Key Statistics via Research

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1 Salesforce Marketing Cloud Sales Competition Purdue Center for Professional Selling Tangerine Computers Inc. is a privately owned multinational computer technology company based in Citrus Grove, Florida, United States, that develops, sells, repairs and supports computers and related products and services. Bearing the name of a tasty piece of fruit, the company is one of the largest technological corporations in the world, employing more than 80,000 people worldwide. Tangerine Computers (TC) sells personal computers, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, MP3 players and also electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales (to consumer) model. Tangerine Computers was a pure hardware vendor for much of its existence, but a few years ago with the acquisition of Sunshine Solutions, Tangerine Computers entered the market for IT services. The company has since made additional acquisitions in storage and networking systems, with the aim of expanding their portfolio from offering computers only to delivering complete solutions for enterprise customers in various industries including retail, manufacturing, and technology. The company also boasts over 130 retail locations throughout the United States, Canada, South America, United Kingdom, Australia and Japan. This division of the company called Consumer Lines is responsible for these locations. The sales of personal computing products are quite competitive and a race for market share with every new product launch is important. The B2B side of the organization falls under Business Lines which is comprised of two main selling units. Corporate Division handles the largest enterprise customers and the Small Business calls on the rest of the marketplace. Additionally Tangerine has franchised out over 40 (of the 130) retail locations to independent dealers. These SMB-like organizations have complete autonomy around purchasing, product offerings, sales promotions, technology investments, and marketing strategies. Each franchise operates independently and makes decisions locally at the regional level. 1

2 Key Statistics via Research Tangerine Computers controls about 10% of the Global PC market. While this may sound good it s been steadily decreasing over the past 7 years with 2013 results not reported yet could be even worse. The company forecasts market share percentages to drop below 9% for (See Chart on Right) Quarterly revenues (see chart above) has been growing to nearly $900M per quarter (run-rate) with fluctuations in the company sales based on various influences including product innovation, competition, and logistical issues. During discovery, some budgetary numbers were revealed regarding the actual digital marketing spend of Tangerine Computers. This excludes the radio, television, and print budgets referring specifically to the digital channels referenced above. Retails partners are separate and not part of this budget. 2

3 Key Decision Makers Name: Bob Miller, Chief Marketing Officer Persona: Brand Marketer Bob is less focused on the minutia of getting a campaign out the door and has responsibilities that directly impact the business. The top focus is revenue, but under times of strain does include cost reduction as well. Bob enjoys working with key partners that can help him create and drive strategic programs. While he is a key executive, he does value other s opinions and rules by consensus and will always include other parties within their organization. This often complicates any discussion with Bob and will require a more comprehensive sales strategy. Bob reports directly to the CEO, Alexander Topdaug. Dawn Profiel and Joe Byteman both report (up through the chain) to Bob Miller. Name: Cathy Morgan, Vice President of Digital Marketing Persona: Channel Marketer Cathy is responsible for one portion of the media mix of everything digital which is non-print and non-television/radio. She has a narrow focus and looks at her responsibilities through an operational lens. Cathy s key pains include lack of time, resources and skill. She does concern herself with revenue lift and has a holistic view on her responsibilities to the business. She is an up and comer within the organization and strives for promotion. Cathy directly reports to the Bob Miller, the Chief Marketing Officer. Name: Ted Mulvaney, Marketing Technology Manager Persona: Technical Marketer Ted is not an easy person to have an initial conversation with from a relationship building perspective. He loves to bring the discussion down into the weeds and enjoys going deep on the technology platform discussion. Ted is extremely organized (and detailed) in his thoughts around requirements and needs. His reporting chain eventually stops, and is influenced by the CTO, Cindy Thomas. Ted and his colleagues hold an affinity towards the technical aspects of any solution. His group has heavy ties into the service center portion of the organization and will have little time to devote to a vender evaluation due to the hectic nature of their projects. 3 Alexander Topdaug President and Chief Executive Officer Dawn Profiel Senior Director Social Media Joseph Byteman Senior Manager Mobile Marketing

4 Persona Mapping: Tangerine Key Executives Cross Channel / 4D Assessment Results: Tangerine Computers 4

5 Several key marketing stakeholders were interviewed during the discovery process. The 4D Model was applied not only to marketing --- but social, mobile, and the web. The top level results are shown here that tells the story of the maturity of these dimensions across various channels in the Tangerine Computers. Interpreting the 4D Assessment Results Aspirational These channels within the organization are the farthest from achieving their desired goals. Often they are focusing on efficiency or automation of existing process, and searching for ways to cut costs. Aspirational teams currently have few of the necessary building blocks people, processes or tools to collect, understand, incorporate or act on analytic insights. Experienced Having gained some interactive (digital / social / mobile) marketing experience often through success with efficiencies at the Aspirational phase these departments are looking to go beyond cost management. Experienced teams are developing better ways to effectively collect, incorporate and act on subscriber events so they can begin to optimize their messaging programs in every channel. Transformed These organizations have substantial experience using their customer interactions across a broad range of functions and channels. They use interactions as a competitive differentiator and are already adept at organizing people, processes and technology toolsets to optimize and differentiate. Transformed business units are less focused on cutting costs than Aspirational and Experienced organizations, possibly having already automated their operations through effective use of insights. They are most focused on driving customer profitability and making targeted investments in niche analytics as they keep pushing the organizational envelope. 5

