Marketing Management: XYZ IS Marketing Plan, Spring 2018

This report presents a comprehensive marketing plan for XYZ Information Systems (TIS), a horizontal organization providing IT solutions to XYZ. It addresses issues of increasing IT expenses, customer experience regression, and redundant, obsolete solutions. The plan focuses on transforming IT business systems to meet future needs, reduce operational inefficiencies, and modernize XYZ's technological investments. Key components include market analysis, competitor analysis, and financial analysis, highlighting the potential for increased profit margins and sales through the implementation of the new OTP platform. The plan aims to standardize the ecosystem, enable cross/upselling, and penetrate a 3B dollar market, projecting significant savings and improved customer experience. Desklib provides access to similar reports and study resources for students.

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Table of Contents
E XECUTIVE S UMMARY.................................................................................................................................4
COMPANY OVERVIEW...................................................................................................................................5
Strategic Focus and Plan.....................................................................................................................................5
Vision Statement.............................................................................................................................................5
Mission Statement...........................................................................................................................................5
Goals................................................................................................................................................................5
Core Competency............................................................................................................................................6
Situational Analysis.............................................................................................................................................6
Market Summary.............................................................................................................................................6
SWOT Analysis...............................................................................................................................................6
Industry Analysis.............................................................................................................................................9
Competitor Analysis......................................................................................................................................11
Company Analysis........................................................................................................................................12
Customer Analysis........................................................................................................................................12
Critical Issues................................................................................................................................................12
Implications...................................................................................................................................................12
MARKET AND PRODUCT FOCUS...............................................................................................................13
MARKETING & PRODUCT OBJECTIVES...............................................................................................13
Background on Target Markets.....................................................................................................................13
Market Size and Growth................................................................................................................................13
Trends Affecting the Market.........................................................................................................................14
Target Markets..............................................................................................................................................14
Points of Difference.......................................................................................................................................14
Positioning.....................................................................................................................................................15
Strategy Pyramid...........................................................................................................................................15
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MARKETING PROGRAM..............................................................................................................................16
Historical Performances................................................................................................................................18
Five Year Projections....................................................................................................................................28
Organization......................................................................................................................................................33
Company Organization..................................................................................................................................33
Management Team........................................................................................................................................33
F INAL S ELL....................................................................................................................................................36
References.........................................................................................................................................................37
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E XECUTIVE S UMMARY
This is a report which had evaluated and examined the external and internal environment of the
organization named XYZ Information Systems (TIS). XYZ Information Systems are one of the horizontal
organizations for the company XYZ and had been providing backend assistance in forms of Information
technology solutions to XYZ. TIS had been developing processes for transforming the backend support in
IT by using go-to-marketing strategy and assistance in operational cost reduction. One XYZ Platform
(OTP) is the part of the go-to-marketing initiative which would provide the organization with a blueprint of
effectively delivering a product and reach the target consumers. OTP initiative had aimed to develop a
modularized IT framework providing backend support. This new framework could be easily integrated
within the organizational business model to provide front end experience. Therefore, all the business
functions would knit together enabling the management to focus on selling rather than on maintenance.
Moreover, this is expected to save more than 10 million in the upcoming years with better develop
customer experience and service. The report had conducted market analysis, competitor analysis and the
financial analysis showed that implementation of the new system would prove to be a great way of
increasing their profit margin and sales.
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COMPANY OVERVIEW
Introduction
XYZ is a technology company providing IT solutions to the different industrial clients to meet their
requirements. The organization has several business areas and consists of different horizontal organizations
supporting their front end services. The firm has been acquiring several in the past few years and on an
average 8 companies has been acquired. XYZ Information Systems (TIS) is one such horizontal organization
providing backend support to the company. TIS have been able to develop ecosystem of different business
applications which can be used in different aspect of the business to support the XYZ.There are large
numbers of division in XYZ which act independently to provide solution to the organization.
However, the majority of the horizontal organizations are providing redundant and obsolete solutions.
