Case study: Caesar IT services Us Mary: Caesar showed decline in sales and talent retention (key to service industry). Their value proposition in body shopping seemed to be declining while their strategy to deliver projects end to end didn’t do well in the market. There were market / economy impacts besides large internal execution challenges. They got a conjoint analysis to be done by an external market research firm. Their focus is to understand the study presented by the research firm, assess whether they should follow both strategies – body shopping and time value in name firm.
If yes, then do they need to have different structures, goals and brands for each of them. We leveraged the conjoint analysis to confirm that they should continue in both markets though with different focus. We identified the market segment where they can be successful and the price range. We did not have sufficient information to do a tradeoff analysis for the segment to find an apt price. Time Value projects Conjoint analysis for Timetable projects provided data on attributes important to this market. It also helped in segmenting customers based on heir top preferences of each attribute as shown in table below.They also look for a higher involvement from vendor to define project need and scope compared to their peers. Segment 3 is extremely price sensitive.
Assessment of Caesar: Caesar ranking in the industry was good as supplier and employee focus. However it isn’t a top brand amongst an industry which has top global players. Caesar is not ranked highly on innovation but then they have a great culture where employees question the current status. With the right opportunity, this culture will get chandelier to innovation. Caesar has a very high credibility tit customers on the time and value projects that they have executed.
They have endorsements from these customers. Their approach to reduce costs or increase profits leveraging theory of constraints (TCO) and execute projects on time and budget was a winning proposition. Recommendation: Caesar had challenges with sales, positioning of the Timetable versus body shopping and talent frustration. They could solve this through an organization restructuring around two divisions, each focusing on creating goals, structures, processes, developing talent and roles, performance management (rewards & connections) specific to each division.They could have talent movement to encourage talent development and provide equal opportunity in planned manner. Caesar should target the segment 2 market as they will be able to add value based on their strengths, create & leverage an entrepreneur (innovation) brand. This will also help them contain the cost during the growing years by focusing on a focused and narrower market (25%) while managing their buffers optimally.
Caesar can also play with a wider range of price (71 . 25-142. 5) based on the value addition to the customer.