Market Opportunity Identification Small-to-Medium-sized Business Deep Dive A custom research project for Prodigy Business Solutions
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The document summarizes findings from a market research study on small and medium sized businesses. It identifies key decision makers and influencers for technology purchases as business owners for companies with less than 5 employees and more specialized staff for larger companies. The document also recommends positioning strategies for different company sizes, with easy-to-use solutions targeted towards very small businesses and more comprehensive online solutions targeted at mid-sized businesses. It assessed different segments' technology adoption rates and identified opportunities to attract holdouts and move novice users to larger service offerings.
Market Opportunity Identification Small-to-Medium-sized Business Deep Dive A custom research project for Prodigy Business Solutions
- 1. Confidential 1 Carlos F. Camargo Collaborative Marketing 399 Main Street Los Altos, CA 94022 650-949-4882 February 1999 Phase II: Market Opportunity Identification Small-to-Medium-sized Business Deep Dive A custom research project for Prodigy Business Solutions
- 2. Confidential 2 High Level Findings from Phase I (July 1998) • Focus on SMB firms with <50 employees in the NY Metro and Northern California areas • Emerging geographies are Dallas, Atlanta, and Miami • Offer services with low up-front costs • Ripest markets are consulting and accounting • Expand capabilities through partnering • Build aggressive demand generation programs Prodigy Capabilities Top Competitors Targeting SMB Best Markets Bundling Opportunity Key Recommendations Consulting, Accounting, Publishing, A/E/C, Investment, Legal & Health Consulting, Accounting, Publishing, A/E/C, Investment, Legal & Health Large User Base, Concentrated in Key Metro Areas, Brand Equity, Customer Service Large User Base, Concentrated in Key Metro Areas, Brand Equity, Customer Service Mindspring & Earthlink Mindspring & Earthlink E-mail, Web Hosting, Backup, IP Fax & Business Quality Customer Service E-mail, Web Hosting, Backup, IP Fax & Business Quality Customer Service Size Class 1-24 employees 25-99 employees 100-500 employees # of Companies (*) 9.5 million 624,000 155,000 Level of Need/ Level of Fullfillment High/ Low High/ High High/ High Geographical Attractiveness More concentrated in Prodigy coverage No advantage No advantage Channel Telemarketing VARs Developers Associations Vendors Telemarketing VARs Developers Direct VARs Developers (*) Source: Dun and Bradstreet Laying down the Foundation for SMB Access, Presence & Commerce Laying down the Foundation forLaying down the Foundation for SMB Access, Presence &SMB Access, Presence & CommerceCommerce
- 3. Confidential 3 Review of Key Findings from Phase I (July 1998) Knowledge Workers are Ripest MarketKnowledge Workers are Ripest Market • Accounting & Consulting share similar needs but will buy through different channels • Require Relatively Generic Tools and Services • Health, Investment, and Legal require more specialized content and services • Highly mobile workers with roaming access needs 6 month opportunities 12 mo. opportunities 18+ mo. opportunities Consulting Accounting A/E/C Investment Legal Healthcare Education Manufacturing Insurance Wholesale Real Estate Retail Publishing The objectives of Phase I were to:The objectives of Phase I were to: 1) prepare a market segmentation situation analysis identifying and classifying the "universe" of market segments 2) determine the highest value for small and medium business market segments 3) relate the potential Prodigy business bundle offerings to the leading market segment opportunities. 4) perform a competitive analysis of key competitors 5) conduct an analysis of channel alternatives Competitive Landscape & Best PracticesCompetitive Landscape & Best Practices •Referral Programs •Customer Gateway •Information & Resource Library •ISV Alliances •OEM Partnerships •Web Developer Programs MindSpringMindSpring EarthlinkEarthlink PSINetPSINet ConcentricConcentric NetcomNetcom Demand Generation Strategies Channel Strategies
- 4. Confidential 4 Phase II Objectives • Find commonalties across the SMB market around which Prodigy can form marketing themes • Identify the most compelling IP-based applications and services for the SMB market • Chart the Buying Process for SMBs, focusing on purchasing criteria and motivations • Determine the overall opportunities in the following employee-size segments: 1-4, 5-9, 10-19, 20-49, 50+ • Identify the the commonalties of the SMB market for web hosting • Recommend pricing strategies for SMB market entry • Identify sources of awareness for SMB Decision Makers • Recommend a positioning strategy for Prodigy Business Solutions
- 5. Confidential 5 CM Methodology Project Kickoff Project Kickoff Secondary Research Secondary Research In-Depth Interviews In-Depth Interviews Synthesis & Analysis Synthesis & Analysis Recommendations and Conclusions Recommendations and Conclusions • Set project schedule • Clarify Objectives • Brainstorming • Define Deliverables Identifying Key Markets • Electronic Literature Search • Identify Existing Studies Interviewed Decision Makers & Influencers in Small & Medium Sized Business nationwide. Building Fact Base Develop Segment Profiles via Case Studies W eekly Status Meetings Deliverables • Executive Briefing • Presentation • 3 Case Studies • Contact Database • Interview Journal Deliverables • Executive Briefing • Presentation • 3 Case Studies • Contact Database • Interview Journal Contact Sources: Interviewees were randomly selected from Dun & Bradstreet’s Database of U.S. Businesses from among firms with under 100 employees and across all industries as well as yellow pages. Contact Sources: Interviewees were randomly selected from Dun & Bradstreet’s Database of U.S. Businesses from among firms with under 100 employees and across all industries as well as yellow pages.
