In most cases we cannot build a system from scratch but need to take into account the technologies already in place, and those need not necessarily be Oracle ' s.”
The ideal structure is such that Oracle sells its licenses directly to the client and Capgemini separately bills its implementation effort. Oracle has a system with a referral fee for the first system integrator that registers a sales opportunity in its system, but Capgemini is reluctant to use that to protect its own independence. In the public sector such a reward system is prohibited, and Capgemini has shaped its bonus system for the sales organisation in such a way that a referral has a negative effect.
What would stimulate Capgemini to sell more Oracle solutions? Changing the reward system would certainly not work with our biggest customers, thinks Balt Leenman.“ This would only work in the market for small and medium enterprises, where we have more of a reseller role. It is better to invest more in training and certification and in making joint account plans and discussing opportunities. IBM for example „ sponsors ‟ an alliance manager within Capgemini, and that works as a catalyst. So communication and joint effort is key, not the reward system.”
Co-branding
Co-branding is an effective method of using two different brands to sell a product or service. This will often concern one main brand, which is most associated with the product, and a second brand that adds a certain quality or emphasis to a particular aspect of the product or service.
Arranging a satisfactory financial settlement here requires determining the value of the added brand. Does the added brand justify a higher sales price, or does it mainly promote the distribution of the product, yielding benefits on the production side? Benefits can also be obtained by jointly conducting marketing campaigns. These considerations create the following settlement mechanism options:
First, the parties can arrange compensation per sold item. This seems particularly appropriate if the added brand is stronger than the product brand, thus acting as an ' endorser '. The brand value of the stronger brand translates into a higher sales price or greater sales volume, which is accurately reflected in a certain compensation per sold item. This compensation will then be part of the expected price premium.
Possible variations are:
� If there is any doubt about the combination, the compensation may only become effective once a certain volume is reached, in other words after the introduction proves successful; this reduces the risk of the product launch for the producing brand.
� The compensation may gradually decrease or end once a certain volume is reached, on the assumption that if the product proves a hit, the value of the added brand becomes unnecessary.
Second, the parties can arrange a fixed sum as compensation. This is more appropriate if the aim is to strengthen the producing brand, rather than to boost sales figures. The collaboration between Philips and Swarovski to produce ornament-like memory sticks is a case in point: the goal for Philips was not to sell large numbers, but to add some glamour to its
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