Monday, April 27, 2020

Marketing Expansion Proposal

Executive Summary ServeSoft Inc, a managed services company, provides IT services and training for clients based in Virginia, and in some parts of the United States, who do not want to set up IT departments. It uses a simple pricing approach with a fixed monthly fee. There are three classes of services namely, PC Management, Server Management, and Network management. The three main competitors in the market are, Bastionpoint, Iptech and Iservetech.Advertising We will write a custom report sample on Marketing Expansion Proposal specifically for you for only $16.05 $11/page Learn More The key demands that clients place on Managed Service Providers (MSP) include professional services, quick response, full time service, and regular training, all at affordable cost. For its expansion, ServeSoft has a good chance of increasing its presence in the managed services sector by concentrating promotion to its traditional market segment, which is growing rapidly. The goal for expansion is to become a prominent managed services provider in Virginia, through increased web presence. Proposed strategies for increasing the web presence include Search Engine Optimization and Social Media Integration by using LinkedIn and a blog. LinkedIn has a professional look to it. Its use will augment the development of a user-friendly website. The range of enterprises targeted includes medical practices, educational institutions, and all computer-using enterprises. The implementation of the strategy will be done in-house, except for the Search Engine Optimization component, which will be managed by Search Engine Optimization expert. International business involvement presents various risks and barriers including language, political issues, and technical concerns. It requires development of local capacity in overseas locations to handle on-site services. By tracking traffic to the website, feedback will be available to measure the success of the market expansion strategies. Business Overview Background on the market ServeSoft Inc. is a managed services company targeting clients with employees who number between ten and one hundred and fifty. ServeSoft is seeking to increase its online presence with the view of increasing its market share. It uses a simple pricing approach characterized by a flat monthly fee for contractual services while for special services there are specific predetermined costs.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Clients seeking managed services are those that find it cumbersome and costly to set up an IT department. ServeSoft offers services tailored for their needs. They get the full benefits of a professional IT department complete with the state of the art equipment, without having to meet the capital and operational costs. ServeSoft retains specialists in all kinds of IT services to meet the client’s nee ds. By providing services to a large number of clients, ServeSoft generates sufficient revenue to make the services reasonably affordable to the clients, while attaining a reasonable return on investment. Services ServeSoft uses the internet to offer eighty percent of its services, classified under three main plans. Within each plan, a client chooses from a range of services available, determined by the degree of support the client needs. The degree of support ranges from remote support only via the internet, all the way to full support, which includes on-site servicing of a client’s IT equipment. The first plan is for PC Management. Through it, ServeSoft ensures that a client’s computers work optimally and remain protected from threats like viruses and malware. Under the second plan designed for Server Management, ServeSoft undertakes to monitor and maintain the client’s servers regularly. All the options under this plan include fulltime online support. The thi rd plan adresses Network Management. ServeSoft monitors operations of the client’s network to optimize it as required at any one time. The client receives warnings about any impending problems with their network requiring preemptive action. This plan also includes disaster recovery guidance. In addition to these services, ServeSoft offers training to its clients on various issues regarding IT management. The training covers basic aspects of computer maintenance, which provide the client with the capacity to conduct simple troubleshooting routines to ensure the system does not fail. Pricing and Distribution Each plan attracts a different pricing model determined by the degree of support a client requires. The prices are preset and as such, a client is certain about IT costs as at the time of signing the contract. For each additional service within a plan such as backup services, a flat fee of $200 USD applies. The main mode of relaying these services to clients is via the inte rnet.Advertising We will write a custom report sample on Marketing Expansion Proposal specifically for you for only $16.05 $11/page Learn More Most the services offered involve connecting to a clients system via the internet. This reduces the cost of travel for all the services that are deliverable online. However, some services require on-site visit to a client’s premises. In these situations, ServeSoft sends a technician to the client’s premises to carry out the task. Competitors There are several competitors based in various parts of Virginia. The three main competitors are Bastionpoint, IpcTech, and Iservetech. Combined, these three companies boast 50% of the market share within the state of Virginia. BastionPoint Technology has a market share of 20%. The main mode it employs to appeal to clients is addressing decision makers. It offers to provide computer services and networking solutions. Their website