications Equipment that: </li></ul><ul><ul><li>Require Complex Configuration of Product Mix for Customer Solutions </li></ul></ul><ul><ul><li>Utilize Direct Sales Force As Primary Distribution Channel </li></ul></ul>Market Requirements / Fit with The Product [email_address] 408.656.2498
    14. 14. THE MARKET <ul><li>Market Requirements / </li></ul><ul><li>Fit with The Product </li></ul><ul><ul><li>View success as largely dependent on their ability to identify and respond to changing business conditions and need to rapidly collect, organize, analyze, process and store data throughout the enterprise to make effective business decisions. </li></ul></ul><ul><ul><li>Are experiencing rapid high growth and need to manage customer satisfaction while ensuring company profitability </li></ul></ul>[email_address] 408.656.2498
    15. 15. THE MARKET <ul><li>Market Requirements / </li></ul><ul><li>Fit with The Product </li></ul><ul><ul><li>Emerging companies in the industry that need to acquire market share quickly and effectively and are dependant upon their direct sales force to literally create the markets for their products. </li></ul></ul>[email_address] 408.656.2498
    16. 16. THE MARKET <ul><li>Market Segmentation </li></ul><ul><li>The Communication Industry is an extensive market which consists of telecommunication, data communication networking companies, equipment manufacturers and service providers. </li></ul><ul><li>We divided this industry into three primary segments: </li></ul><ul><ul><li>Network Service Providers Internet Service Providers </li></ul></ul><ul><ul><li>Communications Equipment Manufacturers </li></ul></ul><ul><ul><li>System Integrators and Value Added Resellers </li></ul></ul>[email_address] 408.656.2498
    17. 17. THE MARKET <ul><li>Market Segmentation </li></ul>We then selected the Communications Equipment Manufacturers because Communication Equipment Industry characteristics are fast changing, technologically driven, growing and highly competitive. [email_address] 408.656.2498
    18. 18. THE MARKET <ul><li>Market Segmentation </li></ul><ul><li>We partitioned even further by revenue volume </li></ul><ul><ul><li>Large Multinational/Multi-billion dollar well established companies </li></ul></ul><ul><ul><li>Mid-sized, established companies with revenues between $50 and 900 million </li></ul></ul><ul><ul><li>Start-up companies in new and emerging technologies with revenues of less than $25million </li></ul></ul>[email_address] 408.656.2498
    19. 19. THE MARKET <ul><li>Target Market </li></ul><ul><li>“ Dell’s fastest growing division is preferred accounts which includes such medium- sized business...” </li></ul><ul><li>We targeted the mid-sized companies for two reasons: </li></ul><ul><ul><li>Siebel has targeted Large Multi-National Customers making midsize companies available. </li></ul></ul><ul><ul><li>These companies fit the product and meet our objective. </li></ul></ul>[email_address] 408.656.2498
    20. 20. THE MARKET <ul><li>Target Market </li></ul>List of Potential Companies / Customers with characteristics that meet our Target profile. The Target is broad enough to offer growth in sales opportunities. These companies can afford <0.5% of sales revenues to invest in a customer management (sales force automation) and strategic planning software tool since they are strongly dependant upon direct sales opportunities. [email_address] 408.656.2498
    21. 21. THE MARKET <ul><li>Estimated Market Growth </li></ul><ul><ul><li>The Sales Force Automation (SFA) and Enterprise Resource Planning software market is estimated to grow at a rate between 28% and 37 % through the year 2000. </li></ul></ul><ul><ul><li>Our Target - The Communications market is estimated to grow at a rate between 13% and 30% through the year 2000. </li></ul></ul><ul><li>Sustained growth in each of these sectors places our product in a relatively good position for market entry. </li></ul>[email_address] 408.656.2498
    22. 22. THE MARKET <ul><li>Product Forecast </li></ul><ul><li>From a bottoms up, we are projecting the sale of 36 Strategist suites based on our sales goals with an Average Selling Pricing of $154K each for a total of $5.544 million in first year sales. </li></ul><ul><li>From a top down projection, the SFA software market is estimated to be about $750 million in the next year; 1 % of the market equals $7.5 million. </li></ul><ul><li>We project that The Strategist will secure between 0.5% and 1% of this market </li></ul>[email_address] 408.656.2498
