Cosmo Group IMeagan Carrow Xiaodan Dong

Outline

• Analysis of past performance

• Main strategies pursued

• Main Adjustments

• Key Lessons

• Recommendations for the Future

Analysis of Performance

• Stock price $2,318• Retail sales $1,214,398K• Cumulative ROI 2.92• Four segments in Sonite

• Professional - SIBI• High Earner - SIHO • Others - SIRO/SIRR• Single - SINU

• One segment in Vodite• Innovator/Early Adopter -VINO

Main Strategies Pursued

• Target One Segment per Product

• Focus First on High-Margin Groups…• Professionals/High earners margin $250-$280• Singles/Others margin $90-$120

• Then Address High-Growth Groups• Singles & Others

• Keep introducing new products• Company growth• Stock price

Adjustments in Sonite Market

• Introduced SIHO for “high earners” in period 3• Competitors more interested in “professional”• High R&D investment, high margin, high return

• Introduced SIRR for “others” in period 4• Inappropriate pricing strategy trashed SIRO • Disposed SIRO in period 4 • Used a new name to replace SIRO

Sonite Adjustments Continued• Balanced advertising and sales force in

period 4• Learned from competitors• Sales force was shorthanded

• Modified SIBI for “professionals” in period 8• The oldest product• Still very profitable

• Transferred some resources to Vodite Market in period 8• To have a strong opening

Adjustments in Vodite Market

• Monitored competitors’ R & D expense• Predicted Team A would promote Vodite product in period 7• Bought marketing research studies in Vodite market

• Introduced VINO in period 8• Sonite market growth slowed down• Started PVINO since period 5• Not to be the first mover• Competitive pricing strategy

• Started PVIDO for adopter in period 8• Higher growth

Key Lessons

• Don’t completely neglect anything…

• But don’t overspend either

• Watch your competitors…

• But remember you can never predict exactly what they will do

Key Lessons (cont.)

• Use the marketing studies• Turn the data into information

• Balance your investment into new products and the maintenance of existing (successful) products

Recommendations

• Continue to monitor the industry• Invest in marketing research• Don’t waste the investment by ignoring the

data

• Enter the Vodite market slowly• Let another company make the risky

entrance, then use the data provided from their entrance