- 6. Confidential 6 Contact List - 55 SMBs Interviewed Size Holdouts (4) Novice (21) Sophisticated (30) 1-4 Employees (16) 〈 Cunningham Cleaners, David Link, Principal 〈 Nick’s Shoe Repair, Elizabeth Santangelo 〈 Sacks Tailor Shop, Richard Sabato, Owner 〈 City Eyes Vision Gallery, Ted Joseph, Owner 〈 Hoosier Cleaners Steve Principal, Owner 〈 Kennedy Studios, Winnelle Kennedy, Owner 〈 Photographic Images Melinda Gordon,Owner 〈 Georgia Fast Tax, Inc.,Robert Daniel, President 〈 S/W Crafts, Marie Emmons, President 〈 Beauty Source Adolfo Alba, President 〈 Aavcom LTD., Bill Lawrence, President 〈 Professional Modification Services Estela Cruz, President 〈 A & O Engineering Inc., Greg Orphall, Mgr. Sales and Service 〈 Consumer Credit Counseling, Terry Grubb, Exec. Director 〈 Shattuck & Associates, Jeff Shattuck, Principal 5-9 Employees (12) 〈 Baad & Associates, Randall Baad, Principal 〈 Aerospace Design and Development, Dr. H.L. Gier President 〈 Robert A. Schless & Co., Inc. Beau Schless, Principal 〈 Application Research, Inc, John Berner, President 〈 ARR Enterprises, Joy Gay, President 〈 Pollock Consulting, Jane Pollock, Principal 〈 Stevenson & Associates, Alan Stevenson, President 〈 Dicks Carpet One Rug Warehouse,Caryln Green,Store Mgr. 〈 Moran Ashton Funeral Home, Peter Ashton, Owner 〈 Cover Story, Craig Cousins, Owner 〈 Impact Specialty Advertising, Melinda Owens, President 〈 Kahn’s Pharmacy, Mel Kahn, President 10-19 Employees (12) 〈 Chase Beck Machine Corp, Arthur Beck, President 〈 The Technology Group, Dr. E.A. Coleman, CEO 〈 Sobol Bosco & Associates, Daryl Sobol, Tax Associate 〈 Sungro Chemical, Inc. Harold Igdaloff, President 〈 Strategic Alliances Group, Beatrice Kohn, Office Manager 〈 Hexter & Associates, Fran Richards, Office Manager 〈 Cislunar Aerospace, Dave Banks, CTO 〈 DYS Analytics, Yuvai Shimoni, President 〈 Geobiotics, Jay Pickarts, Technical Marketing Manager 〈 A Plus Machining and Manuf., Barbara Dutton, Office Mgr. 〈 Abatement Technologies, Inc., Jim Bowers, Marketing Mgr. 〈 Kushner & Co., Brenda Williams, Admin to Gary Kushner 20-49 Employees (13) 〈 E.R. Roland & Associates, Wayne Smith, Principal 〈 Mulgrew Aircraf, Dave Mulgrew, Sales Manager / President 〈 Royal Plastics Manufacturing, Robbie Wimmer, MIS Manager 〈 Spero-Smith Investment Advisors, Andrew Smith, Pres. 〈 Public Affairs Information Service, Debra Brown, Exec. Dir. 〈 Marketing & Advertising Svcs Center, Gary Bacchetti, Pres. 〈 Dynamic Concepts, Inc., Mary Washington, Business Admin 〈 CE Corporation, Darin Gemereau, Eng. and Intranet Admin 〈 Metals Technology, Walter Hayes, CEO 〈 Benefit Management Design 〈 Rooney, Plotkin & Wiley, Williman Stevens, Managing Partner 〈 Access Direct, Steve Danoff, 〈 Advanced Data Systems, Nathan Lunney, Dir. Marketing 50+ Employees 〈 Picometrix, Inc. Rob Risser, CEO. 〈 Rayvern Lighting Supply Co. Inc., Helen Anderson, President 〈 Unicare Corporation, Matt Brent, Web Master
- 7. Confidential 7 Respondent Profile Respondents by Company Size 1-4 27% 5-9 22% 10-19 22% 20-49 24% 50+ 5% Respondents byLevelofSophistication H o l d - o u t s 7% Novice 38% Sophisticates 55% 15 1212 13 3 4 2130
