Exilesteam

Markstrat Presentation

What you’ve and how did your strategies change

over time

Team E Notes 

Our main objective is to increase the stock price!

Analyzing the available data and graphs our first decision was to eliminate the production of the SELF

product. It appears that under the BCG Analysis the SELF Product was a Dog. It had low market share

and sales volume. It was actually hurting the company’s overall balance sheet and profits. The target

market we decided to focus on was . The advertising budget stayed the same and price of the SELF went

down to $440 to increase demand for those target market and their price sensitivity. Some information

that came from the scorecard was that Team E has 34.9% in the Sonite Market. The Stock price Index

was 1000 base. The ROI is 2.87. Looking at both products the SEMI will stay the same with advertising,

price, sales force distribution. The sales force for both products stayed the same. 

The Vodite potential market is the Buffs.

Our Decision 1:

Some of our goals were to adopt an optimal segmentation and positioning strategies, 

1) Get rid of SELF (due to excess inventory)

Target: Singles, Others, and Buffs

Decrease Price, Advertising stays the same, Distribution Channels for sales force changed to Specialty

20, Dept. Store 30 (move more into the department store), 

Next plan of action: Increase R&D product Vodite. (View page 67) 

Advertising in MarkStrat Online is mainly used to build brand awareness and to inform customers about

its physical characteristics. Advertising can also be used to reposition a brand.

Our Decision 2: 

Some of the results from our Decision 1 consisted of:

1) We were the only team that invested in R&D. 

2) We are going to Shelve the PVERY

Research and Development for PVEIN

From the Semantic Scale: 

Project specification for the Innovators

Autonomy: 67, Max. Frequency: 16, Diameter: 75, Design: 6, Weight: 75. Requested base cost: 325, and

allocated budget (K$) = 100 with the inclusion of the feasibility study. 

Adjusting the SEMI, PROs and HE

PSEXY – New Product 

Next Period is to hire more sales force for the new product…not innovator segment but eventually to the

followers.

Development and Branding

Customers make purchases depending on their perception on your brand. The perceptual map is a

valuable tool for visualizing brand positioning. 

Two ways to reposition a product. 1) R&D 2) Increase advertising to change their perception

R&D success demands long-term opportunities. 

Sale obsolete products in the retail stores before the discount stores at the transaction cost. 

Decision 2 Results:

Increase 37.7% for Sonite. 

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Markstrat Presentation

Ended with zero inventory on both SELF and SEMI. We targeted the buffs for decision 2 and sold out.

SEMI went up about 5% in market share. SELF went down. 

Stock price index is 1430. 

Look at brand perception in Period 2 to Period 1 for change.

Decision 3: We will position the SEMI to take some of the market share of SOLD. Produce enough SELF

and SEMI to meet market demand. SOLD has more High Earners market share.

SEMi

How many units did we sell? 280,000 units is a 31.5 percent change. 

SELF

VEIN 

Target market is the innovators. 

Decision 4:

PVEIN- Target Innovators. Not ready for launch.

PVEE2 – Target Followers. Not ready for launch.

Retire the SELF and release the SEXY. The SEXY will target singles. This market is increasing for next

period. 

Target Pros and HE for the SEMI. 

Target SEXY with singles. Brand production level (KU) will be 74. Will be priced at $309

Decision 4 Results: 

We are currently number one in the market. The release of the SEXY has captured 26% of the market

share for the Sonite market. Team A and I has released a new Vodite product into the market. Things to

consider is that the slope of the line for Team A’s increased more than our Team E. 

Vodite target the segment. Find out why their buying and then target them.

Decision 5: 

SEXY. Production 265,000 units. 

Continue to Target the Singles. Their segment continues to grow in the Sonite market.

Projected 189 units

We Will Decrease Advertising for the SEXY and increase production to capture the growing singles

market.

SEMI. Projected Sales 324 units and production. Target: Pros

Sonite Market is still growing for Singles and Others. 

To capture the Others projected market. We will R&D the SEAS product. The Semantics is exactly what

the Others market wants. The R&D cost is $1910

VEIN. Target Innovators.

VEE2 Target Adopters.

VENM is currently in R&D. 

VEER. Targeting Innovators 

Decision 6 

Products we are looking at today. 

1) SEMI

-Professionals & High Earners

2) SEXY

-Singles

3) VENM

Early Adopters

4) VEGA

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Markstrat Presentation

-Followers

In the Sonite Market there is an opportunity to meet the needs of for the Buffs. 

5) VEE2 & VEIN 

-Innovators

Some competitive advantage that we realize is that the VISA is currently capturing the Adopters market.

There is currently no one targeting the followers. It will be likely the followers will purchase what the

adopters buy. 

Produce the SEAS 231,000 units created. Priced $197

 

Competitive

Information

Team I has gained the Vodite market with its

VISA market.

Slight decline in the Sonite Market, a

decrease of 2.5%

Current ROI in down by 33.4% from

the last period

Do we really need to purchase all the reports? It may be costing us alittle amount but again there is still

cost being incurred that is unneccesary

PROS, HE, Buffs for

the SEMI

PROS 65%

Singles and others with the

SEXY

SINGL

ES

56%

Others and Singles for

SEAS

OTHE

RS

Still more opportunity to capture the other segment,

we only have 14%

Increase awareness for the others

segment!

Buffs Market is 84 where as Inn and

Adopters are 34 and 53

Increase production of sexy,

to capture

Get rid of VEER and

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VEE2

VISA has the highest for Followers purchase

intenstions and adopters.

Increase awareness with our products with Followers. This will lead to product awareness

and then purchase intentions

What you’ve and how did your startegies

change over time.

PRESENTATION OUTLINE:

1. Product

Slide 1.a

SEGMENTS

We started out with products that targeted Pros and Buff

We decided to target segments that were going to grow in the long run

Sonite: Singles and Others. Vodites: Followers

We gave priority to targeting the Singles because they were not served well

Product's distance from the center of targeted segment

Deviation for Others

Weight Design Volume Max Freq Power Price Distance

SEXY 1.2 6.5 1.5 3.2 10.5 3.7 13.5

SAMA 0.7 6.7 1.8 3.9 6.5 2.2 10.5

SIRO 1.3 10.1 2.5 5.6 6.4 1.9 13.6

SIBI 1.0 2.7 4.0 3.7 1.3 0.7 6.4

SEAS 0.6 1.4 0.1 1.2 1.0 2.0 2.9

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Markstrat Presentation

Slide 1.b

R&D

Initially, we developed products to the ideal values (on the semantic scales)

Later, we developed product based on the regression analysis

What will customers want two periods from now.

The design tools in Markstrat were utilized

Slide 2.a

SALES ALLOCATION

Originally, we tried to guess the best allocation

Larger number of products - More Complexity

Designed a tool to allocate sales effort based on:

Forecasted segment size next period

Shopping habits

From 60 sales people in Period 0 to 278 in period 10

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