Xero: Marketing Strategies in Practice

This assignment requires you to analyze the marketing strategies employed by Xero, a cloud-based accounting software company. Your analysis should cover key aspects such as Xero's target audience, the marketing channels they utilize (e.g., digital marketing, content marketing), and the overall effectiveness of their strategies. The goal is to provide a comprehensive understanding of how Xero successfully markets its products and services.

RUNNING HEAD: MARKETING IN PRACTICE 1
Marketing in Practice
Company name: Xero
Submitted by:

Marketing plan of Xero 2
Executive summary and introduction
The purpose of the report is to highlight the marketing practices of Xero. The organization is
known across the world for its accounting software. For a better understanding, Report is divided
in four parts. The first part provides information regarding the company background, products
and current situation in the marketplace. The second part provides a brief regarding the
environmental analysis. The third part focus on impact of emerging technologies and trends and
the last part provides information regarding the four segmentation bases.
Contents
Section One: Background................................................................................................................4
Overview of the business.............................................................................................................4
Vision, mission, and brand value.................................................................................................4

Marketing plan of Xero 3
Product offering, features/benefits, and customer value proposition..............................................4
Current situation in the marketplace............................................................................................5
Section two: environment scanning.................................................................................................5
P.E.S.T.E.L Analysis...................................................................................................................5
Political environment...............................................................................................................5
Economical Environment.........................................................................................................6
Social Environment..................................................................................................................6
Technological Environment.....................................................................................................6
Competitive environment and the role of social-responsibility and ethics in the business.........7
Section three: impact of emerging technologies and trends............................................................7
Section four: segmentation and targeting........................................................................................8
Four segmentation bases..............................................................................................................8
Small business..........................................................................................................................9
Individual business-man...........................................................................................................9
Corporate Houses.....................................................................................................................9
Advisory...................................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................10

Marketing plan of Xero 4
Section One: Background
Overview of the business
Xero is a New Zealand based Software Company developing Cloud based accounting software.
Their target companies are small and medium sized business. Xero has offices in New Zealand,
Australia and New Zealand and Singapore. Moreover the company is listed at both New Zealand
and Australian Security Exchange Market. The products are based on Software as a Service
Model. They are selling software on the basis of the subscription and the number of companies
managed by the entity. The products are used by consumers in more than 180 countries (About
Us.2017).
Vision, mission, and brand value
Xero has a vision to build a trustworthy relationship with small business customers through
online partnership. They are proud to be helping over 1 million subscribers globally by
transforming the way of doing business (About Us.2017).
Product offering, features/benefits, and customer value proposition.

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The important features of Xero comprise of automatic bank and credit card account feeds,
invoicing, accounts payable, expenditure statement, fixed asset depreciation, purchase orders,
and benchmark business and management coverage. Xero can mechanically import bank and
credit card statements through its software. It presents a free API that allows customers and 3rd-
party vendors to incorporate external applications. There are Over 275 3rd-party software
vendors who has built Xero add-ons. The company also supports multiple tax rates and
currencies. In this way the company is able to meet needs of diverse customers in order to
provide with a complete solution. They have an effective payroll feature for users in the
Australian and United States markets. Furthermore, the users can contact local teams in New
Zealand, Australia, Europe and the United States for assistance.
The products designed by the company serve to all financial needs through a single unified
ledger. This allows users to work in the same set of books in spite of of locality or operating
system. The company released the Xero Touch mobile apps for IoS and Android devices phones
allowing users to issue invoices on-site with clients. They have also partnered with PayPal to
permit invoices to be paid. Fast Company has marked the software in a 2012 article, stating that
the design is uncomplicated and formulates it simple for users to get a glance design of real time
financial situations (Ryan, 2016).
Current situation in the marketplace
Xero persistently increasing its share price in the market. With the cloud accounting software
provider’s strong revenue growth making it is one of Australasia’s top listed technology
companies.
The dual-listed company has more than one million subscribers worldwide that has passed a
quarter-of-a-million subscribers in New Zealand and hit the half-a-million mark in Australia. It is
one of the largest technology companies by revenue listed on the ASX and NZX.
Section two: environment scanning
P.E.S.T.E.L Analysis
Political environment

