Industrial Marketing Case Study

On
Avenir Labs

Submitted By:
Aamir Saleem
A0102213021
MBA-M&S
Sec: C-22

Submitted To:
Mr. Vivek Singh Tomar
Asst. Professor
Department of Marketing

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY, NOIDA
SECTOR 125, NOIDA 201303, UTTAR PRADESH, INDIA

Abstract
. The industry is not only creating revenues for our country but also providing employment to
lots of Indian population. The industry currently employs around 1 million people and provides
indirect employment to around 2.5 million people. It is expected to add another 150k jobs in next
year according to NASSCOM. The Indian software industry has been a remarkable success story.
It has grown annually for 20 years, with 2008 exports projected at a close to $60 billion. Even
two decades ago, the image of India was one of the countries beset with poverty, unrestrained
population growth and substandard competitiveness. Today, due to the dramatic growth of Indian
software industry economy of our country has come up along with growth of software industry.
The total revenue generated by software industry alone in FY2014 is USD 118 billion.
The project is all about forming customer chain and increasing their experience and interaction
with the Avenir Labs. Providing integrated business application software platform to different
sectors is a most appreciable business that anyone can say because there are lots of advantages in
doing this business. By doing so Avenir Labs is not only gaining profits but also achieving
pleasure and satisfaction from its existing customers in terms of features and user friendliness of
the software.
For the project I visited various customers and made them aware about the software and how it
can help them in their business, as well I visited existing customer who were already using the
software and took their feedback by using questioner and try to understand gap between
customer and company.

Introduction
Avenir Labs is an offshore development and software services company incorporated in Delhi,
India. Founded in 2005, Avenir Labs brings a fresh and forward approach to global outsourcing.
A powerful combination of business process analysis and technical expertise enables us to
successfully deliver a wide range of services including software development, migration, and
maintenance, re-engineering and testing.
AVENIR LABS strives to provide its customers with innovative and cost effective solutions to
enhance their business opportunities. We have been delivering services from maintenance of
existing applications to full cycle development of enterprise wide business applications to the
satisfaction of our customers globally.
With our state of the art infrastructure in our development center in Delhi, India and our main
office in London, AVENIR LABS can provide excellent project management; secure legal terms
of business, solid quality assurances whilst maintaining competitive costs, superior quality and
successful working relationships.
SERVICES
Web based Applications

Web-Design

Web-Programming

Flash and multimedia development

Content management system development & integration

Internet collaboration solution development

Browser-based software development

Content, copywriting solutions

Mobile app development

iPhone apps

WAP Sites

Android

Windows mobile

Symbian

Blackberry

SMS Solutions

Internet/Intranet software development

Client/Server application development

Customer Relationship Management Systems (CRM)

Distributed application development

Corporate document management systems

Corporate knowledge management systems

Intranet search engine development

Internet/Intranet collaboration tools

ERP Applications
Providing integrated business application software platform to different sectors is a most
appreciable business that anyone can say because there are lots of advantages in doing
this business. By doing so Avenir Labs is not only gaining profits but also achieving
pleasure and satisfaction from its existing customers terms of features and user
friendliness of the software. The company is going forward with an aim of satisfying
customers but not making profits out of them. As we go forward in this case we can have
a detailed explanation of topics mentioned above. Along with that we are also going to
study about customers (who are into small and mid size business) perception on using
software.
To expand in the market Avenir Labs is entering in different market Tier-1, Tier-2 or
metro cities. Avenir Labs offers various products (Software) according to the sectors

1. Mandi
2. Jewelry
3. Footwear
4. Chemist shops
5. Mobile hard ware
6. Retail and wholesale
7. Restaurants
8. Automobiles
9. Electrical and hardware
10. Automobiles
11. Publication and book stores
12. Plywood and carpets
Software is further divided into 4 categorize:
i.
ii.
iii.
iv.

S09-Silver
G12-Gold
D15-Diamond
P21-Platinum

Various sectors fall under these four softwares. It is explained below.

S09- Chemist shops and retail shops
G12- Mandi market, wholesale shops
D15- Jewelry, excise traders
P21- Pharmacy manufacturing
The costs of these Softwares depend on the code they carry beside them.
S09- 9999/G12- 12000/D15- 15000/P21- 21000/To expand Marg require various helping hands to achieve their goals, for this Marg is
implementing partnerships,

Avenir Labs Platforms:

Avenir Labs offers two types of platforms.
1. Marg
2. Counter
MARG: The following are the features of using MARG.
1.
2.
3.
4.
5.

Annual maintenance cost

Updates and free visits
Separate software for each shop even it is run by single person
Multi user
It cannot be converted into counter.

