Case Study I-2 • VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier 135to sell and install a Cisco solution. In marketplace dis-
cussions, several firms have started selling lower-cost
PBXs, including Mitel, NEC, Toshiba, and ShoreTel.
These enterprises may prove to be good channel part-
ners for VoIP2.biz. In the Indianapolis marketplace,
these competitors included VanAusdell & Farrar
(www.vanausdell.com) and MVD Communications
(www.mvdcommunications.com).- Data Networking Solution Providers: These
organizations have historically sold, installed, and
serviced data networking infrastructure. They are in
a strong position to add on VoIP equipment and serv-
ices to their customer base. Organizations such as
Fusion Alliance (www.fusionalliance.com) and
Advanced Micro (www.advancedmicro.com) have
expressed an aversion to management to working on
voice communications solutions and an interest in
partnering with experienced firms such as VoIP2.biz.
The Phase II Plan
Overview of the Plan Beginning in July 2006, manage-
ment planned to implement VoIP2.biz’s “Phase II” plan.
This plan was divided into two segments, the first from
June 2006 through June 2007 with these objectives:
- Expansion of sales and marketing activities in
Indianapolis to achieve two new system sales per
week; - Expansion of sales and marketing activities in
Indiana beyond Indianapolis; - Targeting specific opportunity areas such as large
call center opportunities; - Beginning sales and operations in five additional
markets; and - Developing a franchise strategy for smaller geo-
graphic markets.
Management would select suitable new geographic
markets during the third quarter of 2006. The new markets
would be entered in stages, beginning in the fourth quarter
of 2006. These markets would be located in the Midwest
and selected based upon having:
1.a population of at least 500,000 and the presence of
approximately 200,000 business telephone lines;
2.no other competitor selling an open source IP PBX
platform;
3.an effective reseller relationship with a CLEC oper-
ating in the marketplace;
4.the availability of suitable authorized distributors; and
5.the availability of local staffing with the appropriate
experience, skills, and prospect network.These market expansions would be supported by systems
engineering, network engineering, network provisioning,
and equipment configuring work from VoIP2.biz’s
Indianapolis headquarters. For geographic markets below
a population of 500,000 people, VoIP2.biz would develop
and market VoIP2.biz franchises. The company would
begin sales of these franchises by the end of Phase II.
The marketing plan for these new markets would
commence with:1.identifying a general/sales manager for the market;
2.recruiting a sales support/project management
resource;
3.partnering with the selected local CLEC and its sales
force for low-cost T1 capacity;
4.recruiting appropriate authorized distributors to help
reach the business market;
5.securing and installing the initial pilot customers;
6.launching advertising for VoIP2.biz;
7.securing editorial coverage in local business press;
8.purchasing local National Public Radio sponsorship
during morning drive time;
9.conducting direct mail campaigns with follow-up
cold-call prospecting; and
10.offering local seminars to business groups regarding
the benefits of VoIP and VoIP2.biz’s unique business
model.The second segment of the Phase II Plan would start in
July 2007 and last until June 2010. During this time period,
the company would enter an additional two markets per quar-
ter for six quarters bringing VoIP2.biz’s Midwest presence to
18 markets by late 2008 and achieving a revenue exceeding
$60 million by the end of 2009. The plan called for selling
the company to a larger provider sometime during 2010.Sales and Marketing The company planned a three-fold
channel strategy: selling through indirect channels, direct
marketing to potential business customers, and selling VoIP
“telco-in-the-box” turnkey solutions to network providers.
The company’s franchise strategy would allow entry into
smaller geographic markets by partnering with knowledge-
able solution providers. These partnerships would use tech-
nology and business processes from VoIP2.biz and the
sales and installation resources of the partner.
In addition to using authorized distributors to reach
the market, the company planned to use direct sales efforts
by selling to small and midsize business owners and finan-
cial officers as well as information technology leaders in
these companies. Both direct mail and cold calling were
being planned in this effort. Previous experience had
shown a good response to these campaigns as businesses