- 8. Confidential 8 How did we characterize respondents? Hold-outs: No Email, Access or Website Novice: Email and Access Only Sophisticate: Email, Access AND a Website
- 10. Confidential 10 High Level Findings Prodigy Positioning Purchase Decision Makers Purchase Influencers • Key driver is to be perceived as “on the forefront” • Heavily influenced by Friends & Business Associates • Key driver is to be perceived as “on the forefront” • Heavily influenced by Friends & Business Associates • <5 employees: Owners, Presidents and CEOs are the IP Champions. • >5 employees: Web-savvy employees, Managers with designated web responsibility. • <5 employees: Owners, Presidents and CEOs are the IP Champions. • >5 employees: Web-savvy employees, Managers with designated web responsibility. • <5 employees: the “easy-to-do-business-with” or “hassle-free” ISP offering “wizard- or template-based web hosting solutions.” • 20-49 employees: “a trusted, reliable and long-standing online business solutions partner” offering “online business-in-a-box” solutions.” • “be on the forefront” “don’t be left behind” “join the club” • <5 employees: the “easy-to-do-business-with” or “hassle-free” ISP offering “wizard- or template-based web hosting solutions.” • 20-49 employees: “a trusted, reliable and long-standing online business solutions partner” offering “online business-in-a-box” solutions.” • “be on the forefront” “don’t be left behind” “join the club” Best “Fit” Opportunities • Low price, no risk Access for Holdouts • Better service, better brand for Novices with 10-49 employees • Low price, no risk Access for Holdouts • Better service, better brand for Novices with 10-49 employees • Internet literacy correlated closely with company size. Companies with more employees were more literate. Internet illiteracy was generally confided to companies with < 5 employees . • Respondents were eager for more information and were planning further investments in IP services. • Killer Applications continue to be Email and Internet Access. • Pricing Sensitivity to upfront, setup costs: less price sensitivity for value-added services Key Findings
- 11. Confidential 11 High Level Findings (continued) Strong evidence that small businesses are adopting many of the same technologies to remain competitive. However, more education is needed about the strategic importance of the Internet through a basic, staged product offering (or Learning Path) are key to establishing and retaining customers. Top reasons SMBs use the Internet: •Faster communications with customers, suppliers, and employees •Access to information resources •Better customer service •Lower advertising costs •Increased visibility and broader geographic marketing coverage via web site •Improved competitiveness against other firms, both large and small •Higher sales through expanded markets and new business opportunities Top challenges to implementation: •Finding the time to implement the solution, and the money to pay for it •Adjusting business practices to accommodate new systems •Choosing solutions that can easily accommodate growth RankedRanked OrderOrder RankedRanked OrderOrder Implication to Prodigy: To resonate with SMBs messages should highlight Top Reasons & Top Challenges.
