marketing final project complete - infotech

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STRATEGIC MARKETING MANAGEMENT PROGRAM: MBA (P) SECTION: G FINAL PROJECT Submitted to: Mr. Mobin ul Haq Submitted by: Raied butt 14022034-050 Muhammad Burhan Ali 14022034-071 Khurram Shafique 14022034-032 Abdul Rehman 14022034-041

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Complete Market analysis, findings, Gap analysis, pricing and Competitor analysis of Cloud Computing. Company Name: InfoTech Private Limited.Authors:Raied ButtBurhan AliKhurram Shafiq

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Page 1: Marketing Final Project Complete - InfoTech

STRATEGIC MARKETING MANAGEMENT

PROGRAM: MBA (P)

SECTION: G

FINAL PROJECT

Submitted to:

Mr. Mobin ul Haq

Submitted by:

Raied butt 14022034-050

Muhammad Burhan Ali 14022034-071

Khurram Shafique 14022034-032

Abdul Rehman 14022034-041

DATE: 30-01-15

Page 2: Marketing Final Project Complete - InfoTech

Table of ContentsCompany Introduction.............................................................................................................................3

InfoTech Details.......................................................................................................................................7

InfoTech Staffing – Domestic...................................................................................................................8

InfoTech Staffing – International.............................................................................................................8

Financial Capacity of the Company..........................................................................................................8

Acknowledgement...................................................................................................................................9

Executive Summary.................................................................................................................................9

Specific Trend Analysis............................................................................................................................9

Objective of Our Project........................................................................................................................10

Strategies of the Project........................................................................................................................10

STP Strategy...........................................................................................................................................10

Channel Strategy...................................................................................................................................12

Distribution Strategy..............................................................................................................................13

Product Strategies.................................................................................................................................14

Pricing Strategy......................................................................................................................................18

Selected Pricing Strategy.......................................................................................................................18

Perceived Value Pricing.........................................................................................................................19

Price of the products.............................................................................................................................19

Conclusion.............................................................................................................................................20

References.............................................................................................................................................21

Page 3: Marketing Final Project Complete - InfoTech

Company Introduction

InfoTech is a premier IT Systems Integrator with capacity and experience for providing

strategic technology solutions that achieve real business results for businesses. Founded in

1995, Info Tech is at the forefront of revolutionizing the information technology arena by

providing the best products and services to a wide range of industries and enterprises. The

company’s strategy which is elucidated by a determined and compelling focus on

convergence and innovation, strives to establish InfoTech as a synthesized speculator and

benchmark for new IT services globally. InfoTech is a truly global company, executing

business in several countries through thre of its own subsidiaries InfoTech Africa Limited,

InfoTech Middle East FZ-LLC, UAE and InfoTech Global PTE LTD, Singapore and developing

technology that affirmatively impacts businesses all over the globe.

The world of information technology is changing rapidly. Rapid information dissemination

and other forces create an ever-changing environment. This environment makes it difficult

for the traditional organizations and companies, even armed with the best in commercial

technology, to deliver consistent, accurate and up to the mark solutions. Our leading-edge

solutions allow us to develop incomparable products and services and provide high-end

consulting, design, optimization and provisioning of IT infrastructure to various enterprises

around the globe. Our philosophy allows us to build meticulous and contemporary

predictive business models and an analysis of the behavior of financial markets.

True to its motto, InfoTech aims at consistently ensuring that the solutions are brilliantly

built to enable customer’s sustainability. Industry specific work procedures and

methodologies, technologies, domain expertise, tools and training are the company’s

forefront. We aspire to draw on this substantial substructure to create visible business

impact for clients around the globe, resulting in long-term relationships. We understand our

client's business realities and have the know-how and solutions needed to advance their

business goals. Consistent year-on-year growth of over 35%, during last decade, shows

confidence of our customers that our engagement with them is based on long term

“Technology Partnership”, and not just on transactional business.

Page 4: Marketing Final Project Complete - InfoTech

A key InfoTech strength is its ability to successfully manage Enterprise level Information

Technology projects. We have years of experience of working with multiple subcontractors

and specialize in large complex Systems Integration activities. In addition to the above,

below is a brief summary of InfoTech strengths and track record as a Systems Integrator:

One of the main Systems Integrator for IT Enterprises across all industries (Gov,

Telco, Banks, Healthcare, Energy, etc.).

