MEMO: TARGET THE RIGHT MARKET Harvard Case Solution & Analysis

Memo: Target the Right Market Case Solution


The company which is considering the target market options is known as Spark Place,which provides online software solutions as well as it allows its customers to manage and let them know about the marketing performance of their businesses. In addition, the company charges a monthly fee of the software provided by it to the customer.

            In addition, the company has started its business initially two years before and therefore, the company is seeking growth and profitability. On the other hand, it has limited resources and capabilities and in this situation targeting the right market segment is very crucial. Therefore, the company has to choose the best target market from where it can generate suitable profits while ensuring its long term growth.

Problem Statement

The executives of the software company are debating on how they could maximize their profits while targeting the most appropriate market. There are two options available to them and the first option is the small Sams option while the second option is the Marys option.

Now the company has to make a choice among these option and decide whether it would be targeting both of the segments or a single segment among them. However, there are several pros and cons of choosing these options which will be discussed in the study later on.Lastly, final recommendation will be made after considering the pros and cons of the options.

1          Data Missing in Jane and Josh analysis

There are several things which are missing in the analysis of Jane and Josh since, they are trying to select the best target market but there are several things which are missing in their analysis.

The first thing which is missing in the analysis is that the data doesn’t show the complete financials including the growth potential, future profitability and strategic growth. However, they have included the profit potential in the data as they said that Sams will provide $5 over $1 while Marys will provide $2 over $1 of ROI. However, this is acceptable but the data is not sufficient.

On the other hand, another thing which is missing is the pricing strategy since, the data doesn’t reflect that what would be the prices in the new target market and what would be the customer acceptability in that particular market segment.

Finally, there is no comparison of cost and benefits by using the cost benefit analysis and due to this, the whole consideration is in doubt whether it would be feasible or not.

2          Pros and Cons of the aforesaid or discussed options

There are several pros and cons of both of the options which will be discussed in this section.First of all, the analyst will discuss them particular to Sams, afterwards, the pros and cons will be discussed as Marys and finally, the merger of both the options will be discussed......................

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