STRATEGIC MARKETING MANAGEMENT

PROGRAM: MBA (P)

SECTION: G

FINAL PROJECT
Submitted to:
Mr. Mobin ul Haq
Submitted by:
Raied butt

14022034-050

Muhammad Burhan Ali 14022034-071

Khurram Shafique

14022034-032

Abdul Rehman

14022034-041

DATE: 30-01-15

Table of Contents
Company Introduction............................................................................................. 3
InfoTech Details....................................................................................................... 7
InfoTech Staffing Domestic................................................................................... 8
InfoTech Staffing International..............................................................................8
Financial Capacity of the Company.........................................................................8
Acknowledgement................................................................................................... 9
Executive Summary................................................................................................ 9
Specific Trend Analysis............................................................................................ 9
Objective of Our Project........................................................................................ 10
Strategies of the Project........................................................................................ 10
STP Strategy.......................................................................................................... 10
Channel Strategy................................................................................................... 12
Distribution Strategy............................................................................................. 13
Product Strategies................................................................................................. 14
Pricing Strategy..................................................................................................... 18
Selected Pricing Strategy...................................................................................... 18
Perceived Value Pricing......................................................................................... 19
Price of the products............................................................................................. 19
Conclusion............................................................................................................. 20
References............................................................................................................ 21

Company Introduction
InfoTech is a premier IT Systems Integrator with capacity and experience
for providing strategic technology solutions that achieve real business
results for businesses. Founded in 1995, Info Tech is at the forefront of
revolutionizing the information technology arena by providing the best
products and services to a wide range of industries and enterprises. The
companys strategy which is elucidated by a determined and compelling
focus on convergence and innovation, strives to establish InfoTech as a
synthesized speculator and benchmark for new IT services globally.
InfoTech is a truly global company, executing business in several countries
through thre of its own subsidiaries InfoTech Africa Limited, InfoTech
Middle East FZ-LLC, UAE and InfoTech Global PTE LTD, Singapore
and developing technology that affirmatively impacts businesses all over
the globe.
The world of information technology is changing rapidly.
Rapid
information dissemination and other forces create an ever-changing
environment. This environment makes it difficult for the traditional
organizations and companies, even armed with the best in commercial
technology, to deliver consistent, accurate and up to the mark solutions.
Our leading-edge solutions allow us to develop incomparable products
and services and provide high-end consulting, design, optimization and
provisioning of IT infrastructure to various enterprises around the globe.
Our philosophy allows us to build meticulous and contemporary predictive
business models and an analysis of the behavior of financial markets.
True to its motto, InfoTech aims at consistently ensuring that the solutions
are brilliantly built to enable customers sustainability. Industry specific
work procedures and methodologies, technologies, domain expertise,
tools and training are the companys forefront. We aspire to draw on this
substantial substructure to create visible business impact for clients
around the globe, resulting in long-term relationships. We understand our
client's business realities and have the know-how and solutions needed to
advance their business goals. Consistent year-on-year growth of over

35%, during last decade, shows confidence of our customers that our
engagement with them is based on long term Technology Partnership,
and not just on transactional business.

A key InfoTech strength is its ability to successfully manage Enterprise

level Information Technology projects. We have years of experience of
working with multiple subcontractors and specialize in large complex
Systems Integration activities. In addition to the above, below is a brief
summary of InfoTech strengths and track record as a Systems Integrator:

One of the main Systems Integrator for IT Enterprises across all

industries (Gov, Telco, Banks, Healthcare, Energy, etc.).

InfoTech Proven Competency in managing large-scale, geographically

dispersed Projects of mission-critical Systems (24 X 7 onsite support)

200+ Professional Employees.

End-To-End Solution Provider for all IT Requirements

Capital and Securities Market Solutions

Enterprise Resource Planning

Business & Industry Solutions

SW Solutions across all Platforms

H/W Infrastructure (Servers, Storage, Printers, Desktop, Retail,

etc.)

Network Infrastructure specially for utilities

Operations & Maintenance

Education, etc.

