SABRE-TOOTHED TIGERS

TEAM BLUE:DANIEL CALDERON

OLIVER ELFENBAUM

RENE POELLINETZ

LINGCHAO WANG

EMILY WASSERMAN

MKTG101-214TA: Jennifer Jia

GOAL AND TAKEAWAYSMain goal: Maximize net contribution

What we learned from SABRE

1. Implement appropriate target market approach2. Align marketing expenditure and productions3. Marketing timing is important4. When there is little market share potential, focus on

profitability

5C ANALYSIS

Framework Spartan Flash

Company 2 products positioned well in 2 high-growth market segmentsLimited budget

No products at onset;Limited budget

Competition Not very competitiveOnly 1 competing product in the 2 segments we aimed atPotential competition

No competition at inception

Customer Defined preferencesUnknown preference shift

Unknown preferences

Context Defined segments with healthy growthOpportunity from emerging segment

Emerging market

Collaborator Sales force already in place;Market studies support

No sales presenceNo market studies available

STRATEGY – PERIOD 1-3

Segmentation & Targeting: Treat at Wright; Trick at CooperSpend on advertisement in Spartan to increase product awareness

R&D in FlashNO R&D in Period 1 – not enough information availableR&D in Period 2 or 3 based on information from market studies

Launch new product in Sheriff to capture more market sharePerceptual shifts on Trick and Treat

Key milestones Period 2: New product launched in Sheriff based on Trick’s R&D Period 3: R&D for new product in Flash based on market studies

Pie chart of purchase intentionin Wright & Cooper

@ Period 0

SEGMENTATION DECISION NO.1In Period 1, Sheriff emerges in Spartan

Positioning: Trick has similar attributes as Sheriff’s preferences

Decision: launch a new product targeting at Sheriff based on Trick’s R&D

Thoughts: Combined target market approach might work better

Takeaway #1: Implement appropriate target market approach

Add perceptual map

@ Period 1

OUTCOME – PERIOD 1-3

AddMarket Awareness

@ Period 3

Advertisement spending

AddPurchase intention

@ Period 3

Effective perceptual shifts Add

Market share(Period 1-3)

Leading market shareOptimal product positioning

Great market awareness

MIDPOINT SWOT ANALYSIS

Strengths

• Positioning• Awareness

Weaknesses

• Level of Production

• Declining Focus on Perceptions

Opportunities

• R&D in New and Existing Markets

• Capability to capture larger market share

Threats

• Competition• Changes

Preferences of Consumers

Takeaway #2: Align marketing expenditure and productionsTakeaway #3: Market timing is important

To be reformatted

PERIOD 4 – 6

StrategiesKeep market share in Spartan through advertisement spending and perceptual shiftsLaunch new product in Flash in Period 4 with huge advertisementDO R&D in Spartan to replace Treat by one with lower unit production costsLaunch second product in Flash

Key milestones Period 4: New product (Troop) launched in Flash Period 4: Treat replaced by new R&D Period 5: Second product (Trump) launched in Flash Period 6: Troop and Trump replaced by new R&D (unit production cost

lowered by $150)

SEGMENTATION DECISION NO.2In Period 4, we saw clear discrepancy in price preference between 5 segments

Positioning: Troop is at ideal position to capture all segments

Decision: Launch a new product (Trump) targeting at 2 high-price segments; Troop targets at low-price 3 segments

Thoughts: Multiple Target Market Approach works

Takeaway #1: Implement appropriate target market approach

Add Conjoint @ Period 4

R&D STRATEGYIn later periods, we have huge budgets

Our products have great market awareness Advertisement is no longer effective

Doing R&D is becoming cheaper

Our decision: DO R&D to lower unit production costs of existing products

In Period 4: Treat is replaced by a new product with $80 lower cost/unit; Only ~$1,000 were spent on R&D

In Period 6: Troop and Trump replaced by new products with $150 lower cost/unit; Only ~$3,500 were spent on R&D

Takeaway #4: When there is little market share potential, focus on profitability

OUTCOME

OUTCOME (CONT.)

Total Accumulated Net Contributions (Period 1-6):

Toothed Tigers: 283,657 (#1 in recitation)

All Blue Teams:

Max: 289,509

Median: 223,203

Mean: 199,425

Market Share by Value: 21.4% in Spartan; 47.6% in Flash

REFLECTIONSSUCCESSES

Spending on advertisement in Spartan

Good timing to enter Flash

Successful segmentation strategies

AREAS OF IMPROVEMENT

Aligning marketing expenditure and production

Perceptual shifts

GO TIGERS!