Sales and Trojan Horse
Case analysis
Of
SaleSoft, Inc. (A)
SITUATION ANALYSIS:
SaleSoft was founded in July 1993 with the objective of marketing PROCEED, a Comprehensive Sales Automation System (CSAS). Despite the fact that there was a good level of enthusiasm amongst the prospective buyers, the high level of supply time was a drawback with a meagre five such systems being sold till date. Thus converting the interest to sales was a real problem. Now, to seek additional funding from the Venture Capitalists for future developments, the company was under dire pressure to show performance and is in a dilemma whether or not to introduce a new product christened Trojan Horse (TH). This product can be developed, with some work, using the existing modules of PROCEED's Sales System that are already available. Trojan Horse (TH) could potentially distract SaleSoft from its primary objective of becoming a leader in the high end of the Sales Automation (SA) software industry. There is also a risk that it might cannibalize sales from the PROCEED product. TH can potentially prevent SaleSoft from forming relationships with consultants whose support is critical to the success of PROCEED. But, TH might offer an easier alternative for SaleSoft to get new customers, gain quick sales, and generate the much needed revenues.
The situation is further complicated by the fact that current PROCEED customers are expecting SaleSoft to deliver the complete PROCEED solution as soon as possible. The company has delivered only 3 modules out of a total of 8, and developing the remaining five would cost them about $1mn and a would take a time of approximately 8 months.
UNDERSTANDING THE BUYING CYCLE OF PROCEED:
PROCEED falls under the category of Comprehensive Sales Automation Systems (CSAS). There following steps are involved in the customer buying cycle: 1) Realization by senior management that CSAS might solve some of the existing sales, marketing and service problems. 2) Evaluating the potential to
Of
SaleSoft, Inc. (A)
SITUATION ANALYSIS:
SaleSoft was founded in July 1993 with the objective of marketing PROCEED, a Comprehensive Sales Automation System (CSAS). Despite the fact that there was a good level of enthusiasm amongst the prospective buyers, the high level of supply time was a drawback with a meagre five such systems being sold till date. Thus converting the interest to sales was a real problem. Now, to seek additional funding from the Venture Capitalists for future developments, the company was under dire pressure to show performance and is in a dilemma whether or not to introduce a new product christened Trojan Horse (TH). This product can be developed, with some work, using the existing modules of PROCEED's Sales System that are already available. Trojan Horse (TH) could potentially distract SaleSoft from its primary objective of becoming a leader in the high end of the Sales Automation (SA) software industry. There is also a risk that it might cannibalize sales from the PROCEED product. TH can potentially prevent SaleSoft from forming relationships with consultants whose support is critical to the success of PROCEED. But, TH might offer an easier alternative for SaleSoft to get new customers, gain quick sales, and generate the much needed revenues.
The situation is further complicated by the fact that current PROCEED customers are expecting SaleSoft to deliver the complete PROCEED solution as soon as possible. The company has delivered only 3 modules out of a total of 8, and developing the remaining five would cost them about $1mn and a would take a time of approximately 8 months.
UNDERSTANDING THE BUYING CYCLE OF PROCEED:
PROCEED falls under the category of Comprehensive Sales Automation Systems (CSAS). There following steps are involved in the customer buying cycle: 1) Realization by senior management that CSAS might solve some of the existing sales, marketing and service problems. 2) Evaluating the potential to