experiences minimal traffic. It s positioning portrays a service provider of highly specific services. IPCtech has been on the market for ten years, it offers IT and educational services to a worldwide clientele. It controls 20% of the market share in Virginia. It positions itself as an affordable cost service provider for IT services, communication, and storage space, revealing the significance of cost in the industry. The president and vice presidents all have LinkedIn profiles. Traffic to their website is minimal. Iservetech promotes itself as a one-stop shop for IT services. They sell their solutions as affordable and as scalable. Their products include opportunities for collocation, which means having expandable offsite data storage to meet growing needs a client. They also provide telephony services. Isevertech uses its website to reach clients. Traffic to it is also rated as minimal. Competitor Array Key industry Success Factors weighting Bastionpoint rating Bastionpoint weighted Iptech rating Iptech wei ghted Iservetech rating Iservetech weighted Distribution .4 5 2 6 2.4 3 1.2 Customer Services .3 5 1.5 3 .9 4 1.2 Economies of Scale .2 3 .6 3 .6 2 .4 Product Innovation .1 4 .4 7 .7 3 .3 Totals 1.0 12 4.5 19 4.6 12 3.1 From the above analysis, we can deduce that Iptech presents the most serious competition. They have the strongest product innovation credentials but are weak on customer service. BastionPoint has the best customer service credentials among the selected competitors.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Customer Base ServeSoft has its core infrastructure and management in Richmond, Virginia. It is able to offer online services to virtually anyone in the world provided they have a reliable internet connection. ServeSoft has clients in several states within America who are purely on online service contracts. For services requiring on-site maintenance visits, operations have been limited to Richmond, in Virginia. This represents 20% of the total number of ServeSoft’s clients. Services Required by Customers Managed services, is a fast growing sector in the IT industry. Client demands continue to change quickly as general awareness grows regarding available services. Kelly, Morledge and Wilkinson (2002) observe that, â€Å"the client’s value system, an outcome of the strategic management process, has a diffuse and profuse impact on the project development process†. ServeSoft has identified some service areas clients require from their managed services provider. They demand professionals to handle their needs, no matter how small. As soon as a client feels that professionals are not managing their needs, confidence levels drop. Secondly, they demand quick response to their inquiries. IT has become part of the core infrastructure for most businesses. It is comparable to reliable power supply. Clients cannot afford to have downtimes due to system failures and they seek to ensure that someone who will ensure that this never happens provides their managed services. The third service demanded by clients is twenty-four hour service. It is necessary to have customer support staff full time to ensure quick resolution of any problems the client experiences. Finally, they demand regular training on new technologies and methods to make sure they can fully benefit from them. Environmental factors Other factors that influence businesses in the managed services sector include rapidly changing technology, growing risk of cyber attack, and regulation by govern ments limiting penetration, and the growing demand for affordable high quality IT services. SWOT Analysis Strengths A solid history in the industry Reliable infrastructure that can support growth and expansion Good reputation among clients Weaknesses Small workforce Insufficient web presence Opportunities A fast growing market for managed services Improving technology making possible high quality services at a lower cost Threats Competition, both local and international The suitability of ServeSoft for online marketing is not in doubt. It has been using the internet to offer services. The business understands the various issues that influence the use of the internet for reaching clients and providing services. By moving the business online, ServeSoft gets an opportunity to present the value offering it has for clients. Target Market For the purposes of expansion, ServeSoft has good prospects in continuing to serve the same market segment. The target market is the small to me dium size businesses with ten to five hundred employees who do not have the capacity to maintain a fully-fledged IT department. This segment has been growing tremendously because of the large number of people laid off in the recent years because of the economic downturn. Many people have opted to start their own businesses across the country, and hence the growth in demand for managed services. Part of the potential clientele include those who have had IT departments but are now finding it more cost effective to outsource the services to a managed services provider. ServeSoft can grow its business by targeting start-up businesses and taking up IT functions from businesses that are seeking to outsource the function. The proposed growth strategy for ServeSoft includes a complete rebranding exercise. This includes the development of a new logo that represents the aspirations of ServeSoft, to become a dominant player in the Virginia market, and eventually in the whole of America. It inc ludes refurbishing the website, using Search Engine Optimization (S.E.O.) and social media integration. The message for the promotion effort will be presenting ServeSoft as a reliable managed services provider, building up on the momentum and client confidence generated so far. The range of