InfoTech Proven Competency in managing large-scale, geographically dispersed

Projects of mission-critical Systems (24 X 7 onsite support)

200+ Professional Employees.

End-To-End Solution Provider for all IT Requirements

Capital and Securities Market Solutions

Enterprise Resource Planning

Business & Industry Solutions

SW Solutions across all Platforms

H/W Infrastructure (Servers, Storage, Printers, Desktop, Retail, etc.)

Network Infrastructure specially for utilities

Operations & Maintenance

Education, etc.

InfoTech Professional Services business unit offers high-quality advisory,

consultancy, and system implementation services across the complete spectrum of

MIS activities. It consists of an integrated set of services covering Professional

Consultancy, e-Business Solutions, Systems Integration, Project Management,

Strategic Outsourcing, Business Intelligence Services, Enterprise Resource Planning,

Customer Relationship Management, and Education & Training. These services are

individually tailored to meet specific customer needs and the unit thrives on providing

value added customer service and business benefits through its well-developed

intellectual capital.

Page 5: Marketing Final Project Complete - InfoTech

InfoTech is committed to keeping the customer’s interest first by being vendor agnostic and

cultivating partnerships with leading global technology manufacturers. We are partner of

choice for global IT giants including but not limited to the following:

CISCO

Oracle

Microsoft

IBM

McAfee

Barracuda

Computer Associates (CA)

Fortinet

Emerson

APC

Page 6: Marketing Final Project Complete - InfoTech

National & International Clients List:

Page 7: Marketing Final Project Complete - InfoTech

InfoTech Details

N a m e o f F i r m : InfoTech Pr ivate L imitedY e a r o f I n c o r p o r a t i o n : 1995N a t u r e o f F i r m : Private L imited Company

H e a d O f f i c e :

12-N Gulberg- I I ,Lahore-54660Tel : +92-42 111-427-427,Fax : +92-42-587 2265URL : www.infotechgroup.com

S u b s i d i a r i e s :

Afr icaInfoTech Afr ica Ltd.Opeibea House, 37 L iberat ion RoadAccra, Ghana.Tel : +233 21 774994Fax: +233 21 775575DubaiInfoTech Middle East FZ-LLC, UAEOff ice 317, DIC Bui ld ing 9, Dubai Internet C ity , Dubai , UAETel : +9714-364 4624SingaporeINFOTECH GLOBAL PTE LTD3 Shenton Way, #24-05 Shenton House, S ingapore 068805Tel : +65 6276 2301

B r a n c h e s :

Is lamabad4th F loor, Waheed Plaza, P lot No. 52 West ,B lue Area, I s lamabadTel : +92-51 2604637-9KarachiOff ice No. 101, Ibrahim Al i Bhai Tower, B lock 7/8, Shahrah-e-Faisa l , Karachi .Tel : +92-21 111-427-427

M a i n A r e a s o f E x p e r t i s e :

Technology Consult ing Technology Infrastructure Outsourc ing Solut ions Training Solut ions

C e r t i f i c a t i o n s ISO 9001:2000 ISO/IEC 27001:2005 ISO 9000:2008

P a r t n e r s h i p :

CISCO Systems MICROSOFT ORACLE IBM VMWARE Computer Associates

Page 8: Marketing Final Project Complete - InfoTech

InfoTech Staffing – Domestic

Lahore Karachi Islamabad TOTAL1- Management Staff 24 4 2 302-Technical Staff 70 30 12 1083-Sales Staff 12 24 4 404-Administration 13 9 4 26TOTAL 119 67 22 208

InfoTech Staffing – International

Middle east Singapore Africa TOTAL1- Management Staff 1 1 1 32-Technical Staff 2 1 33-Sales Staff 1 1 1 34-Administration 1 1 1 3TOTAL 5 3 3 12

Financial Capacity of the Company

Financial Information Historical information for the previous three yearsYear 1 (PKR) Year 2 (PKR) Year 3 (PKR)

Information from Balance Sheet:1. Total Revenue (TR)

