Caesar IT Services: The Challenges of Diversification

Caesar, a professional IT services firm, has competed in the Dutch IT market since 1993. Its initial value proposition was providing its customers with qualified human capacity at a low hourly or daily rate (often referred to as 'body-shopping'). To escape the increasing commoditisation of this type of service, the company formulated a new value proposition in 2003, so called TimeValue projects, consisting of the delivery of complete IT projects, guaranteed on time and within budget, at a premium price. In 2005 Caesar marketed these two value propositions using integrated organisational routines and one brand name. This led to three main problems that produced significant stress and frustration within the company management. First of all the integrated brand name led to a diffuse marketing proposition towards prospective customers. The second problem concerned sales; each sales manager encountered difficulties in selling the two products within the same portfolio. Third, the stress in organisational procedures fostered conflict, frustration and lack of collaboration among employees.

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Case details

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Caesar IT Services: Marketing Multiple Value Propositions in One Firm
Stefan Stremersch and Silvia Bellezza
IESE Business School
Ref M-1227-E
Also available:
Teaching note
Ref MT-0031-E

About the authors

Stefan Stremersch is Visiting Professor of Marketing at IESE Business School, Spain, and holds the Desiderius Erasmus Distinguished Chair of Economics and the Chair of Marketing at the Erasmus School of Economics in Rotterdam, Netherlands. e

Silvia Bellezza is a researcher at IESE Business School, Spain. e

Related links

Caesar IT Services: The Challenges of Diversification
by Stefan Stremersch and Silvia Bellezza
IESE Insight 

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