COUNTER: The following are the features of using counter

1.
2.
3.
4.
5.
6.

Free trial version

No service
No free visits
Many shops run by single person can use one software.
10% excess cost than MARG software
It can be converted into Marg.

Channel Partners Programs

Avenir Labs Ltd partners have been selected as part of a growing network of partners from all
parts of the world.
Avenir Labs Channel Partners (MCP) program constitutes the following three types of software
Channel partners:
Channel Partners/Distributor

Implement, train sales and service of our products at national and regional level. These are the
value added partner Avenir Labs and are responsible for the formation, implementation and
customer support. Avenir Labs channel partner should ideally have knowledge in the IT industry,
as well as your bills and finances.
Dealer is a person who takes software as a bulk from the company he does the same job as
wholesaler does in FMCG sector. He will be in direct contact with the company itself.
The products/software Dealer is getting from the company will be almost of 50% margin.
Distribution/Reseller partners:
He will be working in sync with distributor. He will in charge of selling the product by him self.
Its an energy that guides us and inhibits our belief that each of us is a leader, every one of us to
offer personal liability, authorized in the promises. This requires us quality every time you
interact with us. This is what throws us experience in the peak of success in achieving the
potential.
Reseller is one of the members in their channel implementation. Sometimes reseller will be or
will not be present in the channel. He will be working under dealer of a particular area though
both dealer and reseller will be working under company.
Usually a reseller will get a margin of 33%.

Referral policy
Referral policies are one of those policies mentioned by the company. According to referral
policy if any customer refers his fellow business partner/friends/relatives to buy Avenir Labs,
when the referred person buys the software and after cheque has been passed the referral would
get almost 12% incentives from deal of the referred person.

For example: If company makes a software costing 10000/- , dealer will get the same at a price
of almost 5000/- because of 50% margin and dealer sells the same to the reseller at a cost of
6700/- because of 33% margin of reseller and finally reseller will sell that software to the
customer for 10000/-.

Channel implementation:
Channel implementation of Avenir Labs is as follows.
Avenir Labs

Dealer

Reseller

Customer

Even though everything is working well for the company, there are some loopholes which still
exist and they are latent in nature. Unless and until we look at them seriously those problem
areas cant be found. The following are the problems that company is facing.
No Proper market coverage: It is one of the major problems that is happening at present, the
channel members are selling the software to referrals and known persons who are doing
business. There is no proper marketing in some areas of their business. Territories are allocated

to the sales men according to state wise and city wise but not on proper inspection of their
business markets.
Selling Price: Marg sells it software to dealer at certain margin which is 50%. Now when dealer
sells it to reseller he sells it with certain margin which is 33%. Now there are no of dealers and
reseller in a particular state and as they are free from company to sell the product further at any
cost. So there arises a problem in which there is no price uniformity through different territory.
For example: If there is a dealer who is from Mandi District (H.P) and another dealer who is
from Shimla (H.P) so they might be selling with different prices and which will make customer
confuse and give a wrong idea about the company.
No service: Despite of extra features that software carries, company has poor service which has
to be provided by channel members (dealer). Due to this the existing customers are trying to go
away from the company.
For example: In dealer in Mandi district he is entitled to provide service but as he is himself
doing this he is not able to provide it as he has not hired any separate individual for this work as
it might increase the expenditure.
Time taken to respond is high: As dealer is not only associated with Marg as he is also Tally
Partner as well he is doing his own business so he is not able to give proper time.
For example: If there is a new lead generated for Demo he is not able to provide the service on
time and sometimes it takes weeks to do that work.

Lack of software knowledge: As technical knowledge given to dealer is not adequate he is not
able to penetrate certain part of the market.
For example: Due lack of knowledge of jewelry software a big section of market is untouched.
Large area to cover by Area sales Manager (ASM):
Representative of the company have to cover a large area which was not possible due to which
there was no proper interaction between distributor and Company.

For example: As ASM has to cover a lot of area (Jammu, Himachal, Punjab, and Chandigarh)
he was not able give proper time to each territory.

Competitors of MARG:
Every company whether it is big or small, fast or slow will be having both allies and enemies.
The following are the major competitors of Avenir Labs in integrated business software industry
of accounting software.
1.
2.
3.
4.

Busy
Tally
Logic
Sarc

The Softwares mentioned above are main competitors of Avenir Labs. Even though Avenir Labs
occupies third position in the market after busy and tally in terms of number of customers and
profit making.
In the 4 types of Softwares mentioned above G12 can work as S09 but vice versa is not
applicable. Similarly D15 can work as both G12 and S09 and P21 can work as D15, G12 and
S09.