Transcript Marks and Spencers

EJP Software
Marketing Report
EJP Software
Web-based accountancy packages for
small businesses
Gap in the market for low-end web
solutions
Software deployment & hosted SAAS
Support & installation services
PESTEL
Political – generally favourable free trade
Economic – businesses growing quickly
Social – increasingly au fait & dependence
on IT
Technology – improving comms & web
Environmental – global warming
Legal – Issue of digital piracy
5 Forces
Bargaining power of Customers – High –
lots of accountancy packages
Bargaining power of suppliers – Low – in
house development
Threat of substitutes – High – competitive
market
Threat of new entries – High – low barriers
to entry
Competitive Rivalry - High
3 C’s – Kenichi Ohmae
Customers
– Small businesses (generic & specific)
– Reliability & stability
– User friendliness
Corporation
– Good leadership
– Good niche in market
– Dedication to customer needs
Competition
– More expensive providers
– Better brands, and more reliable appearance
SWOT
Strengths
– Customer oriented perspective
– Good quality reliable service
– Niche market
– Leadership (Vision)
– Good communications
Weaknesses
– Small
– Perceived as less reliable than IBM/SAP
Opportunities
– Growing IT skills – predominance of web services &
easy access
– Cheaper computers
– 100k new small businesses each year – all need
accounting software
Threats
– Legislation unfavourable to new start ups & taxation
costs
– Competition
– Global warming (environmental costs of data centre)
Objectives
Marketing Objective
– “Growing brand awareness in New SMEs
within UK to 90% prompted in 2 years”
– “Increase turnover by 25% within 1 year”
– “Increase profitability by 10% within 1 year”
STP
Segmentation
– Market segmented by localised area
– Focus on local SMEs
Targeting
– New SMEs
Positioning
– Low cost competitor
PLC (BCG Matrix)
Introduction – question mark phase
Market penetration
– Focus on local area offering quality services
to small business & specifically new business
– Expand awareness out to rest of UK
Gap analysis
£25k shortfall in turnover
£1k shortfall in profit
65% shortfall prompted BA
How to close Gap
Ingor Ansoff - Growth Strategies
– Market Development (focus on new business,
build UK BA)
Strategy
Low cost
– Targeted SME low cost
– Reliable but low cost
Market Development
Marketing Mix
Product – reliable software
Price – low cost
Place – Internet & personal sales
Promotion - BTL
People – Technically skilled sales staff
Process – reliable; integrated CS
Physical Evidence – Good website
Place
UK growth
Local area focus
Budget
Year 1 - 10% of £100k - £10k first year
B2B = BTL
– Exhibition for start up businesses
– Flyers
– Business cards
– Incentivise referals
Balanced Scorecard
Financial
– Expected acquisitions returning within 2 yrs £4bn/quarter - growth
Customer perspective
– Brand recognition in Chinese market
95% brand recognition & customer satisfaction from year 1
Learning & growth
– Skills development in customer service
Innovation
– Improved processes for supply chain management
and CRM
Controls
If balanced scorecard targets are missed
– Increase expenditure on ATL
Given extremely high planned growth extra
investment over and above the planned rates are
contingent
– Push promotions across China