Investor Soft

Question 1
What customers should InvestorSoft pursue with

its new service? Why?
Target Segment – Company Size
Segment Characteristics
Micro Cap •59 % of companies in Canada Stock exchange
•CEO acts as the IR manager
•Most potential to benefit from IR
• High Sales cost since they have to target more number of customers
Small Cap •24 % of companies in Canada Stock exchange
• Already invested some time & money for IR activities
•No single method of IR management dominated
Mid Cap • 8 % of companies in Canada Stock exchange
•Credibility & image quite important
•Would prefer premium products
Blue Chip •9% of companies in Canada Stock exchange
• Already concentrated heavily on IR
• Separate team of professionals and operating staff
Target Segment - Geographic

Area Characteristics
USA • Large base of potential clients
Canada • Companies more willing to subscribe according to the predictions
•Concentrated only in a few cities (Toronto , Calgary)
Recommendations
Investorsoft should start targeting Small Cap and Micro Cap companies in
Calgary city of Canada (20% of publicly traded firms in Canada)
Together comprises of 85 % companies listed in Canadian

Stock exchange. Since the pricing doesn’t vary much volume
plays an important role
Least challenging to sell the product as only the functionality
is important to the Micro cap companies
Many of the firms does not have an effective solution
(Almost 65 % of micro cap have very inadequate IR website)
Lack financial resource for in house development or hire an
in house personnel
The CEO acts as the investor relationship manager in
MicroCap. An interface of this kind would enable him to have
free time to concentrate on expansion of sales and
operations
Recommendations
The competitor penetration ( IntegratIR) in Micro segment is

extremely low ( Less than 5 %) and the service provided (Eg.
Being invisible to the end user) is much better
The proposed pricing of $295 to $395 (Investorsoft Standard) and

$595 (Investorsoft Premium) is optimum for these two segments
Small cap companies can be used for brand building and micro
cap companies will help in achieving the sales target
Concentrate on Calgary city of Canada (Approx 500 firms – 295

Micro Cap & 120 Small Cap) since the business centers are
concentrated in a few major areas and Investorsoft will have the
closer to home advantage
Question 2
What are the pros and cons of distributing
through intermediaries? Does this make sense
for InvestorSoft? Why or why not?
Pros and Cons of Distributing via Intermediaries:
ADVANTAGES DISADVANTAGES
1. Minimization of initial set-up cost 1. Need extensive training &
familiarization with product
2. Can provide critical (or neutral) view 2. External sales force may not be
about products aligned with Investorsoft’s objective
3. Beneficial when contacts with 3. Shifts locus of control outwards

customers don’t exist
4. Capability to diversify product offering 4. Steep discount demands (when

(multiple feature packaging), thus intermediaries have many customers)
making proposition more attractive
5. May not create brand awareness for
Investorsoft.
Factors affecting Choice of Distribution Channels:
TARGET
CUSTOMERS
COMPANY
PRICING
STRATEGY
DISTRIBUTION
COMPETITORS COLLABORATORS
Does this make sense for InvestorSoft?
NO, because:
 Brand awareness may be little, or may not be created at all

 Intermediaries would be useful when catering to US markets, &
Blue-Chip companies
 Discounting & Integration may result in diluting brand (Brand
Erosion)
 Adds extra layers of profit margins, thus reducing Investorsoft's
margins
 Conflicting strategies of web developers & InvestorSoft
Question 3
What promotional strategy would you
recommend to Chris Bolivar? Be sure to
specify how much you would spend, on what,
and why.
Promotional Techniques
Media Cost
Direct Mail • $5 for a regular envelop(letter + Brochure)
•$20 for a large envelope(Folder package +Complete
information)
Print Advertisements $500 – Very Small

$750 – Small
$1000- Medium
$1450 - Large
Conference Exhibits $ 5000 for attending annual general conference

$5000 for displaying investorsoft booth
Industry Promotion $150 per user for try outs

Personal Selling $150 per prospect for sending private links
$600 per prospect personal demonstration
Brand Building Recognition Not to be tried without brand building

Marketing budget allocation
(Total budget = $25000)
Micro Cap companies
Direct Mail (Assuming 20 % success rate) –> 295*5 = $1475
Personal Selling(Private link and over phone) –> 150 * 60 = $9000
Small Cap companies

Direct Mail (Assuming 20% success rate)–> 120 *20 = $2400
Personal Selling –> 350 * 24 = $8400
Print Advertisements
Small advertisement in 7 issues of CIRI -> 7 * 750 = $5250
Proposed total Cost = $26525

Question 4
How should InvestorSoft price its service?
• Investorsoft should look at the value pricing
option of $395 per month & the premium
pricing of $595 per month
• For small cap companies who spend around
$750 a month, Investorsoft would help save a
minimum of $155 monthly

Investor Soft

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Question 1

What customers should InvestorSoft pursue with

Target Segment - Geographic

Together comprises of 85 % companies listed in Canadian

The competitor penetration ( IntegratIR) in Micro segment is

The proposed pricing of $295 to $395 (Investorsoft Standard) and

Concentrate on Calgary city of Canada (Approx 500 firms – 295

3. Beneficial when contacts with 3. Shifts locus of control outwards

4. Capability to diversify product offering 4. Steep discount demands (when

 Brand awareness may be little, or may not be created at all

Print Advertisements $500 – Very Small

Conference Exhibits $ 5000 for attending annual general conference

Industry Promotion $150 per user for try outs

Brand Building Recognition Not to be tried without brand building

Small Cap companies

Proposed total Cost = $26525

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