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Solutions to Problem Statements

I.T. Problems

1. Use of virtualization Buy 50 GB database space and divide it into virtual spaces

scenario 1>Cost of 300 GB database (1 GB per customer) = 9.99 * 300 = $2997 per month

Scenario 2> Six 50GB database space will be purchased to suffice 300 customers.

Use of virtualization is recommended to partition these 50 GB individual spaces into multiple virtual

spaces as per the customers requirement. For eg. If 30 customer orders are to be fulfilled then one 50

GB space will be divided into 30 spaces, leaving 20 GB space for future use.

Therefore, Cost of six 50GB database = 125.88 * 6 = $ 755.28

Each virtual space will act as individual database

2. Security Concerns

Following security measures can be incorporated

1. Access Controlvarious access controls will be provided to login the system and access thefunctionalities based on hierarchical designations.

2. Multiple server for single client For better performance and backup recovery in case of failurein any server

3. Monitoring logs Monitoring logs to monitor transactions and access, these will be read onlyfiles and cannot be manipulated

Benefits of Virtualization

1. Utility computing2. Centralized administrative tasks activity3. Improved scalability/elasticity4. Overall resource utilization No one server application Less underutilized resources5. Creation of virtual servers to meet different needs6. Host and Guest model to suffice flexibility in requirements

Main Server Main Server

Cust. 1 Cust. 2 Cust. N 300

Subdomain

DB 1 GB

DB(50 GB) DB(50 GB) DB(50 GB)

Cust. 1 Cust. 2 Cust. X

Subdomain

Virtual Server

Scenario 1 Scenario 2

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Strategy Problems

1. Both Direct sales to customer and sales through distributors are recommended. Distribution channels

should be hired. Revenue sharing model will be incorporated in terms of distribution channel pricing

strategy.

Evaluation

Direct Sales to customer Sales through distributors

In-house marketing strategy & implementation Access to distributors existing client base

Better flexibility on operations More sales force

Low cost High cost

Aggressive sales pitching

Assumption 300 customers are divided as 150 individual venue, 75 (2-5 venue), 50 (6-10 venue), 25

(11-20 venue) hotels.

Estimated Monthly Revenue = 150*3000 + 75*7000 + 50*10000 + 25*14000 = $18,25,000.

Estimated Setup revenue = 300 * 35000 = $105,00,000

Total Estimated Revenue = $1,23,25,000Note - In case of Sales through Distributors, the monthly revenue will be shared.

2. The marketing team will be divided into two Domestic and International

Domestic will be divided intofour zones each comprising of a team. International market will have 2

teams

Team structure

Designation No. of Members Monthly

Salary

Manager Sales 1 $12000

Head

Sales 2 $8000Executive Sales 8 $4000

Total Team Cost $60,000

3. India and neighboring countries such as Srilanka, Nepal, Afghanistan, Myanmar, Pakistan, Indonesia

and Maldives will be captured. The major hotels/group, high, medium and small segment hotels will be

targeted and prioritized respectively.

Marketing Strategy

1. Trade fairs specific to hotel industrya. Primary research on potential customersb.

Free trial distribution

2. Aggressive sales pitchinga. Lead generation (through freelancing/project portals, sales lead databases, cold calling)

3. Print Media Advertisement (Magazines Hotel industry specific)4. Distribution channel

Forecasted Budget for marketing team

(Total 6 teams)

= 6 * $60,000

= 3 60 000

Value Proposition -

Low price SaaS model

High Performance

Easy to use

24/7 support

Hassle free Implementation

Ensure regulatory compliance

Standardized

features for

effective customer

& order

management