Feature 23 marketing plan

Marketing Plan Written by: Justin Sooter, Jordan Mathews, Ryan Greeley, Mike Monahan December 10th, 2013

I.

I. Executive Summary

A. Summary of situation analysis- Feature [23], noted throughout as f23, is a software development business located

in North Florida. The intent of this marketing plan is to establish f23 as an organized, communicable and marketable

business that will ensure them a greater market share.

B. Summary of marketing objectives- Examine f23’s strengths, weaknesses, opportunities, and threats, and make

future goals for their business organization, process, and strategy to better the business and add value as a

whole. Tangible goals, such as: complete staffing, market expansion, and process refinement are essential to the

marketability and further growth of f23.

II.

II. Situation Analysis

A. The Industry

1. Definition of industry and company business- The Industry – Custom Computer Programming Services: NAICS Code # 541511

a. Planning and designing computer systems that integrate computer hardware, software, and

communication technologies, even though such establishments may provide custom software as an integral part of their services.

2.History of Industry

a. Technological advances

b. Programming languages first appeared in the 1950s as steps identify and label scientific,

algorithmic, and business problems. By 1972, information hiding was introduced as a key concept for software programmers to help programmers with increasing complexity of software systems.

c. In the mid-1970s the first microcomputer was introduced which allowed programmers the

ability to write software from their own home or place of business. This creation led to Personal Computers, now famously known as the PC.

d. The mid-1980s introduced the revolutionary advances in computer technology that began with

the Software Development Life Cycle, SDLC, which was the consensus for centralized construction of software.

e. Open-source software started in the early 1990s in the form of Linux which had introduced the “bazaar”, the decentralized style of constructing software.

f. In the mid-90s, the World Wide Web, WWW, and Internet was created and changed the way software engineering is now understood today. Software development styles such as Distributed systems were a leader in a way to design systems that shortly introduced the Java programming language with its own virtual machine. As more programmers developed, they collaborated and wrote the Agile Manifesto as a way of operations management to cut costs of developing software at a less time consuming rate.

3. Trends

P2

a. Software programming since its creation has continually evolved over the last 30 years and

shows no way of slowing down. Trends have been monitored by engineers and analysts of fast, mass producing software designs over the past decade and each year a new and “hip” way of designing software is created. More along the lines of fashion, software engineering realizes its life cycle quicker than any other fad there is in any market or industry. Currently, there

are 5 software development trends that are to be watched for just the year of 2013.

b. Cloud computing and how it is on the surge.

1. Corporations and organizations are leveraging from the cloud computing to carry of basic operations. Cloud computing has made operations more simple and flexible as seen how it impacted the business world in 2012.

c. Agile methodology

1. As being well-known throughout the world of programming, the Agile method helps

programmers build a software application from scratch and/or helps solve critical issues

pertaining to the application. Agile methodology is expected to be a huge trend in

years to come as to the consistently changing business requirements.

d. Mobile Technology and how it will be a tech driver

1. A recent study indicates that 86 of 100 people in the world have or has access to a

mobile phone. With that statistic and the continual progression of mobile applications and

software, software engineers will not be out of projects to help improve and add to the mobile market.

2. Python or Ruby- Known to be an extensively used platform for developers, and

platforms like Ruby on Rail and Python. They all together are paving the way of success in the software industry. e. Unit testing

1. New trend that is gaining momentum around the software world. Developers are

expected to use this more around the business world and is a must know if not already a skill set.

4. Growth patterns within industry

a. Demand Curve

1. Research shows custom software developers realize a profit in the supply and demand

function of the market. When one developing company begins the supply that they offer

it is at a market introduction level whereas the demand needs to be

accounted for after the first fiscal year in order to balance the flow of the market and how

their product reacts. As to f23, demand aspect of their product is to appreciate with

market growth entering a phase of more supply to serve the growth in demand.

The product introduction stage has been realized and the fiscal year after the first results

in the shrinkage of supply in relation to demand. The product must be prevalent in the

market to gain recognition,more partners and clients, in order to appreciate in year

three where supply will increase in relation to demand.

