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EXECUTIVE SUMMARY OF THE CASE

Cambridge Software Corporation (CSC) has developed a new modelling software


product called Modeler. Chuck Kennedy CEO of CSC hired tony Atkinson to head
new product line management function and look into the possibility of marketing
several model of Modeler. With the help of SMRG, CSC divided the market for
modeler into five segments: Large Multidivisional Corporations, Corporate R&D
and university laboratories, Consultant and professional companies, Small
business and students. Each segment has its own segmental development cost.
CSC is mainly looking into launching 3 versions of Modeler: Student, Commercial
and Industrial. Each version has product completion cost. CSC has also gathered
data of maximum price willingness to pay by each segment for each version. If
multiple versions are offered, Consumer will buy that version which maximizes
their consumer surplus.