Exilesteam

Markstrat Presentation

What youve and how did yourstrategieschange over time

Team E Notes Our main objective is to increase the stock price! Analyzing the available data and graphs our first decision was to eliminate the production of the SELF product. It appears that under the BCG Analysis the SELF Product was a Dog. It had low market share and sales volume. It was actually hurting the companys overall balance sheet and profits. The target market we decided to focus on was . The advertising budget stayed the same and price of the SELF went down to $440 to increase demand for those target market and their price sensitivity. Some information that came from the scorecard was that Team E has 34.9% in the Sonite Market. The Stock price Index was 1000 base. The ROI is 2.87. Looking at both products the SEMI will stay the same with advertising, price, sales force distribution. The sales force for both products stayed the same. The Vodite potential market is the Buffs. Our Decision 1: Some of our goals were to adopt an optimal segmentation and positioning strategies, 1)Get rid of SELF (due to excess inventory) Target: Singles, Others, and Buffs Decrease Price, Advertising stays the same, Distribution Channels for sales force changed to Specialty 20, Dept. Store 30 (move more into the department store), Next plan of action: Increase R&D product Vodite. (View page 67) Advertising in MarkStrat Online is mainly used to build brand awareness and to inform customers about its physical characteristics. Advertising can also be used to reposition a brand. Our Decision 2: Some of the results from our Decision 1 consisted of: 1)We were the only team that invested in R&D. 2)We are going to Shelve the PVERY Research and Development for PVEIN From the Semantic Scale: Project specification for the Innovators Autonomy: 67, Max. Frequency: 16, Diameter: 75, Design: 6, Weight: 75. Requested base cost: 325, and allocated budget (K$) = 100 with the inclusion of the feasibility study. Adjusting the SEMI, PROs and HE PSEXY New Product Next Period is to hire more sales force for the new productnot innovator segment but eventually to the followers. Development and Branding Customers make purchases depending on their perception on your brand. The perceptual map is a valuable tool for visualizing brand positioning. Two ways to reposition a product. 1) R&D 2) Increase advertising to change their perception R&D success demands long-term opportunities. Sale obsolete products in the retail stores before the discount stores at the transaction cost. Decision 2 Results: Increase 37.7% for Sonite.

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Exilesteam
Markstrat Presentation

Ended with zero inventory on both SELF and SEMI. We targeted the buffs for decision 2 and sold out. SEMI went up about 5% in market share. SELF went down. Stock price index is 1430. Look at brand perception in Period 2 to Period 1 for change. Decision 3: We will position the SEMI to take some of the market share of SOLD. Produce enough SELF and SEMI to meet market demand. SOLD has more High Earners market share. SEMi How many units did we sell? 280,000 units is a 31.5 percent change. SELF VEIN Target market is the innovators. Decision 4: PVEIN- Target Innovators. Not ready for launch. PVEE2 Target Followers. Not ready for launch. Retire the SELF and release the SEXY. The SEXY will target singles. This market is increasing for next period. Target Pros and HE for the SEMI. Target SEXY with singles. Brand production level (KU) will be 74. Will be priced at $309 Decision 4 Results: We are currently number one in the market. The release of the SEXY has captured 26% of the market share for the Sonite market. Team A and I has released a new Vodite product into the market. Things to consider is that the slope of the line for Team As increased more than our Team E. Vodite target the segment. Find out why their buying and then target them. Decision 5: SEXY. Production 265,000 units. Continue to Target the Singles. Their segment continues to grow in the Sonite market. Projected 189 units We Will Decrease Advertising for the SEXY and increase production to capture the growing singles market. SEMI. Projected Sales 324 units and production. Target: Pros Sonite Market is still growing for Singles and Others. To capture the Others projected market. We will R&D the SEAS product. The Semantics is exactly what the Others market wants. The R&D cost is $1910 VEIN. Target Innovators. VEE2 Target Adopters. VENM is currently in R&D. VEER. Targeting Innovators Decision 6 Products we are looking at today. 1)SEMI -Professionals & High Earners 2)SEXY -Singles 3)VENM Early Adopters 4)VEGA

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Exilesteam
Markstrat Presentation

-Followers In the Sonite Market there is an opportunity to meet the needs of for the Buffs. 5)VEE2 & VEIN -Innovators Some competitive advantage that we realize is that the VISA is currently capturing the Adopters market. There is currently no one targeting the followers. It will be likely the followers will purchase what the adopters buy. Produce the SEAS 231,000 units created. Priced $197 Competitive Information

Team I has gained the Vodite market with its VISA market.

Slight decline in the Sonite Market, a decrease of 2.5% Current ROI in down by 33.4% from the last period Do we really need to purchase all the reports? It may be costing us alittle amount but again there is still cost being incurred that is unneccesary

PROS, HE, Buffs for the SEMI Singles and others with the SEXY Others and Singles for SEAS

PROS

65%

SINGL ES OTHE RS

56%

Still more opportunity to capture the other segment, we only have 14% Increase awareness for the others segment!

Buffs Market is 84 where as Inn and Adopters are 34 and 53 Increase production of sexy, to capture Get rid of VEER and

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Exilesteam
Markstrat Presentation

VEE2

VISA has the highest for Followers purchase intenstions and adopters. Increase awareness with our products with Followers. This will lead to product awareness and then purchase intentions

What youve and how did your startegies change over time.

PRESENTATION OUTLINE: 1. Product Slide 1.a SEGMENTS

We started out with products that targeted Pros and Buff We decided to target segments that were going to grow in the long run Sonite: Singles and Others. Vodites: Followers We gave priority to targeting the Singles because they were not served well Product's distance from the center of targeted segment Deviation for Others Weight SEXY SAMA SIRO SIBI SEAS 1.2 0.7 1.3 1.0 0.6 Design 6.5 6.7 10.1 2.7 1.4 Volume 1.5 1.8 2.5 4.0 0.1 Max Freq 3.2 3.9 5.6 3.7 1.2 Power 10.5 6.5 6.4 1.3 1.0 Price 3.7 2.2 1.9 0.7 2.0 Distance 13.5 10.5 13.6 6.4 2.9

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Exilesteam
Markstrat Presentation

Slide 1.b R&D

Initially, we developed products to the ideal values (on the semantic scales) Later, we developed product based on the regression analysis What will customers want two periods from now. The design tools in Markstrat were utilized Slide 2.a SALES ALLOCATION

Originally, we tried to guess the best allocation Larger number of products - More Complexity Designed a tool to allocate sales effort based on: Forecasted segment size next period Shopping habits From 60 sales people in Period 0 to 278 in period 10

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