2. The product although in a third stage resulting in number of years can still be seen as

in an introductory phase of the market but can now begin to move toward a growth phase

of the product base that is offered from the developer. Supply is essentially the developer

itself, not just the product offered. F23 in this case acts as the product in the market

for developers are continuously improving the products they offer. http://java.dzone.com/ articles/software-supply-and-demand

b. Growth potential

1. F23 is viewed in the introductory phase of the market of custom computer software. Growth will only be realized in two areas of business, 1. More partners

and clients, or 2. Increase product offered to existing clientele.

2. Location and ease of access to f23 improves the ability for growth in the product and market. Establishing f23 in more markets enables growth ability, the more visual the better off the company.

5. Characteristics of industry

a. Distribution patterns and traditional channels

P3

1. Software design progresses year to year as new innovative products are continually

modified and upgraded opening new doors and services to business world. Big

players such as Microsoft produces software which in many cases subdivision companies

and other private companies use these templates or services to build off of. Many custom

software developing firms offer their services to another company that outsources the

function. Enabling the factor of competition through based software systems.

Thus creating a web of services from a main provider of software allowing other

firms to use the information or system to offer better, faster, or even more efficient

software that is designed with the outsourcing company’s business in mind.

Patterns equate to the differentiating systems that are performed and through these

systems distribution of the software is complex and written for needs of another in many cases.

b. Regulation and control within industry

2. The traditional channels are realized every day, in the business model format, one product offered is a commodity that another business needs. Reliability of the product is a main factor in a company’s choice to outsource the function. Pricing is held to the standard of the developer and how the product is measured by output, efficiency, and reliability of the final product offered.

1. A service offered by a software developing firm has to meet the criteria of the company purchasing the product and service. The developer must account for the use of the software and which basic software they use. Main software companies such as Microsoft offer their technology which can be mended and molded for the upgrade or modification that other software companies use as their base for production. Legalities enroll in the function of service offering and how one can use the service. Copywriting the software is the main way to put a staple on your product to tie up any legalities that can be faced when one company uses the service without recognition of the base service.

c. Geographical characteristics

1. In the United States, the leading industry for software design and manufacturing is

located in Silicon Valley in the state of California. As the industry leader in it’s

geographical area there are other well-known places in the U.S. that is associated with

software design such as Massachusetts’s route 9, Washington state sector, and along the northeastern seaboard.

2. Growing industry sectors for software design has been spreading throughout the states

in different regions like Washington D.C., northeast Florida, and along the southwest part of the country.

B. The Company

1. Brief History

a. Originally founded as Potts Consulting Group in 2008, the business had grown and formed into

f23 with the increase in software development and additions of other programming

specialists. F23 today is a softwaredevelopment firm that specializes in custom software

development of companies that are technology dependent. Their engineers produce a product

tailored to the needs of the client.

2. Scope of business

a. Small firm specializing in software design and development.

b. Offering product services for outsourcing companies, partnering startups, and various other partners.

P4

3. Current size, growth, profitability

a. F23 employs a range of 12-15 engineers, strategists, and interns.

b. Growth in employment is based upon growth in clients and service offering. Aim for efficiency in staff to communicate, develop, and deliver product to client. Recent transition to larger city is apparent to aspiration to provide room for more growth and availability for existing and potential clientele in the Jacksonville business district.

4. Reputation

5. Competence in various areas

a. Viewed as a small tech firm that operates out two spaces located in Jacksonville and St. Augustine Florida. Continues company success through validation of product that is offered.

a. Strengths

1. Experienced software engineers, reliable service, friendly staff, ease of location.

Recently ranked 4th by Jacksonville Business Journal for Website Design and Development.

b. Weaknesses

1. Small firm, based out of up and coming industry area, lack of experience in interfacing with customers.

C. The Product/Service- The development of web technologies and software are the main service of f23. Technical solutions to software problems and interactive design are other services that they offer, due to the nature of their service.

