A Study on Channel Management in Tally Solutions Sales through Tally Partners

A Presentation by

Karthik Krishnaswamy 09PG262 Marketing B

Under Guidance of Prof. Jacob Alexander

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Agenda
Introduction Objectives and Research Methodology Market Strategy Observation & Analysis Recommendations Conclusion Learning Outcome

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INTRODUCTION

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Introduction
India - Second largest population of small and medium businesses (SMBs)
among BRIC countries and the US MSEs play a pivotal role in the overall industrial economy of the country

SMBs contributes more than 60 % to the Indian GDP while their spending on
IT is only 30 % of India's total IT spending SMBs accounts for about 39% of the manufacturing output and around 33%

of the total export of the country

SMB contribution to GDP has been growing at a steady rate of CAGR 12% over the last seven years

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Highlights of SMBs
Lack of IT Awareness Lack of Vertical Specific Solutions Unclear Return on Investments (ROI) High investments in legacy systems High cost for technical support Alignment in goals of SMB owner and IT vendors

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About Tally
Transforming ownership experience for businesses

Global Company headquartered in the IT hub of the world Bangalore Transforming businesses across industries in over 94 countries

Powering over 95% of businesses in India for over 25 years

Over 3 million registered business users

Awards & Recognition

CRNs coveted Outstanding Channel Contribution 2010 award, for Tallys relentless efforts and initiatives in creating, expanding and nurturing the IT channel. PC Quest Users Choice Award- 13 years in a row

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Evolution of Tally

Vision By 2030 A.D., be the technology fabric that drives economic growth of the world. Purpose To make everyone who touches Tally Happier!

Values
Honesty & Integrity Power of Simplicity Continuous pursuit of excellence Create and define the future Our strength is our people

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Tally.ERP9
Simple yet sophisticated business management software Meets needs of small to large businesses Easy to install and use

Easy to customise and localize to region

specifications Easily adaptable for most enterprise needs Reduces time spent on accounting and other processes
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Tally Advantage
Branch offices Administrator Remote User Managing Director

CFO

Users MD & Staff on the move

Business Partners
(Dealers, Distributers, Suppliers)

Support Center
MTP / TP / TSPL Accountant / Tax Consultant
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Upgrades & Updates Recruitment

Prospective Employee Search

Online Test

OBJECTIVES & RESEARCH METHODOLOGY

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Objectives and Research Methodology

Problem Definition The study aims to understand the channel partners system and their management and analyse and see what drives the partners for the sale Objectives To understand the robust channel partner system in Tally solutions To examine the current channel management system in place To identify the factors that influence channel partners to push the product.

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Data
Primary Data
In-depth Interview with probing questions Case Study of Successful Implementations

Secondary Data
Company Website and Portal Company Book of Records and Documents Computer Reseller News , August 2010 Edition , CRN Champions Award 2010 TATA Steelium -- A Success Story in B2B Branding : Vikalpa: The Journal for Decision Makers, April 2010 by Kaushik Bhattacharya, Biplab Datta Benetton Group Case Study, Harvard Business School, 9-685-014, February 6, 1989 Yashas Customer Success Stories by Tally Solutions Pvt. Ltd.

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MARKET STRATEGY

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Strategy
Stage III

Go To Market Plan

Complete dominance of the market

Stage II
High growth phase, to be a market leader in the country

Stage I
Understand the market & create awareness about Tally

Planning Stage
Identify markers

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Chanakya Strategy

People

Chartered Accountants

Bank (Alliances for cash less transactions)

(Tally Academy)

(Auditors Edition)

Hardware and IT solutions Provider (Tally Partners)

Buyers (Tally Users)

Government (Institutional Sales)

Solutions providers (Tally Integrators) Business Man

Suppliers (Tally users)

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OBSERVATION

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Partner Framework
MTP
Sales Appoint Tally Partners Support Center Large Account Engagements Marketing/ Product Awareness Customization Training

Partners are the face of Tally

Tallys Philosophy Putting Partners First

Sales

Training

Product Annual Maintenance Large Account Contracts Implementation Customization

Tally Partner

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Commercial Policy

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Probing Technique
MTPs interviewed: Prompt Software Parakram YenYes Genesis R S Solutions Info Tech

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Probing Questions
Whats the general working procedure for MTP ? How a sale occurs? What makes Tally sell ? What are the various factors that determine the performance? What are the planning procedures in place ?

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Probing Questions
What made the customer buy Tally? How does the customer perceive Tally? After purchase, what did the customer use Tally for? What was the WOW factor experienced by the customer, using Tally? What more does the customer expect from Tally? How long did it take for the customer to decide on buying Tally? Why did they hesitate? (that is if they took time to decide, what were the causes and factors?)

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ANALYSIS

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MTP Structure
MTP has a set of teams for
Cold calling, TDL Customization, Service and Support,

TP Enablement
Tally Academy ( in certain cases )

MTPs have TP working with them On an average there are around 200 TP for every MTP , out of which around 80 are active in the business.

