Caesar IT Services. Marketing Multiple Value Propositions in One Firm

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 commoditization 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 organizational 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 organizational procedures fostered conflict, frustration and lack of collaboration among employees.