InfoTech Professional Services business unit offers high-quality

advisory, consultancy, and system implementation services across
the complete spectrum of MIS activities. It consists of an integrated

set of services covering Professional Consultancy, e-Business

Solutions, Systems Integration, Project Management, Strategic
Outsourcing, Business Intelligence Services, Enterprise Resource
Planning, Customer Relationship Management, and Education &
Training. These services are individually tailored to meet specific
customer needs and the unit thrives on providing value added
customer service and business benefits through its well-developed
intellectual capital.
InfoTech is committed to keeping the customers interest first by being
vendor agnostic and cultivating partnerships with leading global
technology manufacturers. We are partner of choice for global IT giants
including but not limited to the following:

CISCO

Oracle

Microsoft

IBM

McAfee

Barracuda

Computer Associates (CA)

Fortinet

Emerson

APC

National & International Clients List:

InfoTech Details
Name of Firm:
Ye a r o f I n c o r p o r a t i o n :
Nature
of
Firm:

Subsidiaries :

Is l amab ad
4 th Fl oor, Wa hee d Pl a za, Pl ot N o. 52
We st,
Bl ue Are a, I sl ama bad
Te l : + 92 -5 1 2 60 46 37 -9
Ka rac hi
Offi ce N o. 1 01 , I brahi m Al i B hai Tow e r,
Bl ock 7/ 8 , S hahr ah- e-Fai sal , Karachi .
Te l : + 92 -2 1 1 11 -4 27 -42 7

Branches:

C e r t i fi c a t i o n s

Pa r t n e r s h i p :

Pri v ate Li mi te d C om pany

12 -N Gul be rg-I I,
L ahore - 54 66 0
Te l : + 92 -4 2 1 11 -4 27 -42 7,
Fax : +9 2 -42 -58 7 2 26 5
URL : w w w. i nfote ch grou p. com
Af ric a
Info Te ch Af ri ca L t d .
O pei be a Ho use, 3 7 L i be rati on Roa d
Accra, G han a.
Te l : +2 33 21 77 49 94
Fax: +2 33 2 1 7 75 57 5
Dub ai
Info Te ch M idd le Eas t FZ- LL C, UAE
Offi ce 3 17 , DI C B uil di n g 9 , Du bai
I nte rne t Ci ty, Du bai , UAE
Te l : +9 71 4 -36 4 4 62 4
Sing ap o re
IN FOTECH GLOB AL PTE LTD
3
S he nton
Way,
#2 4 -05
She nt on
House , Si ng apo re 06 88 05
Te l : +6 5 6 27 6 2 30 1

H e a d O ffi c e :

Main
Areas
Expertise:

I nfoTe ch Pri v ate Li mi te d

1 99 5

of

Te ch nol ogy C onsul ti n g

Te ch nol ogy I nfrastruc tu re
O utsou rci n g Sol u ti ons
Trai ni n g Sol u ti ons
I SO 9 00 1: 20 0 0
I SO/ I EC 2 70 01 : 20 05
I SO 90 00 :2 00 8
CI SC O Syste ms
MIC RO SO FT
O RAC L E
IB M
VMWARE
C omp ute r Associ ate s

InfoTech Staffing Domestic

1- Management Staff
2-Technical Staff
3-Sales Staff
4-Administration
TOTAL

Lahore

Karachi

24
70
12
13
119

4
30
24
9
67

Islamaba
d
2
12
4
4
22

TOTAL
30
108
40
26
208

InfoTech Staffing International

1- Management Staff
2-Technical Staff
3-Sales Staff
4-Administration
TOTAL

Middle
east
1
2
1
1
5

Singapo
re
1
1
1
1
3

Africa

TOTAL

3
3
3
3
12

1
1
3

Financial Capacity of the Company

Financial
Information

Historical information for the previous three

years
Year 1 (PKR)
Year 2 (PKR)
Year 3 (PKR)
Information from Balance Sheet:
1.
Total 1,764,472,846
1,445,849,732
1,177,249,902
Revenue
(TR)
2.
Profit 1,458,806
55,530,395
83,024,713
Before
Taxes
(PBT)
Net Worth (1)- 248,324,071
254,543,509
216,161,095
(3)

