Marketing Strategy Case Study "Clearwarter Technologies"

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Topic Marketing Strategy Group Project on “Clearwater Technologies Inc.” (Case 22, Page 522) by Group F Nguyen Thi Huong (201305046) Wang Xingchen (201305033) Sun Xiaomeng (201305023) Tao Chengwei (201305039) November 2013 TABLE OF CONTENTS Page Executive Summary 1 Introduction 2 Marketing Plan 3 Conclusion 4 REFERENCES 5 Executive Summary Clearwater Technologies Inc, which was founded in 1991 by 4 MIT students, is a small publicly traded technology firm building Customer Relationship Management (CRM) servers for sales staffs of small-sized to medium-sized companies. Now it is one of the largest distributors of industrial controls and electrical components in Northwest USA. This case summarizes field research and interviews with Mark Jefferies, the Vice President of Marketing together with the company’s Product Manager, Sales Manager and Financial Analyst. It mainly refers to the discussion about the pricing strategy for upgrades to the 20–seat and 30-seat for the QTX[1] product line of Clearwater Technologies. QTX was a sales support server that allowed multiple users to simultaneously maintain their sales account databases covering contact information, quote histories, copies of all communications, and links to the customer's corporate database for shipping records. The QTX is renowned for its high performance reliability and free technical lifetime support and sold at premium price. The company customizes QTX line that held 70% of its mature market share. QTX products are sold through value-added resellers (VARs), who provide sales and support solution to end-users. Clearwater sets the manufacturer’s suggested retail price (MSRP) and sells the QTX products to VAR’s at 50% of the MSRP. The basic QTX package provided simultaneous access for 10 users to the system, i.e. 10 “seats”. Initially, the product

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