Marketing Management -Hootsuite Case Study. Main details and issues

Marketing Management -Hootsuite Case Study
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Main details and issues
Social Media Dashboard such as HootSuite creates metrics reports from different social media tools and profiles. HootSuite offers cloud-hosted SaaS (Software as a Service) solutions compared to the biggest player TweetDeck, which is an application that ran on computers and the iPhone (Pirouz & Mark, 2012). Gregory Gunn, vice president of business development sought to determine the best way to segment the market for HootSuite and monetize the platform. Gunn, gave his suggestions to interns, but had to deal with identifying an effective pricing plan than would maximize revenues, without alienating the users.
The initial plan to allow users to download $2.99 iPhone app was the first step to popularize the revenue generating options, and there was intended to increase usage among paid users using the web. The challenge was how to undertake this without alienating the passionate users who may not afford the service. The proposed pricing plan is to have 3 versions, beginning with the Basic version that is free, the Pro version and the Enterprise version. However, the tool is only free when there is no collaboration among the users, yet it is increasingly important for various users to manage multiple accounts and coordinate social media participation.
HootSuite's financial goals and prices
Using competitor-based pricing and flat rate, to gain a bigger market share is one way to gain an edge over the competitors, even as they have differentiated their products that have different features. The pricing approach considers the number of social accounts, the number of team members and access to premium features. There is an assumption that there is a 10% growth in the number of users and since there is an expectation of reaching $ 100 million in revenues, when using the $ $19.99 fee per month equivalent to ...