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The most important factors in any country are its trade policy and legal rule, regulation and their
government. A stable government has a less chance of risk as legal rule and regulation would not
change in short time. In New Zealand, the risk Related to government rules, policies and
procedure is high because the government changes after three year. The new government applies
new rule and regulation which could or could not be good for it. Similarly, the employment rate
is very expensive in New Zealand. In New Zealand the productivity is more than few other
countries (Solomon, 2014). Their one labor is equivalent to five labor force. A vast amount of
investment is needed to develop a strategic business unit. Every organization desires a vast
amount of money to establish them. The companies ought to pay more interest which could be
fine for the government but it lessen the profitability of a company. Most importantly Business
freedom is 99. 9 % and trade freedom is 84.6 %. This suggests that the company has a better
environment to do business and trading. Xero has a target market in the form of small and
medium sized business (Pappas, 2016; Goldson et al 2015).
Economical Environment
The country has registered an extraordinary growth during the last decade. The New Zealand
economy is listed as a high income economy. The economy is predictable to attain $207 billion
by 2018. The country growth is chiefly driven by domestic and external demand. The economy
is exceptionally reliant on trade with other countries. In the recent time, changing pattern seen in
external demand has affected the country’s economic condition. They have a lower spending in
R&D activities resulting in external dependency for new technology. In addition the major key
drivers of economy reside in the industrial scope, constructive business climate and political
strength promoted a significant FDI inflow to New Zealand. Moreover, the economy enjoys a
low rate of inflation contributing to lower interest rates and growing purchasing power parity
(Hollensen, 2015).
Social Environment

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The Country’s economy is tremendously dependent on trade with other countries. The changing
external demand pattern has an effect on economic situation. The lower spending power in R&D
activities has resulted in external dependence for new technology. The long-standing political
environment of New Zealand is very steady and low-risk. New Zealand welcomes FDI and
encourages them as well. With a stable government and an effective anti-Corruption Index, the
country has ample of investment opportunities. New Zealand is measured as a safe and reliable
country to do trade. Xero can expand its business relationship with small business customers
through online partnership. In this way they have helped over 1 million subscribers globally by
transforming the way of doing business (Strauss, 2016).
Technological Environment
The OECD's Programme for International Student Assessment has ranked New Zealand's
education system as the 7th best in the world. New Zealand has an adult literacy rate of 99%, and
over half of the population between 15- 29 hold a tertiary qualification. Technologically the
country is outperforming.
Competitive environment and the role of social-responsibility and ethics in the business
The company although offers a complete range of options that fit to an individual expectations or
unique conditions. There are other companies providing with the multiple other Accounting &
Finance Software solutions. The other alternatives provided by the company are its pricing plans,
as well as user comments for a wide choice of solutions provided by competitors. They ought to
select the most consistent service (Jain and Haley, 2009). As per a survey conducted by
Alternatives, Xero has a total score of 9.4/10. The actual users of Xero have a normal fulfillment
rating at 97%. This reveals their experience with service. Most of the products provided by the
other companies are somehow similar in nature. FreshBooks, Wave etc are the accounting
software used by the individual.