Acknowledgement
The accomplishment of this project is all credit to the Almighty Allah, Lord of
our life and of everything in the universe, galaxy and his HOLY PROPHET
MUHAMMAD (Peace be upon him) it is all because of ALLAH that we have
managed to finish this project and helped us with new ideas. We next got
help and direction from our Respected teacherProf. Mobin Ul Haq. Prof.
Mobin is always happy and willing to help me solve the confusions and direct
me approach to the final result of the Project.
On top of that, Prof. Mobin is an easy-going and open-minded person,
without his encouragement, I would not finish this final work in my master
study. We really liked our respected resource person for his full domination
on the subject of Strategic Marketing Management and conventional
style of teaching. The course helped us a lot in thinking about the key
aspects of marketing and we analyzed and scrutinize the key concepts of
marketing in a more comprehensive manner. Thank you very much, Sir.

Executive Summary
The purpose of this propose of this project is to scrutinize and deeply analyze the trend analysis
which we have done for cloud computing. In case of IT industry of Pakistan, we have find out
and have identified that the latest technology and innovations really play a vital role in terms of
sales and profitability, so we have identified Technological trend that drives people towards
excellence and responsiveness. People these days are getting more into technology and want to
use it more often to make their life faster and easier. So we are launching both product and
service which our company doesnt give to our customers but they are currently working on it
and our target audience would be our existing clients and with the help of them we will try to
explore the market further more. Keeping in mind about the threat, we are very much aware that
in IT industry, technology gets copied very easily and it has turned out to be a cut throat business
so we would like to keep those factors in mind and we will provide services and quality driven
products to customers as company itself believes in better quality and quick services.

Specific Trend Analysis

We are now going to do trend analysis of this project, as earlier in our
midterm project we have selected Hardware Server as our key product but
as we all know that technology is changing every day and there are new
innovations entering in the market. IT companies are upgrading themselves
to makes sure they compete with other companies on almost every
disciplines of business and for that IT companies are making vast
achievements to make sure they gain more competitive advantage on their
competitors. As we believe that hardware servers trend is going to shrink up
a little in the future therefore we have identified Cloud computing as the
scope of this technology is gaining more awareness and companies will use it
in the near future for sure. Here we have identified TECHNOLOGICAL TREND
as we believe that people are getting more used to with the technology and
once they understand the concept of Cloud computing we believe that the
technology will help explore new horizons not only locally but also globally.

Objective of Our Project

The objective of our project is to be more Technology oriented and with the
help of new products and services which we want to gain, we want to be
market leader in terms of new technology and services we are going to
provide not only to our existing customers but also to the potential
customers as we believe that the services of Cloud computing will help us
gain new customers as customers get more charged and show more concern
when they see any new opportunity in the market. We already have a target
market of hardware servers but we want to explore the market further more
by providing these services to the customers as this service will help us grow
in the market and hence our profitability will surely be increased with the
help of Cloud computing services.

Strategies of the Project

We have selected the following strategies which will not only help us in terms
of cloud computing services but will also help us scrutinize our core objective
which is to be more technology oriented in a more appropriate and feasible
manner. The strategies are as follow:
o
o
o
o

Segmentation, Targeting and Positioning (STP)

Product Strategy
Pricing Strategy
Channel Strategy

The following strategies will help us get more align with our objective and we
will discuss the strategies in a more detailed manner further in our project.

STP Strategy
Segmentation (Behavioral and Benefits)
We have divided our customers into groups according to their knowledge and
attitude towards the product, usage rate, and response. As we strongly
believe that whenever a new technology enters the market, those people
who are actually quite fond and aware of the upcoming technology and are
using that on daily basis tries to shift themselves up on the new technology
so we are going for behavioral segmentation as in this case the usage rate of
the technology is very much higher we expect in the near future and
response rate will also b higher as customers want to be more efficient and
responsive when it comes to new innovations. Similarly we are segmenting
on the core basis of the benefits our product and service will provide to the
customers, as we think that the new technology will take to adapt but once
its done we think that the customers will feel its benefits and will shift
quickly on it as now a days everyone wants to work online, knowing the fact
that working online is a fast medium and it helps achieve goals more quickly
and is more cost effective medium.
Targeting
We believe that our product and our services are very much vital to our
business and no doubt our product is a valuable product not only to the
customers but also will help us grow further more in the market. As far as our
target market is concerned we are going to target existing customers whom
we are working with for a long time and when it comes to potential
customers we are targeting upper and medium class.
Positioning
As far as our positioning strategy is concerned we feel that our strategy is
based on M2M (Machine to Machine). We feel that cloud computing plays a
crucial role of how an organization creates, delivers, and captures value for
the end users. Such alignment helps key decision makers to understand how
the business works and to decide the focus area. It is believed that M2M
players who leverage on the cloud computing benefits will have the big
possibilities to lead the market. Furthermore we would like to position

ourselves on the basis of two other factors which we think are very critical in
terms of positioning and we think it is considered as a broad positioning
strategy. The factors are as follow:

User based strategy

Quality based strategy

Now explaining the above mentioned factors in context of cloud computing

User based
As we all know that large enterprises and multinational companies requires
hardware servers so that all the networking and data can be kept and shared
via hardware servers and there are number of users who works on it and
update the server more often as whenever the traffic and load increases on
servers the servers gets slower and issues starts to pop up. As people these
days are much aware of the incoming technology and knows about the latest
innovations we strongly feel that the in the start there wont be too many
users of cloud computing but once the technology reaches beyond
expectations than the number of users will increases day by day as the
technology is very much flexible and innovative.

Quality based
Another way to position your product is by telling the customers about the
quality of the product which it possess. As hardware servers takes too much
area in a company to setup and there is also a case when hardware glitches
pops up and employees have to resolve but the main thing is the centralized
data and sharing which is customers main objective, Cloud computing gives
you that edge and benefit as multiple computers integrate together and
provide a networking channel which leads to sharing of data and centralized
data which helps number of employees to do their daily work more
effectively and efficiently. The speed of the works gets more acceleration and
there is flexibility when it comes to working on cloud computing which shows
that there is sufficient amount of quality available to attract new customers
to use the product and hence add more growth and sustainability in their
business.

Channel Strategy
Channel strategy is very important in business as it helps in guiding the decision
about the path a product or service takes from production through delivery to the
end user. Channel helps add value to the product or service you are providing to the
customer and it helps in increasing transactions on daily basis. Great opportunities
can be delivered with the help of channel as with the help of effective channel
strategy distribution of products and services can be done in a more efficient
manner. As we believe that InfoTech Companys service level is up to standard and
they strongly feel that better services can help them grow in the market and with
better services they can acquire more customer, so they simply dont compromise
on services and tries their best to deliver better services than their competitors, so
there is no need to create a vertical marketing system (VMS) as InfoTech are the
service providers and act as an intermediary in IT business.
Although we strongly believe that there are three channels that must be considered,
the channels are as follow:

Sales Channel
Product Channel
Service Channel

As at the moment InfoTech is providing various numbers of hardware servers to

many businesses not only in Pakistan but also in Malaysia and to Gulf countries but
in the future they will shift to cloud computing. They are working with IBM and
Microsoft of launching cloud computing and the company expects a deal to be
struck sooner rather than later. As above the three channels have been mentioned,
the company will negotiate the prices of the product form suppliers which are IBM,
Microsoft, CISSCO, Oracle and others and once the order is placed from customers
end then the supplier will deliver the product to the company and the company will
deliver to the customer along with after sale services. So the Sales and service
channel will be the company InfoTech as all the sales transactions and services will
be done via company whereas product channel according to the companys end will
be suppliers and vendors which will provide the product to InfoTech but from
customers end it will be the company again. The companys site will allow the
customers to see and overview the services regarding cloud computing also
promotion and marketing of cloud computing will also be done but we will make
sure over existing customers gets complete awareness of the technology first, once
they are satisfied and happy with the technology we believe that they can tell other
customers about it and eventually will help us grow. Also with the help of our
website, we will advertise and promote further more so that the buyers see it and
purchase the facility from us.