- 12. Confidential 12 Business Improvement: Why do SMB decide to put up a Web Site? Reasons for Going Online Reported by SMBs 30 30 25 20 15 15 0 5 10 15 20 25 30 35 New Customers New Revenues Improve Customer Service Raise Awareness Extend Reach Productivity ReasonsForGoingOnline NumberResponses Top 3 Reasons SMBs Go Online Source: CM Interviews To acquire new customers To grow new revenue steams To improve customer service To acquire new customers To grow new revenue steams To improve customer service
- 13. Confidential 13 SMBs report a 3 Phase Adoption Process Source: CM Interviews Phase 1: ACCESS Company doesn’t want to be left behind the times and goes online to see what it’s all about Phase 1: ACCESSPhase 1: ACCESS Company doesn’t want to be left behind the times and goes online to see what it’s all about Phase 2: CONTACT Company understands the improved communications with customers and vendors Phase 2: CONTACTPhase 2: CONTACT Company understands the improved communications with customers and vendors Phase 3: COMMERCE Company understands strategic value of the Internet & has allocated resources to execution of online sales strategy Phase 3: COMMERCEPhase 3: COMMERCE Company understands strategic value of the Internet & has allocated resources to execution of online sales strategy SMB Internet Migration PathSMB Internet Migration Path • New Revenue • Better Communications • Information • New Revenue • Better Communications • Information • Buy & Sell • Email • WWW • Buy & Sell • Email • WWW Activities Benefits
- 14. Confidential 14 Who Are the Decision Makers? IP Champion & Decision Maker 9 7 2 3 3 3 9 10 3 2 3 1 0 2 4 6 8 10 12 14 16 1-4 5-9 10-19 20-49 50+ Firm Size Category NumberofFirms Owner Designated Responbility Web Saavy Employee No Champ Ad hoc Designated No Clear Vision Clear Vision Decision ContinuumSmall Firms Large Firms Source: CM Interviews Key Decision Makers & Influencers • Smaller Firms: Owner and/or President • Larger Firms: Designated Responsibility Key Decision Makers & Influencers • Smaller Firms: Owner and/or President • Larger Firms: Designated Responsibility Owner is Champion Owner is Champion Sales & Operations are the Champions Sales & Operations are the Champions
- 15. Confidential 15 How Much Do SMBs Typically Spend on Internet Services? AverageMonthlyExpensesforSMBNovices $20 $31 $29 $27 $650 $0 $100 $200 $300 $400 $500 $600 $700 1-4 5-9 10-19 20-49 50+ Firm Size Category Dollars$ 1-4 5-9 10-19 20-49 50+ Source: CM Interviews Average ExpensesforSMBSophisticates $22 $56 $516 $209 $240 $0 $100 $200 $300 $400 $500 $600 1-4 5-9 10-19 20-49 50+ Firm Size Category Dollars$ 1-4 5-9 10-19 20-49 50+ Novices typically spend between $20-$55/mo. on Internet Services. Company size is not a factor Novices typically spend between $20-$55/mo. on Internet Services. Company size is not a factor Sophisticates typically spend between $22- $240/mo. on Internet Services. Company size is a key factor. Sophisticates typically spend between $22- $240/mo. on Internet Services. Company size is a key factor.
- 16. Confidential 16 Penetration of Internet Services by Sophistication Level 60% 33% 32% 0% 10% 20% 30% 40% 50% 60% PercentageofEmployeesUsingTechnology % w/ Computer % w/ Email % w/ Access Technology Used Novices: Technology Penetration % w/ Computer % w/ Email % w/ Access 72% 66% 66% 62% 63% 64% 65% 66% 67% 68% 69% 70% 71% 72% PercentageofEmployeesUsingTechnology % w/ Computer %w/Email % w/ Access Technology Use Sophisticates: Technology Penetration % w/ Computer %w/Email % w/ Access Source: CM Interviews % of Employees with Computers: Hold-outs 42% Novices 60% Sophisticates 72% % of Employees with Computers: Hold-outs 42% Novices 60% Sophisticates 72% % of Employees with Email & Internet Access: Novices 33% Sophisticates 66% % of Employees with Email & Internet Access: Novices 33% Sophisticates 66%
- 17. Confidential 17 What do SMBs Desire as Applications? 51 51 37 30 30 20 10 0 10 20 30 40 50 60 NumberofResponses Email Access E-Commerce WebHosting IPTelephony IPFax Backup/Recovery TopApplicationRequirements The Top Application Requirements #1 Email & Internet Access (tied) #2 E-Commerce #3 Web Hosting & IP Telephony #1 Email & Internet Access (tied) #2 E-Commerce #3 Web Hosting & IP Telephony Source: CM Interviews
