MarketDial and Applied Predictive Technologies (APT) Comparison

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Part
01

MarketDial and Applied Predictive Technologies (APT) Comparison

MarketDial was founded in 2016 and Applied Predictive Technologies (APT) was founded in 1999. One data point for which information was not publicly available is MarketDial's pricing options. Below is an explanation of our research methodology and our research findings, which are included in the attached spreadsheet.

METHODOLOGY

As stated above, there was no information about MarketDial's pricing options. Additionally, information about APT's pricing options was very limited, though we were able to find some information about that. In looking for information about both companies' pricing options, we implemented three, distinct strategies. First, we went directly to both companies' websites and reviewed each web page therein. There was no information whatsoever about pricing or subscriptions anywhere on either website. Rather, the only information was about the software, the teams, additional resources, and similar information. For our second research strategy, we looked for articles about the companies in sources such as PR Newswire, CNBC, and MarketWatch. For MarketDial, there were articles that discussed the company and its mission, but there was no mention whatsoever of any pricing information pertaining to the company's software product in any of the articles that we reviewed. For APT, we were able to find some pricing information in a 2017 CNBC article, which we included in our research findings. As a third research strategy, we utilized company database sources, including Craft, Crunchbase, Angel, Bloomberg, and PitchBook. For MarketDial, Craft had the most information about the company among those sources, but none pertained to pricing. However, there was a significant amount of valuable information and insights about MarketDial in Craft included data about employee growth, the company's financials, market position, worldwide interest assessment, website traffic monitor, social media metrics, and more. For APT, the only types of information we found in those sources was founding data, company overviews, financials, leadership, and the like, as there was no information about pricing whatsoever.

MARKETDIAL

MarketDial is a software service provider specifically for "brick-and-mortar retailers" in need of "online-quality testing tools to evaluate what is and is not working in stores." MarketDial has been in business since 2016. MarketDial's headquarters are in Salt Lake City, Utah. The company's latest funding round (Series A) was transacted on September 6, 2018, in the amount of $7.5 million. The lead investor in that funding was Crosslink Capital.
As a software-as-a-service company, MarketDial has one product/service, which is "a cloud-based A/B testing software." That testing software enables "retailers to test and analyze their hypotheses" about aspects of their business operations. The testing software applies to five aspects of retail business: (1) Marketing; (2) Pricing; (3) Operations; (4) Products; and (5) Employee training. Specifically, some examples of testing topics include optimal levels of staffing, the effects of price changes, and the impact of remodeling a store. The software allows retailers to upload their business data without needing transformations and the software is able to conduct "trade-area analysis to enrich . . . [retailers'] data with consumer demographic and competitive location data." The software was designed to enable those who don't know anything about A/B testing to be able to use the software, as it walks people through the test-building process.
The industry that MarketDial services is the retail industry and primarily "brick-and-mortar retail[]."
MarketDial's unique selling proposition is two-fold. First, the software that the company has built enables users to build A/B tests in just a matter of minutes. As such, the company's first unique selling proposition is the rapid rate in which tests can be constructed. Second, the software provides tremendous ease-of-use to customers, as the A/B test-building process involves just six total steps while "requir[ing] minimal inputs from the user." Those ease-of-use features are reflected in the company's statement that "[a]lmost no training is required for analysts in any department to become A/B testing experts."

APT

APT is a "software company that enables organizations to rapidly and precisely measure cause-and-effect relationships between business initiatives and outcomes to generate economic value." APT has been in business since 1999. APT's headquarters are located in Arlington, Virginia. APT's estimated revenue is $54,380,000.

