SaleSoft, Inc

BUSINESS TO BUSINESS (B2B)

MARKETING

Group Members:
17PT-005 : Balvinder Singh
17PT-006 : Deepak Sharma
17PT-007 : Karn Kumar
17PT-011 : Parul Priya
17PT-012 : Pinak Datta
17PT-017 : Sanchit Thaman
 Summary
SalesSoft, Inc
 Founded in 1993
 Gregory Miller, the President and CEO of SalesSoft.

 Current Product
 PROCEED
 A Comprehensive sales Automation System(CSAS)
 Problem with PROCEED: Converting interest to actual sales was taking a long time.

New Product
Trojan Horse (TH)
 Might offer an easy way for Salesoft to get into new customer accounts, gain quick sales, and generate much needed
revenue.
Dilemma
Why not
 Distract Salesoft from Primary objective of Becoming leader in SA
 Could cannibalize sales from PROCEED
 Strain in relationship with consultants responsible for PROCEED Success
Benefit
 Access to new customer account,quick sales, increased revenues
 The Sales Automation
Industry
Any system that automated some or all processes used in the
sales order cycle from lead generation to post-sales services.
International data corporation, estimated the 1995 SA market at
around $1 billion and expected it to grow at over 40 percent
annually over the next five years.
Rapid Growth in SA due to :
Drop in laptop/computer prices.
Introduction of powerful and user-friendly software.
 Developments in communication technology.
 Types of SA solutions
 Contact Management System (CMS)
 CMS allows the user to maintain, access and update details of contact person (customer) in
a database that resided in the sales person’s laptop .
 CMS lacked integration across all marketing, sales and service functions.
 CMS neither helped management leverage the market information nor helped to improve the
sales process/order cycle.

 Comprehensive Sales Automation System (CSAS)

 Provides sales, marketing and service personnel with integrated tools to enable them to
communicate better and perform their jobs efficiently and effectively.
 Provide management with back-end decision support systems to enable them to manage
marketing, sales, and service resource more proactively.
 Increase productivity by improving efficiency and effectiveness and reducing order cycle time.
A typical CSAS Buying cycle

Full
Modify Scale
CSAS as rollout
Type of Pilot per
Software Test feedback
How to
relate and
Evaluate: different Hardware
Potential to functions to
Realization automate be
by Senior
automated
Management
Proceed Vs Trojan Horse
PROCEED
Developed to address major functions of
any organization – Sales, Marketing &
Services
Other CSAS Competitors are available
Multipurpose Product – Cost of
acquisition and operations will be high
Long – Term Relationship Building
Roles of SA Consultant is imperative
No big players in the CSAS domain,
making it an easier avenue for Salesoft.
Potential B2B Product
TROJAN HORSE
Focusses only on Sales
Can be blue-ocean product
Addressing only one need - Cost of
acquisition and operations will be low
Fulfilling Short- Term Need
Affect partnership with SA Consultant
Microsoft and Lotus are planning to enter
the TH market, thereby, making
competition tight
Augmented B2B Product
 Total # of Firms
Estimated Number Estimated Number % Sales Rep to
Industry with 50+ industry
of Employees of Sales Reps Total Employees
Sales Reps

Software Industry 149 251978 25198 10%

Computers, Office 137 1211601 121160 10%
Equipment
Commercial Banking 2440 2770274 1523651 55%
Diversified Service 198
960615 48031 5%
Companies
Electronics, Electrical 479
2043614 143053 7%
Equipment
Scientific, Photo, & 263
Control Equip. 1309515 78571 6%

Diversified Financial 547

891611 276399 31%
Companies
Life Insurance Companies 370 1049653 293903 28%
 SaleSoft Columbus, Action Syslems, SalesBook Systems, Sales Technologies, Saratoga Syslems, Penultlmate, Irvine,

Competito
Company/location OH Golden.Colo. Pittford,NY Atlanta Cambell,CA Ca
SPS (Windows
Product PROCEED HealSeeker SalesBook SNAP for Wlindows SalesForce
version)

1993 rs
Client/user base

Estimated/Projected
5/500

$0/$0.3 million
7/1,700

?/$8.5 millon
513,000

?/$5 million
27/1,500

SSOJ$50 mill on
80/3,200

$5/$10 milfion
1,511,600
$0/$3.5 million 1994
Projected
Revenues
Average Price 200 Users $480,000 $250,000 $250.00 $400,000 $250,000 $260,000
Process or Data Driven Process Process Data Optional Process Data Process data-driven
application
Primary system locus
(Account or opportunity Opportunity and Accounts Accounts Accounts Accounts Opportunity
mgmt) Accounts
Vendor-customed, Vendor· Proprietary Proprietary Saratoga Proprietary tool for
client-customized or Vendor- customized, or client customization,
Customization configurator tool for Tools for client
third parties can customized clients can or vendor
customize customize client customization customization customized.
Back-end
SOL·Server, implemental on MVS, DOS, Windows
Backend System Novell, Windows avai able through Unix, OS/2, Windows NT
Windows NT; under DOS, SCO
mix o/ base product
and customization
Remote Communications Any network Xcellenet lot OS/2 Proprietary or left to Xcellenet; Microsoft's
MAPI,VIM, Remote LAN
Strategy gateway back clients selection RAS
 Issues Raised By Sales Rep In Regards To Typical Concerns of Sales Rep Regarding CSAS Solutions
Order Cyde And Possible Solutions
We spend too much time More freedom through better and
verifying and chasing Provide Provide status of these items Will this lead to management trying more efficient forecasting, call
status or these items on their to keep an eye on everything I do?
reporting, and account reviews
on their local database.
down expense reports and
commission checks.
Is this extra work? Better information now on team
accounts, new leads
Every year the company
raises my quota, which forces
me to do more to keep my Give the sales person tools If Igive away information about my
that allow them to manage customers then the firm will not Better aid prompt customer service
compensation the same. We
more tasks and address their need me anymore .
need the ability to manage
administrative needs.
more opportunities at one
time Ability to identify areas/skills that
What is in it ror me? need to be developed
Considerations
• Though TH is a good product however Sales Soft should continue focus with PROCEED because:
• SalesSoft wants to be a market leader in SA segment and PROCEED is a POTENTIAL PRODUCT
which can make it happen.
• PROCEED is a single product with multiple features and benefits.
• With Multiple FABs PROCEED will keep the existing customers engaged and their respective
feedback will increase the customer base in long term that’s how a market develops slowly and
consistently.
• PROCEED involves a complex sales procedure with multiple stake holders which will help in
enhancing network of customers for Sales Soft in long term.
• Partnership with SA Consultants will be helpful in analyzing customer behavior and needs in a
better way rather then removing them and selling TH directly in the market
• Above all TH will cannibalize the sales of PROCEED which is like killing your golden chicken for a
short term benefit.
Our Recommendation

■ SaleSoft should go ahead with PROCEED-

 Core Competency
 Primary Objective of SalesSoft
 Less competition
 Product differentiation.
 Better in long term returns.
 Customer Benefit.
Why not Trojan Horse

■ Unable to cater organizations needing CSAS.

■ PROCEED will not be ready and competitors will grab market share.
■ Trojan Horse does not require partnership with consultants which will
hamper
success of PROCEED.
■ Trojan Horse will cannibalize the sales of PROCEED.