    23. 23. THE MARKET <ul><li>Barriers to Entry </li></ul><ul><li>Product is not complete in a timely manner. </li></ul><ul><li>Existing SFA software company develops a “Total Solution” for profit performance before we go to market. </li></ul><ul><li>Major collapse in the economy preventing investment in performance enhancement tools. </li></ul>[email_address] 408.656.2498
    24. 24. Pricing Strategy <ul><li>Pricing Analysis </li></ul><ul><li>Low End </li></ul><ul><ul><li>Contact management, customer profiles, product configuration automation, Internet tools </li></ul></ul><ul><li>Mid Level </li></ul><ul><ul><li>Order entry capacity, marketing encyclopedia, quote operation and on-line interface, strategic planning tools </li></ul></ul><ul><li>High End </li></ul><ul><ul><li>More powerful closed-loop customer information </li></ul></ul>[email_address] 408.656.2498
    25. 25. Competition Based Pricing Price Performance Analysis $ Price Low Mid High Performance $ 500 $ 100 $ 10 [email_address] 408.656.2498
    26. 26. Pricing <ul><li>Pricing Range </li></ul><ul><li>Lower price on the e-commerce portion </li></ul><ul><ul><li>$ 20 k to 50 k </li></ul></ul><ul><li>Mid range on the data mart (Clear View) </li></ul><ul><ul><li>$ 50 k to 100 k </li></ul></ul><ul><li>High pricing on the Strategist </li></ul><ul><ul><li>$ 100 k to $ 200 k </li></ul></ul>[email_address] 408.656.2498
    27. 27. Pricing We believe Strategist is well positioned to become a leading product of Sales Force Automation and front-office software solutions, representing a high-growth, and an early-phase investment opportunity. [email_address] 408.656.2498
    28. 28. Pricing <ul><li>Front-office applications market was roughly $925 million in 1996, with market </li></ul><ul><li>Top Level VAR’s </li></ul><ul><li>Consulting Agencies </li></ul>[email_address] 408.656.2498
    29. 29. Distribution <ul><li>Selling Through: </li></ul><ul><li>Direct Sales - 3-5 Sales Persons to begin </li></ul><ul><li>Top Level VAR’s - they assess and resell </li></ul><ul><li>Strategic Partners </li></ul><ul><ul><li>Consulting Agencies - Coopers & Lybrand Anderson </li></ul></ul><ul><ul><li>Cooperative Partners - Microsoft </li></ul></ul>[email_address] 408.656.2498
    30. 30. Channels of Distribution <ul><li>Direct Sales </li></ul><ul><li>Top level VAR’s </li></ul><ul><li>Consulting Agencies </li></ul><ul><ul><ul><li>Anderson </li></ul></ul></ul><ul><ul><ul><li>Peat Marwick </li></ul></ul></ul><ul><ul><ul><li>KPMG </li></ul></ul></ul><ul><ul><ul><li>Coopers Lybrand </li></ul></ul></ul>Selling Through: [email_address] 408.656.2498
    31. 31. Channels of Distribution [email_address]
    32. 32. Distribution <ul><li>Minimal </li></ul><ul><ul><li>30%- 40% Discount to the VAR’s </li></ul></ul><ul><ul><li>Discount offset by providing technology only </li></ul></ul>Cost to The Distribution [email_address] 408.656.2498
    33. 33. MARCOMM <ul><li>Collateral Material 9,000 </li></ul><ul><li>Advertising </li></ul><ul><li>Logo 10,000 </li></ul><ul><li>Publications 140,000 </li></ul><ul><li>- Sales & Marketing Managment </li></ul><ul><li>- Data Communicaitons </li></ul><ul><li>-Sales & Field Force Automation </li></ul><ul><li>Direct Mail 8,000 158,000 277,000 </li></ul>[email_address] 408.656.2498
    34. 34. Marketing Actions Programs Goals <ul><li>Build a referral Base </li></ul><ul><li>Penetrate communications industry so that we can move into other segments </li></ul><ul><li>Name recognition as a leader in sales force automation & management </li></ul><ul><li>Qualified leads </li></ul><ul><li>Orchestrate the future of the communications industry </li></ul>[email_address] 408.656.2498
    35. 35. Marketing Action Programs <ul><li>Before launch - influence the opinion leaders </li></ul><ul><ul><ul><ul><li>Dataquest, Gartner Group </li></ul></ul></ul></ul><ul><li>Launch </li></ul><ul><ul><ul><li>Maximize product reviews </li></ul></ul></ul><ul><ul><ul><li>Press Release 5,000 </li></ul></ul></ul><ul><ul><ul><li>Public Relations 60,000 </li></ul></ul></ul><ul><ul><ul><li>Trade Shows 200,000 </li></ul></ul></ul>Product Launch [email_address] 408.656.2498
    36. 36. <ul><li>Questions….. </li></ul>Orlando Moreno [email_address] 408.656.2498

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