Target the Right Market

CASE BRIEF WITH PROBLEM STATEMENT

SparkPlace, an online-marketing software company, has limited resources. The firm wants to target 2 types of market – Small Market where the staff strength is less than 20 & Medium Market where the staff strength is between 20 to 100. The company is deliberating on the following:

1. Which market to target to promote their product?

2. Which strategy to adapt – short term profits or long term value maximization?

DIAGNOSIS OF BOTH THE MARKETS

To understand the dynamics of both the markets, we have done analysis on following parameters:

1. Strength of the Market

2. Weakness of the Market

3. Opportunities available in the Market

4. Threats available to SparkPlace.

* Small Sams

THREAT

WEAKNESS

OPPORTUNITIES

STRENGTH

* Medium Marys

THREAT

WEAKNESS

STRENGTH

OPPORTUNITIES

THE ROAD AHEAD

Based on the analysis, we suggest that it would be appropriate to target both the markets – ‘Small Sams’ and ‘Medium Marys’ simultaneously. The case facts very well portray that there are benefits and limitations of both the markets. With long term in view, Medium Marys’ are better bet as they are more profitable, loyal and experienced. However, the company needs short term quick gains hence Small Sams’ would be a better bet – as they are easier to convert and gives better ROI as compared to Medium Marys’. The cost of sales for Small Sams is low i.e. $1000 compared to $5000 for Medium Marys’.

By targeting both the markets at the same time SparkPlace will be able to spread their overall risk and the geographic spread will generate high profits. This will help SparkPlace to build strong image in the market.

IMPLEMENTATION

To target both the markets, as recommended, SparkPlace should adapt Holistic Marketing plan as detailed below:

SparkPlace should be divided into 2 marketing divisions focusing on each market independently –

1. A division focusing on Small Sams to be headed by JANE which will completely...