1. In 2008 Mike Potts, Principal and Chief Engineer, founded Potts Consulting Group and through that

initial company came f23. F23 is a software development company founded on doing more for their

client and, through their advanced team of developers, they have achieved a valuable company that benefits it’s customers.

a. Stage of Product Life Cycle- The fast growing, dynamic business and market in which they compete may quickly reposition their status in the life cycle due to external factors.

1. Introduction- Currently, f23 is a growing business with immense value and potential in their market, though they are still in the introductory stage due to the fact they are mostly unknown to many potential customers. There are elements of the growth stage that do apply to f23, but due to the fast growth, small staff, and need for specialty customers with specific needs, they are still unknown to a large sector of clientele.

b. Quality Factors- The service quality is made up of the combination that their staff has to offer.

Visionary strategists paired with technically minded developers help ensure that their services are a multifaceted benefit to their customers. The emphasis they place on process efficiency and

specializing their services for individual customers, help ensure that quality is maintained.

c. Goods Classification

1. F23 provide services to make industrial goods that are often used as a consumer good/ service.

2. The priority that is placed on self-education and quality work ensures f23 of a durable,

lasting product/service with greater longevity than it’s competitors who do not use the same process.

3. F23 provides a specialty good/service, typically for a business rather than a consumer.

d. Price Structure- The price point of f23 is intended to be reasonable and very competitive, while still maximizing their quality to most effectively fit the customer. In some cases, they may not adopt a hourly rate and charge based on complexity/simplicity.

P5

e. Image and Reputation- Among the groups that are aware of f23’s capabilities and quality, they are very reputable but small. They are most known for being very versatile but complicated and misunderstood. In many instances, they are unknown by potential partners and customers, though they are one of the industry leaders in their market, they are still mostly unknown by the community. Their participation in community activities and groups like AIGA and OneSpark and their connections through their clients help make them more commonly known, however their reputation, in many cases, is unknown by the majority of people.

f. Product/Service Strengths- The services that f23 provide are, in themselves, a benefit to any

company they work with. They are specialized, thus adding economic value to working with f23 and they are more knowledgeable than many of it’s competitors. g. Product/Service Weakness- The weaknesses of f23’s product are few, however the lack of presence in their market can be damaging to their future business. The practice that they are currently using of allowing the developers to interface with clients is of concern and could be a potential weakness if staffing their business is not fully completed.

D. The Market

1. Definition and location of market

a. Identified market segments

1. In the past v has enjoyed partnerships with some rather high profile clientele,

such as The Wendy’s Company and The First Tee. However in such a small market like St. Augustine Florida the company is unable to position itself around those large companies that have a high need for software development companies. While they have done enough to currently remain afloat moving forward their potential market segments depends largely on where they are located. While they operate in an untapped market they by no means control this area. Before moving on to bigger clients and projects f23 must control the market they already inhabit and show potential for large scale growth.

2. If f23 can control its current market and show reason it can expand and function then moving to a different location is a must. The Jacksonville and certainly St. Augustine markets simply do not surround them with the assets they need to be successful. A move to a larger, more tech city would give them the possibility for substantial growth and more lucrative clientele. If and when the move is made both performance and staffing issues must be addressed beforehand.

b. The St. Augustine Market does not possess the companies f23 needs to be success. The Jacksonville market however does have some companies such as CSX, Winn-Dixie and Florida Blue Insurance. Has a whole the needs and desires of this market are very minimal and entry level in comparison to some surrounding cities such as Atlanta or Orlando.

c. Market Characteristics

1. Located in northeast Florida Jacksonville is the largest city in the state of Florida and the largest city by area in the United States. Situated on the St. Johns River it serves as the gateway to the state of Florida.

2. With a 2010 population of over 800,000 people Jacksonville is the largest city by population in Florida. Although the median income for houses in 2000 was $40,316.

3. Jacksonville does have a large and diverse religious population. The family unit is very important to the people of Jacksonville as well.

2. Definition of our customers

P6

a. From working with companies such as Microsoft, The Wendy’s Corporation and The First Tee. F23 has the potential to work with any company no matter the size.

b. Generally f23 works with smaller companies to mid-size companies and startups search for tech

support. Although in the past they have worked with bigger companies. They have the capacity to

work with larger companies, but at the moment they lack the organizational structure to manage multiple large accounts.

