Transcript Markstrat
Marketing Strategy MarkestratEd Michelsen Consulting Ltd. www.companysimulations.com [email protected] FOCUS ON • Strategy based on positioning, life-cycle congruent policies, segmentation. • Strategic leverage • Marketing mix useful tool to get there. • Understanding perceived customer needs • Highly competitive environment • Marketing as a the main profit centre EXPERIENTIAL OBJETIVES •Decision-making in the positioning of brands in a segmented market and in a new market. •Adaptation to a rapidly evolving life-cycle. • Repositioning of mature products. •Developement of entirely new products •Competition with four companies in the same market. TWO MARKETS SONITES (current) VODITES (potential) Independent, not subsitutes, not complements…. SEGMENTS IN THE SONITE MARKET Seg Label % Descripction 1 FANS 30 Very knowledgeable sensitive to quality and technology. 2 SINGLES 20 Demand good performance, heavy users. 3 PROFESSIONALS 19 Motivated by status needs, high education and high income. 4 HIGH EARNERS 16 New rich, less educated than segment 3. 5 OTHERS 15 Low Sonite penetration. INITIAL COMPETITORS IN THE SONITE MARKET Firma Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 1 SAKA SATO ? ? ? 2 SERI SEFA ? ? ? 3 SIMO SICA ? ? ? 4 SOTO SOLO ? ? ? 5 SUXI SUTE ? ? ? Firms start from differnt positions. Each has 2 brands positioned in the Sonite market. The portfolio can grow to five brands. STRATEGIC OPTIONS •Specialización: high volume low margin in one market •Diversification: several brands for several segments. •Extension: full line approach •Innovation: new product for a new market The MarkestratEd World Population 250 MILLION *MARKSLANDIA 5 FIRMS 2 INITIAL PRODUCTS, UPTO FIVE POSSIBLE. 1 CURRENT MARKET: SONITES 1 POTENTIAL MARKET POTENCIAL: VODITES EACH FIRM HAS 3 PROFIT CENTRES : CORPORATION PRODUCTION MARKETING R&D ….INTERACTING USING INTERNAL TRANSFER PRICES DistribuTión Channel Type Margin taken Number of outlets 1 Specialty stores 40 % 3,000 2 Department stores 35 % 35,000 3 Mass merchandisers 40 % 4,000 “Average price” The 3 components of the final price paid by a client $ 200 Final Price Channel Margin Marketing´s profit margin Production cost $ 200 Final Price $ 76.60 (38.3 % ) store margin “Avg price“ $ 123.- $ 200 Final Price $ 76.60 (38.3 % ) store margin MARKETING+S PROFIT $ 43 “Avg Price. “ $ 123.- $ 200 Final Price $ 76.60 (38.3 % ) store margin MARKETING+S PROFIT $ 43 “Transf Cost $ 80 pays the production profit centre “Avg Price. “ $ 123.