1,764,472,846 1,445,849,732 1,177,249,902

2. Profit Before Taxes (PBT)

1,458,806 55,530,395 83,024,713

Net Worth (1)-(3) 248,324,071 254,543,509 216,161,095

Page 9: Marketing Final Project Complete - InfoTech

AcknowledgementThe accomplishment of this project is all credit to the Almighty Allah, Lord of our life and of everything in the universe, galaxy and his HOLY PROPHET MUHAMMAD (Peace be upon him) it is all because of ALLAH that we have managed to finish this project and helped us with new ideas. We next got help and direction from our Respected teacher—Prof. Mobin Ul Haq. Prof. Mobin is always happy and willing to help me solve the confusions and direct me approach to the final result of the Project.

On top of that, Prof. Mobin is an easy-going and open-minded person, without his encouragement, I would not finish this final work in my master study. We really liked our respected resource person for his full domination on the subject of Strategic Marketing Management and conventional style of teaching. The course helped us a lot in thinking about the key aspects of marketing and we analyzed and scrutinize the key concepts of marketing in a more comprehensive manner. Thank you very much, Sir.

Executive SummaryThe purpose of this propose of this project is to scrutinize and deeply analyze the trend analysis which we have done for cloud computing. In case of IT industry of Pakistan, we have find out and have identified that the latest technology and innovations really play a vital role in terms of sales and profitability, so we have identified Technological trend that drives people towards excellence and responsiveness. People these days are getting more into technology and want to use it more often to make their life faster and easier. So we are launching both product and service which our company doesn’t give to our customers but they are currently working on it and our target audience would be our existing clients and with the help of them we will try to explore the market further more. Keeping in mind about the threat, we are very much aware that in IT industry, technology gets copied very easily and it has turned out to be a cut throat business so we would like to keep those factors in mind and we will provide services and quality driven products to customers as company itself believes in better quality and quick services.

Specific Trend AnalysisWe are now going to do trend analysis of this project, as earlier in our midterm project we have selected “Hardware Server” as our key product but as we all know that technology is changing every day and there are new innovations entering in the market. IT companies are upgrading themselves to makes sure they compete with other companies on almost every disciplines of business and for that IT companies are making vast achievements to make sure they gain more competitive advantage on their competitors. As we believe that hardware server’s trend is going to shrink up a little in the future therefore we have identified “Cloud computing” as the

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scope of this technology is gaining more awareness and companies will use it in the near future for sure. Here we have identified TECHNOLOGICAL TREND as we believe that people are getting more used to with the technology and once they understand the concept of Cloud computing we believe that the technology will help explore new horizons not only locally but also globally.

Objective of Our ProjectThe objective of our project is to be more “Technology oriented” and with the help of new products and services which we want to gain, we want to be market leader in terms of new technology and services we are going to provide not only to our existing customers but also to the potential customers as we believe that the services of Cloud computing will help us gain new customers as customers get more charged and show more concern when they see any new opportunity in the market. We already have a target market of hardware servers but we want to explore the market further more by providing these services to the customers as this service will help us grow in the market and hence our profitability will surely be increased with the help of Cloud computing services.

Strategies of the ProjectWe have selected the following strategies which will not only help us in terms of cloud computing services but will also help us scrutinize our core objective which is to be more technology oriented in a more appropriate and feasible manner. The strategies are as follow:

o Segmentation, Targeting and Positioning (STP)o Product Strategyo Pricing Strategyo Channel Strategy

The following strategies will help us get more align with our objective and we will discuss the strategies in a more detailed manner further in our project.

STP StrategySegmentation (Behavioral and Benefits)

We have divided our customers into groups according to their knowledge and attitude towards the product, usage rate, and response. As we strongly believe that whenever a new technology enters the market, those people who are actually quite fond and aware of the upcoming technology and are using that on daily basis tries to shift themselves up on the new technology so we are going for behavioral segmentation as in this case the usage rate of the technology is very much higher we expect in the near future and response rate will also b higher as customers want to be more efficient and responsive when it comes to new innovations.