enterprises targeted includes medical practices, manufacturing facilities, educational institutions and virtually any businesses that use computers for their operations. Goals The proposed goal of ServeSoft in its growth strategy is, to become the dominant service provider for IT managed services for small and medium sized businesses in the state of Virginia and subsequently in the entire United States. This is attainable by seeking to raise the market share in Richmond from 15% to 25% in the next one year through taking advantage of new business provided by start-ups and outsourcing companies. This is equivalent to 150% growth in clientele base since the total market is growing rapidly. Over the next three years, Soft Serve aims at being the dominant player in the state of Virginia. In particular, the proposed goals for the marketing effort include the following. To develop a new website with user friendly features. To Implement a Search Engine Optimization strategy to increase the websites visibility To implement a Social Media Integration strategy to increase web presence Marketing Strategies The need for good strategy underlies the observation by Venkataraman and Pinto (2008) that, â€Å"projects as we know, do not succeed or fail solely on the basis of sound planning – project execution requires us to apply those plans in a meaningful way†. By using low cost internet marketing strategies, the budget for the marketing exercise will remain manageable. One of these strategies is Search Engine Optimization. The goal of search engine optimization is to increase the visibility of the website in search engines to give the website a large web presence. Many bus inesses rely on the internet to find service providers. The idea is that with a greater web presence, the number of visitors who will visit the website from the search engine will increase, and with that, more opportunities for business. This requires ServeSoft to increase its online presence to grow its market share. Secondly, ServeSoft offers many services online. It naturally follows that online presence is very critical for ServeSoft. While service delivery is not the same as marketing, a weak online presence could work against ServeSoft. Search engine optimization will achieve these goals for ServeSoft. ServeSoft will upgrade its website to make it more informative and user friendly to secure the interest of visitors. The options available for search engine optimization include cross-linking the pages of ServeSoft’s website, generating website content that includes frequently used keywords and regular updates to promote crawling back to the site by search engines. There will be need to ensure the inclusion of frequently used keywords to the web page’s Meta data to improve the ranking by search engines. To determine effectiveness, Google Analytics will to provide advertising tracking while Chartbeat Analytics will provide traffic tracking. Through Analog 6.0, it will be possible to carry out traffic/referral tracking. Social media integration represents one of the key places to find business in the emerging business world characterized by online activity. Many businesses are opting to have a presence in the social media. It is common to find corporate organizations with facebook fan pages, flickr accounts and a presence on twitter. Other options are a presence on Youtube and maintaining a blog that deals with common issues faced by clients. A blog can help improve product design because clients provide feedback on issues and ask questions. It also serves as a record of key discussions regarding services the company renders. This makes it a cr itical resource for the company because it can refer clients who are evaluating service providers to it. Ignoring social media is ignoring business opportunity. A cross presence will guarantee the best results. The official website can accommodate icons for each social media site that ServeSoft participates in. However, the key social media platform that ServeSoft will use is LinkedIn. LinkedIn has a professional look and will present the image that ServeSoft seeks to present to its potential clients. The strategy will involve linking up with potential clients to form linkedIn groups where ServeSoft can continually discuss client needs and develop products that meet those needs. LinkedIn requires much less maintenance compared to most other social media. ServeSoft will therefore prioritize the use of LinkedIn. To rope in prospects not reachable via LinkedIn, a blog will come in handy. The blog will provide a platform for readers to make comments, suggestions and to ask questions. It will be an industry first. Competitor analysis: Social Media Table ServeSoft Bastionpoint Iptech Iservetech Facebook Absent Absent Absent Absent LinkedIn Absent Present Present Present Youtube Absent Absent Absent Absent Blog Absent Present Absent Present Implementation Plan The Implementation will mainly involve in-house staff because most of the expertise is available. The only expert ServeSoft will need is a Search Engine optimization Expert. Below is the proposed implementation plan. TASK PERSON RESPONSIBLE DATE DUE 1 Product development RD manager (Product development) November 20th 2 Website development Content development Graphics and display optimization Head of IT November 24th 3. Social media integration Linked in account Setting up blog IT manager and Public Relations Officer November 24th 4 Search engine optimization Head Of IT November 28th With some consideration during the website’s design, it is possible to improve the clie nt’s experience vastly. This includes the limited use of graphics to ensure that the website’s load time is minimal. Secondly, the website’s design will not include sections or media types that require