- Physical characteristics of Sonite products S O N I T E ATTRIBUTES 1. WEIGHT (KG) 2. DESIGN (SCORE) 3. VOLUME (DM3) 4. MAX FREQUENCY (MHZ) 5. POWER (W) 6. COST ($) Feasible range 10 - 20 3 - 10 20 - 100 5 - 50 5 - 100 50 - 500 1. AUTHONOMY (M) 2. MAX FREQUENCY (MHZ) 3. DIAMETER (MM) 4. DESIGN (SCORE) 5. WEIGHT (KG) 6. COST ($) 5 - 100 5 - 20 10 - 100 3 - 10 10 - 100 50 - 500 S V O D I T E S Physical attributes of Brands at Year 0 Current Brands SAKA SATO SERI SEFA SIMO SICA SOTO SOLO SUXI SUTE Weight (lbs. ) Design (Score) 11 12 18 14 10 11 17 10 10 15 9 9 7 5 3 9 7 3 3 6 Physical attributes Volume Max.Freq (Dm3) (Mhz) 20 37 51 65 50 35 50 70 50 40 25 25 30 40 20 25 30 20 25 20 Power (W) Transfer Cost ($) 10 30 85 90 10 20 70 90 20 70 100 125 160 200 50 100 163 180 70 175 R&D •It takes 12 months to modify an existing brandn or design a new one. • Request specific physical characteristis and budget. •Designing a completely different brand is very risky and costly. •Small improvements are cheaper ande easier to get. R&D DECISION TREE PERIOD T PERIOD T + 1 KEEP TRYING FAILURE ABORT PROJECT PROJECTO I & D CHANGE EXSTING BRAND SUCCESS LAUNCH NEW BRAND KEEP PROJECT FOR FUTURE USE BENEFITS OF THE EXPERIENCE CURVE VARIABLE PRODUCTION COST (“Transfer Cost”) Initial cost as obtained in R&D project Experience curve productivity gain Effect of an R&D project focused on lowering costs 100,000 units ACUM. PRODUCTION MANAGERIAL VIEW •SCANT DATA AVAILABLE FOR DECISION MAKING DURING FIRST YEAR EXCEPT MACROECONOMIC DATA AND THE CONSEQUENCES OF DECISIONS OF THE PREVIOUS MANAGEMENT TEAM . •NO MARKET RESEARCH AVAILABLE FOR THE FIRST PERIOD. •TO GET A HIGHER BUDGET PROFITS MUST GROW •INFLATIONARY TENDENCIES. CORPORATE OFFICE PRODUCTION FINANCE COST OF GOODS SOLD INVENTORY COSTS R&D R&D EXPENSES CONTRIBUTION BUDGET MARKETING AS PROFIT CENTRE TO NET PROFITS OF MARKETING SALES INCOME ADVERTISING EXPENSE SALES FORCE EXPENSE ADVERTISING AGENCY AND MEDIA DISTRIBUTION MARKET RESEARCH EXPENSES MARKETING CONSULTING HOW TO TAKE THE FIRST DECISION •ORGANIZE YOUR TEAM •FIGURE OUT THE PREVIOUS MANAGEMENT´S STRATEGY. •REDUCE PRODUCTION SCHEDULING OF BRANDS WITH HIGH INVENTORY ON HAND, INCREASING ADVERTISING AND LOWERING PRICE LEVELS. • INCREASE SLIGHTLY PRICE LEVELS AND PRODUCTION SCHEDULED OF BRANDS WITHOUT INVENTORY •ORDER A NUMBER OF MARKET RESEARCH STUDIES. • REVIEW IF ASSIGNED BUDGET IS SUFFICIENT. INTERFACE WITH LABAMS Type: user and password Decisions Data Continued... Realtime window to see who sent the decisions data HOW TO READ THE MARKESTRATED