Atlantic Computer Case Study
Marketing II Assignment

Group 17 AMITESH PRIOLKAR (2009009) MANISH ARORA (2009022) NEELAY THALY (2009026) SAGAR KHICHADE (2009040) ALOK SHETTY (2009047) SIDDHARTH CHAKU (2009048)

Case Issue
Develop a pricing strategy for ¶Atlantic bundle· - the new Tronn server and the PESA (Performance Enhancing Server Accelerator) software tool before SME trade show

Company Overview y y

Atlantic Computers is a manufacturer of Servers and High-tech products Jason Jowers joined the Company four months back and he was responsible for the pricing strategy of the ´Atlantic Bundleµ i.e (A package of the Tronn server and PESA software tool)

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The Tronn was developed mainly f or the emerging US market opportunity for basic web servers

y

The ´Performance Enhancing Server Acceleratorµ (PESA) would allow Tronn to perform four times faster than its usual speed for standard procedures and hence the bundling made sense

y y

Existence of 2 market segments - High Performance and Basic Servers Atlantic has 20% market share in High Performance Servers with Radia being premier product over 30 years

y y

An emerging market for basic servers is coming up in the late 1990s Decided to introduce the Basic server into the market by 2000 with the belief that it won·t be seen as a substitute of the High Performance Servers

Advantages of PESA & Tronn
PESA ² will improve Tronn speed by 4 times Need to purchase fewer servers Lower annual electricity charges Less software licensing fee Less labor costs Customer segments which will gain advantage by using PESA ² Customers in web server & file sharing application segments

y y y y y y Two market segments
Segment size Projected demand(1st yr) Largest 200000 units Projected demand(next 2 yrs) 3% annually Atlantic Market share 20% Ontario Market Share

High performance servers Basic