Zimbra is a software company whose flagship product is its Zimbra Collaboration Suite (ZCS). It is an open source messaging and communication software package that relies heavily on Ajax. It was purchased by Yahoo in 2007. The company uses viral marketing models, word of mouth marketing and
open standards to grow its business.
I. Time Context
The case study occurs in mid 2008, after Zimbra was purchased by Yahoo.
The case study takes the viewpoint of the Marketing Director, Greg Armanini.
III. Central Problem
There’s a need for automation software in marketing system of Zimbra.
(a) Must Objective:
To adapt automated software that can help them to identify, select and notify possible buyers.
(b) Want Objective:
To be the leading open source messaging and communication software package worldwide.
V. Areas of Consideration
Zimbra has accumulated 50 million paid mailboxes.
The company uses its Web site to track visitor, activity and tie it to sales lead information in its Salesforce.com CRM system. After examining some automation software, Zimbra discover OneView by LoopFuse. Zimbra was also pleased with LoopFuse’s convenient pricing options, including its “unlimited seating” and “pay-per-use” options with Zimbra to pay for only the services it need for as many users as it required. It consists of automated processes that will allow Zimbra to quickly implement the solution and maintain it without dedicating someone to task full time. OneView is easily integrated with Saleforce.com which is Zimbra’s preferred CRM. It worked with multiple browsers, had simplified reporting processes, and has the ability to manage a greater number of qualified leads.
The company uses old marketing strategy such as viral models, word of mouth and open standards to grow its business thus far. They initially tried automated software from Eloqua. It was too expensive so as to Zimbra can only afford entry level package which can provide to access 5 sales people and 1 marketing person. This was deemed too complicated for its marketing and sales staff. It requires coding which was a poor use and ineffective to its marketing system. Zimbra is lacking of a high effective and an on-demand automation solution in their marketing system.
Customers are as free to criticize Zimbra.
Zimbra has possible buyers from over 200,000 visitors to its Web site each week. Attraction of possible buyers and patronization of users may arise if Zimbra will consistently use automated software in their marketing system. It can probably result to high sales.
The competitive position of Zimbra among other emerging open source messaging and communication software companies worldwide. Risk of customer’s dissatisfaction. In effect, they will buy and transfer their loyalty to other software company. The stability and staying alive in the market.
VI. Alternative Course of Action
(a) Alternative #1 – Zimbra adapt OneView.
It has a convenient pricing.
It has core functions which includes Web site visitor tracking, automated marketing program communication, customer’s activity alerts, and CRM integration. It works with multiple web browsers.
It simplifies reporting processes; the sales staff can generate reports in a fraction of the time. It can deploy 30-person sales force.
It will entail cost for additional staffs and training fees. It requires time and effort for training of employees.
(b) Alternative #2 – Change the old system into new marketing system.
Modernization and new marketing ideas modification.
The re-invented marketing system is more likely improved and more fashionable technique to keep track on software business growth. It can attract the customer’s curiosity and interest because of the new selling strategy.
Cost of training of employees to be familiarized to its new marketing system. Budget for possible expenses on major restructure of marketing system.
(c) Alternative #3 – Since Zimbra is a software company; the marketing head could request the CEO to make their own Automation Software.
Additional income to the company.
New product trend.
Extra effort and expertise are required.
Trial time may take so long.
R & D expenses and other expenses may occur. It will require allotment for budget.
We therefore recommend to Zimbra the Alternative Course of Action #1 which is the Adaptation of OneView. We agreed that this course of action will definitely help them to improve their marketing system. It will allow them to obtain their targeted functions. It can satisfy both needs of the company as well as the users by providing an easy way to gather information about what they want. This can also simplify work of the marketing and sales staffs/employees, it becomes conveniently operated.