REPORTS 1 - GENERAL RESULTS (IN ,000 EXCEPT WHEN INDICATED) (U)= UNITS ($)= IN USD$ BRANDS PRODUCTION (U) UNITS SOLD (U) INVENTORY (U) RETAIL PRICE($) AV.SEL.PRICE($) UNIT TR.COST($) REVENUES COST OF G.S. INV. HLD.COST ADVERTISING GROSS MKTG. CONTRIBUTION SAKA 232,000 195,854 36,146 300 185 96 36,215 18,877 435 2,610 14,292 SATO 300,000 300,000 500 312 128 93,504 38,322 3,600 51,582 65,874 R&D SALES FORCE MARKETING RESEARCH COSTO OR PROFIT NET MARKETING CONTRIBUTION NEXT BUDGET PERIOD -2,980 -127 62,767 25,577 2- MARKETING BRANDS MARKET SHARE (ON UNITS) NUMBER OF DISTRIBUTORS CHANNEL 1 CHANNEL 2 CHANNEL 3 SAKA 7% 535 14,141 1,014 CHANNEL 1 SALES FORCE SATO 11% 561 14,831 1,064 CHANNEL 2 CHANNEL 3 10 50 20 05- CUMULATIVE RESULST ( IN THOUSAND $) BRAND LAUNCHING YEAR SAKA SATO - CUMULATIVE NET MARKETING CONTRIBUTI UNITS SOLD ADVERTISING ON 1,117 898 16,503 13,862 TOTAL CUMULATIVE RETAIL SALES TOTAL CUMULATIVE ADVERTISING TOTAL CUMULATIVE GROSS MARKETING CONTRIBUTION TOTAL CUMULATIVE R&d EXPENDITURES TOTAL CUMULATIVE SALES FORCE EXPENDITURES TOTAL CUMULATIVE MARKET RESEARCH EXPENDED TOTAL CUMULATIVE NET MARKETING CONTRIBUTION 6 - NEWSLETTER (ALL MONEY AMOPUNT IN $) - GNP GROWTH RATE THIS YEAR -GNP GROWTH NEXT YEAR - ESTIMATED INFLATION RATE NEXT YEAR - RATE OF INFLATION NEXT YEAR - COST OF SALESMAN NEXT YEAR - COST OF FIRING A SALESMAN NEXT YEAR - COST OF TRAINING A NEW SALESMAN NEXT YEAR 100,419 147,661 808,753 30,365 248,079 15,256 627 232,196 0.05 0.07 0.11 0.13 38300 9200 5300 - COST OF MARKETING RESEARCH STUDIES NEXT YEAR 1= 115400. 2= 192500. 3= 115400. 5= 67100. 6= 38300. 7= 76800. 9= 96200. 10= 18800. 11= 38300. 13= 28300. 14= 45800. 15= 67100. -INVENTORY HOLDING COST PER 12.50% ( % OF TRANSFER COST ) 4= 18800. 8= 134600. 12= 57500. BRANDS SAKA SATO SERI SEFA SIMO SICA SOTO SOLO SUXI SUTE SUCO SUER SUYO TOTAL AVERAGE PRICE =$ BRANDS VETA VIXL VIIB TOTAL AVERAGE PRICE =$ 1 -INFORMATION ON MARKET S MARKET RETAIL UNIT SALES SHARE U PRICE 195,854 300,000 480,000 332,697 291,339 351,455 205,390 31,825 116,281 360,000 55,445 54,931 38,619 7% 11% 17% 12% 10% 12% 7% 1% 4% 13% 2% 2% 1% 2,813,836 100% 300 500 330 450 290 455 485 400 362 734 460 575 600 SALES $ MARKET SHARE $ 58756200 150000000 158400000 149713600 84488310 159912000 99614150 12730000 42093720 264240000 25504700 31585320 23171400 5% 12% 13% 12% 7% 13% 8% 1% 3% 21% 2% 3% 2% 1260209488 100% 447.86 INFORMATION ON MARKET V MARKET UNIT SALES SHARE U 29,457 57,895 72,000 18% 36% 45% 159,352 100% 464.01 RETAIL PRICE 520 540 380 SALES $ MARKET SHARE $ 15317640 31263300 27360000 21% 42% 37% 73940940 100% MARKESTRATED MARKET RESEARCH STUDIES STUDY 1: CONSUMER SURVEY - SONITE STUDY 2: CONSUMER PANEL - SONITE STUDY 3: DISTRIBUTION PANEL - SONITE STUDY 4: SEMANTIC DIFFERENTIAL SCALES - SONITE STUDY 5: PERCEPTUAL MAP OF SIMILARITIES AND BRAND PREFERENCES STUDY 6: MARKET FORECAST - SONITE STUDY 7: CONSUMER SURVEY -VODITE STUDY 8: CONSUMER PANEL -VODITE STUDY 9: DISTRIBUTION PANEL -VODITE STUDY 10: SEMANTIC DIFFERENTIAL SCALES –VODITE STUDY 11: MARKET FORECAST -VODITE STUDY 12: ESTIMATED COMPETITIVE ADVERTISING (THOUSANDS OF $) STUDY 13: SALES FORCE COMPETITIVE ESTIMATES STUDY 14: SALES FORCE EXPERIMENT ESTUDY 15: ADVERTISING EXPERIMENT EXAMPLE OF MARKET RESEARCH STUDIES STUDY 1 : CONSUMER SURVEY - S MARKET BRAND AWARENESS (NO SIGNIFICANT DIFFERENCES BETWEEN SEGMENTS) SAKA SERI SIMO SOTO SUXI 0.329 0.223 0.389 0.216 0.175 SATO SEFA SICA SOLO SUTE 0.237 0.272 0.389 0.112 0.267 SUCO 0.051 SUER 0.051 PURCHASE INTENTIONS SEGMENT 1 SEGMENT 2 SEGMENT 3 SEGMENT 4 SEGMENT 5 TOTAL SAKA SATO SERI SEFA SIMO SICA SOTO SOLO SUXI SUTE SUCO SUER SUYO 0.011 0.022 0.063 0.598 0.013 0.025 0.163 0.023 0.007 0.033 0.019 0.01 0.011 0.032 0.028 0.658 0.087 0.036 0.041 0.047 0.021 0.017 0.017 0.009 0.004 0.004 0.012 0.037 0.02 0.054 0.012 0.036 0.091 0.009 0.007 0.618 0.017 0.052 0.036 0.028 0.368 0.032 0.056 0.023 0.181 0.135 0.009 0.014 0.105 0.025 0.014 0.009 PURCHASING HABITS SEGMENT 1 SEGMENT 2 SEGMENT 3 SEGMENT 4 SEGMENT 5 CHANNEL 1 CHANNEL 2 CHANNEL 3 TOTAL 0.57 0.07 0.36 0.37 0.17 0.46 0.02 0.57 0.41 0.17 0.47 0.36 0.07 0.27 0.66 1 1 1 1 1 0.22 0.055 0.114 0.062 0.239 0.104 0.047 0.022 0.088 0.027 0.01 0.006 0.005 0.078 0.128 0.213 0.101 0.083 0.094 0.085 0.016 0.034 0.128 0.015 0.014 0.011 STUDY 2: CONSUMER PANEL - S MARKET (MARKET PORTIONS BASED IN SOLD UNITS) SEGMENT 1 SEGMENT 2 SEGMENT 3 SEGMENT 4 SEGMENT 5 TOTAL SAKA SATO SERI SEFA SIMO SICA SOTO SOLO SUXI SUTE SUCO SUER SUYO INDUSTRY SALES (THOUSAND UNITS) 0.008 0.013 0.054 0.655 0.014 0.028 0.132 0.016 0.008 0.026 0.022 0.012 0.012 0.026 0.02 0.633 0.106 0.045 0.053 0.042 0.016 0.023 0.015 0.012 0.005 0.005 0.013 0.035 0.02 0.067 0.016 0.051 0.079 0.006 0.009 0.569 0.022 0.069 0.044 0.028 0.308 0.031 0.068 0.029 0.241 0.115 0.007 0.019 0.094 0.032 0.018 0.011 0.186 0.039 0.097 0.066 0.286 0.13 0.036 0.014 0.102 0.021 0.012 0.006 0.006 0.07 0.107 0.171 0.118 0.104 0.125 0.073 0.011 0.041 0.128 0.02 0.02 0.014 209 563 451 777 814 2814 STUDY 3: DISTRIBUTION PANEL - MARKET S (MARKET PORTIONS BASED IN