markstrat firm o
Post on 26-Oct-2014
143 Views
Preview:
TRANSCRIPT
{
Markstrat
World Sec A ; Firm O
Anubhav Rawat Dr. Rohit Goswami Mudit Vyas Ranajay Sengupta Saikat Bagchi Shrey Chakravarty
Strategy – Period 1
• Target one product to only one segment of the market
• Products targeted to their respective markets:
SOLD – High Earners ; SONO – Buffs• Initiate R & D using different decision
making tools to custom – build any new projects to their market.
10%19%
11%23%16%
21%
Market share
A E I O U Y
A E I O U Y
9091063 994
1225 11301355
Stock Price Index
Stock Price Index
FLOW OF PRESENTATION
Introduction
Getting to Know the
Basics
Climbing Up
Going Down
Stabilizing
Looking Forward
Learning
Know the Market
Segmentation and
Targeting
R&D andProduction
Proper pricing and
setting motives
Advertising and
Distribution
Introduction
SONITE
SOLD
SONO
SOMV
SORG
VODITE
VORG
VOAR
VORS
VOMV
VOSB
PRODUCT PORTFOLIO
HOW TO GO ABOUT MAKING DECISIONS
YoY SPI (Secondary Axis) ; Net Contribution (Primary Axis)
1 2 3 4 5 6 7 8
Net contribution
22195
31005
30148
25990
31747
11934
26214
37192
SPI
1225 1802 1455 1516 1581 1223 1382 1515
2500
12500
22500
32500
SPI V/s Net Contribution
Axis Title
Getting To Know The BasicsStock Price Index : 1225
Stock Price Index : 1802
Period 1 Period 2
• Identifying products and their corresponding target segmentsSOLD Hi- EarnersSONO Buffs
• Check forecasted growth of the target segments• Learnt to focus on one segment per product
• Optimal Sales force?• Right Distribution Channel ?• Started using the various
Newsletters & Market Research surveys
Too Many
Numbers !!
Going Down
Stock Price Index : 1455
Stock Price Index : 1581
Stock Price Index : 1223
Period 3 Period 4 Period 5
Introduced SORG for professionals Reason: Wanted to Tap the unexplored market Implication: SORG gained market share marginallyLearning: The MDS dimensions need to be accurately matched
Manufactured huge volume of new product SONO targetting Buffs in spite of knowing that it was not in sync with their needsReason: We did not have R & D budget to improve product as focus shifted to the Vodite R & D. Implication: Huge inventory for SONOLearning: Better know your customers well.
Strategy: Push the existing products in the targeted segments. Diversify as income rises.
DECISIONS REASONS
Delay in modification of SONO Gap between Consumer needs and product characteristics
Heavy investment in Vodite R&D Competition was getting a stronger foothold
SONO was allowed a natural death Negative contribution margin
The Comeback!Stock Price Index : 1223
Stock Price Index : 1515
Stock Price Index : 1382
Period 6 Period 7 Period 8
• Lost focus in Distribution channel• Improper allotment/reduction of Sales
force• Catch 22 situation: Lose market share
or Negative contribution margin• Prediction of Customer perception went wrong
Why did it Happen ???
Stabilizing
• Learning– Shed away the products which are not performing– If you can’t go up bring your competitors down– If you expect your market share to shrink, plan out
corresponding decrease in your expenditures– Watch out the distributor margin and price your product
accordingly– Allocation of resources must match purchase intentions.
Learning• Real time use of analysis tools and market research :
Semantic scales, Multidimensional Scaling, Conjoint Analysis, Perceptual Map, Competitors' Details
• Gave us chance to practice on the entire marketing process: 4P
• Take Informed, Wise Decisions, Choose precise target, Know the needs of customers
• If Company is doing good enough its not a good news : Competitor is building on some strategy Example: Nokia vs. Samsung
Q1 2007 Q2 20110
10203040506070
NOKIASAMSUNG
Learning (contd…)• Markets do evolve faster than we perceive:
Segmentation, Positioning, and Targeting cannot be static
• Short term goals does not help build a concrete long term goal
• If you are a market leader you are not safe to threats: Example: Research in Motion
• Proper Distribution and Advertising leads the game when products cannot be differentiated much
top related