- 18. Confidential 18 What are SMB Preferences for Outsourcing of Web Hosting? 0 3 0 7 3 5 5 5 2 0 0 1 2 3 4 5 6 7 NumberofFirms 1-4 5-9 10-19 20-49 50+ Firm Size Category Insourcing Vs. Outsourcing Preferences (n=30) Internal Outsourced Source: CM Interviews Top 3 Reasons SMB Novices & Sophisticates Outsource IP/IT Services • No time to develop or maintain internally • No relevant skills sets or personnel • Not enough knowledge of options, solutions & technology • No time to develop or maintain internally • No relevant skills sets or personnel • Not enough knowledge of options, solutions & technology • Smaller Respondents are more likely to outsource • Larger Respondents are more likely to develop & manage web sites internally • Smaller Respondents are more likely to outsource • Larger Respondents are more likely to develop & manage web sites internally
- 19. Confidential 19 What are the Outsourcing & Pricing Preferences of SMBs? 1 1 1 2 2 3 1 3 1 5 0 0 0 0 0 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 NumberofFirms 1-4 5-9 10-19 20-49 50+ Firm Size Category To Whom are Web Site Project Outsourced? ISP Web Designer Web-Savvy Friend/Employee N=20 N=20 ISPs, Web Site Design Consultants, and Web saavy friends are all commonly used for outsourcing. ISPs, Web Site Design Consultants, and Web saavy friends are all commonly used for outsourcing. • Template-driven Site Hosting Under $20/mon. • RapidWeb Site $25/ Setup $25/mon. • Transactional Web Hosting $50/Setup $100/mon. • Design Services & Consultation $100/hour Dial-up access not included in pricing. • Template-driven Site Hosting Under $20/mon. • RapidWeb Site $25/ Setup $25/mon. • Transactional Web Hosting $50/Setup $100/mon. • Design Services & Consultation $100/hour Dial-up access not included in pricing. Expected Price Points Top Web Site Creation Tools # 1 ISP’s Site Template (50%) #2 Front Page (35%) #3 HTML Coding (15%) Top Web Site Creation Tools # 1 ISP’s Site Template (50%) #2 Front Page (35%) #3 HTML Coding (15%) Source: CM Interviews
- 20. Confidential 20 How Satisfied are SMBs with their Incumbent Internet Solutions Provider? “We are very satisfied with our ISP (a local phone company). We don’t have much of a need for the internet, just to check email and do some minor research, and I wouldn’t even think of switching to another ISP because I don’t think that they could offer us anything that we don’t already get – and for only $15 a month. So, A Ten” (Greg Orphall, A&O Engineering, Sales Manager) I love what’s been happening for me since I got this AOL account. I owe most of my new business to them. Satisfied? Yes, I’m extremely satisfied!” (Dr. E.A. Coleman, CEO, The Technology Group) We don’t have any need for additional services, and Blue Grass is doing a everything that we could possibly expect or even want for such a basic connection. We’re very satisfied with what there doing for us.” (Wayne Smith, E.R Ronald & Associates, Architectural Design) 0 10 20 30 40 50 # Respondents Low High Howsatisfiedareyouwithyourexisting ISP? Respondents generally report high satisfaction with their ISPs but do not expect much .Respondents generally report high satisfaction with their ISPs but do not expect much . Source: CM Interviews
- 21. Confidential 21 Top ISP Selection Criteria 51 45 45 40 30 27 25 20 15 13 12 11 0 10 20 30 40 50 60 #ofResponses Availability CustomerService Reliability Billing Recommendation TimeinBiz Security BreadthofOffering Price Audio/Video TechSupport FrontPage Purchasing Criteria Source: CM Interviews Top 3 Selection Criteria Reported by all Size Categories & Sophistication Levels #1 Availability of Service # 2 Customer Service & Reliability of Service #3 Billing Accuracy #1 Availability of Service # 2 Customer Service & Reliability of Service #3 Billing Accuracy
- 22. Confidential 22 Other research supports these findings 31% 39% 47% 47% 51% 59% 59% 63% 70% 85% 86% 88% 93% 96% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Reliability Performance TechnicalSupport Price KnowledgeableCustomerSupport Full-serviceProvider SecurityServices ManagedConnectivity Size/FinancialStabilityofISP WebSiteHosting Qualityofaccountmgmt. NumberofyearsISPhasbeeninBusiness Audio/VideoStreaming Value-addedServices Reliability, Performance, Support & Price are the top swing factors when selecting an ISP Source: TeleChoice Survey of 1,308 network and IT managers.*