SOLD UNITS) SAKA SATO SERI SEFA SIMO SICA SOTO SOLO SUXI SUTE SUCO SUER SUYO INDUSTRY SALES (THOUSAND UNITS) CHANNEL 1 CHANNEL 2 CHANNEL 3 TOTAL 0.045 0.068 0.099 0.07 0.086 0.143 0.098 0.107 0.284 0.131 0.145 0.171 0.226 0.067 0.106 0.118 0.07 0.095 0.15 0.104 0.105 0.148 0.132 0.125 0.094 0.073 0.068 0.073 0.019 0.012 0.014 0.011 0.036 0.042 0.059 0.041 0.057 0.202 0.124 0.128 0.028 0.026 0.023 0.02 0.019 0.032 0.023 0.02 0.017 0.023 0.017 0.014 742 1017 1053 2813 STUDY 4: SEMANTIC DIFFERENTIAL SCALES - MARKET S THE THREE MOST IMPORTANT PERCEIVED SCALES 1- ECONOMY 2- POWER 3- DESIGN HIGH SCORES CORRESPOND TO: LOW ECONOMUC, HIGH POWER, AND BETTER DESIGN ECONOMY POWER DESIGN IDEAL SCORE SEG.1 4.3 6.13 5.2 IDEAL SCORE SEG.2 2.8 4.78 5.68 IDEAL SCORE SEG.3 6.04 5.68 5.32 IDEAL SCORE SEG.4 5.35 4.03 5.62 IDEAL SCORE SEG.5 2.05 3.16 5.62 SAKA 3.03 1.56 6.1 SATO 5.13 3.38 6.44 SERI 3.09 5.23 6.1 SEFA 4.07 5.91 6.1 SIMO 2.28 1.92 2.5 SICA 4.86 2.63 6.44 SOTO 4.72 5.2 5.5 SOLO 3.19 6.36 2.5 SUXI 3.03 1.97 2.5 SUTE 6.41 5.2 4.9 SUCO 4.77 5.2 6.44 SUER 5.82 5.91 6.44 SUYO 5.82 6.44 6.44 STUDY 5: PERCEPTUAL MAP OF SIMILARITIES AND BRAND PREFERENCES STUDY PERFORMED OVER A SAMPLE OF 200 PERSONS NO SIGNIFICANT DIFFERENCES OF PERCEPTUAL CONFIGURATION FOUND BETWEEN SEGMENTS STATISTICALLY SIGNIFACNT RESULTS WERE OBTAINED FOR A 2 DIMENSIONAL SOLUTION THE MOST SATISFACTORY INTERPRETATION OF THE MAP'S AXIS IS, BASED ON THE SEMANTIC SCALES: AXIS 1: PERCEIVED ECONOMY (INCREASES FROM RIGHT TO LEFT) AXIS 2: PERCEIVED POWER (INCREASES UPWARDS) 1 20 2 3 15 4 5 10 A B 5 C D 0 -20 -10 E 0 -5 -10 -15 -20 10 20 F G H I J K L M IDEAL POINTS SEGMENTCOORD. AZIS COORD.AXIS2 1 1 1 3.5 14.5 2 2 -7.7 5.5 3 3 13.9 11.5 4 4 9.3 0.5 5 5 -12.7 -5.3 RESULTADOS A SAKA -6.5 -17.3 B SATO 7.5 -4.1 C SERI -6.1 8.2 D SEFA 0.5 12.7 E SIMO -11.5 -13.8 F SICA 5.8 -9.1 G SOTO 4.8 8 H SOLO -5.4 15.7 I SUXI -6.5 -13.5 J SUTE 16.1 8 K SUCO 5.1 8 L SUER 12.1 12.7 M SUYO 12.1 16.7 42 STUDY 6: MARKET FORECAST - S MARKET EXPECTED SIZE OF THE MARKET FOR THE NEXT PERIOD (,000 UNITS) SEGMENT 1 SEGMENT 2 SEGMENT 3 SEGMENT 4 SEGMENT 5 TOTAL 198 789 406 738 977 3108 STUDY 7: CONSUMER SURVEY - V MARKET BRAND AWARENESS (NO SIGNIFICANT DIFFERENCES BETWEEN SEGMENTS) VETA VIXL 0.036 0.054 VIIB 0.052 PURCHASE INTENTIONS SEGMENT 1 SEGMENT 2 SEGMENT 3 SEGMENT 4 SEGMENT 5 TOTAL VETA VIXL VIIB 0.166 0.282 0.523 0.166 0.282 0.523 0.166 0.282 0.523 0.166 0.282 0.523 PURCHASING HABITS SEGMENT 1 SEGMENT 2 SEGMENT 3 SEGMENT 4 SEGMENT 5 CHANNEL 1 CHANNEL 2 CHANNEL 3 TOTAL 