Business Internal Assessment SL

Theme: Implementation of digital marketing strategies on

companies that sell services

¿To what extent will the implementation of a website help

CONCLALEX maintain the level of profitability obtained
after the pandemic?

May 2022

Student Code: jzt100

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 Index

Introduction ...................................................................................................................... 3

Benefits of Social marketing ............................................................................................ 4

BCG Matrix Analysis ....................................................................................................... 5

SWOT Analysis ................................................................................................................. 6

Competitor’s strategies ..................................................................................................... 7

Profit analysis and projection .......................................................................................... 7

Conclusion ...................................................................................................................... 10

Bibliography ................................................................................................................... 11

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Introduction

Conclalex is Ecuadorian entrepreneurship created on June 6th, 2014, in Quito-

Ecuador, by Pablo Espinosa the CEO, and the co-founders Marcela Miño and Elsa

Falconí. According to the CEO Pablo Espinosa “In the time in which I was studying to

be a lawyer when I graduated there were only two options works in the public sector or a

law firm, but I never liked that idea of working for someone else” that’s why Conclalex

was created because they wanted to be different from their competition by doing what

they like in a flexible schedule and be recognized nationally for training excellent

professionals in these areas. The first service they had was legal advice in the commercial

field, such as procedures for creating companies, holding companies, capital increase,

creation of employment and rental contracts, termination of contracts, etc. But then

Conclalex noticed that several of his clients also needed help in the accounting part and

this is how they implement also the accounting advice. Later, to earn higher profits and

compete in a new kind of market, they agree with another lawyer in criminal matters.

“As everybody knows, the COVID-19 crisis negatively affects most companies in

Ecuador’s economic areas, such as restaurants, hotels, malls, etc. Pushing them to close,

sell their companies, causing them to go into debt, bankrupt, or fire most of their

workers.” (Alexander W. Bartik, 2020). Nevertheless, that was not the situation for

Conclalex, it was returning to its golden age like in 2014-2015 in which the company

incomes were superior to 100000 dollars because all companies and people get into legal

problems such as the rent, the virtual work or simply to adapt to the new laws that were

being created throughout the pandemic time, thus Conclalex was having more customers

than ever. This investigation tries to answer the next question: “¿To what extent will the

implementation of a website help CONCLALEX maintain the level of profitability

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obtained after the pandemic?” The methodology proposed to carry out this work is to use

financial reports of profits from 2019-2021 and 2018 as a reference of incomes before the

pandemic to contrast them with the profit of 2020-2021, SWOT analysis to see the strong

points of the company to promote them in the website, marketing mix analysis, BCG

matrix analysis to know what product is the most sold, to give it a priority in the site and

an analysis of the competitors’ digital marketing strategies to learn how they manage their

webpage and to differentiate from them.

Benefits of Social marketing

According to Thompson (2018), Digital Marketing is the use of digital technology

and devices to achieve marketing goals. It can be used to further augment the brand

experience online and can also be used to provide a low-cost delivery network for your

marketing content. So digital marketing involves all things related to technology such as

Social Media Profiles, Websites, Images or Video Content, Blog Posts, eBooks, Reviews,

and Customer Testimonials.

In this case, the study will implement a website for Conclalex, since they do not

have one and according to studies, “There are now 4.2 billion active social media users—

almost twice as many as there were just five years ago. Those users spend an average of

2 hours and 25 minutes on social channels every single day” (Newberry, 2021). There is

an important market that they are missing out on because these people may need a solution

for their legal and accounting problems, even if only 10% of all the users see it, they

would increase their incomes by increasing their customers. But the problem is that we

cannot promote a legal services company as if it were a food or clothing company,

because they sell something that the customer can see or use.

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 Service companies are in direct and constant interaction with their customers,

not only because they sell the service, but also because the execution of the service is

what customers expect. So, we must follow other types of guidelines to promote

Conclalex through a web page. For example, creating a good and friendly home page

that invites the client to get the service, and having a space to solve all the questions and

problems that the customer could have during the service. This would make the user

wants to buy the service again. Also, we need to make a Boston Consulting Group

analysis to see what services are the most sold so we can give a priority to that service

without putting away the others, and see how the competitors promote their services so

we can know where to start.

BCG Matrix Analysis

Image 1.- Boston Consulting Group Matrix Analysis of Conclalex

Image 1: Boston Consulting Group Matrix Analysis of Conclalex 2022.

Source: (Espinosa, 2022). Own authorship

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 A BCG Matrix Analysis “helps with long-term strategic planning, to help a

business consider growth opportunities by reviewing its portfolio of products to decide

where to invest, to discontinue, or develop products.” (Hanlon, 2022). The study noticed

that the best-selling product is legal services. So, the web page of Conclalex is going to

promote or give facilities for the client to get this service type of service as well as a

section for customers' questions. On the other hand, the accounting services have a high

market share and a low market growth that could change soon with a good advertising

strategy through the website becoming another star for the company. The accounting

audit is a service that doesn’t give too much profit to Conclalex. In the future, the

company might analyze to see if this service has an opportunity to grow in the actual

market. So Conclalex can give it a chance or remove the service.

