At which point and through what means should a company launch a novice product? Present it too soon and the usefulness may not be there; present it too late and solid rivalry may show up. Exact Software Solutions, headquartered in Westwood, MA, is a small, developing organization with a fruitful - although narrowly focused - software products for database performance administration. In 1999, it had the starts of another novice product with profoundly more extensive usefulness and business sector attraction. However, this new product would possibly speak to an alternate "audience" within the client's IT association. When the administration chooses the time of launching the item, it should likewise choose the means of doing so. In particular, the management should address the critical question of whether the current sales team, which sells other product lines, should be made responsible for the new product as well? Or would the company benefit more from forming a new sales team to cater to the new audience? lastly, the company must also design a pricing plan. The current products of the company have resulted in revenues ranging from $15K to $25K. The firm feels that the worth of this novice product could be five times more than this range. Is this conceivable? Will the same sales force be operative and useful? Teaching goal, sales planning, and new product launches.
1. Should Alon plan on introducing Insights at OpenWorld 2000? Why or why not?
2. What should Precise’s sales strategy be for Insights? Should they launch a separate salesforce for the new product or sell it through their existing sales force? How good is theircurrent sales force?
3. How will the SQL sales force react to the introduction of Insights? Will this differ if welaunch Insights in time for OpenWorld or not?
4. What is the difference between selling their current core product – Precise/SQL – andselling the new Insight product?
5. Keeping in mind the limited functionality of the first version of the product, how shouldinsights be priced? How should precise think about segmentation for this new product?
6. Develop an ROI model for the Precise/SQL product. Compare this to the price they arecharging for the product. Of what use are these data in developing an ROI for Insights?
7. What is the value of precise software’s products for its customers? Is it getting the value?