Identifying Brand Value and Expanding Market Presence

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Company profile at time of engagement:

Multi-national publicly-traded document management software developer
Bulk of revenues came from fax server and legacy host-access software

Scenario

The Company, a North American business unit of an established publicly- traded French software company, was facing maturing markets and waning interest in its fax server and legacy host-access software. To respond, the Company introduced a promising new output-management product offering many potential enterprise applications. However, initial promotional efforts had failed to attract adequate attention, further threatening the company’s growth.

Engagement

3SIX0 Advisors was called upon to help reposition the Company and develop an aggressive take-to-market strategy. The process included gathering detailed data, feedback, and observations from all sources that affected the Company including the highly visible SAP ERP market with its well-known output-management challenges. Our process exposed the existing targeted IT groups as being barriers to adoption. Perceiving risk, customers and prospects were unwilling to integrate third-party software into their business-critical SAP systems. The Company’s sales messaging could not overcome these barriers or adequately justify broader adoption.

Deliverables

Positioned the Company for a higher-level value proposition and point of entry into target customers:

Uncovered a compelling value proposition and powerful metrics that lent themselves to a CFO executive level sale
Identified several new complementary SAP-ecosystem partnering opportunities
Recommended a strategy to reposition the Company by moving up market as an enterprise software supplier
Facilitated the creation of new strategic partnerships to target higher level sales

The successful implementation of the 3SIX0 Advisors strategy resulted in the product line becoming the highest profit contribution and fastest growing product line in the Company.

Initial Investment in 3SIX0 Advisors – $126,415
Number of SAP accounts at time of engagement – 20
Growth of SAP accounts after 3 years – 125 (North America)
Average sales/service price at time of engagement – $10K
Average sales/service price after repositioning – $50K
Gross margin gain – (125 accounts X $50K X 60% gross margin) – (20 accounts X $10K X 35% gross martin) = $3,680,000
Timeframe – 3 years

Return on gross margin gain – $3,680,000/$126,414 = 29.11 X

Company names and references available upon request.