Distribution Strategy
As far as distribution strategy is concerned, indirect direct distribution takes place
as InfoTech is working as an intermediary but the function of intermediary is that

they sell the product on the behalf of the producer but do not take title to the
products. The product comes from supplier end e.g. IBM, Microsoft to the company
whenever there is any demand arrives the resource person contacts the vendor for
products and once the product is approved the supplier ships it to the company and
the company than holds its possession and then deliver to the customer along with
added services, installations and configurations. The product flow and distribution
can be seen via flow diagram below:

As this process shows that suppliers and manufactures both are actually IBM,
Microsoft who actually provides the company with sufficient amount of products
when it is required, the company than deliver the products to the customers along
with services. This is the process of hardware servers which we have discussed with
the marketing manager and we believe that distribution and flow of materials will
be done in a similar manner in case of cloud computing as InfoTech are basically
systems integrator and they call themselves as boutique systems Integration
Company renowned for solutions that are tailored to their customers
requirements. So there wont be too many channels and selling points when it
comes to selling product but the company itself will act as a main channel and the
distribution will be done in a very much indirect manner as they act as an
intermediary.

Product Strategies
When firms decide to market products there are many decisions to make, each
decision can have a long term impact on the success of the product. Market
Research at the beginning of the marketing process will help firms make many
product decisions including product development, target market and pricing. As for

our product which is cloud computing we will apply some dimensions of product
strategies. The dimensions of product strategies are as follow:

Product Positioning
Product Overlap
Product Scope
Product Design
Value Marketing

We now will discuss the above mentioned dimensions in a detailed manner and try
to develop a proper product strategy for Cloud Computing.
Product Positioning
In this case we are going to analyze, examine and choose an overall positioning of
the product and we will discuss the attributes and features of the product as a
whole and tries to explore the extra features which will possibly help us capture the
market furthermore.
Analyzing the product
The features and attributes of the product will be enlightened in this part. Some
attributes of the product are as follow:
1. Achieve economies of scale increase volume output or productivity with
fewer people. Your cost per unit, project or product plummets.
2. Reduce spending on technology infrastructure. Maintain easy access to
your information with minimal upfront spending. Pay as you go (weekly,
quarterly or yearly), based on demand.
3. Globalize your workforce on the cheap. People worldwide can access the
cloud, provided they have an Internet connection.
4. Streamline processes. Get more work done in less time with less people.
5. Reduce capital costs. Theres no need to spend big money on hardware,
software or licensing fees.
6. Improve accessibility. You have access anytime, anywhere, making your
life so much easier!
7. Monitor projects more effectively. Stay within budget and ahead of
completion cycle times.
8. Less personnel training is needed. It takes fewer people to do more work
on a cloud, with a minimal learning curve on hardware and software issues.
9. Minimize licensing new software. Stretch and grow without the need to
buy expensive software licenses or programs.
10.Improve flexibility. You can change direction without serious people or
financial issues at stake.

Examining the product

As the above mentioned attributes shows how much the product is flexible and how
cost effective it is for the customers. We further examine the product by keeping in
mind the above mentioned attributes. Actually what really defines a cloud as
opposed to running a consolidated system in a private or public accessible network
environment are these four characteristics:
1. Provisioning Dynamic and self-service provisioning. Application provisioning
involves deploying applications to your cloud infrastructure with a few mouse clicks.
So, when moving to the cloud, application provisioning will be made easier since
there are not hundreds or thousands of client machines to deploy too.
2. Metering and chargeback Metering and chargeback are mechanisms for
gathering compute resource usage (metering) and then charging back the user,
department, or company for the computing cycle that they consume. In the
client/server model, metering and chargeback where not necessary because each
user had their own personal computer and typically each department or customer
had their own database server.
3. Multi-tenancy Multi tenancy, or running multiple customers or departments
on the same central hardware and software infrastructure, is not an issue for
client/server applications since each user has her own instance of the application,
and most likely each department or customer has its own dedicated database
server. In cloud environments, the application, database, and hardware
infrastructure are shared among departments or even companies.
4. Elastic Elasticity refers being able to dynamically provision, migrate, and
allocate computing resources to users, departments or customers. It includes the
infrastructure to easy set up and tear down applications. One of the first areas that
customers focus on when moving to the cloud is developer and User Acceptance
Testing (UAT) environments. The ability to quick set up a new test environment and
then delete it once the testing is done is a cost effective and time saving exercise
when done using cloud computing.

