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    HubSpot Suggested Case Format 2016

    Uploaded by

    Daniel Yongbum Lee
    HubSpot should target B2B companies, specifically focusing on Owner Ollies. The CLV for Owner Ollies is higher than other segments due to lower churn rates. The B2B market is also larger with more potential customers that value HubSpot's marketing automation tools. While Market Marys and B2C segments show potential, HubSpot is well positioned to serve the needs of Owner Ollies in helping them manage marketing and grow their businesses.

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    HubSpot Suggested Case Format 2016

    Uploaded by

    Daniel Yongbum Lee
    85 views5 pages
    HubSpot should target B2B companies, specifically focusing on Owner Ollies. The CLV for Owner Ollies is higher than other segments due to lower churn rates. The B2B market is also larger with more potential customers that value HubSpot's marketing automation tools. While Market Marys and B2C segments show potential, HubSpot is well positioned to serve the needs of Owner Ollies in helping them manage marketing and grow their businesses.

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    1. HubSpot Suggested Case Format 2016

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    HubSpot should target B2B companies, specifically focusing on Owner Ollies. The CLV for Owner Ollies is higher than other segments due to lower churn rates. The B2B market is also larger with more potential customers that value HubSpot's marketing automation tools. While Market Marys and B2C segments show potential, HubSpot is well positioned to serve the needs of Owner Ollies in helping them manage marketing and grow their businesses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    85 views5 pages

    HubSpot Suggested Case Format 2016

    Uploaded by

    Daniel Yongbum Lee
    HubSpot should target B2B companies, specifically focusing on Owner Ollies. The CLV for Owner Ollies is higher than other segments due to lower churn rates. The B2B market is also larger with more potential customers that value HubSpot's marketing automation tools. While Market Marys and B2C segments show potential, HubSpot is well positioned to serve the needs of Owner Ollies in helping them manage marketing and grow their businesses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5
    At a glance
    Powered by AI
    The key takeaways are that HubSpot needs to decide whether to target B2B or B2C customers, as well as whether to focus on Owner Ollies or Marketer Marys. They should consider customer lifetime value, market size, customer needs, competition, and their ability to provide value to different segments.

    HubSpot should target the B2B segment because B2B customers have higher lifetime values and the B2B market is larger based on the estimates provided in the case.

    HubSpot should target Owner Ollies because they have specific needs around managing their businesses that HubSpot's products can address, whereas Marketer Marys may be able to rely more on free/open source alternatives.

    General Question:

    Which segment should HubSpot Target? B2B or B2C? Owner Ollies or


    Marketer Marys?

    Kenan-Flagler Business School


    Marketing 741

    NAME
    SECTION 8am/9:30am/11am/2pm

    Executive Summary
    State your recommendation. Should HubSpot target B2B or B2C companies? Owner Ollies or
    Marketer Marys? Keep this brief.
    The rest of your write-up should provide arguments to support your recommendation.
    The figures and tables should be used as references to support your arguments.

    Target Market Selection


    Should HubSpot cast a wide net or narrow their focus? Effectively argue that HubSpot should
    narrow their focus using frameworks we have discussed, as well as points from the case.

    Should HubSpot target B2B or B2C customers?


    -Use a mix of qualitative (strategic) and quantitative (CLV, market potential) facts to argue your
    point. Do not restate points from the case, but use them to support your decision.
    -Will this group be receptive to the product? I.e., is HubSpot providing value to these segments?
    Is there competition in this market? Is HubSpot well positioned to serve these customers? Are
    there any other outside forces we should consider?

    General Question:
    Which segment should HubSpot Target? B2B or B2C? Owner Ollies or
    Marketer Marys?

    Should HubSpot target Owner Ollies or Market Marys?


    -Use a mix of qualitative (strategic) and quantitative (CLV, market potential) facts to argue your
    point. Do not restate points from the case, but use them to support your decision.
    -Will this group be receptive to the product? I.e., is HubSpot providing value to these segments?
    Is there competition in this market? Is HubSpot well positioned to serve these customers? Are
    there any other outside forces we should consider?

    Should HubSpot start using traditional outbound marketing techniques? Keep this brief.

    Should HubSpot move away from the SaaS model to a software-as-a-product model? That is,
    instead of a subscription service, they would charge a single high price. Keep this brief.

    Optional: Other Considerations (only if you feel this is necessary, and have space)

    Recommendation:
    Synthesize the strategic and quantitative results to reach a conclusion.

    General Question:
    Which segment should HubSpot Target? B2B or B2C? Owner Ollies or
    Marketer Marys?

    Figures and Tables:


    Table 1: Estimation of Customer Value
    Evaluate the CLV of individual customers from each segment by filling in this table.

    Churn Rate

    OO

    MM

    B2B

    B2C

    CMS

    Non-CMS

    Source

    4.30%

    3.20%

    3.30%

    6.00%

    2.10%

    5.50%

    Table A

    0.50%

    0.50%

    0.50%

    0.50%

    0.50%

    0.50%

    Assumption

    Retention Rate
    Margin
    Acquisition cost
    Consulting Fee
    Total AC
    Interest
    (monthly)
    CLV

    Assumptions:
    -Use the CLV formula at the MONTHLY level: CLV = m/(1 r + i) - AC
    -Use a monthly interest rate of 0.50%
    -Let B2B and B2C customers have a 50-50 split of OO and MMs (pg. 11)
    -Let CMS and Non-CMS customers have a 50-50 split of OO and MMs

    General Question:
    Which segment should HubSpot Target? B2B or B2C? Owner Ollies or
    Marketer Marys?

    Table 2: Estimation of Market Value


    Estimate of the size of each potential market by filling in this table.
    -State your assumptions based on details from the case
    OO

    MM

    B2B

    B2C

    Number of
    Potential
    Customers
    Value per
    customer
    (from Table 1)
    Total Potential
    Market Value

    Table 3: Providing Value to the Customer


    What value does each customer group receive from HubSpot? Be descriptive.
    Customer Needs
    Value Provided
    (i.e. what help do they need)

    (i.e. how well does HubSpot fill their need)

    OO

    MM

    B2B

    B2C

    General Question:
    Which segment should HubSpot Target? B2B or B2C? Owner Ollies or
    Marketer Marys?

    Optional: Feel free to include any other figures or tables that might support your
    argument.
    Some examples:
    Sensitivity analysis for the retention rate, margin and acquisition cost.
    Pricing considerations Comparison of SaaService, SaaProduct and Freeware/Open Source.
    Matching of the product to each group

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