Web Services Provider
Strategy and Implementation Summary
Web Services Provider markets its products as solutions to high traffic and bandwidth-intensive Web companies whose online reliability and speed are critical to daily business. Target companies include online stock trading companies, e-tailers, and corporations with graphics and/or streaming video.
Sales are made through Web Services Providers’ national advertising campaign. The sales process involves several steps which include:
- The first contact when the perspective customers first impression is made while viewing one the magazines in which we advertise.
- At this point, the customer will call our sales line or go to our website.
- The customer can then call the sales line where a trained representative will answer questions and proceed with initiating service and billing. This approach will be used because each customer’s concerns and needs will be met immediately to capture the customer at this point of contact.
The average sales cycle from first contact to closing the sale is between one and seven days.
|Direct Cost of Sales||2000||2001||2002|
|Subtotal Direct Cost of Sales||$100,000||$150,000||$200,000|
5.1 Value Proposition
Web Services Provider’s products and services offer the following advantages to customers.
5.2 Competitive Edge
Strategic alliance with VISP – VISP is opening up two new facilities in the next three months, one in Atlanta and the other in Seattle. Web Services Provider will have access space on both sites, and with special load-balancing software, will enable the company to guarantee 100% uptime for any dedicated server and co-location client where uptime is critical to their business.
AB 299 Internet Connection–more beneficial than tier system; a tier 1 connection means that you are actually directly connected to the Internet.
Downtime-Dynamic load balancing–a large part of the problem and downtime with an Internet connection for hosting companies is due to local phone company.
Price–due to the tier 1 connection, Web Services Provider does not have to pay local phone companies connection fees and, as such, its’ prices are lower than those of competitors.
5.3 Marketing Strategy
The Web Services Provider strategy is to advertise key competitive advantages in an effective advertising campaign. The company plans to develop a larger clientele and maintain a price advantage through rapid growth. The company’s goal in the next year is to grow its core customer base quickly and efficiently while focusing on the most profitable sector of the market. The company’s goal in the 2-5 years is to grow through acquisitions of smaller companies and separate itself from the competition by price and services.
5.3.1 Distribution Strategy
Web Services Provider uses a direct sales force, relationship selling, and sales/support lines to reach its markets. These channels are most appropriate because each customer has special demands and needs to be treated differently. After the initial contact, by magazine, referral, or email, the customer is assessed and assigned a sales rep and tech support person to help them and to familiarize themselves with each individual company’s needs and history.
5.3.2 Marketing Programs
The key message associated with the company’s products and services is better reliability, speed, and bandwidth for the same price. The company’s promotional plan is diverse and includes a range of marketing communications:
- Public relations. Press releases are issued to both technical trade journals and major business publications such as Wall Street Journal, Business Week, and others.
- Trade shows. Company representatives attend and participate in several trade shows such as Apex and Comdex.
- Industry conferences and seminars, research publishing, and print media. Web Services Provider presents its key advantages at conferences and publishes articles about its work in publications such as e-business Advisor, Wired, Microsoft Internet Developer, Web Techniques, Business 2.0, and PC Computing. Local and national public relations will be handled by Creative Garage II’s marketing firm.
- Print advertising and article publishing. The company’s print advertising program includes advertisements in technical trade publications such as E-business Journal, Wired, Web Techniques, Microsoft Internet Developer, Business 2.0, PC Computing, direct mail pieces, brochures, and other print media.
- Internet. The company currently has plans to redevelop its current website because that is a primary marketing channel.
5.4 Strategic Alliances
The company has strategic alliances with VISP. This alliance is valuable because it provides a direct connection to an AB-299 Internet connection with unlimited bandwidth. This relationship is explored more in the Competitive Advantages section.