Caesar IT Services: Marketing Multiple Value Propositions Harvard Case Solution & Analysis

Time-Value Projects:

By the end of 2005, the company had launched Time-Value projects in the market by using integrated organizational routines under the brand name of Caesar. It was basically an IT service solution given by the company within limited timeframe and controlled budget. The customers and the management itself were only concerned about the yield of the project. The main purpose of the Caesar group is committed to deliver the solutions within a specified time frame. For the company, making timely delivery was the USP of Time-Value projects, and thus, it was the prime source of making connection between fees of the project and commitment to the customers.

In addition to that, the range with clients is co-design by the supplier of the project. As the project is based on giving timely delivery IT solutions to the customers with a limited budget, the method was entrenched in the theory of constraint framework. The company has become the first company to apply the theory of constraint structure in the IT services. The TOC framework describes the potential and present obstacles companies are facing with respect to their projects. The five main steps involved in the process are described in the appendix below. With the help of TOC, the company had successfully identified the logic behind the late delivery of projects with out of control budget. Additionally, the business units for Time-Value projects comprises of the IT manager, Purchasing manager and CFO. Frequently, functional manager of projects showed a requirement of particular software in the individual field to the manager of the unit. Contact with customers and suppliers are often done by IT manager and functional manager. Chief executive officer looks into matters related to the budget. In addition to that, the overall purchasing cycle of the company with respect to projects is generally long that is from months to even years as well.

Conjoint Analysis:

Conjoint analysis can be defined as a technique based on statistical tools that are used in analyzing the market research to assess people’s perception on the attributes and features of a certain product. The primary purpose of conjoint analysis is to examine and evaluate a mixture of certain characteristics that has the most significant impact on customer’s decision-making ability. Often, companies show potential or upcoming products to the potential customers and analyze their response by making a comparison between the products. Their preferences are based on proper estimations that in turn aid companies to make framework and strategies with respect to revenue, market share and other factors of the product.

In order to identify and rectify the two major problems that are brand association and brand identification, conjoint analysis has been performed that has allowed the company to distinguish the price point which it could target and the size of the potential target market. Following conclusions has been made by conjoint analysis derived by Part-worth utilities for Time-Value projects.

Conjoint analysis showed three most important features that have the significant impact on Time-Value projects. These characteristics include time, budget, price and guarantee. These are the factors that were found to be crucial for the company's success. On the other hand, the other major attributes were methodology and speed. Customers of Time-Value projects are based in three segments i.e. the first segment comprised of majority of the market that is 59% and more sensitive to price. In addition to that, they valued their suppliers more than any other segment. The next segment comprised of customers who valued budget guarantee and time very clearly and less sensitive to price. This segment comprised of 25% of the market. The last segment comprised 16% of the market and known as the customers who do not care about the price and emphasize only on quality. Correlation analysis done in the segments have identified that IT managers in the remaining segments of the organization are more entrepreneurial in nature. With the help of conjoint analysis, the company can reach towards further enhancement and growth towards marketing projects. The prime market for project value proposition is based on the customers who are entrepreneurial in nature.

The management of the company realized the importance of conjoint analysis in determining the value of products in terms of its features and attributes. The management at Caesar Group has identified five major points of differentiation that is the focus on particular application, promptness in delivering resumes, manager’s knowledge about the organization, level of satisfaction from the supplier’s side and loyalty rewarding programs by the supplier.

Correlation Analysis:

To analyze the findings emerge from the customer analysis done by the company, Correlation analysis has been done to analyze and identify the relationship between the overall market average and the segments for body-shopping and time-value projects. Here in both cases, variables are positively correlated with each other. The correlation between total market and Segment 1 for time-value project is highly correlated i.e. 0.88. Along with that, segment 2 and segment 3 has the positive correlation as well with the industry average..................................

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