E. The Competition

1. Identification of competitors

a. Hashrocket, Jacksonville, Fl

1. Similar to f23 in their capabilities and technologies.

b. SGS Technologies, Jacksonville, Fl (main office)

c. Station Four, Jacksonville, Fl

1. Similar to f23 in technologies but market mostly to corporate clients.

1. Focus more on web design and app development rather than software development.

2. Strengths of competition

a. Hashrocket has a larger staff of developers and designers, which also feature a consulting service.

1. The marketability and professionalism that they display is easily communicable and concise.

2 They have an in-depth and conclusive software development process to achieve their desired goals and product completion.

b. SGS Technologies is larger company with multiple locations, they also feature a wide range of

capabilities and market to large businesses, corporations, and the government.

1. The large array of past customers, experience, and staff.

c. Station Four feature marketing and strategy as part of their integrated system of design and development for clients.

1. Station Four are smaller than f23 and more easily marketable. Located in downtown Jacksonville, they offer a wide range of product with simple and concise messaging.

3. Weaknesses of Competition

H. Communication strategies

a. All three competitors fail in the financial management and customer focus that f23 demonstrates.

1. Past promotion policy

a. Personal Selling- F23 uses a personal selling approach when working with clients. F23 engineers interface directly with customers when selling their product.

1. F23 does not currently employ anyone with a sales force title. The members of the engineering team are their own salesmen.

2. F23 currently has little advertising expenditures. The company has social media websites, which are relatively inactive. F23 gets exposure by attending conventions and conferences. Principal members of f23 attended “Code on the Beach� in August 2013, which is a software engineering conference in Jacksonville.

b. Successes of past policy- f23 was involved in good, profitable projects while using their personal selling technique.

P7

c. Downside of past policy- f23 was unable to expand their sales volume because the lack of

delegation in the sales force team. With a personal selling technique that involved a sales person or

team, the f23 team could specialize and become more efficient. This will lead to the development

of more projects at a faster pace.

2. Sales Force

a. The size of the sales force for f23 does not have to be large. An adequate salesteam would include at least two members.

b. Since F23 has many abilities and functions as a company, training more than two members may be a lengthy task. F23 sales team will understand that quality of the software and the philosophy of the business and will be able to easily convey it to the potential f23 customers.

c. Sales members will be compensated financially on a commission basis.

3. Advertising Programs

a. F23’s ad program will contain social media websites. This is the simplest form of advertising to reach a broad group of potential customers. The social media websites will be updated and maintained on a daily basis to display what goes on within the company, and what projects and ideas are being concocted by f23.

b. Considering the expansion of f23, an advertising technique we will use is print marketing

through appropriate magazines. F23 will target potential buyers by placing ads in software magazines, as well as entrepreneurial ones.

4. There are vast opportunities to capture new markets in new areas. With more exposure, f23 can capitalize on these opportunities.

I. Environmental Factors

1. Economy

a. Considering the rise of the economy after the 2007-2009 recession, the expectations for individuals to invest their money on entrepreneurial projects are relatively promising.

b. While many individuals and groups of people are entertaining the idea of starting a business years after the recession, it is expected that assistant and guidance will be wanted and needed. F23 has a favorable business outlook in years to come.

2. Technological Influences

a. F23 is a business based off of technology. The impact of technology makes our business better, but also means an ongoing learning process. Our product changes ever so slightly on a daily basis, which means the latest customers are getting the latest technology.

b. Some projects may need reinforcing of technology years down the road. F23 is able to identify

weaknesses in old software and will replace certain software for particular projects when it is

necessary. Most projects will not need to be revamped considering the size and the function of the project.

J. Corporate objectives and strategies

1. Community Image

a. F23 wants to portray a friendly image with the community. F23 prides itself on business

philosophy, and ethics. F23 is a detailed oriented company and treats customers as their own business.

