Capstone Decision Making —— Taun Taun Team Presentation
Transcript of Capstone Decision Making —— Taun Taun Team Presentation
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MARKSTRAT
SIMULATION
MKT 6339
UTD SPRING 2014
BUFFALO
Team TaunTaun
Paul Flesher
Zhaodi(Jodi) Liu
Tanachai Thosapornvichai
Michael Stone
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STARTING POSITION & STRATEGY
• Sonite Market – 20% Market Share
Initial Position
• Vodites are the KEY
• Be first to Vodites
• Maintain position in Sonites
• Avoid spreading to thin
Initial Strategy
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OBJECTIVES & ACTUAL PERFORMANCE
0
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400
600
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1,000
0 1 2 3 4 5 6 7 8
TaunTaun
Legend
Resolute
Marvelus
Sharks
• WIN
• 50% Vodite Market Share
• 10% Sonite Market Share
Objectives
• Cum Net Contribution = $904M
• 55% Vodite Market Share
• 8% Sonite Market Share
Actual Performance
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STRATEGY: TRIAL ROUNDS R&D Queries vs. Feasibility Studies
Sonite Feasibility Studies Never Profitable
Determine Required Budget for first Vodite
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STRATEGY: PERIODS 1 & 2
Target profitable segments
TOPS – Maximize penetration
TONE – Maintain market presence
Needed $6.4 M, Period 2 Budget = $8.1
Expected Loss of NC in Period 2
Cut Advertising & CT to $1.7 M
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STRATEGY: PERIOD 3 & 4TEEK Period 3 Period 4
Target Innovators Innovators
Price $2,000 $1,850
Production 111,000 140,000
Sales 95,000 168,000
Net Contribution $63 M $107 M
Price Semantic 6.5 6.5
Period 3 Results TEEK TOPS TONE
Net Contribution 63,471 12,590 3589
Marketing Expenses 4,227 1,662 993
Return on Marketing Investment
15.0 7.6 3.6
• Market
Size?
• Price?
• Production?
Vodite
• ROMI
• Drop TONE Sonite
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STRATEGY: PERIOD 5
New Competition
Launch 2 Vodites
TEMOC
TEMAK
Cancel Sonite for Savers
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STRATEGY: PERIOD 5 & BEYOND
Reposition TEEK (Adopters)
Market Growth??
Theory: Pricing is King
Set as close to ideal point as possible
Estimated Actual
Period 4 72+66+20= 158 74+71+23= 168
Period 5 84+110+77= 271 49+70+58= 177
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POSITION GOING FORWARD
Meet Customer Preferences
Research & Development
P9 Update for TEMOC/TEMAK
New Sonite for Savers?
Vodite pricing now optimal
Top ROMI Brands
Sonite: 5.74 vs. 4.56 (R, 2nd)
Vodite: 8.72 vs. 3.17 (R, 2nd)
• $849
• 4.24 - Perception 4.37 - Ideal
TEMOC
#1 Vodite
23.9% Mkt Share
• $899
• 4.64 - Perception 4.37 - Ideal
TEMAK
#3 Vodite
16.3% Mkt Share
• $999
• 4.96 - Perception 4.91- Ideal
TEEK
#4 Vodite
14.9% Mkt Share
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IMPORTANT LESSONS LEARNED
• First mover has a big advantage
• Always consider ROI
• Brand awareness is vital
• Pricing matters
• Be organized & have defined roles
• Study the competition
• Be decisive
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QUESTIONS?