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Similarly we are segmenting on the core basis of the benefits our product and service will provide to the customers, as we think that the new technology will take to adapt but once it’s done we think that the customers will feel its benefits and will shift quickly on it as now a days everyone wants to work online, knowing the fact that working online is a fast medium and it helps achieve goals more quickly and is more cost effective medium.

Targeting

We believe that our product and our services are very much vital to our business and no doubt our product is a valuable product not only to the customers but also will help us grow further more in the market. As far as our target market is concerned we are going to target existing customers whom we are working with for a long time and when it comes to potential customers we are targeting upper and medium class.

Positioning

As far as our positioning strategy is concerned we feel that our strategy is based on M2M (Machine to Machine). We feel that cloud computing plays a crucial role of how an organization creates, delivers, and captures value for the end users. Such alignment helps key decision makers to understand how the business works and to decide the focus area. It is believed that M2M players who leverage on the cloud computing benefits will have the big possibilities to lead the market. Furthermore we would like to position ourselves on the basis of two other factors which we think are very critical in terms of positioning and we think it is considered as a broad positioning strategy. The factors are as follow:

User based strategy Quality based strategy

Now explaining the above mentioned factors in context of cloud computing

User based

As we all know that large enterprises and multinational companies requires hardware servers so that all the networking and data can be kept and shared via hardware servers and there are number of users who works on it and update the server more often as whenever the traffic and load increases on servers the servers gets slower and issues starts to pop up. As people these days are much aware of the incoming technology and knows about the latest innovations we strongly feel that the in the start there won’t be too many users of cloud computing but once the technology reaches beyond expectations than the number of users will increases day by day as the technology is very much flexible and innovative.

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Quality based

Another way to position your product is by telling the customers about the quality of the product which it possess. As hardware servers takes too much area in a company to setup and there is also a case when hardware glitches pops up and employees have to resolve but the main thing is the centralized data and sharing which is customers main objective, Cloud computing gives you that edge and benefit as multiple computers integrate together and provide a networking channel which leads to sharing of data and centralized data which helps number of employees to do their daily work more effectively and efficiently. The speed of the works gets more acceleration and there is flexibility when it comes to working on cloud computing which shows that there is sufficient amount of quality available to attract new customers to use the product and hence add more growth and sustainability in their business.

Channel StrategyChannel strategy is very important in business as it helps in guiding the decision about the path a product or service takes from production through delivery to the end user. Channel helps add value to the product or service you are providing to the customer and it helps in increasing transactions on daily basis. Great opportunities can be delivered with the help of channel as with the help of effective channel strategy distribution of products and services can be done in a more efficient manner. As we believe that InfoTech Company’s service level is up to standard and they strongly feel that better services can help them grow in the market and with better services they can acquire more customer, so they simply don’t compromise on services and tries their best to deliver better services than their competitors, so there is no need to create a vertical marketing system (VMS) as InfoTech are the service providers and act as an intermediary in IT business.

Although we strongly believe that there are three channels that must be considered, the channels are as follow:

Sales Channel Product Channel Service Channel

As at the moment InfoTech is providing various numbers of hardware servers to many businesses not only in Pakistan but also in Malaysia and to Gulf countries but in the future they will shift to cloud computing. They are working with IBM and Microsoft of launching cloud computing and the company expects a deal to be struck sooner rather than later. As above the three channels have been mentioned, the company will negotiate the prices of the product form suppliers which are IBM, Microsoft, CISSCO, Oracle and others and once the order is placed from customers end then the supplier will deliver the product to the company and the company will deliver to the customer along with after sale services. So the Sales and service channel will be the company InfoTech as all the sales transactions and services will be done via company whereas product channel according to the company’s end will be suppliers and

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vendors which will provide the product to InfoTech but from customers end it will be the company again. The company’s site will allow the customers to see and overview the services regarding cloud computing also promotion and marketing of cloud computing will also be done but we will make sure over existing customers gets complete awareness of the technology first, once they are satisfied and happy with the technology we believe that they can tell other customers about it and eventually will help us grow. Also with the help of our website, we will advertise and promote further more so that the buyers see it and purchase the facility from us.

