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Ankit Jain Nahar (MS12A010)


Archana Sinha (MS12A015) Jalaj Thakor (MS12A038) Kinjan Shah (MS12A040)

Content

Introduction

Analyzing market opportunity

Accessing company capabilities

Suggested strategies in the case

Introduction

Current market leader in ATM market Docutel corporation founded in May 1967 by REI Initially automated baggage handling and ATMs REI sold Docutel to IPC in 1970 Docuteller: Withdrawal of funds Total teller: Capable of deposits and cash transfer Docutel ATM sales grew rapidly initially in 1973, later declined

Analyzing market opportunity

Customers analysis

Competitor analysis

Market characteristics

Environmental Trends

Customer Analysis
Commercial Banks Mutual savings banks Analyzing market opportunity

Savings and loan associations


Credit unions

Factors influencing demand Regulation Branch issue with commercial banks Usage of remote machine Disadvantage of commercial bank compared to S&L Bank competition Rivalry b/w commercial bank and S&L S&Ls view of ATM as a new aggressive weapon End user habits Invasion of privacy Vs convenience

What Benefits
Less Paper work Less processing fee Solution to Float Automation 24x7 processing Real time processing Maintenance service

Customer Analysis
Commercial Banks Mutual savings banks Analyzing market opportunity

Savings and loan associations


Credit unions

Who buys competitors product and why ATMs: Docutel customers Point-of-Sale: S&L On-line Teller Terminals: S&L and Mutual saving banks Domestic Banks: acceptance Foreign Banks: Extremely centralized purchasing arrangement

How product fits Automatic customer activated terminal banking Docutel ATMS installed in banks or stand alone Capable of online as well as offline Interface b/w bank and its customers

Competitors Analysis
Analyzing market opportunity

Identification of competitors

How they compete


Overall system capabilities Highly trained field organization for customer support and service Focus on bulk buyers

Develop terminals which help to sell Similar activities their computers Burroughs Strong position in IBM POS market NCR 75% of total market Different activities Diebold Mosler

Compete on features of the machine Focus on unit buyers

Market characteristics
Analyzing market opportunity

Financial transaction systems equipment market

Estimated growth in volume of transactions and number of accounts Looking for electronic and automated transaction systems Extension of market through full EFTS Full EFTS includes ATM, POS, OLTT Uncertainty about the rate of acceptance of full EFTS Uncertainty about the standalone sales and manufacturers Estimate demand for ATMs: Growth from $52 - $80 mn by 1980 Successful experiments with POS, NCR having largest share Commercial banks are reluctant towards OLTT Eventual market of 250,000 automated terminals

Environmental Trends
Analyzing market opportunity

Economic changes

Social changes

Regulation changes

Technological changes

Analyzing company capabilities

1973 Net sales and services Net Income $ 29.5 mn $4.1 mn

1974 $25.2 mn $ (1.0) mn

1st half of 1975 $12.3 $ 0.2 mn

Headcount General and administration Field Engineering Manufacturing Engineering Marketing Total 50

368 130 90 82
720

Analyzing company capabilities

Product line: % share in sales, 1975


24 Sales offices and 37 salesman Salesmen has excellent access to bank management Assistance to banks in advertising and promotion of ATMs Growing service revenue share, 27% estimated for 1975 Other On line 12% Docucoder 12% Table top teller 19%

Docuteller 8%

Total Teller 49%

The decision

Continue to develop ATMs and enter POS

Remain in ATM market only

Suggested Strategies: Dominate strategy

Concentrate on commercial banks and consortia of thrift institutions Region wise marketing team, Focus on T4 in lobby machine selling R&D effort for new version with faster transaction time Upgrading field service, Pricing of service Establish Docutel as leader in On line, Develop marketing support package Quantity discounts for multiple sales, Advertising to strengthen ATM and Docutel Total marketing and technical expense of $ 8.7 mn

Suggested Strategies: Mini-Dominate strategy

Concentrate on few geographic areas Developing them completely before moving to others Efficiency on services Other marketing mix similar to dominate strategy Total marketing and technical expense of $ 6.0 mn

Suggested Strategies: Maintenance strategy

Target medium size institutions Sales team with 12 area coordinators Me too policy

Maintenance of service staffs at existing levels


Increase in service price to achieve gross margin of 20% Discount policy to be competitive Total marketing and technical expense of $ 2.965 mn