2. New product development

P8

b. Each of f23 projects is unique. This means that each product that is constructed is unique to each project. F23 drives innovation and forces focus in building the right software. We develop products on a customer need basis while overcoming cost and feature constraints.

3. Technological leadership

a. There is no official “Tech Lead� at f23 however, Principal Jeremy Vaughan takes on that role along with many others. Jeremy has the credentials and experience to drive projects forward while ensuring confident technical decisions. With more delegation within the company, a designated Tech Lead would provide areas of growth for f23.

b. A designated Tech Lead should provide attributes such as knowledge, speed, and awareness. A tech lead should be able to block bad decisions, promote good ones, redirect engineers when they are off track, and make decisions concisely.

4. Overall Corporate Mission

III.

a. The mission of f23 is to identify and overcome the challenges that start-up businesses face in the most economically and technically efficient way, as well as provide an ideal amount of assistance for those businesses invested in.

III. Marketing Objectives- To make Feature 23 a more profitable, marketable, and comprehensive business.

A. Market Need Objectives

1. Market Need Satisfying Objectives- Create a marketing strategy that f23 can use internally and

with clients that will allow them to have a greater impact and profitability overall. The need to produce the best work, economically and in value, is essential to gaining a better market share. The market in Jacksonville is not large or expanding at a fast rate, therefore expanding, for f23, may be difficult if another market is not entered.

2. Community need-satisfying objectives- Make f23 and clients relevant, comprehensible, and known in the community and industry as a quality business.

3. Corporate need-satisfying objectives- Make f23 a streamlined, quality, complete business solution that is self-sufficient in supplying their product/service. f23 will need to integrate a long-term logistical approach for their clients and work, this strategy will help build structure and organization within their business. The staff and resources need to be able to accommodate all facets of a full agency, using both the software development capabilities and the integrated marketing needed to empower their customers. The need for, at least, one full time staff member, dedicated to marketing, and one full time staff member, dedicated to account organization and public-relations, are essential the growth of the business.

B. Sales target objective- The objective is to operate a 6-7 million dollar business.

1. Sales Volume- The volume, overall, is steadily increasing thus making f23 a strong competitor in their market.

a. Markets- f23 are currently hold a noticeable presence in the software development market in Jacksonville, however they intent to expand to Washington D.C. and Atlanta.

2. Share of Market-To be industry leader in their market based on their reputation, quality, and price, however not in volume. They are needing to be the leader in cost-effectiveness and quality of product, which are features of their business that benefit customers and add value to their company.

3. Washington D.C. and Atlanta markets are available, however the sales objective should be met first.

IV.

IV. Marketing Strategy

A. General Marketing Strategy

1. F23 positions themselves against competitors by creating more business value than other software

P9

development companies. F23 begins by closely examining your goals, business needs and challenges. F23 conforms their business to the customers’. Each business is f23’s investment which ensures that some value will come out of each project.

2. Product Differentiation- f23 is a business of its own. There are not many companies that act as a software engineering company and a start-up incubator in the North Florida area.

3. Price/quality differentiation- F23 definitely values the term “bang for your buck.” The software developed is tailored to individual needs, but always has the common goal of producing at the lowest cost, to produce the highest value.

4. F23 must market why they are different. There are many others that can perform the tasks that certain businesses may be looking for, but f23 can capture more business by providing more value than other software engineering companies.

B. Specific market strategies

V.

1. We will target consumer markets, mainly markets with a need for software engineering and technology development. Our target market will be of the higher income level. We will be targeting business people and potential entrepreneurs. F23 can capture new markets because of technology’s ability to quickly create and adapt products and service.

V. Action Programs

A. f23 operates as a software development company as well as serving as a business incubator for high-tech startups.

B. Software engineer guarantee delivery 30 hours a week max. 1-year engagement. At $150 per hour the total comes to $234,000 subtracting $24,000 due to roughly 5 weeks of bench time throughout the year. Coming to a total of $210,000.

C. Meeting the parameters of the contract per each client.

VI.