Choosing overall Position

As above we have managed to analyze the attributes and examine the product as a
whole it is better to choose an overall position for the product based on overall
match between product attributes and their distribution in the population and the
position of existing brands. As far as choosing a particular positioning for the
product we have already mentioned that there are now some critical issues coming
up with traditional hardware servers at the moment and also mainly because of the
latest upcoming technology entering in the market, we have identified cloud
computing as a solution for the market and have highlighted its benefits in the
project so its like a machine to machine (M2M).So Providing the customers with a
new and improved technology and better services which is basically the glue that
holds us in this business.
Product Overlap
As we mentioned earlier in this project that InfoTech Company actually works as a
systems integrator and a service provider to different multinational business and to
large enterprises and they actually act as in intermediary which gets supplies from
different suppliers likes of IBM, Microsoft, Oracle etc. and delivers it to their
respective customers. So as far as product overlap is concerned by introducing this
new technology to the customer with the help of suppliers there is high probability
that the product will help the company to maximize the investment value and not
only that market growth and expansion can be seen by adding this new technology.
As the product basic functions are similar than that to hardware server but there are
new features and specifications added in it and it is more flexible and more cost
effective than that of hardware and cloud computing reduces capital cost and
mainly improves accessibility.

Product Scope
Product scope refers to the number of different items company offers for sale.
Companys business goals usually determine the scope of products. The company
may run a successful business based on a single product strategy or offer a much
deeper line of products to serve a wider range of customers. The product-scope
strategy is determined by taking into account the overall mission of the business
unit. Here in this case InfoTech is adopting a multiple product strategy and it offers
both hardware servers and will offer Cloud computing. The reason for offering both
is that some businesses cant afford cloud setup and they have this perception that
hardware servers are much better because of the traditional pattern and system
they are following , its hard to convince such businesses to invest in cloud but once
they realize the importance and benefits of cloud computing they quickly shift
themselves to the technology, so InfoTech adopts multiple product strategy to cover
the risk of potential obsolescence of the single product by providing additional and

similar types of products to its customers to make sure they stay market
competitive.

Product Design
The product-design strategy deals with the degree of standardization of a product.
The company has a choice among the following strategic options: standard product,
customized product, and standard product with modifications. Product design is
cross-functional, knowledge-intensive work that has become increasingly important
in today's fast-paced, globally competitive environment. Talking about InfoTech,
they believe in both standard product and customized product. One of their core
strength is to provide customers with tailored products and they simply do that
whenever the customer needs a product but because of product high price the
company provides with other alternatives which include cost effective and market
competitive prices. As far as cloud computing is concerned, the company will offer
both standard product and customized form whatever the customer required but
mainly will stick to the standard one as they want go for market intensive strategy
first rather giving alternatives first at the start of the new technology.
Value Marketing
The value-marketing strategy concerns delivering on promises made for the product
or service. These promises involve product quality, customer service, and meeting
time commitments. As InfoTech believes in providing excellent services and quality
is never compromised when it comes to providing customers with both standard
and tailored product. Cloud computing offers an immense value to the customers
and offers extraordinary flexibility and increase in accessibility. One would think that
cloud computing would always be more cost effective than on-premise computing.
However, the value that cloud computing brings to an enterprise is really dependent
upon many variables and the dynamics of the business. Like anything requiring
change, the business case must be worked first to see the ultimate worth of this
approach.
The forces at work here include strategic and tactical issues that should be
analyzed, including the ability to shift risk to cloud computing providers, the ability
to drive down operating costs, the ability to fix inefficiencies within the existing
architecture, and the value all of that brings. The problem is that most enterprises
do not analyze these business opportunities properly, and thus make many
mistakes when building the larger business case. Moreover, enterprise architects
are notoriously bad at creating business cases.

It is one thing to say that cloud computing makes life better because everybody
says it does, versus saying cloud computing will make this company more than $50
million dollars over the next 5 years. The ability to make money will always outsell
something cool and popular. Indeed, there are many dimensions to consider,
including the value of:

ongoing operational cost reduction

preserving capital

upsizing on-demand

downsizing on-demand

shifting the risk

agility

reuse

It is a good idea to figure out the actual cost reductions that cloud computing can
bring to your enterprise IT. The trick here is not only to figure out how much money
can be saved, but how much it will cost to save that money.

