First star software inc

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Cancel Insert. Go to Link Unlink Change. Cancel Create Link. Disable this feature for this session. Rows: Columns:. Enter the URL for the tweet you want to embed. Games developed Games published. In the mids, Bob McLemore purchased the company and, through his full-time commit- ment, turned it into a very successful family-run operation. The competition in the specialty advertising industry is very strong on a local and regional basis but somewhat weak nationally.

Sales figures for the industry as a whole are difficult to obtain since very little business is conducted on a national scale. The competition within the calendar industry is strong in the paper segment and weak in the software-based segment. Currently, paper calendars hold a dominant market share of approximately 65 percent; however, the software-based segment is growing rapidly.

The 35 percent market share held by software-based calendars is divided among many Sample Marketing Plan The Executive Summary, one of the most frequently read components of a marketing plan, is a synopsis of the marketing plan. Star Software, which holds 30 percent of the software-based calendar market, is the only company that markets a software-based calendar on a national basis.

As software-based calendars become more popular, additional competition is expected to enter the market. However, most of these reductions have occurred in the budgets for mass-media advertising television, magazines, and newspa- pers. While overall promotion budgets are shrinking, many companies are diverting a larger percentage of their budgets to sales promotion and specialty advertising. Specialty advertising, such as can be done with a software-based calendar, provides this value.

While legislation may be introduced to curb the tide of adver- tising delivered through the mail, the fact that more companies are diverting their pro- motion dollars to specialty advertising indicates that most do not fear the potential for increased legislation. Tablet computers, such as the Apple iPad and Samsung Galaxy Tab, provide consumers with increased mobility and application services.

Tablet computers have begun taking market share away from desktop, laptop, and netbook computers. As this trend continues, current software-based calendar products will have to be adapted to match the new technology.

In short, if the product does not save time and is not easy to use, consumers will simply ignore it. Software-based calendars fit this consumer need quite well.

A software-based calen- dar also fits in with other societal trends: a move away from paper and hard copies, the need to automate repetitive tasks, and the growing dependence on information technology, for example.

Target Market s By focusing on a commitment to service and quality, Star Software has effectively imple- mented a niche differentiation strategy in a somewhat diverse marketplace. Its ability to dif- ferentiate its product has contributed to superior annual returns. Its target market consists of manufacturers or manufacturing divisions of large corporations that move their products through dealers, distributors, or brokers.

Its most profitable product is a software program for a PC-based calendar, which can be tailored to meet client needs by means of artwork, logos, and text. Clients use this calendar software as a promotional tool, providing a disk to their customers as an advertising premium. The calendar software is not produced for resale.

However, due to the proliferation of new computer technology, the computer calendar soon became more profitable for Star than its wall and desktop paper calendars. This led to the sale of the commercial printing plant and equipment to employees. B-2 Online Appendix B Sample Marketing Plan The analysis of cur- rent target markets assesses demographic, geographic, psychographic, and product usage characteristics of the target markets.

Once the sale has been finalized, Star completes the concept, including design, copywriting, and customization of the demon- stration disk. Specifications are then sent to the supplier, located about 1 , miles away, where the disks are produced. Perhaps what most differentiates Star from its competitors is its high level of service. Disks can be shipped to any location the buyer specifies. Star Software markets its products on a company-specific basis. It has an annual reorder rate of approximately 90 percent and an average customer- reorder relationship of about eight years.

Subsequent years are faster and significantly more profitable. A company must set mar- keting objectives, measure performance against those objectives, and then take corrective action if needed.

The company is currently debt free except for the mortgage on its facility. However, about 80 percent of its accounts receivable are billed during the last three months of the calendar year. The need for cash to fund operations in the meantime requires the company to borrow significant amounts of money to cover the period until customer billing occurs. There is little turnover among employees, who are well compensated and liked by custom- ers.

The high percentage of reorder business suggests a satisfied customer base, as well as positive word-of-mouth communication, which generates some 30 percent of new busi- ness each year.

The highly centralized management hierarchy the McLemores and the lack of manage- rial backup may impede creativity and growth. Too few people hold too much knowledge. Despite the successful long-term relationship with the supplier, single sourcing could make Star Software vulnerable in the event of a natural disaster, strike, or dissolution of the current supplier.

Contingency plans for suppliers should be considered. The seasonal nature of the product line creates bottlenecks in productivity and cash flow, places excessive stress on personnel, and strains the facilities.

Both the product line and the client base lack diversification. Dependence on current reor- der rates could breed complacency, invite competition, or create a false sense of customer satisfaction. The development of a product that would make the software calendar obso- lete would probably put Star out of business. While the small size of the staff fosters camaraderie, it also impedes growth and new- business development.

Star Software is reactive rather than assertive in its marketing efforts because of its heavy reliance on positive word-of-mouth communication for obtaining new business.

There is little room for additional employees or new equipment. Technological advances have not only freed up time for Americans and brought greater efficiency but have also increased the amount of stress in their fast-paced lives.

Laptops, tablet computers, and mobile technology have become commonplace, and personal infor- mation managers have gained popularity. Computer-based calendars are easily distributed nationally and globally.

The globalization of business creates an opportunity to establish new client relationships in foreign markets. Threats 1. Reengineering, right-sizing, and outsourcing trends in management may alter tradi- tional channel relationships with brokers, dealers, and distributors, or eliminate them altogether.

Calendars are basically a generic product. The technology, knowledge, and equipment required to produce such an item, even a computer-based one, are minimal. The possible entry of new competitors is a significant threat. Theft of trade secrets and software piracy through unauthorized copying are difficult to control. Specialty advertising through promotional items relies on gadgetry and ideas that are new and different. As a result, product life cycles may be quite short.

Single-sourcing can be detrimental or even fatal to a company if the buyer—supplier rela- tionship is damaged or if the supplying company has financial difficulty. Competition from traditional paper calendars and other promotional items is strong. The acceptance of technological advances and the desire to control time create a potential need for a computer-based calendar. Star Software has more opportunity for business growth during its peak season than it can presently handle because of resource human and capital constraints.

Star Software must modify its management hierarchy, empowering its employees through a more decentralized marketing organization. Star Software should discuss future growth strategies with its supplier and develop contin- gency plans to deal with unforeseen events. Possible satellite facilities in other geographic locations should be explored.

B-4 Online Appendix B Sample Marketing Plan Opportunities are favor- able conditions in the environ- ment that could yield rewards for an organization if acted on properly.

Star Software should consider diversifying its product line to satisfy new market niches and develop nonseasonal products.