SWOT Analysis

Image 2.- SWOT Analysis of Conclalex

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 Image 2: SWOT Analysis of Conclalex 2022. Source: (Espinosa, 2022). Own
authorship

SWOT analysis “helps you identify areas of your business that are performing

well. These areas are your critical success factors and they give your business its

competitive advantage” (Queensland Government, 2021). The findings of the analysis are

that the company doesn’t have a website yet and its most important strengths are

availability, effectiveness, the short time that they take to do the work and the lower prices

compared to the competitors. All these things would the useful for the webpage

information, letting the customer see what differentiates Conclalex from other companies

in the national market.

Competitor’s strategies

In Ecuador, the strongest competitors have good web pages that promote all

types of legal services since penal to labor, unlike Conclalex that only promotes labor

legal services, but they are not complete. That’s why for this analysis we are going to

suppose that Conclalex is going to compete in the international market against the big

law firms of New York, making that the company complies with high-quality indices as

well as is characterized by its excellent customer service. In the accounting market,

there aren’t too many competitors in the national market that use web pages to promote

their services, so in that way, Conclalex could have a big opportunity and become the

first to domain the market.

Profit analysis and projection

Graph 1: Graph of Conclalex incomes 2018-2021

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 Incomes
90000
84275,17
80000
70000
63462,78
60000
50000 52948,63
48727,85
40000
30000
20000
10000
0
2018 2019 2020 2021

Graph 1: Graph of Conclalex incomes 2018-2021. Source: Conclalex

Finantial Reports 2018-2021 Own authorship

Graph 2: Graph of Conclalex profits 2018-2021

Profits
10000
9000 8985,59
8000
7000
6000
5000 4954,63
4000
3000
2000
1000 1133,64
0 76,16
2018 2019 2020 2021

Graph 2: Graph of Conclalex profits 2018-2021. Source: Conclalex Finantial

Reports 2018-2021 Own authorship

The graphs show that since the pandemic starts Conclalex’s incomes have

increased and the profit numbers have doubled without any digital marketing strategy,

only with traditional marketing. Becoming a great opportunity for Conclalex to lead the

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national market in Ecuador. Also, the analysis made to predict the incomes and profit

for the next year shows that both will increase. As we can see in Graphs 3 and 4 below.

Graph 3: Graph of Conclalex estimated profits based on 2018-2021

Profits
10000
8985,59
8000

6000
4954,63
4000

2000
1133,64
0 76,16
2017,5 2018 2018,5 2019 2019,5 2020 2020,5 2021 2021,5
-2000

Graph 3: Graph of Conclalex estimated profits based on 2018-2021.

Source: Conclalex Finantial Reports 2018-2021 Own authorship

At the end of 2021, the trend line seems to go upwards in a small average, but in the

incomes graph, the trend line seems to go up with a high gradient.

Graph 4: Graph of Conclalex estimated incomes based on 2018-2021

Incomes
90000
84275,17
80000
70000
63462,78
60000
50000 52948,63
48727,85
40000
30000
20000
10000
0
2017,5 2018 2018,5 2019 2019,5 2020 2020,5 2021 2021,5

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 Graph 4: Graph of Conclalex estimated incomes based on 2018-2021.
Source: Conclalex Finantial Reports 2018-2021 Own authorship

Conclusion
As the previous study has shown having a web page is not only one step more

toward brand recognition but also a good opportunity for the company. We conclude that

this proposal is an effective way to start implementing digital marketing strategies, which

also leads me to answer my research question ¿To what extent will the implementation

of a website help CONCLALEX maintain the level of profitability obtained after the

pandemic? In a big way, the implementation of a web page will help Conclalex to

maintain its numbers, been this is supported by all with the evidence that has been

previously presented in the study. The results of the graphs make me think that doesn’t

import too much the marketing at the beginning of the product, in this case, the service is

very good making the company survive through bad times. In addition, it's important to

mention that making all the analyses other problems were now able to see and start

changing things to avoid them or improve existing services like the one with the auditory

account.

(a cuantas personas se harán conocer, proyeccion de ventas para el siguiente semestre)

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Bibliography

Newberry, C. (2 de March de 2021). Hootsuite. Obtenido de Hootsuite:

https://blog.hootsuite.com/social-media-tips-for-small-business-owners/

Alexander W. Bartik, M. B. (10 de July de 2020). PNAS. Recuperado el March de 2022,

de https://www.pnas.org/doi/10.1073/pnas.2006991117

Espinosa, P. (27 de 01 de 2022). Boston Consulting Group Matrix Analysis of

Conclalex . (P. E. Miño, Entrevistador)

Hanlon, A. (07 de January de 2022). Smart Insights. Obtenido de

https://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-
matrix/

Queensland Government. (20 de December de 2021). Business Queensland. Obtenido

de Queensland Government: https://www.business.qld.gov.au/starting-
business/planning/market-customer-research/swot-analysis/uses

Siqueira, A. (5 de October de 2021). Obtenido de

https://www.rdstation.com/es/blog/estrategias-marketing-digital/

Romano Law. (sf de sf de 2022). Romano Law. Obtenido de Romano Law:

https://www.romanolaw.com/careers/

Maythaler & Zambrano. (sf de sf de 2020). Maythaler & Zambrano abogados.

Obtenido de https://www.meythalerzambranoabogados.com

Morales y asosiados . (sf de sf de sf). Morales y asosiados auditoria contable. Obtenido

de https://www.moralesyasociados.com.ec/copia-de-inicio

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