Atlantic Computer Case Study
Part 1 – Customer Segments, Needs & Competitors
Team Four Forces
Submitted October 1, 2013
Purpose & Assumptions
The purpose of this stage of the analysis of the Atlantic Computer case is to understand the product that Atlantic is preparing to put some marketing dollars into to try to win new sales in the “basic” server market, currently dominated by a competitor, and to whom that product should be targeted. By comparing mass vs. targeted marketing, our team has looked at what type of market segmentation is necessary to strike a chord with customers with this revised product offering. In the analysis, the team seeks to understand the needs of the ...view middle of the document...
* Customers on a budget will see the performance enhancement of 4x that of the Tronn server without PESA and choose to purchase ¼ of the number of servers they may have in the past.
* Atlantic has room to grow in the basic server market. While the case states the market will grow at 36%, it only state’s Ontario Computer’s market share currently of 50%. We do not know Atlantic’s current marketing share and whether that has been growing or shrinking, and thus we do not know the current demand for the Tronn server itself. We must assume this information is know, and we make further recommendations based on a relatively strong starting point in the basic server market.
* Jowers believes that high performance servers and basic servers would not be viewed as substitutes. However as technology advances cannibalism in inevitable (e.g. a company could build a website utilizing several smaller basic servers that share the work of what a high-end server could do in the past).
Mass vs. Targeting Marketing
The first task to accomplish in this part of the analysis was to determine whether a targeted marketing approach would be favored over mass marketing. Mass marketing is generally most successful when one product works for all buyers. While mass marketing can reach larger audiences, the server market is not something any and all consumers need to begin with. Looking at the different segments of server hardware itself, Atlantic focuses on high-end with their Radia servers and the low-end with the Tronn servers. Furthermore, there are customers who have different needs and preferences based on their business line and their emphasis on computer server hardware as a strategic capital purchase. It became clear quickly that a targeted marketing approach makes more sense in seeking to market the Tronn+PESA bundle.
Basis for Segmentation & Prototypical Customers
Within the potential customers for the Tronn+PESA bundle, we found two unique segments of consumers of performance-enhanced basic servers, which break down along behavioral lines. The potential customers will be driven by the typical decision roles (initiator, influencer, decider, buyer, user) and based on the variables of occasions (e.g. budget cycles, IT replacement cycles, etc.), benefits (e.g. strong performance from a basic server, reduced operating expenses, fewer staff to support the servers, etc.), usage rate (e.g. the two different groups whose needs are somewhat different based on the number of servers needed for their line of business), and loyalty status (e.g. those who are Ontario Computers loyalists, those who are indifferent, those who are Atlantic Computers loyalists).
The prototypical customers for the Tronn+PESA bundle will be ones that have web-hosting and/or file sharing needs that are currently struggling using older servers, whether basic or high-end. They will be concerned about cost of acquisition and Total Cost of Ownership (TCO)...