APT has nine products. The first product, "Test & Learn for Customers," is a tool for assessing the impact of promotions that also "recommends the most profitable action to take with every customer going forward." The second product, "Test & Learn for Employees," is a tool that helps companies make data-based decisions regarding their employees, such as measuring the effects of training programs and the potential impacts of incentives. The third product, "Test & Learn for Sites," is a tool that analyzes the impacts of programs, such as strategies for promotions or store remodeling, and then provides recommendations for how to maximize the profitability for each site location. The fourth product, APT AIM, is analytics software for credit card providers that "builds forecasts at scale for all campaigns and automatically updates each model as new data becomes available." The fifth product, APT Illuminate, is optimization software for trade promotions that makes recommendations such as what to promote and the amount of discount that should be provided, among others.
The sixth product, APT Index, is a tool that allows companies to assess their stores' operations throughout a geographical area and is able to analyze approximately 60,000 locations. The seventh product, "Market Basket Analyzer," is a tool for measuring and analyzing transaction data, so that companies make data-driven decisions about strategies for marketing, promotions, pricing, and more. The eighth product, "Network Planner with Mastercard Insights," is an analytics tool that shows companies how retail has fared in particular geographic locations. The ninth product, "Space Planning Optimizer," is a tool that analyzes optimal shelving space within stores by making recommendations such as the profitability impacts that certain product-shelving arrangements can have.
While information about pricing options was extremely limited, we were able to find an article about such from CNBC. That article stated that APT offers a yearly-licensing option. The cost for that licensing for a period of three years is $1 million. APT serves the following 11 industries: Airline, Automotive, Consumer Packaged Goods, Financial Services, Hotel, Insurance, Healthcare/Life Sciences, Restaurant, Retail, Services/Technology, and Media/Telecom. One main aspect of APT's unique selling proposition is that the company is partners with Mastercard, as Mastercard acquired APT in 2015. As a result of that acquisition, APT gained brand-name credibility as part of its unique selling proposition. Additionally, APT uses several phrases to describe itself, which thus demonstrate how the company perceives its unique selling proposition. Those phrases are as follows: (1) "Analytical Excellence;" "Client Focus;" "Innovation;" "A Mastercard Company;" "World-Class People;" "Collaborative Culture;" "Diversity;" and "Make It Happen Mentality."
To recap, the information about APT and MarketDial is included in the attached spreadsheet.
Part
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Part
02

MarketDial and Applied Predictive Technologies (APT) Market Share

We have appropriately filled row 9, columns C and D of the attached spreadsheet with information on the market share held by MarketDial and Aplied Predictive Technology (APT).

Methodology

To determine the market share of MarketDial and APT, we first determined the market in which they operate by looking at each company's products and services. During our search, we noted that MarketDial provides a cloud-based A/B testing software to clients in need of online-quality testing tools to evaluate what is and is not working in stores. APT offers business analytic software that is meant to measure cause-and-effect relationships between business initiatives and outcomes to generate economic value. From the companies’ description, we concluded that they operate in the Software-as-a-service market since this is where subscribers access the features of software hosted by a third party over the internet.

After that, we searched for the current market size for Software-as-a-service in the united states. We leveraged sources like Markets and Markets, Statista, Markets Research, PR Newswire, among others. But, we could not locate the SaaS market size for the United States. We then expanded our search to include the global market size for SaaS. Fortunately, we found several sources like the Software Report and Market Watch. However, we were unable to locate any updated information with the current market size. Fortunately, we found a forecast of 2018 market size by The Software Report. We then used the data as the current market size for the industry to calculate each company’s market share in the industry.

APPLIED PREDICTIVE TECHNOLOGIES MARKET SHARE

According to The Software Report, the SaaS projected revenue for 2018 was at $55.143 billion. Therefore, to determine APT market share, we made the following calculations;
According to Hoovers, APT estimated revenue =$54.38 million
Total market share = ($54.38 million/55.143 billion)x100= 0.10%

MARKETDIAL MARKET SHARE

According to CrunchBase, MarketDial has an estimated annual revenue of $1million.
Therefore, to establish the market share for MarketDial, we made the following calculations;
MarketDial estimated revenue =$1 million
Market share=($1million /$55.143 billion)x100= 0.002%
Sources
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