VI. Measurement, Review, and control

A. Organizational Structure

1. Mike Potts: Principal + Chief Engineer

Co-founder Head engineer

Member of Association for Computing Machinery (ACM)

2. Tim Butts: Principal + Chief of Delivery Co-Founder Professional programmer

3. Jeremy Vaughan: Principal + Chief Strategist

Co- Founder Business strategist

“Use f23 to turn tech companies into successful businesses by use of their

ideas and usingf23 software and web design as the bridge to success”

4. Tracy Potts: Principal + Chief of Operations

Co-Founder Operations manager

5. Paul Irwin: Lead Software Engineer Programming Experience in: ASP.NET MVC, C#, EmberJS, HMTL/CSS/JS, jQuery, Lucene.NET, SQL, WCF, Windows8, Windows Azure, Windows Phone

6. Mitch Lienau: Software Engineer B.S. in Computer Engineering from UCF

P 10

Experience in: ASP.NET MVC, C#, Ember JS, HMTL/CSS/JS, jQuery, SQL,

7. Jason Dean: Software Engineer B.S. in Computer Information Studies from FSU Experience in: ASP.NET, ASP.NET MVC, C#, HMTL/CSS/JS, jQuery, SQL, Windows Azure

8. Dan Malarkey: UX/UI Designer B.S. from Florida State College Experience in: Design/ UI, HMTL/CSS/JS

9. Cuong Vo: Software Engineer Information Systems undergrad at UNF Experience in: ASP.NET MVC, C#, HMTL/CSS/JS

10. RJ McDermott: Software Engineer B.S. in Computer and Information Science from UNF and B.S. in Music from FSU. Experience in: ASP.NET MVC, C#, HMTL/CSS/JS, jQuery

11. Jim Mackin: Software Engineer

B.S. in Computer Information Systems from UNF U.S. Army Vet

Current Grad student at UNF pursuing Software Engineering Degree

Experience in: ASP.NET MVC, C#, SQL Server, Windows Azure, WCF, JQuery, Javascript.

Member of Association for Computing Machinery (ACM)

12. James Blair: Candidate Engineer B.S. in chemistry from Wake Forest University, M.S. in polymer chemistry from University of North Carolina at Chapel Hill, pursuing an M.S. in Software Engineering at UNF. Experience in: ASP.NET MVC, C#, HMTL/CSS/JS, jQuery

B. Methodology for review and evaluation-Key management for the f23 are three main employees to attract business, develop up to date custom software, operate the firm and execute operations.

1. Co-Founder Mike Potts is the Chief Engineer on all projects producing a product to fit the expectations and needs of the customers.

2. Co-Founder Jeremy Vaughan is the Chief Strategist on the products offered and produced for customers

f23 brings to the table in terms of creativity, customer outreach and the voice of the firm. His

business background employs the ability to communicate with various current and potential clients.

3. Co-Founder Tracy Potts is the Chief of Operations for f23 acting to manage the processes of the

firm to accomplish goals of the firm in a timely manner.

a. Jeremy Vaughan interacts in all phases of feautre23 business in aspects of public relations, in house operations, client interfacing, managing of product focus. He helps attain the customization factors of software production, implementing the design of the software, and delivers the product at a true competitive cost. Their product is handled through expertise which they acknowledge current developing factors of software that is used in their product.

b. Before the product is finished, it is revised and evaluated according to their customer wants and their quality.

C. Interactivity Monitoring

1. Management of f23 brings guarantee of satisfaction of their product and customer interface to help improve their product. All processes are reviewed, managed, and delivered to the customer. The industry constantly develops newer software and so does f23. They allow new software techniques to be available in product before and after product has been delivered to the customer.

P 11

2. Jeremy Vaughan, Chief Strategist, works to ensure the reliability of f23’s customers by consulting with newer and older clients about the software they have produced.

3. F23 shares a bond with their clients by always being accessible about any questions, concerns, and improvements of the software that is used. They see their clients as partners in a relationship to help build the software developing world and bringing together a region of technology to Northeast Florida.

4. Key term to describe f23 is validity, all products are representative of themselves and how they measure their own success. No shortcuts no gimmicks, the product that is built and offered is a direct guarantee to the client and company.

P 12