additional plug-ins to work. The aim is to make the experience as convenient and as hassle free as possible. It will also ensure that the website displays easily across multiple platforms without requiring a user to download additional plug-ins to view the content. In addition, the website will include elements for customer support, which include a live-chat facility, and a link for requesting a representative to call back. These two additions will enhance the professional look of the website. The global market for managed services is large. By venturing to offer managed services to the global market, there is a huge potential for business growth. Using the current business design, it will call for additional infrastructure and labor to provide the services to a g lobal clientele. Some risks to global operations include payment systems, defaulters, lack of common arbitration mechanisms for disputes involving the company and its clients, regulatory issues, and relevance of services to remote clients. The business environment is different geographically and this difference influences how clients respond to an offering. Cultural differences also will be a key risk to the business, because if product design fails to consider the business culture, the product may not sell. The key competitive advantage ServeSoft has in the face of global competition is a reputation and a proven service record. This will ward off competition especially from startups. To ensure the global market feels included in the marketing effort, the slogan must have a universal appeal. Slogans, themes and the brand identity should avoid appearing as too American. This may alienate potential overseas clients because such a brand identity will make the services on offer appear a s if designed for the American market. In order to venture successfully to the international market, there will be need to collaborate with local companies to provide on-site services. This may involve a prequalification process and training of the technical personnel to ensure they have the technical skill and capacity to offer services competently. It may also require setting up special help desks to handle overseas business because of different realities such as time zone differences, bandwidth limitations and the language barrier. The time zone difference affects business since there are regions in the world on peak periods when America is on non-peak time. This means that the clientele base will require special service conditions. All these require careful consideration before engaging an international customer base. Bandwidth limitation will make communication between representatives from ServeSoft difficult and slower. Doing routine checks will require more time and hence imp act on the income. Finally, language barrier present the biggest challenge because without a common language, it will be impossible to solve any issues. As a business with international ambitions, ServeSoft cannot operate without sufficient employment of e-commerce. In particular, ServeSoft must use an online payment system to collect payments from offshore clients who receive services from ServeSoft. It will use the services of a payment service provider, with priority to Paypal since they have a solid reputation for completing online payments. Many people do not yet trust online payment systems so the choice of a service provider is important. In countries where Paypal does not operate, ServeSoft will use wire transfer to collect payments. Another application that Servesoft will benefit from is the use of shopping cart software to ease a shopper’s online experience when looking for managed services by the inclusion of a relevant icon. Other applications like instant messagi ng, email, and teleconferencing will provide the facilities needed for negotiating contracts with clients and for providing clients with information on service delivery. Budget The primary web server for the business will be a shared server from a hosting company. Monthly server costs would be $32.99 USD. There is no set-up cost, the site design cost would be $2875.00 for the full site including 1 year of maintenance. This includes custom scripts to implement customer management tools. After the first year, the charge is $1200.00 per year for a maintenance contact or $150.00 per incident if out of contract. Evaluation of Results The measurement of the success of the proposed strategy for increasing ServeSoft’s web presence will involve collecting comments and questions sent in through the social media integration component, and by customer surveys sent out to different market segments using tools such as the Web Survey Master. After analysis, the results will indicate which s egments of the market is responding well, and which ones will require a different approach. In addition, use of software such as eStream helpdesk can improve customer satisfaction by grouping them by service level agreement. If any component does not produce the anticipated results, its inclusion will require review. Business statistics such as growth statistics will be the eventual evidence of success. At the end, it is not how many visitors the website attracts, but how many of these become clients. An analysis of the data collected will provide input for the drawing of performance graphs for the extraction of information relating to the success of the marketing expansion effort. Reference list Kelly, J., Morledge, R., Wilkinson, S. (2002). Best value in construction. Oxford: Wiley-Blackwell. Venkataraman, R. R., Pinto J. K. (2008). Cost and value management in projects. New Jersey: John Wiley and Sons. This report on Marketing Expansion Proposal was written and submitted by user Giovani I. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.