Distribution StrategyAs far as distribution strategy is concerned, indirect direct distribution takes place as InfoTech is working as an intermediary but the function of intermediary is that they sell the product on the behalf of the producer but do not take title to the products. The product comes from supplier end e.g. IBM, Microsoft to the company whenever there is any demand arrives the resource person contacts the vendor for products and once the product is approved the supplier ships it to the company and the company than holds its possession and then deliver to the customer along with added services, installations and configurations. The product flow and distribution can be seen via flow diagram below:

As this process shows that suppliers and manufactures both are actually IBM, Microsoft who actually provides the company with sufficient amount of products when it is required, the company than deliver the products to the customers along with services. This is the process of hardware servers which we have discussed with the marketing manager and we believe that distribution and flow of materials will be done in a similar manner in case of cloud computing as InfoTech are basically systems integrator and they call themselves as boutique systems Integration Company renowned for solutions that are tailored to their customers’ requirements. So there won’t be too many channels and selling points when it comes to selling product but the company itself will act as a main channel and the distribution will be done in a very much indirect manner as they act as an intermediary.

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Product StrategiesWhen firms decide to market products there are many decisions to make, each decision can have a long term impact on the success of the product. Market Research at the beginning of the marketing process will help firms make many product decisions including product development, target market and pricing. As for our product which is cloud computing we will apply some dimensions of product strategies. The dimensions of product strategies are as follow:

Product Positioning Product Overlap Product Scope Product Design Value Marketing

We now will discuss the above mentioned dimensions in a detailed manner and try to develop a proper product strategy for Cloud Computing.

Product Positioning

In this case we are going to analyze, examine and choose an overall positioning of the product and we will discuss the attributes and features of the product as a whole and tries to explore the extra features which will possibly help us capture the market furthermore.

Analyzing the product

The features and attributes of the product will be enlightened in this part. Some attributes of the product are as follow:

1. Achieve economies of scale – increase volume output or productivity with fewer people. Your cost per unit, project or product plummets.

2. Reduce spending on technology infrastructure. Maintain easy access to your information with minimal upfront spending. Pay as you go (weekly, quarterly or yearly), based on demand.

3. Globalize your workforce on the cheap. People worldwide can access the cloud, provided they have an Internet connection.

4. Streamline processes. Get more work done in less time with less people.

5. Reduce capital costs. There’s no need to spend big money on hardware, software or licensing fees.

6. Improve accessibility. You have access anytime, anywhere, making your life so much easier!

7. Monitor projects more effectively. Stay within budget and ahead of completion cycle times.

8. Less personnel training is needed. It takes fewer people to do more work on a cloud, with a minimal learning curve on hardware and software issues.

9. Minimize licensing new software. Stretch and grow without the need to buy expensive software licenses or programs.

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10. Improve flexibility. You can change direction without serious “people” or “financial” issues at stake.

Examining the product

As the above mentioned attributes shows how much the product is flexible and how cost effective it is for the customers. We further examine the product by keeping in mind the above mentioned attributes. Actually what really defines a cloud as opposed to running a consolidated system in a private or public accessible network environment are these four characteristics:

1. Provisioning – Dynamic and self-service provisioning. Application provisioning involves deploying applications to your cloud infrastructure with a few mouse clicks. So, when moving to the cloud, application provisioning will be made easier since there are not hundreds or thousands of client machines to deploy too.

2. Metering and chargeback – Metering and chargeback are mechanisms for gathering compute resource usage (metering) and then charging back the user, department, or company for the computing cycle that they consume. In the client/server model, metering and chargeback where not necessary because each user had their own personal computer and typically each department or customer had their own database server.

3. Multi-tenancy – Multi tenancy, or running multiple customers or departments on the same central hardware and software infrastructure, is not an issue for client/server applications since each user has her own instance of the application, and most likely each department or customer has its own dedicated database server. In cloud environments, the application, database, and hardware infrastructure are shared among departments or even companies.

4. Elastic – Elasticity refers being able to dynamically provision, migrate, and allocate computing resources to users, departments or customers. It includes the infrastructure to easy set up and ‘tear down’ applications. One of the first areas that customers focus on when moving to the cloud is developer and User Acceptance Testing (UAT) environments. The ability to quick set up a new test environment and then delete it once the testing is done is a cost effective and time saving exercise when done using cloud computing.

