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Conference ilbbak::us_sales_service

Title:US_SALES_SERVICE
Notice:Please register in note 2; DVNs in note 31
Moderator:MCIS3::JDAIGNEAULT
Created:Thu May 16 1991
Last Modified:Tue Sep 03 1996
Last Successful Update:Fri Jun 06 1997
Number of topics:226
Total number of notes:1486

214.0. "HELP needed from:MKT/SALES/????" by CONSLT::CHAMBERLAIN () Wed May 11 1994 13:01

To whom it may concern, can YOU help me?

The Design Group has established a packaging design that keeps all 
Windows NT software product packages looking consistent (as if we were 
one company) instead of broken identities, which is ever so common.

The box, Documentation cover(s), CD labels and Diskette label all have
a consistent design. The only difference from product to product is the
product name printed on the box.

For product that need some sort of product specific design/descriptor,
their is a Back-ad sheet. A panel shrink wrapped to the back of the box 
containing product specific design and descriptor/features. The packages 
look alike on the shelf, a consistent design, yet product specific when 
the back is read/viewed.

A Business Reply Card is contained in the software package. BRC retrieves
customer data and is mailed postage-paid to Data Entry House.

            PROBLEM 1: Product Managers (for each software don't feel
                       that they should be paying for this, therefore
                       increasing their product cost. PM's are/have
                       actually considering creating their
                       own card, with there own address, and keeping their
                       own log to find out who buys their products (This
                       can cause disaster with transitions, and lack of
                       corporate sharing info of `WHO IS BUYING OUR
                       SOFTWARE'.  BTW: The cards that are being returned
                       today, are just sitting, collecting dust at the Data
                       Entry House because their is no Marketing Campaign
                       Code on them due to no one wanting to absorb the
                       cost.
                       
                       I would think that Marketing and/or Sales should
                       be responsible for this cost, but I can't find the
                       RIGHT person to contact.. I have gone in circles for
                       over a month now.
                       
                       
            PROBLEM 2: I have gone in circles to find out WHO should
                       support this... 
                       
                       If you CAN help me, please contact me a 223-2619 or
                       via E-mail at CONSLT::CHAMBERLAIN
                       

Also, in the software package is a Z-fold. A 5 panel folding card, 
that has a description of different products. This is placed in 
product family packages.

For example, presently, Printserver, eXcursion, DECFortran and DECtalk
make one Z-fold. The Z-fold goes into each of their software boxes. If 
the customer buys DECtalk, this falls out, they read it and see that "WOW!
Reading the Printserver descriptor looks like we'd be able to utilize this, 
let's call 1-800-DIGITAL and inquire about it". The Z-fold is an advertising 
type tool to cross sell our products.

            PROBLEM 1: Product Managers would like to pay, but their
                       budgets are limited. Shouldn't Marketing absorb 
                       these costs so we don't have in increase product
                       cost?
                       
            PROBLEM 2: I have gone in circles to find out WHO should
                       support this... 
                       
                       If you CAN help me, please contact me a 223-2619 or
                       via E-mail at CONSLT::CHAMBERLAIN
                       
                        
                     
T.RTitleUserPersonal
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214.1AIMHI::OBRIEN_JYabba Dabba DOOWed May 11 1994 15:025
    You may also want to add this to the HUMANE::DIGITAL note.  You may
    just get a better response in there.
    
    Julie
    
214.2thanxCONSLT::CHAMBERLAINWed May 11 1994 17:066
    Thanx Julie,
    
    I did.. I actually entered this in about 6 different conferences.
    
    Lisa
    
214.3benefitsCONSLT::CHAMBERLAINFri May 13 1994 13:1682
                                  NT Pilot Summary

          What Do I Get For My $6K Investment?
                 - packaging graphic design
                 - CD-ROM label graphic
                 - documentation cover graphic
                 - diskette label
                 - product warranty card
                         benefits:
                         - know your customer by collecting names
                         - merchandise complimentary NT products
                         - after market sales potential
                         - captive audience for product upgrades/sales
                 - back ad sheet
                         benefits:
                         - product specific
                         - increase product exposure
                 - z-fold
                         benefits:
                         - cross sell complimentary products
                         - increase product exposure to potential
	                   customer
                         - include in hardware and software packaging
          		   (ex; Alpha, NT OS)


          Old Process                    New Process

          TOTAL COST: $40K                       TOTAL COST: $6K (<85%)

          - long lead time, 14 weeks          	- short lead time, 6
            					  weeks (<57%)
          - point product "look & feel"         - consistent line "look &
          					  feel"
          - fragmented                          - streamlined processes
                                         	- channel ready
                                         	- cross sell products

          package design/engineering: $29K    	package design:  $1.5K
	  lead time: 12-14 wks                  lead time: 4 wks

          CD-ROM graphic: $4K              	CD-ROM label graphic: $1K
          lead time: 6 wks                      lead time: 4 wks

          documentation cover graphic: $5K      document. cover graphic: $.5K
          lead time: 6 wks                      lead time: 4 wks

          warranty card: $1K                    warranty card: $0K
          lead time: 6 wks                      lead time: 0

          diskette label: $1K                   diskette label: $0K
          lead time: 2 wks                      lead time: 0 wks

						back ad sheet: $2K
						lead time: 6 wks

						z-fold: $1K
						Lead time: 6 wks



Additionally, when NT was first announced, there were 40 software products. 
Based on those 40 products, here are some financial's:

DESIGN ENGINEERING FINANCIALS:

For 40 products utilizing strategy:

Old Model - Functional style 		40 x $40,000	=	$1.6M
New Model - Collaborative strategy	40 x $6,000	=	$240,000

NT Pilot Cost Reduction Opportunity				$1.3M

SOFTWARE MANUFACTURING FINANCIALS:

	PROJECTED COST SAVINGS
	- Eliminate WW material and labor costs 	$700K
	- Reduce obsolete inventory write=offs		$100K
	- Three year SW product cost savings 		$2.4M
	- Improves SW competive cost and margins

214.4L.O.A.CONSLT::CHAMBERLAINMon May 16 1994 13:5117
    
    Thank you everyone!
    
    I appreciate all points of view, comment, concerns and support.
    
    I am leaving this note for now. When/if I get results from it,
    I'll update status. 
    
    For now, I want the note to work for me, to find me a CONTACT.
    
    Please don't be offended if I dont' reply.. I have other projects
    to attend to and this one needs to take the back burner until
    I can find support.
    
    Thanx
    Lisa
    
214.5i'm back ;')CONSLT::CHAMBERLAINTue May 17 1994 12:2172
Well, looks like I can't stop replying after all....	;')

I discussed these comments with my Product Manager, who agrees they are 
all valid points. 

A few notes to make, though...

The $40k quoted for the NT packaging process is estimated for the Win NT 
software products. NOT all products cost that in packaging design.

For the Win NT packaging, the $40K would of covered, if each product
went with a Product specific design:
	
	Package engineering - spec'ing out a box for the product, part
                              number, engineering drawing, etc.
	Graphic Designing   - for the box, back ad sheet, CD graphics
		              and Z-fold ... also Photography, if/when needed
	Documentation covers and text
	diskette label is generic
	
	This was also based on a 4 color process, for:
	
	Films for the printer(s)
	Fuji's/cromolin for the printers (an addition to utilizing these is
                                          also a cost avoidance having
                                          someone at a press run)
	part numbers 
	Design time
	Comprehensives for approvals (includes color mock ups)
	
Our responsibility is to package a product as efficiently 
as possible. Meaning: the way to package EACH product as sensible
and cost efficient as possible for the product, channels, PRODUCT
bottom line cost and Digital; ensuring cost avoidances. We also
ensure brand identity, which is currently very important to Digital..

We also offer alternatives, depending on what channels a product will
take.  Using software, for example... if it will be shipping with hardware,
could it be shipped in a bag with graphic design on the just the cd and 
documentation, and the documentation cover will be placed on top so the
graphics are visable.. therefore avoiding a box?  Will it be bought 
through retail or VAR's or Catalogues? We are not doing the work just 
for the sake of work..

We work with the Product Managers to meet their needs and costs, as well
as keep brand identity amongst our products.  We do NOT have a 
set price for any job, they are all priced per their needs and product
bottoms line cost.

The purpose for the Win NT packaging strategy, (my base note), was so that Win 
NT products would not all be spending a lot of money. They could piggy back
off one design, saving time and money, show consistency but yet have the ability 
to have their own "personality" via the back ad sheet. The Win NT 
Product Manager was involved with the idea and pilot. 

Please do NOT think that $40K is the average/minimum/maximum
price range for a product pkg design. That was the
estimate for the Win NT product.  This new 
process is now only $6K and Win NT software product managers LIKE it and 
are using it. The Product managers who do not apply to using it, we are
working a different theme for them, with a TOUCH of the Win NT design tied in 
to show a relationship.

In conclusion, before this pilot ran, there was an open house. We invited ALL 
those PM's who would be interested, and it was a VERY POSITIVE feedback, 
therefore encouraging us to go forth with this, which we did and everyone
seems to agree to the simplicity and low cost. The only problem which arises,
is the MARKETING issues which was the purpose of this base note.

Have a good day,
Lisa