This has been a major issue for the organization as it is preventing them from cross selling and up selling for
the products. Therefore, they are unable to grow in the market and there is unnecessary increase in expense
within the organization. XYZ has been facing issues such as budget spending of close to 100 million for
maintaining the existing systems and developing new systems which is 6 to 8% of the revenue and higher
than the industry average. The existing systems and processes are a decade old which means that they have
become obsolete and therefore, drastic change is required to gain competitive advantage in the market.The
development of the new OTP platform will facilitate the organization in removing all the redundancies and
provide the consumers with better solutions.
Strategic Focus and Plan
Vision Statement
XYZ IS organization aims to develop technologically superior information technology solution. They
have aimed to install a culture that promotes growth and customer orientation. The organization aims to
fulfill the goals of the stakeholders by increasing profit maximization and customer experience.
Mission Statement
The mission of the organization is to offer high quality IT solution in different areas of XYZ so that
they can deliver cheaper and efficient solutions to their clients. Moreover, the organization wants to provide
customized product to their clients so that they can use it effectively to operate in the market.
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Goals
XYZ‘s IS organization has developed their goals for the next 5 fiscals years and these are as follows:
 The main objective is to make use of technology and decrease the expense of the firm.
 The second objective is to build up a positive internal brand image.
Core Competency
The core competency of the XYZ’s IS are as follows:
 The company is one of the leading developers’ technology and business process experts providing
information technology solutions in order to mitigate business problems.
 The firm designs, develops and operates information technology solution at a cost that is bare
minimum when compared to third party solution or other horizontal organizations.
Situational Analysis
In this situational analysis, the internal environment of the organization and the market competitors
will be analyzed so that the organization takes measures to improve on their marketing strategy (Fleisher
&Bensoussan, 2015). Therefore, in order to promote the new OTP platform, the organization will analyze
both their internal and external environment for areas to improve.
Market Summary
It has been seen that Information technology solutions focus on developing applications that are very
monolithic so larger divisions have to managed effectively. The organization plans to add more division to
ease the pressure of developing such applications which will provide the companies with customized
solutions. Earlier there has been reluctance in developing new division because it would increase the overall
expenses of the organization. However, now in order to gain competitive advantage in the market, the
organization will have to do away with the redundancy in order to increase their profit margin.
SWOT Analysis
The SWOT analysis is developed based on the external and internal analysis of the organization and
the market. The table 1 depicts the strengths and weaknesses of the organization based on their internal
factors and the table 2 will highlight the opportunities and the threats faced by the organization depending
upon the external market environment.
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Internal Factors Strengths Weaknesses
Management XYZ IS provides information
technology solutions to their clients at
lowest price possible in the industry.
The organization has diverse
capabilities and can provide
information technology solutions to
different clientele.
The organization lacks in
their marketing strategies and
consists of certain platforms
that have become obsolete.
Personnel The organization has a global service
delivery network and provides
solutions to more than 50 countries all
over the world
The organization has acquired
too many companies that
provide similar solutions
which leads to redundancies.
Financial The organization has a strong financial
capability and stability.
The organization spends
almost 100million dollars on
expenses which is quite
higher than the industry
average. This affects their
available capital for
operations
Table 1
(Source: Bull et al., 2016)
External Factors Opportunities Threats
Consumer The organization has a strong
consumer base and there are new
market opportunities of attending to
The present consumers are
particular about their
requirements. Specific and
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new consumer segments. customized solution is
required to retain the existing
customers. Moreover, the
products have to be flexible
enough so that further
improvements can be made o
it with bare minimum cost.
Economic The growth in the market economy is
high due to the globalization. There has
been increase in allocation of smart
city projects. This is expected to
provide better opportunities for
acquiring new clients from the market.
The impact of BREXIT will
have an impact on the
business of the organization.
Moreover, the market is
highly volatile and sudden
changes in the economy will
have a deep impact on the
organization.
Legal The legal frameworks have facilitated
in developing new projects and have
promoted technology oriented
solutions for different sectors.
The parent organization being
present in different countries
will face threats if there are
changes in the legal
environment in respective
country.
Technological Digitalization is the recent trend in the
market and has been focused on
developing automated services.
Therefore, the number of clientele will
increase significantly as most of
companies will aim to transform their
organization with digital technology
solutions.
