Takadu The Marketing Delima Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Takadu The Marketing Delima Case Study Solution

LTV – cost savings from a customer’s perspective

According to a survey, the cost of water supply to the consumers is increasing all in over the world.The main reason behind this increase is the increase in fuel prices, but there are many other reasons that increase the costs to the final users.It is because some water utility providers think that they can find the bursts and leakage themselves easily while in reality it is quite difficult and expensive to detect this. Although water utilities are using many different methods to detect these issues, but these all methods have some drawbacks and do not have the ability to detect the issue correctly and they all are labor intensive that cost very much and in turn consumers have to bear the entire burden.

According to estimate, 700 water bursts occur in a day in the US.In 2010 the repair cost was estimated at $600,000. According to the analysis of Mr. Peleg, the replacement of all this infrastructure would take $500 billion in London and the water utility does not have the plan to change the infrastructure as they can rehabilitate and repair the pipes. In this scenario, by utilizing the services of TaKaDu, with the help of this one-time investment, they can save $600,000 annually and so on.

ETV- cost from the company after deducting all expenses

The cost depends on the area, size and service of the water utility.According to an estimate a customer can cost the company almost $40,000 to $120,000 in terms of staff, and all the other expenses are not included.

Break Even – when can the company start earning money: profit = 0

The company can start earning after almost one year of implementation of the system. It will reach to a breakeven point in around 12 months of service.

Pricing – how would you price this software

For pricing,we need to focus on the software that is used in the business model of the company as the CEO has chosen to provide the company’s software as a service (SaaS).Therefore, the services are needed to be priced not the product, so the company has decided to price the services to per kilometer of the pipe line but according to the size of the water utility;the price per km will reduce as the size of the utility increases.

Alternative solutions

Invest in R&D to improve the existing capabilities

While research and development is an integral part of technology, R&D in several parts of the software will lead the company towards the most advanced technology provider in the world. It can improve and enhance the software and can increase the customers’ satisfaction.

Save setup time and costs

The company requires six to eight weeks for the deployment of the system. The company should try to reduce the time of deployment by making a software that should be user friendly. It will reduce the cost and increase the profit as well. The company could earn profit after 3 months of deployment.

Increase sales and marketing activities

Sales and marketing areessential activitiesfor capturing the market and attracting the customers, as TaKaDu has very few customers that cannot lead the company towards profit.The company should focus on the marketing area for increasing the customers.

Target Market

The company should target a specific market geographically. In this regard Australia is the best option as it has the opportunity of around 60 water utilities, and they also have awareness about the no-revenue water (NRW) and understand the importance of smart water network monitoring system.

Recommendations

After critically analyzing the situation of the TaKaDu Company; it is recommended to the CEO to allocate its budget in R&D and sales and marketing department 50/50 as both are important for the success of the company and making it profitable. R&D staff should be utilized to add new features in the software as required by the clients, while marketing and sales departments should focus on targeted market and try to double the customers with each passing year.

It is further recommended to bid for the Australian water utility named Queensland water company, because Australia provides an opportunity of other big utilities as Australians are aware about the non-revenue water as the water is scarce resource for them. The company should make the prices flexible to capture the market.

Conclusion

TaKaDu is a small startup company that had completed 3 years of operations in 2012. It is providing IT services to monitor the water supply network, which helps in detecting the problems in pipelines like leakage and bursts or any fault in the equipment. It has made nine customers in this industry. The company should utilize its budget to improve its sales and marketing as well as its software through R&D for increasing the number of customers and make the company profitable. The company should also bid for the Australian water utility in order to penetrate in the Australian market, which can increase the revenue and profit generation of the company.

Appendices

Appendix: 1

SWOT Analysis

Strength	Weakness
· First mover of the industry · Detection System of leaks, bursts and faulty equipment.	· Low experience in the industry · High cost of customer management
Opportunities	Threats
· Global expansion · The network monitoring system lower the costs for customers.	· Big competitive rivals · Low financial resources to target big market

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Takadu The Marketing Delima Harvard Case Solution & Analysis

Takadu The Marketing Delima Case Study Solution

LTV – cost savings from a customer’s perspective

ETV- cost from the company after deducting all expenses

Break Even – when can the company start earning money: profit = 0