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MTP Operations
TP Enablement Team
looks after the Tally Partners under the MTP and
has set of TP shared between the team. They look into the business activity of TP , enable them ,

do lead follow up and close the deal for the TP.

Billing is always done in the favor of TP TP receive he money directly from the customer while MTP receives from

backend
MTP buys the stock on a monthly basis from Regional Offices Tally Solutions and sell it either directly or the TPs.
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Selling Process
Lead generation
Cold calling - Industry directory , magazines References Acquaintances during trade shows

Leads generated are given to the sales team Calls generally can be of sales or service in nature. In sales they are fresh pack or renewal of subscription for Tally.Net Demo and Customization requirement study ( if needed ) Follow up and closure of the call
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What makes Tally sell ?

Power of simplicity makes the product a toughest to compete with Benefits that tally offers are way more than what a nearest competitor could offer MTP maintain a sociable relationship with Tally Solutions , that too aimed for a long term relationship Economic benefits i.e the margins that MTP and TP get with a sale

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Paired Comparison b/w Genesis & Infotech MTP

Fators Activations/Person( Direct )

Genesis
36 0.45 10

Infotech
8.2 8 18

Activations/Person ( Indirect )
Zero Billing

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MTP - Genesis

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MTP - Infotech

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WOW Factors In Tally

Simplicity Flexibility Value for Money Remote Access Ability to Integrate seamlessly Ability to Customize Auto Backup E-filing Multi-Lingual SMS Export of data Tally Shop Emailing Jobs & Recruiting Dial a Tally Expert

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Why is the customer hesitant ?

Customer gets multiple quotes Import of data from Excel is not possible Tally cannot handle large volumes of data Partners service capability and his willingness

Product is too generic , which makes customer rethink whether it will suit his
business requirements Product cost + AMC + TNS + Customization makes Tally not so affordable

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The most commonly used modules/features

Accounting Reports VAT Excise Inventory Management Data Synchronization Cost Centers POS Integrated Support Remote Access Banking Logo Printing

Sales & Purchase

Remote Access

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Expectations from Tally

Fixed Asset Management
Demo based on the customers data In built TDS validation

Auto-Fill option
Shorter Sync duration after every save

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Expectations from Tally ( Contd.)

Ability to remotely connect the company without having to open it on the server While creating/altering company, option for multiple contact numbers With every upgrade, avoid redoing of customizations Extra fields of categorization for stock items Multi level Job Work & Multi Level sorting ( Eg: pivot tables) Sales visit report

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Expectations from Tally ( Contd.)

Graphical reports Excise for manufacturer and dealer simultaneously Ability to alter bill formats Work in progress

Multi Voucher editing

CRM Sales force management

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RECOMMENDATIONS

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Recommendations
Need for more effective communication to the customers and the partners about the benefits of the product and features it offers Periodic training sessions, collaterals could be conducted to Partners to enable them reach out to customers more effectively Tally Shop (Add-ons Market Place ) hasnt been communicated by the partners to the customers because of the very fact that the margins associated by selling the add-on is very less.

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Recommendations
MTP and TPs to be handled precariously and policies should be in such a way all the partners are reigned in , enjoying the economic benefits through the course of relationship with Tally Incentives to TP and MTP selling at MRP for a duration to motivate the large group - Avoids Price War Incentives to TP and MTP who focus on fresh sale than renewal of Tally .NET subscription Streamlining Tally Circle and Tally Day

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CONCLUSION

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Conclusion
X factor in Indirect Selling Relationship Management Making Partners Active is inevitable Effective Communication and Monitoring the Ecosystem is very vital for any business

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LEARNING OUTCOME

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Learning from Case Study

Large Accounts Management How to implement Tally understanding the business challenges TIN and Managing the roll out Tally and Partner Relationship

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Learnings from the field

Sales Pitch Categorization of TPs and MTPs How BMs motivate MTPs and TPs Relationship Management

How a basic demo is presented

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Positives
Brand Awareness is high in the market Presence of a strong distribution network, with wide reach Product sells itself BAP program is well accepted by the CA community and well implemented

Strategies adopted in different regions have been successful in their own way.
(Successful strategies may be implemented elsewhere as well)

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Issues
Awareness of product features is extremely low Aware customers are unclear on the usage of those features Most strategies get distorted as they trickle down the pyramid BMs role is not clearly defined, neither is his routine

Partners merely act as mute spectators during demos

Wide differences in region-wise operations Price war A big issue Pricing of the product Pricing of services

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Issues (Contd.)
MTPs creating price war and confusion in the market Unorganized approach in organizing events Capacity development - A grey area Lack of Brand Identity

USB being used to deliver the software

Lack of training and presentation skills amongst MTPs staff Automatic Update for release/stat not available in the product

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Field Experience
Role of BM is ambiguous BMs selling and supporting rather than

facilitating partners
MTPs and TPs competing amongst themselves rather than collaborating Money back guarantee Not being followed

Auditor version being sold (with discount) to non CAs

Support being extended to unregistered Tally users Our values & principles not being followed by our partners

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Thank You !

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