mathsoft group 1 bbm

8/10/2019 Mathsoft Group 1 BBM

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MathSoft, Inc.

Group 1

Nov 26, 2014

Presented By:Lavanya Baskaran 27NMP18

Punit Pandia 27NMP62

Sushant Arora 27NMP30

Varun Kalra 27NMP74


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CONTEXT

MathSoft, a software company specializing in providing productivity tools for

technical professionals

Mathcad their core software, launched in 1986 and was succesful

Sales for the company were very less as compared to the marketing and sales expenses,

since last 2 years and this was the reason for concern for President and CEO David Blohm

It expanded product line by introducing MathStation, a high-end software package in 1988

but sales did not fly.

Also launched series of add-on products for Mathcad - Mathcad Application Packs (APs)

Sales channels distributors/retailers, field sales staff and tele - marketing/direct mail

In face of declining sales and increasing costs, Blohm needs to address 3 critical questions

of venture capitalists because they are not believing in the companiesProduct Development

Programmes

The Investors wanted more money in the product development and wanted more revenue

from the new product sales


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ISSUES / CONCERNS OF CEO

There was a fight between Thomas Stone, VP- Sales and Gordon Gossage, VP -

Marketing

VP Sales, wants to increase field staff while reducing the advertising expenses

VP Marketing, is pushing that advertising is the main revenue driver and also

pointing towards inability of field sales team in increasing the revenues

President and CEO is in a fix that what to do whether to increase the sales staff

while cutting on advertising or the vice versa

He is worried that how the resources needs to be allocated to get the maximum

out of it and what are the channels to be opted for


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Que. 1 - What channel structure would provide best fit for growing

product line? MathSoft has 2 objectives:

increased penetration of Mathcad (growth phase) in market

Fastening the sales of MathStation (initial phase)

Weaker Sales / distribution network, can lead to failure of a best product in the

market. Single distributor cannot provide market coverage and penetration.

Company should not change its existing channel options but may increase the

efficiency while adding new partners to handle highly technical products andexpand

Recommendation :

To maintain Hybridchannel in a way that channel allocation is on the basis of

product segmentation only. Mathcad is a core product and in growth phase so more distributors should be

allocated to its channel to penetrate into market

MathStation is in the introductory phase and is highly technical in nature, so

more of the field sales staff will be helpful in boosting its sales

This would serve the dual purpose of increasing the penetration of MathCad andboosting the sales of Mathstation


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Que. 2 - What types of communication programs were most appropriate

for its target markets?

Mathcad :

Direct Mailers and Tele-market methods may be used for its promotion as thisproduct is in the growth phase

Most importantly there is a need to Cut down on their advertising expenditures

because customers are already aware of this product

MathStation :

As this product is in introductory phase, more Direct Sales force should be used to

boost its presence and thus sales in the market

High advertising budget may be allocated while focusing on engineering /

technology specific journals, because only potential users read the same and the

chances for conversion is very high


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Que. 3 - How should MathSoft change its channels and communication programs over time?

In particular, how should company allocate its limited marketing and sales resources?

Recommendation :

Change channels and communication programs with product positioning as

follows:

More resources and high budget should be allocated to a new product.

For products which are in growth or maturity phase, there should be lesser

sales force and advertisement

Existing large distributors needs to be aligned for the penetration and increasedsales of the core product, which is in growth phase

Considering high technicality of the MathStation or any other new product,

exclusive technical distributors needs to be developed

Field Sales force should also be attached to the higher sales of the new product,

by offering some incentives etc., which shall keep them motivated throughout

More field sales force to be deployed and large scale advertisement is to be done

for the newly launched product needs to be done, especially at the places where

potential customers visit


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Thank you !

mathsoft group 1 bbm

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