General Question:

Which segment should HubSpot Target? B2B or B2C? Owner Ollies or

Marketer Marys?

Kenan-Flagler Business School

Marketing 741

NAME
SECTION 8am/9:30am/11am/2pm

Executive Summary
State your recommendation. Should HubSpot target B2B or B2C companies? Owner Ollies or
Marketer Marys? Keep this brief.
The rest of your write-up should provide arguments to support your recommendation.
The figures and tables should be used as references to support your arguments.

Target Market Selection

Should HubSpot cast a wide net or narrow their focus? Effectively argue that HubSpot should
narrow their focus using frameworks we have discussed, as well as points from the case.

Should HubSpot target B2B or B2C customers?

-Use a mix of qualitative (strategic) and quantitative (CLV, market potential) facts to argue your
point. Do not restate points from the case, but use them to support your decision.
-Will this group be receptive to the product? I.e., is HubSpot providing value to these segments?
Is there competition in this market? Is HubSpot well positioned to serve these customers? Are
there any other outside forces we should consider?

General Question:
Which segment should HubSpot Target? B2B or B2C? Owner Ollies or
Marketer Marys?

Should HubSpot target Owner Ollies or Market Marys?

-Use a mix of qualitative (strategic) and quantitative (CLV, market potential) facts to argue your
point. Do not restate points from the case, but use them to support your decision.
-Will this group be receptive to the product? I.e., is HubSpot providing value to these segments?
Is there competition in this market? Is HubSpot well positioned to serve these customers? Are
there any other outside forces we should consider?

Should HubSpot start using traditional outbound marketing techniques? Keep this brief.

Should HubSpot move away from the SaaS model to a software-as-a-product model? That is,
instead of a subscription service, they would charge a single high price. Keep this brief.

Optional: Other Considerations (only if you feel this is necessary, and have space)

Recommendation:
Synthesize the strategic and quantitative results to reach a conclusion.

General Question:
Which segment should HubSpot Target? B2B or B2C? Owner Ollies or
Marketer Marys?

Figures and Tables:

Table 1: Estimation of Customer Value
Evaluate the CLV of individual customers from each segment by filling in this table.

Churn Rate

OO

MM

B2B

B2C

CMS

Non-CMS

Source

4.30%

3.20%

3.30%

6.00%

2.10%

5.50%

Table A

0.50%

0.50%

0.50%

0.50%

0.50%

0.50%

Assumption

Retention Rate
Margin
Acquisition cost
Consulting Fee
Total AC
Interest
(monthly)
CLV

Assumptions:
-Use the CLV formula at the MONTHLY level: CLV = m/(1 r + i) - AC
-Use a monthly interest rate of 0.50%
-Let B2B and B2C customers have a 50-50 split of OO and MMs (pg. 11)
-Let CMS and Non-CMS customers have a 50-50 split of OO and MMs

General Question:
Which segment should HubSpot Target? B2B or B2C? Owner Ollies or
Marketer Marys?

Table 2: Estimation of Market Value

Estimate of the size of each potential market by filling in this table.
-State your assumptions based on details from the case
OO

MM

B2B

B2C

Number of
Potential
Customers
Value per
customer
(from Table 1)
Total Potential
Market Value

Table 3: Providing Value to the Customer

What value does each customer group receive from HubSpot? Be descriptive.
Customer Needs
Value Provided
(i.e. what help do they need)

(i.e. how well does HubSpot fill their need)

OO

MM

B2B

B2C

General Question:
Which segment should HubSpot Target? B2B or B2C? Owner Ollies or
Marketer Marys?

Optional: Feel free to include any other figures or tables that might support your
argument.
Some examples:
Sensitivity analysis for the retention rate, margin and acquisition cost.
Pricing considerations Comparison of SaaService, SaaProduct and Freeware/Open Source.
Matching of the product to each group