0.77 0.05 0.18 0.77 0.05 0.18 0.77 0.05 0.18 0.77 0.05 0.18 0.77 0.05 0.18 1 1 1 1 1 0.166 0.282 0.523 0.171 0.29 0.538 STUDY 8 : CONSUMER PANEL - V MARKET (MARKET PORTIONS BASED IN SOLD UNITS) SEGMENT 1 SEGMENT 2 SEGMENT 3 SEGMENT 4 SEGMENT 5 TOTAL VETA VIXL VIIB INDUSTRY SALES (THOUSAND UNITS) 0.18 0.353 0.439 0.18 0.353 0.439 0.18 0.353 0.439 0.18 0.353 0.439 0.18 0.353 0.439 0.185 0.363 0.452 36 12 12 36 60 155 STUDY 9 : DEALER PANEL - V MARKET (MARKET PORTIONS BASED IN SOLD UNITS) VETA VIXL VIIB INDUSTRY SALES (THOUSAND UNITS) CHANNEL 1 CHANNEL 2 CHANNEL 3 TOTAL 0.18 0 0.18 0.185 0.353 0 0.353 0.363 0.439 0 0.439 0.452 127 0 32 159 ESTUDY 10: SEMANTIC ESCALES - V MARKET THE THREE MOST IMPORTANT PERCEIVED SCALES IMPORTANT ARE_ 1- MAX. FREQUENCY,2-WEIGHT 3-ECONOMY. HIGH SCORES CORRESPONDE TO: HIGH FREQUENCY, HIGH WEIGHT, AND LOW ECONOMIY MAX.FR. IDEAL SCORE SEG.1 IDEAL SCORE SEG.2 IDEAL SCORE SEG.3 IDEAL SCORE SEG.4 IDEAL SCORE SEG.5 VETA VIXL VIIB WEIGHT 4.66 4.66 4.66 4.66 4.66 6.49 5.34 3.50 3.16 3.16 3.16 3.16 3.16 2.52 5.05 4.00 ECONOMY 2.41 2.41 2.41 2.41 2.41 6.49 6.49 5.46 STUDY 11: MARKET FORECAST - V MARKET EXPECTED SIZE OF THE MARKET FOR THE NEXT PERIOD (,000 UNITS) SEGMENTO1 SEGMENTO2 SEGMENTO3 SEGMENTO4 SEGMENTO5 TOTAL 61 20 20 61 101 263 STUDY 12: ESTIMATED COMPETITIVE ADVERTISING (THOUSANDS OF $) SAKA SERI SIMO SOTO SUXI 2535 1554 971 0 4856 SATO SEFA SICA SOLO SUTE 3496 1457 VETA 1457 VIXL 0 11654 SUCO 1942 3108 VIIB 2428 3885 SUER 3885 SUYO 1942 STUDY 13: SALES FORCE COMPETITIVE ESTIMATES CHANNEL 1 FIRM 1 FIRMA 2 FIRMA 3 FIRMA 4 FIRMA 5 9 32 28 20 39 CHANNEL 2 CHANNEL 3 TOTAL 47 18 37 32 47 56 20 20 51 38 74 101 131 60 128 STUDY 14: SALES FORCE EXPERIMENT (EXPECTED RESULTS IF SALES FORCE IS INCREASE BY 6 PER CHANNEL) CANAL 1 SERI NUMB. DISTRIBUTORS MARKET SHARE SEFA NUMB. DISTRIBUTORS MARKET SHARE VETA NUMB. DISTRIBUTORS MARKET SHARE CHANNEL 2 CHANNEL 3 1351 0.345 13332 0.157 1593 0.175 1348 0.276 13303 0.079 1590 0.129 1350 0.232 103 0 1593 0.233 ESTUDY 15: ADVERTISING EXPERIMENT (EXPECTED RESULT IF THE BUDGET INCREASED BY 10% TO A REGISTERED) SEGMENTO1 SEGMENTO2 SEGMENTO3 SEGMENTO4 SEGMENTO5 TOTAL SIMO KNOWLED. MARK.PORT. SICA KNOWLED. MARK.PORT. VIXL KNOWLED. MARK.PORT. VIIB KNOWLED. MARK.PORT. 0.384 0.014 0.384 0.045 0.384 0.016 0.384 0.029 0.384 0.288 0.384 0.101 0.384 0.029 0.384 0.053 0.384 0.051 0.384 0.244 0.384 0.129 0.384 0.124 0.053 0.355 0.053 0.355 0.053 0.355 0.053 0.355 0.053 0.355 0.053 0.355 0.052 0.444 0.052 0.444 0.052 0.444 0.052 0.444 0.052 0.444 0.052 0.444