Cisco Systems : Managing the Go-

to-market evolution
Group 9:
Adarsha C Putti (PGP/16/061) Deepak Jangid (PGP/16/080)
Anurag (PGP/16/070) Pratik Gupta (PGP/16/099)
 Target Markets
• Market leader
Core Corporate • Over 70% share in Enterprise
Networking Gear Account Segment & 40% in the
SMB segment
Target Markets

• Competitors - Nortel, 3Com,

Huawei Extreme, Foundry, HP,
etc.
5% overall share – 25% share of
Telecommunications the top-end of the market
Service Providers Competitors- Nortel, Juniper,
Siemens, Alcatel and Lucent

Market Leader with 40% share

Consumer Market Sales of $800 million
Competitors – Netgear, Dlink
Routes to Market
Sales Target
Composition Customers
Direct (10%) All

System Houses (25%) Corporate

Customers
Telecommunications(25% Customers of
) carriers
Value-Added- Enterprise Accounts
Resellers(30%)
,mid and small level
Direct Marketing business
Small customers
Resellers(5%) requiring
standardize products
Retailers (5%) SOHO
Problem Statement
 How to decide the go-to-market strategy to
avoid channel-conflicts?
 Post-crisis transformation in channels

Evaluation - Volume Evaluation – Value based

based

6000 VARs 3000 VARs

One CCIE per $10 mn One CCIE per $40 mn

revenue revenue

Incentives based on
Incentives based upon no. specialization, expertise
of units sold and customer satisfaction

Emphasis on post sales

Emphasis on hardwares serivces offered
Sources of conflict

Introduction of Internet
Sources of Conflicts Channels

Cross-Channel selling

Router Dumping by
telecommunications
companies
Qualifications based on
value-addition while ignoring
the volume
Recommendations
A) Avoid high differences in price:
 Promote discounts at the end consumer’s side.
 Reduce price difference among the channels

B) Set market boundaries:

 Keep buying processes separate for different end customers
 The product should be billed and shipped only after
receiving the proof of internal consumption

C) Set product boundaries

 Channel differentiation characterized by product
specifications and dimensions
 Product dedicated channels
Recommendations: contd.
D) Set penalties:
 Force customers to receive the products and
services only from its appointed resellers

E) Use DATA VARs to gain from the synergies

between VOIP technology and networking
equipment

F) Continue with existing margin/incentive schemes

applicable to Data VAR’s.
Thank You