PowerPoint Presentation
Team Gameplan Strategy Paper 1By Germany L (LEGOLAS)Current
Status & Market POSITIONSPI $1,000 Revenue $45 Million Volume
Value Total Market Share 20%22%Market
SharesLOCKLOOPSonitesSonitesVolume Market Share6.80%13.50%Value
Market Share3.90%18.20%For period 0 company has 2 brand Lock and
Loop
LOCKLOOPSonitesSonitesRecommended Retail Price$225 $520 Average
Retail Price$213 $505 Average Selling Price$140 $322 LockIt
positioned itself on low performance product and economy which is
ideal to shoppers and saversLoopIt positioned on high price product
with high quality and features which attracts professionals and
high earners
Current Positioning of Brand SWOT Analysis for Loop SWOT
Analysis for Lock Marketing ObjectiveShort TermIncreasing sales and
brand awareness of LockIncreasing sales of LoopMeeting the demand
with least deviation(Reduce inventory cost)Long TermInvesting in
Online distributionBecome leader in Loop brand for high earning and
professional segmentBecome leader in Lock brand for shoppers and
savers segmentInvesting in Research for Loop as well as Lock and
improving product characteristics
FINANCIAL ObjectiveShort TermTo increase SPI value by 20% by
period 1 To increase EBIT by 15% Long TermTo make LOOP as leading
brand in market by optimizing investment in feature advancement and
research advertisement and increase Retail sales revenue for
product loop up to $70 Million To make LOCK among the top leading
brand in market by increasing the sales volume to its target
customer and increase retail sale revenue up to $25 Million
Period 1 Game plan and Intended StrategyInitially from the data
available we found out the percentage breakup of our customer
segment.
Then from market forecast data we calculated the forecasted
growth for each segment for next period.
Period 1 Game plan and Intended StrategyThen we calculated the
forecasted production based on growth percentage.
Therefore based on forecasted production plan we keep the LOOP
production at 137000 (as there is no inventory) and LOCK production
at 50000 (as we currently have 23000 inventory) to optimize our
inventory holding cost.We did not change any pricing policy for
both of the products as currently the products are priced
competitively in the market and depending on results of Period 1 we
will take decision on product pricing in the next round.
Marketing spending in various customer segmentsDepending on the
market share(unit-wise) of lock and loop sales in different
customer segments we assigned the marketing spending to invest only
for target audience
Commercial team allocation for different channelsWe analyzed
from reports about share of different channels for different
customer segments and in accordance to that we allocated members to
different channels in the commercial teamFor Loop we decreased
online staff to 8 as currently we are not generating sales from
there, we invested 12 staff members in mass merchandising as it
presents huge potentialFor Lock we decreased online staff and
increased specialty stores and mass merchandising staff
members.Contingency plan Launch a new product with similar features
of existing leading product in other categoryAdopt Value based
pricing strategy
Thank you Period_1FirmLegolasBrandLOCKLOOPTotal UnitsLock
UnitsLoop UnitsLock percentageLoop
percentageExplorers3.20%14.00%1875.98426.1810.50%23.13%Shoppers7.90%7.50%14611.53410.9520.23%9.67%Professionals0.70%26.00%1571.09940.821.93%36.06%High
Earners0.10%32.30%1030.10333.2690.18%29.39%Savers15.50%0.80%24738.2851.97667.16%1.75%57.005113.195
Lock percentageLoop percentageGrowthForcasted percent
LOCKForcasted percent LOOPLock forecastLoop
forecastExplorers10%23%-2.10%10.28%22.64%66.940081136.504715Shoppers20%10%23.60%25.01%11.96%Professionals2%36%23.60%2.38%44.57%High
Earners0%29%33.90%0.24%39.35%Savers67%2%18.40%79.52%2.07%Overall
Growth117.43%120.59%
Period_1_Decision
Period_1FirmLegolasBrandLOCKLOOPTotal UnitsLock UnitsLoop
UnitsLock percentageLoop
percentageExplorers3.20%14.00%1875.98426.1810.50%23.13%Shoppers7.90%7.50%14611.53410.9520.23%9.67%Professionals0.70%26.00%1571.09940.821.93%36.06%High
Earners0.10%32.30%1030.10333.2690.18%29.39%Savers15.50%0.80%24738.2851.97667.16%1.75%57.005113.195
Lock percentageLoop percentageGrowthForcasted percent
LOCKForcasted percent LOOPLock forecastLoop
forecastExplorers10%23%-2.10%10.28%22.64%66.940081136.504715Shoppers20%10%23.60%25.01%11.96%Professionals2%36%23.60%2.38%44.57%High
Earners0%29%33.90%0.24%39.35%Savers67%2%18.40%79.52%2.07%Overall
Growth117.43%120.59%
Period_1_Decision
Period_1FirmLegolasBrandLOCKLOOPTotal UnitsLock UnitsLoop
UnitsLock percentageLoop
percentageExplorers3.20%14.00%1875.98426.1810.50%23.13%Shoppers7.90%7.50%14611.53410.9520.23%9.67%Professionals0.70%26.00%1571.09940.821.93%36.06%High
Earners0.10%32.30%1030.10333.2690.18%29.39%Savers15.50%0.80%24738.2851.97667.16%1.75%57.005113.195
Lock percentageLoop percentageGrowthForcasted percent
LOCKForcasted percent LOOPProductionLock ProductionLoop
ProductionExplorers10%23%-2.10%10.28%22.64%Current57.005113.195Shoppers20%10%23.60%25.01%11.96%Growth117.43%120.59%Professionals2%36%23.60%2.38%44.57%Forecasted66.940081136.504715High
Earners0%29%33.90%0.24%39.35%Savers67%2%18.40%79.52%2.07%Overall
Growth117.43%120.59%
Period_1_Decision
Period_1FirmLegolasBrandLOCKLOOPTotal UnitsLock UnitsLoop
UnitsLock percentageLoop
percentageExplorers3.20%14.00%1875.98426.1810.50%23.13%Shoppers7.90%7.50%14611.53410.9520.23%9.67%Professionals0.70%26.00%1571.09940.821.93%36.06%High
Earners0.10%32.30%1030.10333.2690.18%29.39%Savers15.50%0.80%24738.2851.97667.16%1.75%57.005113.195
Lock percentageLoop percentageGrowthForcasted percent
LOCKForcasted percent LOOPLock forecastLoop
forecastExplorers10%23%-2.10%10.28%22.64%66.940081136.504715Shoppers20%10%23.60%25.01%11.96%Professionals2%36%23.60%2.38%44.57%High
Earners0%29%33.90%0.24%39.35%Savers67%2%18.40%79.52%2.07%Overall
Growth117.43%120.59%
Period_1_Decision
