Orlando Moreno

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SALES LOGIC
Orlando A. Moreno omoreno_at_hotmail.com 408.656.
2498
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THE PRODUCT
Benefits

• Allows outside sales to configure customized
  products.
• Enables companies to be customer centric.
• Optimizes product/inventory/margin mix.

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THE PRODUCT
Strengths

• Utilizes a user-friendly graphical user interface
  that will assist with the sales force and
  management transition towards e-commerce.
• Provides a visible scope of increased profits
  within days of implementation.
• WE have a strong story to tell with regards to
  product differentiation and objective.

4
THE PRODUCT
Weaknesses

• While Latin America are relatively young markets,
  our Competitor has established itself as the
  early market leader Sales Logic is an Unknown.
• Necessary resources, both financial and
  man-power, to support such an ambitious product
  may not be available.
• The product is still in development and has not
  been tested, therefore, any software bugs are
  unknown at this time.

5
THE PRODUCT
Weaknesses

• The software package is heavily dependent upon
  data input, and hence, the accuracy and
  timeliness is susceptible to human error
• Implementation time is an unknown and could pose
  a problem if not timely.

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THE PRODUCT
Opportunities

• The booming high tech industry manufacturing
  levels within the electronics and information
  technology industries are at an all time high.
• OUR Sales Force software is an emerging market
  with numerous market segments open for entry.
• OUR Sales Force market is forecast to grow at
  rate of 30 per year.

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THE PRODUCT
Threats

• WE will have trouble competing with an
  established company like our main competitor if
  competing for the same space. There is a
  tendency for customers to go with established
  market leaders.
• Companies will customize and build there own
  in-house systems or there is not enough pain to
  build such a grandiose product.
• Merger of a Sales Force software company with an
  Enterprise Management software would diminish
  product position.

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THE PRODUCT
The Competition

• Sales
• Channels, VAR, Partners
• Marketing
• Channels
• Configuration Software
• IBM, Oracle.
• ERP Enterprise Wide Software
• Oracle Business Applications

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The Complete Product

• Market Knowledge WE understand our customers
  business and what will give them the competitive
  advantage.
• Technology Leader WE must be a technology
  leader in the LATIN market.
• Excellent Service Our customers must trust that
  they will be proactively managed following sale
  and installation.

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THE PRODUCT
Product Life Cycle

• To thrive in the LATIN markets we must
  continually make enhancements to our initial
  product offering.
• Enhancements will provide opportunity for
  increased revenues from existing customer base as
  well as enable us to stay ahead of the
  competition.

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THE MARKET

• Market Characteristics

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THE MARKET
Market Requirements / Fit with The Product

• Event managers and owners
• Require Complex Configuration of Product Mix for
  Customer Solutions
• Utilize Direct Sales Force As Primary
  Distribution Channel

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THE MARKET
Market Requirements /Fit with The Product

• View success as largely dependent on their
  ability to identify and respond to changing
  business conditions and need to rapidly collect,
  organize, analyze, process and store data
  throughout the enterprise to make effective
  business decisions.
• Are experiencing rapid high growth and need to
  manage customer satisfaction while ensuring
  company profitability

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THE MARKET
Market Requirements /Fit with The Product

• Emerging companies in the industry that need to
  acquire market share quickly and effectively and
  are dependant upon their direct sales force to
  literally create the markets for their products.

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THE MARKET
Market Segmentation

• OUR Industry is an extensive market which
  consists of X, Y, Z and service providers.
• We divided this industry into X primary segments
• Service Providers
• ?
• Value Added Resellers

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THE MARKET
Market Segmentation
We then selected the X, Y because Z
characteristics are fast changing,
technologically driven, growing and highly
competitive.
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THE MARKET
Market Segmentation

• We partitioned even further by revenue volume
• Large Multinational/Multi-billion dollar
  well-established companies
• Mid-sized, established companies with with
  revenues between 50 and 900 million
• Start-up companies in new and emerging
  technologies with revenues of less than
  25million

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THE MARKET
Target Market
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these SOON
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THE MARKET
Target Market
List of Potential Companies / Customers with
characteristics that meet our Target profile.
The Target is broad enough to offer growth in
sales opportunities. These companies can afford lt
? of sales revenues to invest in a customer
management (sales force automation) and
strategic planning software tool since they are
strongly dependant upon direct sales
opportunities.
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THE MARKET
Estimated Market Growth

• The Sales Force ticketing is estimated to grow at
  a rate between 28 and 37 through the year
  2002.
• Our Target - The ticketing market is estimated
  to grow at a rate between 13 and 30 through the
  year 2002.
• Sustained growth in each of these sectors places
  our product in a relatively good position for
  market entry.

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THE MARKET
Product Forecast

• From a bottoms up, we are projecting the sale of
  4 Strategist systems based on our sales goals
  with an Average Selling Pricing of 500K each
  for a total of 2 million in first year sales.
• From a top down projection, the ST software
  market is estimated to be about 50 million in
  the next year 1 of the market equals ?
  million.
• We project that The Strategist will secure
  between 0.5 and 1 of this market

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THE MARKET
Barriers to Entry

• Product is not complete in a timely manner.
• Existing ST software company develops a Total
  Solution for profit performance before we go to
  market.
• Major collapse in the economy preventing
  investment in performance enhancement tools.

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Pricing Strategy
Pricing Analysis

• Low End
• Contact management, customer profiles, product
  configuration ticketing, e-tools
• Mid Level
• Order entry capacity, marketing encyclopedia,
  quote operation and on-line interface, strategic
  planning tools
• High End
• More powerful closed-loop customer information

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Competition Based Pricing
Price Performance Analysis
500
Price
100
Performance
10
Low
Mid
High
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Pricing
Pricing Range

• Lower price on the e-commerce portion
• 20 k to 50 k
• Mid range on the data mart (Clear View)
• 50 k to 100 k
• High pricing on the Strategist
• 100 k to 200 k

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Pricing
We believe our Strategic is well positioned to
become a leading product of the Sales Force,
representing a high-growth, and an early-phase
investment opportunity.
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Pricing

• OUR applications market was roughly 1.8 million
  in 1999, with market
• Top Level VARs
• Consulting Agencies

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Distribution
Selling Through

• Direct Sales - 3-5 Sales Persons to begin
• Top Level VARs - they assess and resell
• Strategic Partners
• Consulting Agencies - x, y, z
• Cooperative Partners - Citibank, etc

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Channels of Distribution
Selling Through

• Direct Sales
• Top level VARs
• Consulting Agencies
• X
• Y
• Z

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Channels of Distribution
Consulting Agencies
VAR's
30
40
30
Direct Sales
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Distribution
Cost to Distribution

• Minimal
• 30- 40 Discount to the VARs
• Discount offset by providing technology only

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MARCOMM

• Collateral Material 9,000
• Advertising
• Logo 10,000
• Publications 140,000
• - Sales Marketing Management
• - Data Communications
• -Sales Field Force Automation
• Direct Mail 8,000 158,000
  277,000

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Marketing Actions Programs
Goals

• Build a referral Base
• Penetrate communications industry so that we can
  move into other segments
• Name recognition as a leader in sales force
  ticketing management
• Qualified leads
• Orchestrate the future of the ticketing industry

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Marketing Action Programs
Product Launch

• Before launch - influence the opinion leaders
• Dataquest, Gartner Group
• Launch
• Maximize product reviews
• Press Release 5,000
• Public Relations 60,000
• Trade Shows 200,000