Markstrat Firm O

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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




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



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

Documents

Markstrat Firm O