1. Thinking strategically about Boston Telecare's future, what factors do you believe CEO Camila Garzon should consider when determining what business model to choose?

Overall, it depends on the situation

2. What business model - B2B or B2C - do you recommend to the company? Why? Explain your reasons.

3. From a marketing perspective:

a. If the company chooses to target consumers directly (B2C), how do you recommend that they position ForeverMind™ with the individual customer and the "family circle"? (i.e. why should customers buy this service?)

b. How would you market to these potential customers? What are some marketing/sales slogans you could use to promote the service?

4. From a marketing perspective:

a. If the company pursues a B2B option, how should it position the service with the Home Heath Providers and Assisted Living Facilities? (i.e. why should the HHPs and ALFs buy this service?)

b. How would you market ForeverMind™ to these companies and try to convince them to offer this service to their customers? What are some marketing/sales slogans you could use to promote the service B2B?
 
 

Using the target market and cost-volume-profit analysis (CVP), Boston Telecare CEO Camila Garzon and her team went to work to determine the best option for their ForeverMind TM go to market strategy to share with the equity investors. Like most software companies, Boston Telecare has the majority of its operating costs in research and development (R&D), sales, marketing, and customer support. Due to the incubator status of the product, leadership expects that the initial rollout of ForeverMind TM is expected to cover only that additional portion of R&D, sales, marketing and customer support costs assigned. After year one, and depending on the chosen option, ForeverMind TM is expected to then cover their share of additional fixed costs that are currently absorbed by other Boston Telecare products. As a first step, the focus is on choosing a business model, developing a go to market strategy while utilizing CVP to understanding how changes in costs and volume affect income. The CVP analysis will be used to assist Camila and the investors in understanding the total cost and revenue behavior per unit sold to reach the breakeven sales number. The data in Tables 3 and 4 provide an overview of Page 5 of 12 the pricing, fixed and variable cost structure of the two options being considered impacting the CVP and breakeven calculations. Utilizing market trends and customer data (see Tables 1 and 2 and Exhibits 2, 3 and 4), the two options being considered are: (1) sell directly to end users (B2C) or (II) sell through Home Healthcare Providers and Assisted Living Facilities (B2B). Option I: Direct to consumers (B2C): Sell to end users In this B2C model, Boston Telecare would market directly to individual users and acquire these customers directly. This model would offer many benefits, foremost among these that the company would not be reliant on partners to build out the business. It would offer higher profit margins as all revenue would be retained by Boston Telecare and not shared with partners. Direct personal contact with the customer would allow for immediate feedback on what is working and what is not, giving the company valuable data that can be acted upon to improve the product and create additional services. Also, by being directly linked to the customer, the Boston Telecare brand can be strengthened as they are the face of the product. The B2C model would have some challenges. Reaching and converting individual prospects into paying customers would require sophisticated and expensive marketing, advertising and acquisition infrastructure. Boston Telecare would have to provide technical guidance and individualized customer support to its users and would need a robust back-office