Post on 03-Jan-2016
Unified Pricing Across Product Lines:Detail or Driver?
Erik LarsonDirector of Product Management and Marketing
Macromedia
Handhelds (19m WW)
Cell Phones(1b WW)
Consumers
1 billion Mobile andDevice Users
68 million
BusinessCommunicators
Presenters & Publishers (35.3m)
Meeting & Training Participants (30m)
Subject Matter Experts (2.4m)
Business Users
5 million
CreativePros
Graphic Designers(2.7m)
Web Developers(1.8m)
Multimedia (0.5m)
8 million
Pro Developers
3G Coding(4.7m)
Scripters (1.3m)
G4 (2.3m)
Designers & Developers
*WW seat estimates
Sources: Gartner, IDC, MetaFacts, Macromedia Market Research
Macromedia Target Markets
Macromedia Pricing Models
Offerings• Tools, Suites, Servers, Installed Solutions, Hosted Solutions
Models• Per PC, Per CPU, Per Named User, Per Concurrent User, Capacity• Perpetual, Subscription, Maintenance• 12, 24, 36 months
Programs• Commercial, Education, Government, Non-Profit, Japan, Europe
Channels• Direct, Disti-Reseller, Reseller, Online-Store
Source: IDC, April 2003, N=280, Quicklook Licensing Study, April 2003
Allows me to pay for what I use
Allows me to pay for the value I derive
Includes large up-front fee plus recurring fee
Evenly distributes costs over time
0 200 400 600 800 1000 1200 1400
PLEASE RANK THE FOLLOWING SOFTWARE PRICING MODELS IN ORDER OF ATTRACTIVENESS.
Unify Pricing and Business Model
Consumer $0 $200
Pro Tool $200 $2,000
Dev Server $1,000 $20,000
Departmental $15,000 $50,000
Enterprise $50,000
Consumer Mos to YearsValue AddResellers Wks to Mos
Death to Line Extensions – Consolidate and Dominate
Dreamweaver $299 + UltraDev $599 = ???
• Business Performance – Strong
• Competitive Landscape – On the Verge
• Business Strategy – Dominate
• Decision –
Results
Death to Line Extensions – Consolidate and Dominate
Dreamweaver $299 + UltraDev $599 = ???
• Business Performance – Strong
• Competitive Landscape – On the Verge
• Business Strategy – Dominate
• Decision – Dreamweaver MX $399
Results
Long Live Line Extensions – Go Pro When You’re Already There
Flash $399 = Flash $399 + ???
• Business Performance – Dominant and Steady
• Competitive Landscape – Empty
• Business Strategy – Extend and Grow
• Decision –
Results
Long Live Line Extensions – Go Pro When You’re Already There
Flash $399 = Flash $399 + ???
• Business Performance – Dominant and Steady
• Competitive Landscape – Empty
• Business Strategy – Extend and Grow
• Decision – Flash Professional $699
Results
Where Bundles Work – Suites to Raise Share of Wallet
4 Separate Products for $1,596 = ???
• Business Performance – Strong
• Competitive Landscape – On the Verge
• Business Strategy – Dominate
• Decision –
Results
Where Bundles Work – Suites to Raise Share of Wallet
4 Separate Products for $1,596 = ???
• Business Performance – Strong
• Competitive Landscape – On the Verge
• Business Strategy – Dominate
• Decision – Studio MX $799
Results
Where Bundles Don’t – Tag-Alongs Don’t Grow Share
Studio + Contribute = ???
• Business Performance – New Product
• Competitive Landscape – Established and Crowded
• Business Strategy – Enter and Grow
• Decision –
Results
Where Bundles Don’t – Tag-Alongs Don’t Grow Share
Studio + Contribute = ???
• Business Performance – New Product
• Competitive Landscape – Established and Crowded
• Business Strategy – Enter and Grow
• Decision – Studio Plus with No Price Increase
Results
Buy Low – Going Low to Enter and Grow
Contribute v1.0 = ???
• Business Performance – New Product
• Competitive Landscape – Established and CrowdedPer User Discrepancy: Interwoven for $250K or FrontPage for $189
• Business Strategy – Enter and Grow
• Decision –
Results
Buy Low – Going Low to Enter and Grow
Contribute v1.0 = ???
• Business Performance – New Product
• Competitive Landscape – Established and Crowded
• Business Strategy – Enter and Grow
• Decision – $99 per seat
Results
Unify Pricing and Business Model
Consumer $0 $200
Pro Tool $200 $2,000
Dev Server $1,000 $20,000
Departmental $15,000 $50,000
Enterprise $50,000
Consumer Mos to YearsValue AddResellers Wks to Mos
Sell High – Pricing to Enter and Expand
Contribute + Enterprise = ???
• Business Performance – Existing Product, New Market
• Competitive Landscape – Established and CrowdedPer User Discrepancy: Interwoven for $25K or FrontPage for $189
• Business Strategy – Enter and Grow
• Decision – Web Publishing System$229 per seat$2,499 starter pack$50K + site license
Results
Sell High – Pricing to Enter and Expand
Contribute + Enterprise = ???
• Business Performance – Existing Product, New Market
• Competitive Landscape – Established and CrowdedPer User Discrepancy: Interwoven for $25K or FrontPage for $189
• Business Strategy – Enter and Grow
• Decision – Web Publishing System$229 per seat$2,499 starter pack$50K + site license
Results
Unify Pricing and Business Model
Consumer $0 $200
Pro Tool $200 $2,000
Dev Server $1,000 $20,000
Departmental $15,000 $50,000
Enterprise $50,000
Consumer Mos to YearsValue AddResellers Wks to Mos