Choosing overall Position

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As above we have managed to analyze the attributes and examine the product as a whole it is better to choose an overall position for the product based on overall match between product attributes and their distribution in the population and the position of existing brands. As far as choosing a particular positioning for the product we have already mentioned that there are now some critical issues coming up with traditional hardware servers at the moment and also mainly because of the latest upcoming technology entering in the market, we have identified cloud computing as a solution for the market and have highlighted its benefits in the project so it’s like a machine to machine (M2M).So Providing the customers with a new and improved technology and better services which is basically the glue that holds us in this business.

Product Overlap

As we mentioned earlier in this project that InfoTech Company actually works as a systems integrator and a service provider to different multinational business and to large enterprises and they actually act as in intermediary which gets supplies from different suppliers likes of IBM, Microsoft, Oracle etc. and delivers it to their respective customers. So as far as product overlap is concerned by introducing this new technology to the customer with the help of suppliers there is high probability that the product will help the company to maximize the investment value and not only that market growth and expansion can be seen by adding this new technology. As the product basic functions are similar than that to hardware server but there are new features and specifications added in it and it is more flexible and more cost effective than that of hardware and cloud computing reduces capital cost and mainly improves accessibility.

Product Scope

Product scope refers to the number of different items company offers for sale. Company’s business goals usually determine the scope of products. The company may run a successful business based on a single product strategy or offer a much deeper line of products to serve a wider range of customers. The product-scope strategy is determined by taking into account the overall mission of the business unit. Here in this case InfoTech is adopting a multiple product strategy and it offers both hardware servers and will offer Cloud computing. The reason for offering both is that some businesses can’t afford cloud setup and they have this perception that hardware servers are much better because of the traditional pattern and system they are following , it’s hard to convince such businesses to invest in cloud but once they realize the importance and benefits of cloud computing they quickly shift themselves to the technology, so InfoTech adopts multiple product strategy to cover the risk of potential obsolescence of the single product by providing additional and similar types of products to its customers to make sure they stay market competitive.

Product Design

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The product-design strategy deals with the degree of standardization of a product. The company has a choice among the following strategic options: standard product, customized product, and standard product with modifications. Product design is cross-functional, knowledge-intensive work that has become increasingly important in today's fast-paced, globally competitive environment. Talking about InfoTech, they believe in both standard product and customized product. One of their core strength is to provide customers with tailored products and they simply do that whenever the customer needs a product but because of product high price the company provides with other alternatives which include cost effective and market competitive prices. As far as cloud computing is concerned, the company will offer both standard product and customized form whatever the customer required but mainly will stick to the standard one as they want go for market intensive strategy first rather giving alternatives first at the start of the new technology.

Value Marketing

The value-marketing strategy concerns delivering on promises made for the product or service. These promises involve product quality, customer service, and meeting time commitments. As InfoTech believes in providing excellent services and quality is never compromised when it comes to providing customers with both standard and tailored product. Cloud computing offers an immense value to the customers and offers extraordinary flexibility and increase in accessibility. One would think that cloud computing would always be more cost effective than on-premise computing. However, the value that cloud computing brings to an enterprise is really dependent upon many variables and the dynamics of the business. Like anything requiring change, the business case must be worked first to see the ultimate worth of this approach.

The forces at work here include strategic and tactical issues that should be analyzed, including the ability to shift risk to cloud computing providers, the ability to drive down operating costs, the ability to fix inefficiencies within the existing architecture, and the value all of that brings. The problem is that most enterprises do not analyze these business opportunities properly, and thus make many mistakes when building the larger business case. Moreover, enterprise architects are notoriously bad at creating business cases.

It is one thing to say that cloud computing makes life better because everybody says it does, versus saying cloud computing will make this company more than $50 million dollars over the next 5 years. The ability to make money will always outsell something cool and popular. Indeed, there are many dimensions to consider, including the value of:

ongoing operational cost reduction

preserving capital

upsizing on-demand

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downsizing on-demand

shifting the risk

agility

reuse

It is a good idea to figure out the actual cost reductions that cloud computing can bring to your enterprise IT. The trick here is not only to figure out how much money can be saved, but how much it will cost to save that money.

