EJP Software

1. EJP Software Marketing Report

2. 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

3. 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

4. 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

5. 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

6. SWOT • Strengths • Customer oriented perspective • Good quality reliable service • Niche market • Leadership (Vision) • Good communications • Weaknesses • Small • Perceived as less reliable than IBM/SAP

7. 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)

8. 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”

9. STP • Segmentation • Market segmented by localised area • Focus on local SMEs • Targeting • New SMEs • Positioning • Low cost competitor

10. 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

11. 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)

12. Strategy • Low cost • Targeted SME low cost • Reliable but low cost • Market Development

13. 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

14. Place • UK growth • Local area focus

15. Budget • Year 1 - 10% of £100k - £10k first year • B2B = BTL • Exhibition for start up businesses • Flyers • Business cards • Incentivise referals

16. 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

17. 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