Sabyasachi Sahu (1501100) Pradeep Meena (1501090)

Aniket Phadnis (1501068) Saurabh Bose (1501103)

Kaushik Nath (1501082)
Group-8 Centra Software
Nature of product: Critical Facilitating good (cost-wise)
Sales Revenue: $ 23 mn (2000) and $50 mn (2001) est.
58% CAGR in synchronous learning market to overall size of $17bn by 2004
Avg. Revenue per customer = $ 52272
Main questions:
1. How to integrate salesforce of field sales and tele sales based on their
productivity and conversion rate?
2. How should Centra software distribute each of its products, without
underselling?
3. What market should Centra software concentrate upon and what products
should it sell in these markets?
Field Sales vs Tele Sales Productivity

# Quarterly Salary Qtrly Productiv Deals/ Conversio

Employe and Revenu ity employ n rate
es commission/empl e ee
oyee
Fiel 25 $ 46250 $54400 4.70 1.72 12
d 00
Sale
s
Tele 2 $ 24000 $46300 9.65 18 6%
Sale 0
s

Product Classification and Type of Salesforce required:

Product % of Nature of product Suggested sales channels

sales features
revenue
E-meeting 3% Less features (stripped Telesales
vsn.)
Conferenc 19% Medium features Telesales and Field Sales
e
Symposiu 80% All features Telesales,Field &
m Enterprise Sales
*Repeat customers not taken into account

Reed
Disseminate within the client to each
and every operating unit
Consolidate and defend Centra S/ws
turf
Sales to only Global 2000
Risks associated with:
Lesser
penetrate across clients: Increase 10%
of global 2000 cos
Expand Centra Softwares turf
Telesales for under $200mn customers

Penetration and then Disseminate Dissemination first

Higher customer acquisition cost and Making one client key client and thus
Sabyasachi Sahu (1501100) Pradeep Meena (1501090)
Aniket Phadnis (1501068) Saurabh Bose (1501103)
Kaushik Nath (1501082)
Group-8 Centra Software
pressure on bottom line because of associated risk of too much
lower conversion ratio dependence on one client
No consolidation No expansion and diversification

Issues:
1. Focus on tele-sales to fight Web-ex but, Web-ex focuses exclusively on e-
meetings and e-meetings is Centra Softwares least revenue generating
product
2. Tele sales force has to log into database to check for the client belonging
to field sales force
3. 70% Response to RFP (Quote) does not get acted upon

The Way Forward:

1. Penetrate and then disseminate: Lower associated risks and also field
sales contributing around 76% of $50 mn target whereas enterprise sales
contribute only 12%.
Also higher client coverage of the overall market pie.
2. Tele-sales and Field-sales as one team: Based on productivity and
conversion rate, Tele-sales(Productivity: 9.65 and conversion rate of 6%)
must be used as to penetrate across clients and Field Sales
(Productivity: 4.7 and conversion rate of 12%) must be used to close deals,
with Field Sales being majorly responsible for Enterprise Sales
3. Cultivate product endorsers in client companies and also through
alliance partners, majorly Infrastructure providers like CISCO etc.
4. Tele-sales must generate leads of Global 2000 and then work with field
sales to sell the more revenue generating products rather than closing the
deal by selling e-Meeting products
5. JV or acquire LMS vendors so that compatibility with Centras products
is done in-house and not be an added overhead
6. More sales people to work with Infrastructure partners: working
with their sales reps to get/convert more leads
7. Follow up with clients through salesforce to give reasonable quotes
(in tune with clients demand and budget with proper product-
requirements fit) that have a higher % of getting acted upon

Penetration Target:
New Customers (20% increase over last year): 300 contributing around
$15.68 mn
Telesales: 60-70%
Field Sales: 40-30%
Sabyasachi Sahu (1501100) Pradeep Meena (1501090)
Aniket Phadnis (1501068) Saurabh Bose (1501103)
Kaushik Nath (1501082)
Group-8 Centra Software
Dissemination Target:
Total of 650 customers (or operating units within a client) contributing to around
$ 33 mn
Telesales: 10-20%
Field Sales: 80-90%