Pricing Strategy

Pricing Grid

As discussed above, pricing strategy is one of the most important elements of marketing strategy. InfoTech is already providing their services of hardware to their customers. But as technology changes day-by-day, cloud computing seems very profitable business in the future. Because now customer is focusing on technology efficient parameters for their business through which they can produce at low cost and increase their profits. They are now investing in Information Technology, Cloud computing has many benefits as mentioned below, as we know that for making pricing strategy, it is important for the company to focus on the benefits of the product. If the benefits are greater than their cost it goes for higher value and vice versa and customer need more value at lower cost. It depends on the size of the customer, if the customer is corporate level then they are not as much price conscious but for best solution because they want higher security for their data.

Quality

Pric

ing Hi Med Low

Hi Premium Over Charging Rid of changing

Med Higher Value Fair Price Over ChargingLow Super Value Value strategy Economy Pricing

Selected Pricing StrategyIn this section, we have to select the pricing strategy according to the above mentioned pricing grid. As InfoTech have three different types of customer for cloud computing that are Large, Medium & Small organization. As there is a lot of competition of selling cloud computing products for small sizes of organization, so that InfoTech is not interesting in small organizations because they have very low

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budgets and the size of this section is not more than 50 employees. On other hand large & medium organizations have higher budgets approved because of their critical operations and data, so that they are very much aware about their issues. Because if they cannot do so, will bear high loss to the company. And for sustaining competitive advantage in the market they are willing to invest in the IT to cut their costs and operate their operations efficiently. These types of organizations are keen to work with well renowned IT companies having strong background and competitive resources. In Pakistan there are only top five IT companies in which InfoTech is one of them. InfoTech is now focusing on these corporate customers being as an adaptive organization. And they are selecting fair price and medium quality for medium size organizations and for large they lies in premium column as mentioned above. Prices are very much dependent according to the requirement of the customer.

Perceived Value PricingMicrosoft is one of the well renowned brands globally. We see their products in windows, mobile phones, in organizations for sharing their data etc. In this fast-paced world of more devices, more apps and more data, IT is more challenging and exciting than ever. As customer is now mindful about that the cloud computing is faster and they can deliver new projects and products and manage more devices easily and customer perceived it as more valuable product for their businesses.

Price of the productsPrices of Microsoft products are categorized in three portions Shared, Basic & Standard. Customers purchase their products online like windows license etc. But for their bigger requirement they purchased their products through vendors because according to the policy of government Microsoft cannot sell their products directly to the customer in Pakistan. So that Microsoft offers the same prices to the vendors and then there is only a competition among the profit margin of the company’s, lower profit margin company gets the project. Therefore the price of the cloud computing is based on the project size, discounts are also apply on the products, importation cost, sales tax and then profit margin of the company, so that the price varies through project to project.

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ConclusionFinally now jumping towards the conclusion, we have managed to pin point the most critical strategies for the product we are going to offer to our customers along with both on spot and after sales services, thing is whenever a new technology enters in the market there is no guarantee of that technology to be successful. In many cases new projects and innovations have backfired and the company has to bear heavy losses because of that but we have seen that experimentation have never stopped and new products have entered the market using different ways. Cloud computing is a new and improved version of hardware servers and the main struggling point for this technology is that it is very hard for businesses to go for sudden changes in the organization and adapt new technology quickly as the firms always tries their utter best to take calculated risks when it comes to investing in a strategic plan but as we have mentioned in this project about the key attributes and features of the product, we see this technology very much fast paced and will explore new horizons in the field of IT and once people will start knowing about this technology we are pretty sure that this technology will take the market by storm. Knowing the fact that there are several competitors who strongly believes in imitation strategy and they adapt very quickly as nature of this business is very much cut throat, we have this belief in providing not only both standard and tailored product but our excellent services is the glue that holds us in the market and will help us achieve our objective for sure.

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Referenceshttp://www.referenceforbusiness.com/management/Or-Pr/Product-Design.html

http://timreview.ca/article/339

http://www.forbes.com/sites/louiscolumbus/2013/09/04/predicting-enterprise-cloud-computing-growth/

http://www.marketingprofs.com/articles/2011/4330/how-to-market-the-cloud