MATRIX SOFTWARE INC.

Submitted by –
Aman Jain 024006
Parichita Raghav 024033
Pulkit Dhanava 024036
Ronit Guha Roy 024042
Case Facts
• Matrix software develops and sells productivity tools for technical professionals
• Organized in 4 functional groups – R&D, Finance & Administration, Marketing and
Sales
• Had 3 broad product lines – Mathcad – software package for personal computer
• Application packs – add on product extensions for carrying out specialized tasks
• MathStation - a high end software package designed for Workstation
• Penetration of pc’s into technical market was growing by about 20% and
engineering workstations by 40%
Continued …..
• Channel of Distribution – MathCad and MathStation
Distributers/Retail Field Sales Telesales and
ers Direct Mail
MathCad 70% 5% 25%
MathStation - 100% -
Ap <20% - >80%

• Communication Channel
1. Advertising
2. Public Relations
3. Telemarketing
Key Issues
• Low sales of MathStation as compared to the targets or estimated sales
• Increased burned rate due to increase in marketing and sales expenses on account
of increased in sales person
• More funding is futile as investors worried about company market and
development program
• Tussle between sales and marketing vp’s regarding allocation of resources
advertising, field sales and telemarketing
Q1 What channel structure would provide the best fit for
matrix growing product line?
Mathcad: Distributor/retailer channel 
• Have a market having low profit margin so sales has to be increased in order to maintain proper balance

• properly manage the distributors and focus on increasing more number of resellers   
• Try and sell MathCad in bundles that is software+ programs to increase revenue

• Decrease the sales time by bundling sales demonstration requests .

Mathstation: Fields Sales Channel 

• Large dollar orders as workstations require software in bundles - $45000

• Mathstation product require technical support and services , as it a complex product so has to be

personally handled
• Setting up of VAR was the most crucial as this would ensure future demand
What types of communication programs were most appropriate for its target markets?

• Advertising:
• Cutting down advertising for Mathcad as product has moved from introductory stage and
shifting money saved to increasing sales person for MathStation
• Maintain higher advertising budget for MathStation with focus on electronic and
mechanical journals as conversions rate is highest for these journals
• Telemarketing:
• Continue focus of telemarketers on selling APs and generating new leads
• Use for Mathcad promotion by outbound telemarketers as MathStation required training
• Personal selling
• MathStation is very technical product and require personal assistance 
• Build strong relationships with the buyers and VAR’s to sell in specialized markets
How should Matrix change its channel and communication program over time? In particular, how should the company allocate its marketing and sales
resources?

• Change communication programs and channels with product position in PLC

• Allocate higher resources to new product and aggressively promote it.
• Pull back field sales and reduce communication program for products in growth or maturity
phase- MathCad
• Large distributors should be retained for core products and new should be added for
increased penetration and spread
• Increase in VAR network for highly technical products and specialized client - MathStation
• Advertising expense should be reduced and more focus on MathStation kind of products as
against Mathcad as profit margins are drastically higher
• Change with buyer’s level of sophistication. As buyer’s requirements and understanding of
product technology and market changes, company’s approach should also change
THANK YOU !