Case Studies: Revenue Enhancement
Other Case Studies: New
Market Opportunities | Product Improvements | Organizational
These case studies are examples of EastSight Consulting CEO Parmelee
Entering a Complementary Market in the Storage Arena:
A company offering a software product supporting enterprise storage
installations developed a similar offering for the distributed storage
arena. In order to create the marketing materials and pricing structure
for the distributed product launch, the company needed additional information
on the distributed storage market and how existing providers were satisfying
their customers. A market assessment gleamed from conversations with
potential users as well as with partners and employees of two organizations
with existing products revealed that the market was small, but growing.
A market awareness program launched shortly after the product announcement
yielded short-term qualified leads for the client as well as a wealth
of information on longer term prospects.
client could structure its pricing to maximize revenue and position
its product to be unique in the marketplace. The subsequent market
awareness program turned the information from the initial market
assessment into tangible revenue potential for the client.
Determining Pricing Patterns in Tough Economic Times:
A software firm knew that the market for its products had softened
due to the recession; however, it needed to understand the degree of
softness in order to maximize its revenue opportunities. It did not
want to price high and lose deals nor did it want to price low and
lose the additional revenue. Users and peers were interviewed to understand
how companies negotiated deals. We discovered that a limited amount
of additional discounting occurred, but the most significant change
was the inclusion of functions and services not included in stronger
firm revised its pricing structure and its discount guidelines
to sales to garner more revenue from existing opportunities.
What Users Are Really Paying for Communications Services:
An aggressive competitive telecommunications service provider wanted
to insure that it was a price leader. In order to implement this tactic,
the company needed to understand the street pricing, not the official
list pricing, of key services. The client targeted private line, both
US and international, Internet access, voice, and colocation. Pricing
analysis requires clear descriptions of the services to insure comparable
components. Therefore, knowledgeable sources at similar companies were
contacted to obtain the list pricing, detailed description of the services
offered, contract terms and conditions, and discount structures. With
this information, customers were interviewed to determine the actual
pricing, including standard or special discounts, were received.
client compared the pricing of its offerings with competitive services,
adjusted its pricing, and incorporated its pricing leadership message
in its marketing materials.
What Are the Real Consulting Rates for Systems Engineers?:
A large provider of systems engineering consulting services entered
into a difficult negotiation with a major client who was asserting
that the contract rates from competitors were substantially below those
offered by this provider. The company sought help in determining and
documenting the standard rates for a wide variety of industry participants.
First, we needed to establish the criteria for each level of systems
engineers (SE) to ensure valid comparisons. Our primary research began
with interviews with users of competitive consulting services who provided
independent verification of the rates in their contracts. Sources at
the other industry participants provided the standard ranges for multiple
levels of SE expertise and the multiple factors that were used to establish
rates in individual situations. Our client found that the written transcripts
of the interviews illuminated the context for the summary information
placed in a chart and provided insights into the pricing models at
several of these companies.
addition, our client found our research very valuable in illuminating
the target customer segments, marketing strategies, business structure,
and normal margin of the companies studied. By learning the rates
of systems engineers, our client was able to draft a more competitive
bid for IT outsourcing.
Leveraging Information to Win a Multi-Million Dollar Opportunity
in the Cable Market:
A manufacturer of a major component for cable and broadcast companies
lost several large contracts to a fast growing and aggressive competitor.
The company needed an in-depth analysis of this tough competitor
from both a strategic and tactical perspective. Research was commissioned
to research the organizational structure and management philosophy
to provide a strategic viewpoint. In addition, the sales and marketing
tactics were analyzed to understand exactly how the company presented
its capabilities and messages to prospective clients. One executive
boasted that he was flying out the next day to close another key
deal worth $20 Mil.
client learned that the competitor sent its few seasoned executives
to close business around the world and that some of its marketing
messages could be easily countered. Based on our information, the
client scooped the $20 Mil deal away from the competitor.
Protecting Revenue Streams from New Market Entrants:
A wireless service provider heard hints about a major company's activity
in a large metropolitan area in the Midwest and sought to understand
its progress and plans as well as how other industry players would
react to this new threat. Topics for the research included initial
service roll-out, geographic areas to be served, and potential problems
stemming from a shortage of dual-band phones. Detailed information
on antenna-installation rates, a service-initiation estimate that turned
out to be highly accurate, and contingency plans to deal with equipment
shortages were obtained through a series of interviews with public
officials, journalists, supplier representatives, and employees at
the target firms.
wealth of information allowed the client to create concrete tactics
to combat this new entrant thereby protecting a substantial source
of revenue. As an added bonus, the tactics garnered business from
the other players in the metropolitan area.