- 23. Confidential 23 Customer Service/Support was the #1 Internet Application for SMBs 40 35 25 25 16 0 5 10 15 20 25 30 35 40 Numberof Responses Customer Support E-Commerce Communicating w/Vendors Communicating w/Customers LAN ApplicationArea TopApplicationsConsideredVeryImportanttoContinuedBusiness Success Top Applications Reported by all SMB Size Categories & Sophistication Levels #1 Customer Support & Service # 2 E-Commerce #3 Communication w/ Vendors & Customers #1 Customer Support & Service # 2 E-Commerce #3 Communication w/ Vendors & Customers Source: CM Interviews
- 24. Confidential 24 4 13 30 1 2 10 1 7 1 11 17 1 6 11 1 4 3 4 12 4 2 5 15 2 5 10 0 5 10 15 20 25 30 35 40 45 50 NumberofResponses AOL CompuServe Earthlink Mindspring Prodigy Verio/Best AT&T IBM MCI/WorldCom ISP Awareness Levels Hold-outs Novices Sophisticates ISP Mindshare Novice awareness 1) AT&T 2) AOL 3) Prodigy 4) Mindspring Sophisticate awareness: 1) AOL 2) Mindspring 3) IBM Novice awareness 1) AT&T 2) AOL 3) Prodigy 4) Mindspring Sophisticate awareness: 1) AOL 2) Mindspring 3) IBM Source: CM Interviews For these Respondents incumbent ISPs tended to be local or regional No ISP has succeeded in building strong mindshare with Hold-outs.
- 25. Confidential 25 What are the Favorite Sources of Information about Technology? 30 40 40 35 0 5 10 15 20 25 30 35 40 Numberof Responses DirectMail Catalogs Trade Publications Friends Business Associates Source Favorite Sources of Information Source: CM Interviews Favorite & Most Trusted Sources of Information about Technology for all SMB categories # 1 Friends & Trade Publications # 2 Business Associates # 3 Direct Mail # 1 Friends & Trade Publications # 2 Business Associates # 3 Direct Mail
- 26. Confidential 26 Bundling Opportunities for Prodigy Service Elements Near - Term (<12 months) Mid - Term (12-24 months) Long - Term (> 24 months) Email X X X Web Hosting X X X Remote Backup & Disaster Recovery X X X IP Fax X X X Intelligent Messaging X X IP Video X X IP Telephony X VPN X Implication to Prodigy: Partnering will be essential to meet the needs of these customers Implication to Prodigy: Partnering will be essential to meet the needs of these customers Source: CM Interviews
- 28. Confidential 28 Conclusions and Recommendations For Holdouts: • Swiftly provide seminars, edutorials and special offers focused on Access and Email as the holdout market is ready to develop. • Provide “ in the box trials” with major PC manufacturers. • Form distribution partnerships with Industry Associations, Office Supply Stores, and Buying Clubs e.g. Costco or Sams. For Novices: • Target Novices in the 10-49 Employees Size Range • Offer hosting bundles to induce Novices to switch ISPs. • Establishing a trust relationship by providing a Web Roadmap and becoming a trusted source of information. • Position as the user-friendly “Small Business Internet Solutions Partner” • Establish an online trading community and value network that drives traffic from Prodigy Internet accounts onto a “Prodigy Mall” featuring web hosting SMB accounts • Develop a “unified messaging” infrastructure to sell into PAIN (E-mail & communications overload) For Sophisticates: • Eventually SMBs will join the E-commerce Bandwagon. Prodigy will need to support this trend to be able to retain these accounts. • Small business are starting to be approached by DSL and cable modem solutions that offer near T-1 speeds for between $40-100/month. Prodigy will need for formulate a response to this. Solutions Pricing • Short-term (6mon.): RapidWeb 2-5 pp. site, 10 Pop E-mail and 2-hour consultation free for 2 months and priced at $50/monthly thereafter • Long-term (12 mon.):Unified Communications Strategy: “UNIFIED MESSAGING BUNDLES” have the greatest appeal to SMBs with “E-mail & Voice mail Nightmares” Alliances • Partner aggressively with ISVs, OEMs and Telcos to jointly develop & co-market integrated online office solutions Positioning • Prodigy should position itself as the “easy-to-business-with” or “hassle-free” ISP offering “wizard- or template-based web hosting solutions.” • Prodigy should position itself as “a trusted, reliable and long-standing online business solutions partner” offering “online business-in-a- box” solutions.”