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CSR is concerned with treating stakeholders of a company in an ethical or in a social responsible
manner. Stakeholders subsist both inside a firm and outside. As a result, behaving socially
responsibly increases the human development of stakeholders together within and outside the
corporation. The organization has recognized the importance of Corporate Social Responsibility
(CSR) by designing systems all through departments to guarantee coordination in customers,
staff and all stakeholders (Jobber and Ellis-Chadwick, 2012).
Section three: impact of emerging technologies and trends
Technology is important for favoring lives to be easier. Especially in the case of small
businesses, they have the flexibility and the inventiveness to take advantage of this power. By
continuing to be lean and agile, a small business can become accustomed to use new technology
and power in emerging markets. Due to their size, small businesses don’t have the capital to
support a poorly-implemented change. The increase of smart phones and linked technology has
presents security issues. It can cause a loss of significant client information (Lovelock, 2011).
Savvy small businesses need an early acceptance and careful execution. As new technology
initiates risk, it also gives business an opening to grow. They get a chance to jump onto the
future. In this way they can prepare for meeting the tech trends taking place in the current
situation. Technology will develop in coming years and this will surely lead to adoption of
breeds’ faster technology. This is one of the certain things about 2017.
Chatbots, AI, and machine learning
AI is a computer’s ability to imagine for itself based on prior knowledge. The procedure of
building the algorithms help in managing the risks. The amalgamation of these technologies
helps in making communication with customers in an easy way.
BYOD and MDM
More reliance on the mobile workforce creates a vulnerable data, particularly in workplaces with
a bring-your-own-device policy. The employees can check email and sensitive customer
information on their personal devices. In this way, a significant amount of information is
exposed to a threat. Small companies need to protect themselves against hacking and social
engineering, by bookmarking particular URLs that need VPN access.
E-commerce

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There is a necessity to promote business through an e-commerce site. Otherwise the clients will
go elsewhere. There are few buyers who don’t purchase if the goods are not delivered to the
doorstep. There are few who are looking for niche products from undiscovered sellers (Ma, Ding
and Hong, 2010).
Connection-as-a-Service
The newest trend in the market is the connection as-a-service practices like in case of Uber or
Amazon. As per the recent change in the market companies are directly connecting to the sellers
to sell goods.
Connecting customers to services and products is big business. In case of small businesses, it is
one of the most effective trends in the market. Lots of small business are partnering with
connection services to create their products handier
Section four: segmentation and targeting
Four segmentation bases
The company is meeting out with its target by helping the business organizations around the
world to use an effective solution for their problems. Local and International brands are doing
excellent adding up to the country’s economy. Xero supports multiple tax rates and currencies. In
this way the company is able to meet needs of diverse customers in order to provide with a
complete solution In order to gain competency the company is contributing in developing the
global economy. The small businesses succeed through better tools, information and
associations (Malhotra, 2008).
Small business
The low cost products are used by the small business in order to get multiple solutions for their
problem. In the process, the small business organizations are organizing different techniques and
process to deal with the solution. The software is capable of mechanically importing bank and
credit card statements through its software (Markides and Charitou, 2004; Perrey and Spillecke,
2011).

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Individual business-man
Mobile app software can be used by an individual businessman in his day-to-day life. For the
purpose of gaining competency, small business are using Xero Touch mobile apps for IoS and
Android devices phones allowing users to issue invoices on-site with clients(Armstrong, et al
2012).

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Corporate Houses
Big corporate houses located across the world are using Xero to supports multiple tax rates and
currencies. The company dealing in different countries can use software products to deal with the
problems. In this way the company is able to meet needs of diverse customers in order to provide
with a complete solution. By attempting a distinguish technology the company is able to gain
sustainable strength (Thompson and Martin, 2010).
Advisory
Advisories across the world are using the technology to meet the target. They are providing with
an advisory solution in order to meet the query of clients. The products developed by the
company are based on Software as a Service Model. In this way the company is able to use the
data in a well-defined way. By attempting a distinguish technology the company is able to gain
sustainable strength. The distinguish features by the company has helped it to gain a competitive
advantage (Belz and Peattie, 2009).
Conclusion
To conclude, The Small businesses are contributing in developing the global economy. In this
way the small businesses succeed through better tools, information and associations. All These
challenges help the company in keeping a close knitted connection with customers, partners, and
other friends to drive modernization self-assured, turning Xero into the online business proposal.
Therefore, to create effective marketing strategies it is evident to develop the core
competitiveness

Marketing plan of Xero 12
References
About Us.2017. Online. Available at: https://www.xero.com/us/about/ Accessed on: 4 September
2017
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2012. Marketing: an introduction.
Pearson Prentice-Hall, London.
Belz, F.M. and Peattie, K., 2009. Sustainability marketing: A global perspective. Chichester:
Wiley.