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Intuit

Intuit develops financial and tax software for consumers and small businesses. It launched Quicken in 1984 and QuickBooks in 1992, finding success by simplifying finance solutions. Intuit dedicates 20% of revenues to consumer research, conducting studies to improve products and understand emerging needs. Word-of-mouth and customer service are its most effective marketing tools. Intuit earned $3.1 billion in 2008 from Quicken, QuickBooks, and TurboTax, and continues expanding through acquisitions and developing mobile solutions.

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Darleen Joy Udtujan
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127 views3 pages

Intuit

Intuit develops financial and tax software for consumers and small businesses. It launched Quicken in 1984 and QuickBooks in 1992, finding success by simplifying finance solutions. Intuit dedicates 20% of revenues to consumer research, conducting studies to improve products and understand emerging needs. Word-of-mouth and customer service are its most effective marketing tools. Intuit earned $3.1 billion in 2008 from Quicken, QuickBooks, and TurboTax, and continues expanding through acquisitions and developing mobile solutions.

Uploaded by

Darleen Joy Udtujan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Intuit

Intuit develops and sells financial and tax solution software for consumers and small to medium-
sized businesses. The company was founded in 1983 by a former Procter & Gamble employee, Scott
Cook, and a Stanford University programmer, Tom Proulx, after Cook realized there must be a better
way to automate his bill-paying process. For over 25 years, Intuit’s mission has been to “revolutionize
people’s lives by solving their important business and financial management problems.”

Intuit launched its first product, Quicken, in 1984 and struggled to survive during those first
years. After some favorable reviews in the trade journals and an effective print advertising campaign,
the company got its first break. By 1988, Quicken was the best-selling finance product on the market. In
1992, the company launched QuickBooks, a bookkeeping and payroll software product for small
businesses, and went public the following year.

Intuit grew quickly in the early 1990s, thanks to the success of Quicken, QuickBooks, and
TurboTax, a tax preparation software program. Intuit’s products did something for small businesses that
more complicated accounting packages didn’t: they solved finance and tax problems in a simple, easy-
to-use manner. Intuit had recognized correctly that simplicity was the key, not in-depth accounting
analysis. By 1995, the firm held a 70 percent market share, and Microsoft tried to purchase it for $2
billion. However, the Justice Department blocked the deal as anticompetitive and the buyout collapsed.

From 1995 to 1997, Intuit’s stock tumbled 72 percent and forced the company to refocus its
strategic efforts. It turned to the growing power of the Internet, online banking capabilities, and
valuable input from its customers to develop new product versions, which in turn improved the
company’s stock value and market position throughout the 2000s.

Intuit spends a significant amount of time and money—approximately 20 percent of net


revenues—on consumer research each year. It is critical for Intuit to know exactly how customers use
and feel about their products due to the fast-paced nature of technology, shifting consumer needs, and
the competitiveness of its industry. Intuit conducts several levels of research and invites consumers and
businesses to participate in a variety of ways.

During a Site Visit, Intuit researchers visit the individual’s home or office to observe and learn
exactly how its products are used and can be improved in the true work environment. A Lab Study
invites consumers to one of Intuit’s U.S. research labs to test out new products and ideas. During a
Remote Study, consumers are interviewed over the phone and often asked to view new design concepts
over the Internet. The company also conducts an ongoing extensive research study with the Institute for
the Future, to learn more about the future trends affecting small businesses. Intuit uses what it learns
not only to produce improved versions of its products each year, but also to better understand the next
generation of financial and tax software, such as solutions for mobile devices.

Demand for Intuit’s products is seasonal, and its marketing efforts are typically concentrated
around tax preparation time—November through April. During that time, Intuit develops promotions
with original equipment manufacturers (OEMs) and major retailers. It promotes its products through a
number of marketing efforts including direct mail, Web marketing, print, radio, and television ads.

While Intuit’s marketing campaigns have evolved over the years, it was clear early on that
positive word of mouth and exceptional customer service are its most effective marketing tools. Harry
Pforzheimer, chief communications officer and marketing leader, explained, “It’s a little harder to
measure but when you know that roughly eight out of 10 customers bought your product because of
word-of-mouth that’s a pretty powerful tool…So engaging with our customers directly is part of our DNA
and communicating with customers on a timely basis is critical. And that timely basis now is
instantaneous.”

Recently, Intuit has increased its presence on social media Web sites such as Twitter, Facebook,
and LinkedIn. Just 12 weeks after the firm integrated a small-business Web site with these social
networks, sales of QuickBooks increased 57 percent. To measure the viral success of this site, Intuit
identified bloggers who either wrote their own stories or picked up stories originally posted by a few
influential bloggers who were given a special preview. Intuit classified each blog post according to
velocity (whether it took a month or happened in a few days), share of voice (how much talk occurred in
the blogosphere), voice quality (what was said and how positive or negative it was), and sentiment (how
meaningful the comments were).

In 2008, Intuit earned $3.1 billion in revenue, primarily from Quicken, QuickBooks, and TurboTax
sales. The company now employs over 8,000 people, mostly in the United States, and is planning to
expand internationally. It continues to acquire companies, such as personal finance Web site Mint.com
in 2009, that will help it in growth areas such as solutions for mobile devices. Intuit believes that
expanding its mobile solutions will encourage younger consumers to turn to the company for their
finance and tax software. Growth will also come from previous Microsoft Money customers. In 2009,
Microsoft announced it would discontinue its Money product line after an 18-year battle with Quicken.
The victory was a rare win against the software giant and one that should provide great opportunity for
Intuit.

Questions for Discussion:

1. Elaborate on Intuit’s use of customer research. Why did it work so well for the company?
2. Could anything go wrong for Intuit now that it has beaten out Microsoft? Why or why not?
3. How should Intuit gauge the results of its research among younger consumers with mobile
devices?

Format
Font: Arial
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Intuit
(A Case Study)
Cover Page:
Note: Surnames first and in alphabetical order

I. Introduction Include an introduction/ background/ profile about the company.


Your discussion will be based on the questions provided in the
II. Discussion
case.
III. Conclusion Your conclusion should be based on your analysis of the case.
Note:
 Please work with your group to be able to comply with this requirement. If a member
did not help, please do not include his or her name(s).

 If you wish to work solo on this, you may do so.

 WORK ON THIS REQUIREMENT. DO NOT JUST “COPY-PASTE” FROM THE INTERNET. You
may get a good grade but you have not earned the knowledge and skills when you just
download and use the work of others.

 Send your papers via email: [email protected]

 SUBJECT: Intuit _Group #

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