Pricing Strategy
Pricing Grid
As discussed above, pricing strategy is one of the most important elements of
marketing strategy. InfoTech is already providing their services of hardware to their
customers. But as technology changes day-by-day, cloud computing seems very
profitable business in the future. Because now customer is focusing on technology
efficient parameters for their business through which they can produce at low cost
and increase their profits. They are now investing in Information Technology, Cloud
computing has many benefits as mentioned below, as we know that for making
pricing strategy, it is important for the company to focus on the benefits of the
product. If the benefits are greater than their cost it goes for higher value and vice
versa and customer need more value at lower cost. It depends on the size of the
customer, if the customer is corporate level then they are not as much price
conscious but for best solution because they want higher security for their data.

Pricing

Quality
Hi

Med

Low

Hi

Premium

Over Charging

Rid of changing

Med
Low

Higher Value
Super Value

Fair Price
Value strategy

Over Charging
Economy Pricing

Selected Pricing Strategy

In this section, we have to select the pricing strategy according to the above
mentioned pricing grid. As InfoTech have three different types of customer for cloud
computing that are Large, Medium & Small organization. As there is a lot of
competition of selling cloud computing products for small sizes of organization, so
that InfoTech is not interesting in small organizations because they have very low
budgets and the size of this section is not more than 50 employees. On other hand
large & medium organizations have higher budgets approved because of their
critical operations and data, so that they are very much aware about their issues.
Because if they cannot do so, will bear high loss to the company. And for sustaining
competitive advantage in the market they are willing to invest in the IT to cut their
costs and operate their operations efficiently. These types of organizations are keen
to work with well renowned IT companies having strong background and
competitive resources. In Pakistan there are only top five IT companies in which
InfoTech is one of them. InfoTech is now focusing on these corporate customers
being as an adaptive organization. And they are selecting fair price and medium
quality for medium size organizations and for large they lies in premium column as
mentioned above. Prices are very much dependent according to the requirement of
the customer.

Perceived Value Pricing

Microsoft is one of the well renowned brands globally. We see their products in
windows, mobile phones, in organizations for sharing their data etc. In this fastpaced world of more devices, more apps and more data, IT is more challenging and
exciting than ever. As customer is now mindful about that the cloud computing is
faster and they can deliver new projects and products and manage more devices
easily and customer perceived it as more valuable product for their businesses.

Price of the products

Prices of Microsoft products are categorized in three portions Shared, Basic &
Standard. Customers purchase their products online like windows license etc. But
for their bigger requirement they purchased their products through vendors
because according to the policy of government Microsoft cannot sell their products
directly to the customer in Pakistan. So that Microsoft offers the same prices to the

vendors and then there is only a competition among the profit margin of the
companys, lower profit margin company gets the project. Therefore the price of the
cloud computing is based on the project size, discounts are also apply on the
products, importation cost, sales tax and then profit margin of the company, so that
the price varies through project to project.

Conclusion
Finally now jumping towards the conclusion, we have managed to pin point the most
critical strategies for the product we are going to offer to our customers along with
both on spot and after sales services, thing is whenever a new technology enters in
the market there is no guarantee of that technology to be successful. In many cases
new projects and innovations have backfired and the company has to bear heavy
losses because of that but we have seen that experimentation have never stopped
and new products have entered the market using different ways. Cloud computing is
a new and improved version of hardware servers and the main struggling point for
this technology is that it is very hard for businesses to go for sudden changes in the
organization and adapt new technology quickly as the firms always tries their utter
best to take calculated risks when it comes to investing in a strategic plan but as we
have mentioned in this project about the key attributes and features of the product,
we see this technology very much fast paced and will explore new horizons in the
field of IT and once people will start knowing about this technology we are pretty
sure that this technology will take the market by storm. Knowing the fact that there
are several competitors who strongly believes in imitation strategy and they adapt
very quickly as nature of this business is very much cut throat, we have this belief in
providing not only both standard and tailored product but our excellent services is
the glue that holds us in the market and will help us achieve our objective for sure.

References
http://www.referenceforbusiness.com/management/Or-Pr/Product-Design.html
http://timreview.ca/article/339

http://www.forbes.com/sites/louiscolumbus/2013/09/04/predicting-enterprisecloud-computing-growth/
http://www.marketingprofs.com/articles/2011/4330/how-to-market-the-cloud