6 Key Marketing Initiatives The chart above represents key marketing initiatives as they relate to customer lifecycle stages. Each one of these customer experiences represents an opportunity to drive discussion with key leaders in the Tangerine Computers. Aligning these initiatives with the key stakeholders challenges will be important to your success in acquiring new business at Tangerine. 6

7 Key Marketing Challenges Integration of Data Sources As Tangerine grew, so did the amount of disparate data sources across the globe. Currently there is a huge challenge in tying all the various customer data sources into one environment for marketing and customer service. Manufacturing will continue to leverage SAP as its primary tool but sales, service, and marketing are open for new ideas and alternatives to house this data under one roof. Managing these big-data repositories and mining them for new revenue opportunities is high on the list of the CEO s growth initiative. Optimize Contact Strategy The company fails in the area of Contact Strategy. With so many data sources and various departments utilizing their own repositories for customer touch points the strategy is quite cloudy. Depending on which department you ask you will get a varying opinion on the best way to optimize the customers experience with Tangerine. The organization would benefit from an uber-level strategy that can incorporate best of breed applications, industry leading best practices, and economies of scale. Manage Segmentation When it comes to messaging a customer there is very little segmentation done to specifically segment and target the audience. The challenges revolve around the lack of tools and strategy. The company is looking for better ways to solve these issues and deliver highly targeted marketing campaigns to prospects (both B2B and B2C) as well as current customers. Enterprise customers should see relevant strategic server and office product lines while consumers should experience the breadth of the mobile and tablet offerings. Automate Lifecycle Campaigns There is very little automated technology at Tangerine. Much of the campaign execution is managed by people and it s quite a painstaking operation. Quite often campaign targets are missed due to logistical issues around campaign creation and triggering. Being able to wrap their arms around this issue would create efficiencies within the marketing group and drive incremental (and measurable) revenue throughout the organization. Capturing Data via Preferences When visitors to the Tangerine corporate website browse products and solutions the company is not tracking these customer touch points. Business customers are mixed in with consumers and the experience becomes frustrating for some. Capturing a potential (or current) customer s preferences would serve many purposes to drive higher customer satisfaction and better product messaging to this audience. This is on the strategic marketing roadmap for Operational Efficiency Specific to the marketing side of Tangerine a renewed focus on operational efficiency will be key in While 27% of sales come from its brick-and-mortar stores (Consumer Lines), digital marketing plays a vital role in driving foot traffic to these stores. Since they are all independently owned franchises there is very little control of marketing efficiency. Local retailers have invested in various tools, technologies, and services to drive their local businesses. Very little is done (at the local level) to align with the corporate marketing initiatives. There is an opportunity to align these retailers and get them to invest in a holistic 7

8 marketing platform (and approach). It will take some local selling to these SMB type customers but the corporate marketing department is willing to champion these efforts if it will result in cost savings to the organization and drive incremental sales. Engage the Mobile Audience This represents a huge challenge for the organization. How can Tangerine engage with their own customers on the same mobile products that are being sold to them? There is very little strategy in place to address mobile and both the CEO and CMO bring this up in just about every meeting. There is a need to address the enterprise business customers differently than the consumer that might be near a retail location. The company is struggling with this now and is courting various service and solution providers to tackle this problem. Personalize the Digital Experience across all Touch Points There is nothing personal about a customer s experience with Tangerine. In fact many social networks are bombarded with irate customers that complain the company does not listen to them when product issues arise. Automated responses from websites contact forms are the only tough-point the consumer receives when making inquiries. There is no personalized difference from a campaign perspective when it comes to the largest enterprise corporate customer to the high-end laptop buyer to the teenager wanting a new hard drive for their gaming machine. Website visitors must navigate marching menus of product data and sift through categories before finding their area of interest. The website and campaigns are not synchronized to remember and personalize the prospects experience which makes a frustrating interaction with these high dollar targets. Behavioral Based Lifecycles Currently there is no behavioral tracking of a prospect or customers interaction with a campaign throughout its lifecycle. The marketing team is challenged with new ways to identify critical buying behavior and target relevant promotions, events, and content to keep the prospect engaged with the company. Industry churn is extremely high based on competitive pressures. Being able to address this challenge will be key in helping the marketing teams meet aggressive growth targets in 2014 and beyond. React to Individual Interactions Tangerine understands the need to react to individual interactions via digital channels but has no tools or process in place to make this happen. There are so many touch points during the awareness stage in the customer lifecycle that crafting a strategy around these interactions would be extremely valuable to the sales pipeline. Social networks (Facebook, Twitter, and Industry Blogs) has mushroomed over the past 18 months and the company is doing very little to monitor let alone engage with these potential revenue opportunities. 1:1 Recommendations / Guided Selling An outside business consultant provided feedback to the executive leadership of Tangerine last year. He speculated there is over $60 million of lost revenue opportunity because the company is not specifically providing targeted recommendations to their installed customer base and really guiding the selling process. The company does not have this prioritized as a key focus area as they are unsure how to attack this problem. 8

9 Automate the Customer Journeys Experiencing a mix of enterprise business customers, mid-market corporate customers, and regional consumers Tangerine has mapped out the typical customer journey for all these buyer personas. While they ve done a bunch of high level strategic discussions around this the CMO and CTO are not comfortable that any one vendor can deliver a comprehensive solution around this. Social and Mobile are becoming more important (beyond traditional digital channels) and the company needs to address these areas as well. Learn more about the Marketing Cloud at 9

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