Markstrat Gorilla Team

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  • 1. MarkStratIndustry Gorilla - Team Lexis
  • 2. