Cowan Bowman Associates International Marketing - Essay Example

At the inception of the company Cowan Bowman had the intention of developing the software for the international market. For they knew that if they supplied the products in only the domestic market, the company will have limited growth. In 1984 company launched Business package, a product developed to automate accounting functions and produce invoices and the accounting statements. The product met with immediate success leading to market development in New Zealand and Australia. 1) Business Package: This was the first software developed, in - house, by the company.

It was designed to automate accounting functions and produce invoices and the statements for the medium-sized organizations with senior book keeping functions. 3) Corporate Series: This was designed as a more sophisticated package for incorporating foreign currency transactions. It was targeted at larger organizations consisting of groups of companies or subsidiaries that required a full accounting department or treasury. company were marketed only in New Zealand. The company distributed its products through its dealers; it had no direct selling strategy.

The marketing strategy of the company for the softwares developed by it consisted of three-tier dealer network as follows: 3) For Corporate Series: This is the specialized software hence a small group of carefully selected, technically skilled, computer companies and chartered accountancy firms were appointed as the dea. Distribution network in New Zealand & Australia: Initially the products developed by the company were marketed only in New Zealand. The company distributed its products through its dealers; it had no direct selling strategy.

The marketing strategy of the company for the softwares developed by it consisted of three-tier dealer network as follows:1) For Trader: For distribution of Trader large numbers of computer retail shops were appointed as the dealers.2) For Business Package: For this package a small number of computer companies and chartered accountancy firms were appointed as the dealers. 3) For Corporate Series: This is the specialized software hence a small group of carefully selected, technically skilled, computer companies and chartered accountancy firms were appointed as the dealers.

Dealers did not receive title to the software; rather they received 30 - 45% commission on the sales. The same dealer network was followed in Australia. Organizational Structure of the Company: There were four distinct units within the CBA:1) CBA- Responsible for software research and development.2) Automation One (A1) New Zealand - Responsible for sales and marketing in New Zealand.3) Automation One (A1) Australia- Responsible for sales and marketing in Australia.4) Automation One Services- Responsible for custom software development and services.

A1 (New Zealand) had 150 Trader dealers and 70 Business Package dealers of which 40 were very active. Dealers were responsible for selling CBA products as well as Data Flex, QED2 and Q&A. In 1990, A1 New Zealand accounted for 38% of total sales. Sales from CBA products accounted for 68% of total sales. Expansion to Australia: Cowan always wanted to internationalize his operations. When approached by the