GROUP 9 PRESENTS

Cisco Systems
Managing the Go-To-Market Evolution
 Cisco's Channel Evolution

VOLUME BASED INTERNET VALUE BASED SERVICE

(1990-2001) CHANNEL (2002) PROVIDER
(2001) 3 Tier model
INITIATIVES
3Tier model
classifying VARs on classifying VARs on (2003)
Launched pilot
the basis of Volume program to sell the basis of
Collaboration with
sales. directly though specialization and
SBC and select group
website. expertise.
of service providers.

WHY THE EVOLUTION?

Eliminate 'Box movers' Increasing trustworthiness

Improve profitability & Improving customer

channel efficiency' service parameters'
 Was it a good approach?
ANSWER: YES

WHY?

CONFLICT HIGHER CHANNEL

VALUE BASED
REDUCTION INVOLVEMENT DIVERSIFICATION

The shift from

Reduction of channel Early involvement of Adapting to the latest
Volume to Value has
conflicts in order to VAR in sales trends by adopting
led to better service
provide a fair playing processes has led to online sales in order
quality and higher
ground to all channel a better connect in to diversify the
customer satisfaction
stakeholders. the channel. existing channels.
goals.
 CORE CONCEPT

Gold The core concept involved categorizing

42% VARs into 3 distinct layers based on
clearing a certain evaluation criteria with
Silver the incentive of getting higher discounts,
40% thereby obtaining higher margins.

Premiere
38%
EVALUATION CRITERIA

Authorized Reseller Volume Based:

Volume of sales revenue

The Cisco Pyramid Value Based:

Specializations, certifications,
customer service
 Distribution of VOIP Products
VOIP products: Infrastructure, IP, Cisco Call Manager and Voice applications

Pros Cons
Growth rate is high due to Depend on the incumbent firm
improvement in technology. such as PBX firms - No expertise of
Voice VAR Voice channel is more consolidated handling new product.
in market May lead to channel conflict,
Individual attention as competition demand for core product decrease.
is growing Uncertainty whether work or not.

VOIP technology - Pull in demand Threat to other existing line of

from end consumers. products.
Expertise of handling networking Dilemma of channel’s influence on
Data VAR equipment. final sale
Avoids channel conflicts-demand No clear calculation / knowledge
for core products increases. of margin

Suggestion: Sales of VOIP products should be through Data VARs

Thank You!
THE TEAM

AASTHA TULSYAN
AKSHAY SHARMA
AMARTYA ROY
RAJAN CAHNDAK
RITVIK JAIMINY
SAKSHI SHAH
SHUBHAM CHAUHAN
SHUBHAM GUPTA