The document summarizes Avaya's sales and marketing processes. It finds that the marketing and sales teams at Avaya function independently without cooperation, leading to increased costs and misaligned metrics. This siloed approach also creates conflicting priorities between acquiring new customers versus retaining existing ones. The document then proposes solutions like a unified sales funnel and demand generation framework to better align the teams and improve revenue.
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Avaya Case Final.pptx
1. Avaya A & B Case
Study
MKM804
Prof. Humza Adam
1
2. Overview of the Market &
Situation Analysis
Avaya’s Market share is expected to increase by 16% over the next 5 years, placing it 2nd to Cisco.
Avaya was introduced in the late 2000 and started trading on the New York Stock Exchange.
Avaya is a subsidiary of Lucent Technologies and dominates IP Telephony with its highest sales of appliances, servers,
infrastructure, and software, with a 25% revenue share in 2006 and a 22% line shipped share.
The main problem that is hurting the company’s sales income is a strained relationship between the marketing and sales teams.
The concept of constantly feeding the funnel had not been a central element of the Avaya sales culture. As a result, salespeople
did not generally understand how to prospect.
In 2005, 53% of revenues came through indirect channels and 47% were generated by the direct sales force.
Offered two solutions, the "Unified funnel" and the "Demand generation" framework.
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3. Throughout the sales
process, the departments
are not cooperating —
they are functioning
independently and
sequentially. This chasm
not only influences how
departments interact and
communicate, but it is
also likely to have an
impact on sales and
profits generating
demand.
1
Communication
2
Operational
Cost
Departmental divisions
increased costs, affecting
company returns and
hindering growth
opportunities.
Both divisions focus on
distinct measures,
using different
strategies to track
activities and assess
daily operations
performance, rather
than using the same
metrics.
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Metric
Alignment
In terms of client focus,
there is a conflict of
interest. Marketing is
concerned with
acquiring new
consumers, whereas
sales is concerned with
keeping existing
customers. These
differences may have an
effect on revenue.
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Customer
Focus
Gaps Between Sales & Marketing
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5. WE WOULD NEED ‘20’
EMPLOYEE TO ACHIEVE THE
TARGET
• Target= $750,000,000, Quarterly= $187,500,000
• Sum of potential revenue/target= Raw funnel coverage
X/187,500,000 = 3.5
• X=3.5*187,500,000 = 656,250,000
• Each employee attends to 5% of the stage 1
656,250,000*5/100 = 32,812,500
• Hence, each employee handles $32,812,500 worth of
potential business 656,250,000/32,812,500= 20
• Therefore,
• We will need 20 employees to achieve a target of
$750,000,000
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7. Buyers Journey: Marketing Funnel
Airtel Inc. is seeking a communication infrastructure that streamlines communication within the company, encompassing
features like meetings, video conferences, email, and phone calls. Additionally, data is collected quarterly at each level of
the marketing funnel, which is then sent to marketing operations for analysis and aggregation.
Impressions Stage:
This stage encompasses all
activities, both direct and mass,
including advertising, that are
exposed to Airtel and their
decision-makers.
The responsibility for handling
this stage lies with the
Integrated Marketing
Department.
Solicits:
This includes various strategies
such as direct marketing,
telemarketing, and events.
Airtel will receive promotional
materials through database
marketing, providing in-depth
explanations of its key
products.
The responsibility for this stage
falls under the purview of the
Integrated Marketing
Department and Global Sales
Enablement.
Responder:
During this phase, Airtel
responds to promotions and
advertisements from
Avaya by providing relevant
information regarding its needs
and requirements.
Leads:
Airtel needs to meet specific
criteria set by Avaya to qualify
as a potential customer or lead.
Once qualified, the sales
department takes charge of
handling these lead accounts.
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8. Buyer's Journey: Sales Funnel
Pre-Qualified Leads:
•- At this stage, the Client
Executive (CE) assesses the
leads sent by the marketing
department to determine their
quality and whether they are
worth pursuing as potential
opportunities for Airtel Inc.
•- The CE carefully examines
Airtel's needs, position, and
requirements to gauge if they
align with Avaya's offerings.
Qualified Leads:
- Leads that successfully
pass the evaluation by the
CE are considered qualified
leads.
- These leads can either be
pre-qualified or have been
vetted by the CE after being
sent by the marketing
division.
- Once a lead reaches this
stage, Airtel becomes a
qualified lead, indicating
stronger potential for
business collaboration.
Pre-Contract:
- During this stage, Airtel and
Avaya work together to
resolve any outstanding
issues or questions related to
the proposal.
- Both parties engage in open
communication to ensure that
all terms and conditions are
addressed before finalizing
the contract.
Proposal:
- The CE prepares a detailed
proposal outlining how Avaya
can address the specific
pain-points and challenges
faced by Airtel.
- The proposal includes a
clear breakdown of the
solution's cost, taking into
account factors like Return
on Investment (ROI) and
Total Cost of Ownership
(TCO).
Written Agreement:
- Before finalizing the deal,
Airtel engages in negotiation
with Avaya to iron out any
remaining concerns and
reach a mutual agreement.
- Once both parties are
satisfied with the terms, the
final agreement is signed,
solidifying the business
partnership.
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9. During this stage, Airtel Inc. and the Client Executive (CE) will conduct a meeting to discuss the external and internal criteria of the deal. The CE will ensure that all outcomes
and expectations are clearly understood and agreed upon by both parties.
Additionally, this stage provides an opportunity to explore the potential sales of additional goods or services. Airtel and the CE will engage in discussions about any
complementary offerings that could enhance the proposed solution or provide additional value to Airtel.
Monitoring and Feedback:
After the implementation of the proposed solution, a
monitoring and feedback mechanism will be
established. Airtel and the CE will regularly evaluate
the progress of the project and address any
challenges or concerns that may arise during the
implementation phase.
Customer Support and Service:
Airtel will have access to dedicated customer
support and service channels, ensuring that any
issues or inquiries are promptly addressed. The CE
will be available to assist Airtel in resolving any post-
implementation concerns and providing ongoing
support.
Upselling and Cross-selling:
The CE will continue to engage with Airtel to identify
opportunities for upselling or cross-selling additional
products or services that align with Airtel's evolving
needs and requirements.
Renewal and Relationship Management:
As the partnership evolves, the CE will proactively
manage the relationship with Airtel, focusing on
customer satisfaction and fostering a long-term,
mutually beneficial partnership. The renewal process
will be facilitated smoothly, considering Airtel's
ongoing needs and satisfaction with the provided
solutions.
Continuous Improvement and Innovation:
Airtel and the CE will collaborate to identify areas of
improvement and innovation, aiming to enhance the
services provided and stay ahead of evolving market
trends and technologies.
Feedback Loop with Marketing Operations:
The CE will maintain a feedback loop with the
marketing operations team, sharing valuable insights
from the customer's perspective. This information
will contribute to refining marketing strategies and
tailoring future offerings to better suit customer
needs.
Implementation Stage:
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