|Title||Totalview Product and Marketing Strategy : A report on the underlying factors contributing to stagnant sales of Totalview|
|Author||Bendtsen, Heini (Copenhagen University College of Engineering, IHK)
|Institution||Ingeniørhøjskolen i København, IHK, DK-2750 Ballerup, Denmark|
|Thesis level||Bachelor thesis|
|Education||Bachelor of Engineering|
|Abstract||Faroese information technology company Formula P/f has been selling its communications software Totalview on the Danish market for about ten years. Over the last couple years sales have stagnated.
The focus of the project was to identify and analyze underlying the factors which are resulting in poor sales performance of Totalview in Denmark, and to evaluate if or how Formula can overcome these factors in or-der to increase Totalview sales. Furthermore, research into how Formula can improve the website as a mar-keting channel and how it can be improved technically to increase visibility in search engines was conduct-ed.
Researched Formula external factors included industry trends, market trends, drivers of competition and stakeholders’ performance and relationships as well as Formula internal factors such as strategic alignment and implemented marketing mix.
Data was collected from external primary and secondary sources in the form of market reports, financial records, web sites, interviews and questionnaires. Internal primary and secondary data was collected in the form of interviews, web analytics data and internal documents.
Analyses were conducted using traditional marketing models such as Porter’s Five Forces, Buy Grid Model, and Marketing Mix, and strategy considerations was inspired by Organizational Learning, Inbound Market-ing, Competitive Strategy and Blue Ocean Strategy.
Results of analyses uncovered the industry and market trends are evolving very quickly and that the trends are having a negative impact on Totalview sales. Siemens is integrating forward and is grabbing market share from Totalview. Furthermore, Siemens is losing market share to other server vendors, and on premis-es solutions are losing market share to hosted solutions. Totalview is threatened by product form, category and generic competition.
Formula’s implementation of the Marketing Mix could be significantly improved, and this fact combined with Formula’s tactical product development approach, suggests that Formula’s decision making is having a negative impact on sales of Totalview in Denmark.
The Totalview website is poorly executed and serves very little value as a marketing channel. The coding on the website is unreadable for search engines which hardly display the website in their results. The faulty code on the website is partly caused by a technically obsolete CMS.
Formula can improve sales on the Danish market by defining a value proposition and by implementing a differentiation strategy combined with an inbound marketing strategy. In order to execute an inbound mar-keting a new website is to be developed on a new CMS. The differentiation strategy is divided into stages of sequential execution. The differentiation strategy aims to limit the power of the most threatening five forc-es in steps, and the final step, inspired by Blue Ocean Strategy involves offering full Totalview functionality on the foreign market, with the ambition of making the competition irrelevant.
|External partner||Ledere og medarbejdere i private virksomheder|
|Admin||Creation date: 2011-12-12 Update date: 2012-11-05 Source: ihk ID: ihk-10462017 Original MXD|