Caesar Case

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Category: Business and Industry

Date Submitted: 02/28/2015 06:49 PM

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Case study: Caesar IT services Summary: Caesar showed decline in sales and talent retention (key to service industry). Their value proposition in body shopping seemed to be declining while their strategy to deliver projects end to end didn’t do well in the market. There were market / economy impacts besides large internal execution challenges. They got a conjoint analysis to be done by an external market research firm. Their focus is to understand the study presented by the research firm, assess whether they should follow both strategies – body shopping and time value in same firm. If yes, then do they need to have different structures, goals and brands for each of them. We leveraged the conjoint analysis to confirm that they should continue in both markets though with different focus. We identified the market segment where they can be successful and the price range. We did not have sufficient information to do a tradeoff analysis for the segment to find an apt price.

Time Value projects

Conjoint analysis for Timevalue projects provided data on attributes important to this market. It also helped in segmenting customers based on their top preferences of each attribute as shown in table below. The three columns below indicate the range, preference rank and the relative importance of each attribute based on utility within the market or segment respectively.

Time Value Project Brand Delivery time ET Project Price Project Need & Scope Guarantee( time & budget) Market share

Total market 43.43 3 13.34% 10.4 5 3.19% 182.07 1 55.93% 13.02 4 4.00% 76.64 2 23.54% 325.56

segment 1 Segment2 68.35 2 25.5% 6.58 5 1.4% 16.8 3 6.3% 10.9 4 2.3% 177 1 65.9% 184 2 38.3% 5.4 4 2.0% 29.2 3 6.1% 0.84 5 0.3% 250 1 51.9% 268.3 481 59% 25%

Segment 3 22.34 3 4.5% 12.94 5 2.6% 362.8 1 72.4% 15.4 4 3.1% 87.3 2 17.4% 500.8 16%

Customer segment profile: Segment 1 is very price sensitive and places high importance on brands. Segment 2 is open to new untested

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