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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