Increase market share with javascript - Sunient

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Information about Increase market share with javascript - Sunient
Business & Mgmt

Published on March 10, 2014

Author: sunient

Source: slideshare.net

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http://www.sunient.com

This case study was performed by Sunient for a project management software based out of Phoenix, Arizona. Our job was to develop a strategy that increases client's market area.

Sunient is an advertising agency based in Toronto, Canada. We are a new breed agency that combines economic and data strategy with creative design, human psychology, and web technology. We translate traffic data into business tactics, then tactics into tangible results. Our creative services include branding, graphic design, web design and development, and strategic consulting for executing our solutions.

http://www.sunient.com

SUNIENT Maximize Your Market Share Immediately with Javascript Technology Sunient is an advertising agency based in Toronto, Canada. We are a new breed agency that combines economic and data strategy with creative design, human psychology, and web technology. We translate tra�fic data into business tactics, then tactics into tangible results. Our creative services include branding, graphic design, web design and development, and strategic consulting for executing our solutions. This case study was performed by Sunient for a project management so�tware based out of Phoenix, Arizona. Our job was to develop a strategy that increases client's market area. Situation: The client followed a similar pricing strategy like other project management solutions. It had 3 di�ferent plans o�fering di�ferent number of users and projects. Each plan is targeted at separate audiences - freelancers, small firms, and enterprises. Freelancers paid $49 per month, small firms paid $79, and enterprises paid $99. Aggregate Demand Model: The rationale behind the demand model is that you will sell less as the price of the item goes up. Even if the more expensive plan has more o�ferings, there will be fewer enterprises than freelancers on the market. Each price point corresponds to an expected number of sales. This is shown in the 3 points on the graph: enterprise plan, small firm plan, and freelancer plan. Revenue = Price X Number of Sales.The green boxes on the graph represent the revenue the client receives. Empty Triangles: There are 4 empty triangles in the graph; these represent areas of the market the client can't capture due to its pricing strategy. Assuming the enterprise plan provides space for 100 projects and the small firm plan o�fers space for 50 project, which plan does a prospect choose if they need space for only 75 projects? The prospect will choose a di�ferent so�tware. To capture more market area, so�tware solutions are now o�fering more plans. However, it becomes impractical to o�fer 100 di�ferent plans. Goal: To develop a strategy that captures market area in an e�ficient manner. SUNIENT Sunient Inc. www.sunient.com Linkedin: goo.gl/uhTsUc sales@sunient.com +1 647 785 1607 © Sunient Inc. 2014 www.sunient.com sales@sunient.com +1 647 785 1607

Pricing Fundamentals: What a prospect is willing to pay for a plan is highly correlated with its revenues. The question then becomes what correlates with a prospect's revenue? At first thought, the revenue would be correlated with: The number of users. The number of projects. The problem with this correlation is that when a freelance has 10 projects, the freelancer may earn thousands. 1. 2. However if a large firm has 10 projects, it may earn millions. In other words, what a prospect is willing to pay is positively correlated with the number of users in its organization. The graph above depicts how firms are distributed in free market economies. They follow a pareto distribution where there are very few large firms, and plenty small firms and even more freelancers. However if a large firm has 10 projects, it may earn millions. In other words, what a prospect is willing to pay is positively correlated with the number of users in its organization. The graph above depicts how firms are distributed in free market economies. They follow a pareto distribution where there are very few large firms, and plenty small firms and even more freelancers. SUNIENT Sunient Inc. www.sunient.com Linkedin: goo.gl/uhTsUc sales@sunient.com +1 647 785 1607 SUNIENT© Sunient Inc. 2014 www.sunient.com sales@sunient.com +1 647 785 1607

Pricing Per User: In the project management so�tware space, there are many options but enough options for the solutions to di�ferentiate themselves from each other. This market condition would be considered as monopolistic competition. Our proposed pricing solution per user follows a perfect competition model where the price per user covers exactly the cost per user. The reason we proposed this was to allow the client to more easily penetrate the project management so�tware market. Conclusion: The client's goal was to establish a strategy that will allow them to gain market area in an e�ficient manner. Microeconomic theory was also applied to expedite the proposed strategy. Sunient combined creative thinking, web technology, and economic strategy to achieve the intended goals. SUNIENT Sunient Inc. www.sunient.com Linkedin: goo.gl/uhTsUc sales@sunient.com +1 647 785 1607 See www.sunient.com/blog.php for more articles. SUNIENT© Sunient Inc. 2014 www.sunient.com sales@sunient.com +1 647 785 1607

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