MARKSTRAT MBAe2010MARKSTRAT MBAe2010Industry 2 - Team AIndustry 2 - Team A

Christina Caamano, Dr. Rob Harvey, Gil Keinan, Nicholas Kim, Mike Whitlock

Goal

To control the Sonite Market by gaining the highest

comparative market share of:Buffs, Singles, Others & Pros

Product Analysis Inputs Example

• Mike- please show example of calculation you did each period

• Mike- please create graph to show what data u used to determine prices, movement in preferences

Regression Analysis Example

Sales Force Analysis Example- pre

Sales Force Analysis Example- post

Marketing Analysis Example

Retail Selling Price

Expected Sim & $ Period 9: 2.06 $214 Period 9: 6.7 $577 Period 9: 2.03 $212 Period 9: 4.98 $443

Actual Sim & $ Period 8: 2.05 $213 Period 8: 6.49 $561 Period 8: 2.17 $223 Period 8: 4.83 $431

Period 7: 2.09 $214 Period 7: 6.36 $552 Period 7: 2.26 $228 Period 7: 4.67 $418

Period 6: 2.12 $211 Period 6: 6.25 $536 Period 6: 2.36 $229 Period 6: 4.48 $403

Period 5: 2.13 $212 Period 5: 6.15 $528 Period 5: 2.41 $234 Period 5: 4.28 $388

Period 4: 2.14 $218 Period 4: 6.04 $503 Period 4: 2.48 $242 Period 4: 4.07 $371

Period 3: 2.15 $218 Period 3: 5.9 $493 Period 3: 2.57 $249 Period 3: 3.92 $359

Period 2: 2.16 $219 Period 2: 5.73 $480 Period 2: 2.67 $256 Period 2: 3.78 $348

Period 1: 2.18 $220 Period 1: 5.5 $464 Period 1: 2.85 $269 Period 1: 3.64 $337

Period 0: 2.19 $221 Period 0: 5.27 $447 Period 0: 3.04 $283 Period 0: 3.51 $327

SAMA

Price change to $223. Maintaining the product that more than exceeds Single's semantic scale demand .

No price change of $212. Maintaining the product that more than meets Others semantic scales ideal value.

No Price change of $570. Maintaining the product that more than meets Pros semantic sacles ideal value.

SALDSALT

Price change to $444. The price trend past 4 periods avg $13 increases. Product exceeds Buff's semantic scale demand.

SABU

Advert Budget

Research Budget

Adv Media Adv ResSAMA 1,600 396SALT 1,800 300SALD 1,200 250SABU 1,925 425

$250

Singles 100% (target market)

$396

$1,600 $1,200

Others 100% (target market)

$1,800

$300

Pros 100% (target market)Advertising Experiment shows that SALD and SALT will have a negative effect if we increase by 20% so we lowered it a bit to use in other segments that need it more; SAMA and SABU. Also, the Adv Experiment showed that we have the potential to make more money if we spend more advertising in SAMA and SABU.

$1,925

$425

Buffs 100% (target market)Allocation of Media Budget by Segment

SAMA Ideal Freq: 3.84 Perceived Freq: 3.28 3.90

Ideal Design: 4.20 Perceived Des: 4.54 4.10

SALT Ideal Price: 6.70 Perceived Price: 6.50 6.70

Ideal Freq: 6.11 Perceived Freq: 6.24 6.10

SALD Ideal Price: 2.03 Perceived Price: 2.12 2.00

Ideal Freq: 5.34 Perceived Freq: 5.62 5.30

SABU Ideal Price: 4.98 Perceived Price: 5.01 5.00

Ideal Design: 3.24 Perceived Des: 4.77 3.10

Ideal info for Period 9

Perceptual Adv Objectives Set Dimensions to:

Set Dimensions to:

Set Dimensions to:

Set Dimensions to:

Set Dimensions to:

Set Dimensions to:

Set Dimensions to:

Set Dimensions to:

Max Freq and Des has the highest WD for our product. Trying to lower WD.

WD for Power is in line so we focused on Price and Freq.

Freq and Power has the highest WD but next period Power WD is in line. Focused on changing Price and Freq.

Highest WD is Design and Price.

Price (10) and Power (6) are the most important factors in our target segments.

Marketing Analysis Example

Others 100% (target market) Others 0% Others 0%High Earners 0% High Earners 0% High Earners 0%

Pros 0% Pros 100% (target market) Pros 0%

Singles 0% Singles 0% Singles 100% (target market)

Buffs 0% Buffs 0% Buffs 0%

Allocation of Media Budget by Segment

Budget

6,541 SAMA SALT SALD

% to Product 45.0% 35.0% 20.0%$ of budget $2,943 $2,289 $1,308

Budget

6,541 SAMA SALT SALD

% Ad 35% 40% 25%$ to Ad $1,030 $916 $327

$ to Rch $1,913 $1,374 $981

Dimension 1 – power 3.0 Dimension 1 – power 6.1 Dimension 1 – power 4.7

Dimension 2 – design 4.15 Dimension 2 – price 6.27 Dimension 2 – max freq 4.96

Perceptual Adv Objectives

*SAMA – from the weighted analysis we took the actual perception vs the ideal. If the actual was close to the ideal we kept the assumptions the same. If the ideal and actual had a variance we put the perception and related numbers closer to the ideal as well. *SALT – from the weighted analysis we took the actual perception vs the ideal. If the actual was close to the ideal we kept the assumptions the same. If the ideal and actual had a variance we put the perception and related numbers closer to the ideal as well. *SALD – from the weighted analysis we took the actual perception vs the ideal. If the actual was close to the ideal we kept the assumptions the same. If the ideal and actual had a variance we put the perception and related numbers closer to the ideal as well.

Market Position and Strategies

Period 2Competitive position: Net $28,680 , 2/5, Product changes: ~ Price of SAMA & SALTMarketing/staffing Strategy: No change in product

in effort to change perception. +25 Sales StaffR&D: VLD in development to aim at SinglesAnalysis: Following experiment recom & focusing

marketing on target groups we have achieved the results->#1 in market share!

Market Position and Strategies

Period 4Competitive position: Net $117,585, 4/5Product changes: Launched SALD, ~ price SALTMarketing/staffing Strategy: Concentration on SegmR&D: Redesign SALT to meet Weighted deltaAnalysis: Loss of 21% Market share 19.5%.

Products spread too thin and perception in the middle, loss to other groups. No Economies of scale reached high COGS.

Market Position and Strategies

Period 6Competitive position: Product changes: Marketing/staffing Strategy: R&D:Analysis:

Market Position and Strategies

Period 8Competitive position: Product changes: Marketing/staffing Strategy: R&D:Analysis:

Market Position and Strategies

Period 10Competitive position: Product changes: Marketing/staffing Strategy: R&D:Analysis:

Market Position and Strategies

Forecasted Period 12Competitive position: Product changes: Marketing/staffing Strategy: R&D:Analysis:

• Dr. Rob- Ideally in graphic form (chart)-as discussed yesterday and as in the ppt from the group last year…

SWOT ANALYSIS

Benchmark Industry Success

Benchmark Industry Success

Our Takeaways