The other competitors are
using continuous innovation
and have been spending huge
sum of investments in
developing highly
technological advanced
solutions. Therefore, the
company will face threats
from these companies focused
on technological innovation.
Competitive The market competition is high due to Globalization has made the
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the increase in investments and
clientele. The organization can become
more competitive by increasing their
product line and developing new
platforms
market more competitive
providing opportunities to
smaller companies.
Moreover, the organization
will face threats from global
giants in the industry
providing similar solutions as
they have a stringer clientele.
Table 2
(Source:Mcdonald et al., 2016)
Industry Analysis
The projected growth in the information technology is 5% and the confidence index of the companies
notched up to its highest rating in the first quarter of the fiscal year of 2018. The consumer behavioral
patterns have changed significantly while has led to the development new service areas and technologies.
The demand of tech talent is high but the supply of talents is even more which will force the organizations to
think about their human resource policies (Dong & Yang, 2015). The majority of the industry is still focused
on incremental transitions which emphasizes on upgrading the technology. These could pose a problem for
the organization as upgrading the technology is not always the correct choice to make as the industry is
rapidly changing as the consumers have become much more unpredictable and so are their needs.
The global industry in information technology crossed the $4.5 trillion mark towards the end of 2017
which shows that there will be projected increase in spending by atleast $4.8 trillion in the upcoming years
(Comptia.org, 2018). The largest tech market in the world is United States consisting of 31% of the total
market.
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Figure 1:
(Source:Comptia.org, 2018)
The information technology market can be broke down into categoriessuch as the software, services
and hardware which constitutes about the 53% of the total. The other category istelecom services which
constitute 30% of the market and the remaining 17% does not fall within the traditional technological
businesses. The unpacking of the different components in the IT industry shows that even though majority of
the industries are traditional, 12 % market is captured by the emerging technologies. The growth of the
industry is high and the industry is expected to grow even further. The smaller companies are adopting
technological services and adopting innovation to improve their business models. The smaller companies are
trying to gain success and compete with the larger companies by using economies of scale and the
technological advancement so there are emerging opportunities that can be captured.
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Figure 2:
(Source:Comptia.org, 2018)
The above figure shows that information technology spending of the small-scale organizations. The
role of technology has changed significantly and the companies will have to think about managing their
technological spending in an effective way. The majority of the companies are having manageable spending
where there are companies not spending too much in technology whereas there are others will lower
spending. There this shows promising growth in the information technology where all the companies ranging
from large scale to small scale are focusing of managing their technological solution effectively to gain
competitive advantage.
Competitor Analysis
The competitor analysis will evaluate the major competitors in the market and the major competitors
of XYZ IS are IBM, Microsoft, HP enterprise, Accenture, Oracle, TCS, SAP, Cognizant, Infosys and
Capgemini (Columbus, 2017). These companies have majority of the shares in the market and are the market
leaders in this segment. These major companies are a threat to the organization as they can take most of the
prime projects in Information Technology solution. These poses risk for XYZ as they have many
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redundancies in the business which could result in a chaos. Moreover, it is desirable to develop a new
organization to lead this initiative.
Company Analysis
XYZ’s OTP team is being advised by both the C-Suite as well as outside Consulting Business
Partners. The OTP and IS teams uses several consulting partners and are also diversifying their Software
vendors, building expertise in India, etc to ensure there is steady decrease in expense. Also they are
diversifying into other software to ensure greatest and latest software are being used on new Projects.
Customer Analysis
The primary customers of the new IT platform are the various business units within the firm. The
given IT solution aims to improve the different business operations of the firm by integrating the various
tasks and business departments. For this reason, the IT has come out with this idea to promote the given
product within the business sector. This will ensure that the company is able to perform well. To state in
simple terms, the firm will not market its products to outside customers but to the internal units.
These are the:
New Acquisitions
Existing business units using IT platform
Business Units not using IT Platform
Critical Issues
The most critical issues are credibility. We can’t build the OTP initiative on a faulty foundation. We
need to ensure we have a core group of satisfied business areas that we can use to evangelize the platform
and bring new business areas to the platform.
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