Marketing Plan For Web-Based ERP Software
2.0 Situation Analysis
2.1 Market Description
General target market includes all types of organization, small shops, super-markets, and individuals who are interested to purchase ERP for their experience or for any purposes.
In current market share, there are few ERP software that used by most companies known as Oracle, this software was sold by some few persons directly, there are also companies that bought ERP from original providers like Microsoft ERP for small business, but generally, STANDING TECH. company became the first ERP provider in the market and can take first position by offering RTL versions that supporting UTF-8 data processing natively.
STANDING TECH. Company planned to target all possible segments of the current market in the future, however, the following three segments will be offered for starting with ERP software.
2.1.1 Segment 1: Open Source ERP for developers
1. Description : This product offered to those companies that interested in using open source software so that they can add additional functionality according to their needs. Below products also offered as open source for targeting more customers.
2. Expected % of sales : This product can be positioned as first Right-to-Left open source web-based ERP so that it’s expected to be sold according to demand in market, expected sale will be equal to demand because no other similar products exist in market share.
3. What consumers want : Consumers want to use open-source software for two reasons: security and ability to edit the software according to their needs.
4. How consumers will use the product : This software can be installed like any other software, however, it’s not an application, it’s based on server-side concept so that it require HTTP server that can run PHP scripts and also require a database server, it can be used also online. The main modules are accounting, inventory, and point of sale.
5. Support requirements : Support will be required for different purposes: preparing server, during installation and primary configuration, using given API and editing source code, and request for adding additional modules if developers not able to add it by themselves.
6. How to reach them : Sending experienced agents directly because developers asking more questions about the product. Sending detailed brochure as a formal offering letter in both e-version and hardcopy. The remaining can be reached via advertisement program.
7. Price sensitivity : Costumers that interested in paid open-source not more sensitive to price because they know about costs and expenses that required creating this type of software, they expected to accept offered price.
2.1.2 Segment 2: Simple ERP for small companies
1. Description : This version offered to small companies with limited budget and resources, it includes single person for personal use, small shops, supermarkets, and other small companies.
2. Expected % of sales : This version expected to be sold in less or equal to demand because in regard to its first position, all customers can’t be reached. However, this product is expected to be highest rate of sales among other versions because target customers for this version are maximum comparing with other version.
3. What consumers want : consumers want to use simple software for managing their business so that inexperienced users can use the software. This concept expected more popular because most small companies does not have IT department and also, not all employee experienced in using and configuring complex software.
4. How consumers will use the product : Consumers can use the product for different purposes, accountants can just purchase accounting module, shops and supermarkets will use point of sale and basic accounting future, while small companies will use all or some basic module with basic functionality. According to verities, the product can be installed on laptop or personal desktop and also on workstations or small servers.
5. Support requirements : Support is highly required for this product because most customers in this segment require a special module according to their actual workflow. It’s expected that support will be required for: Installation, configuration, database selection, special customization and user training.
6. How to reach them : It depends on type of customers that mentioned in this segment; small companies, large shops and supermarkets can be reached by sending experienced agent or sending brochure as formal offering letter, but generally, customers can be reached advertisement programs.
7. Price sensitivity : Customers in this segment expected more sensitive to prices, it depends on their budged and resources.
2.1.3 Segment 3: Full future ERP for medium companies
1. Description : This product offered to medium companies with full functionality of ERP that its compliance with international standards for accounting, inventory, warehouse, and HR. Other modules also can be customized according to company’s policy and guides.
2. Expected % of sales : Because of number of medium companies is less, it’s expected that the sales of this product is less that other versions. However, competitive advantages like native support for UTF-8 data and Right-to-left will make this product as first solution in current market for all new companies.
3. What consumers want : Medium companies usually want to use higher quality software with more functionality that helps them to manage their business easily and efficiently, more specifically for ERP products, most medium companies using special ERP software according to their structure, and some medium companies are extended their branch in different region, they need a special software for all branches with centralized or distributed database, this version can be implemented for all those purposes.
4. How consumers will use the product : Medium companies using ERP for all possible departments that can be converted to single software module, the common use for ERP is for Finance and Accounting, Manufacturing, Supply chain, Human resource and Customer management. It’s expected that this product will be used online because it requires less cost comparing with distributed database in different regions.
5. Support requirements : Support is highly required for this product because it’s complex and requires special developer to implement it according to company’s special customization. It’s expected that support will be required for all software lifecycle.
6. How to reach them : Because medium companies are less, so that they can be reached easily by sending experienced agent for demonstration and direct prices estimation.
7. Price sensitivity : medium companies expected that are less sensitive to prices because using ERP will decrease more cost overheads and increases their profit.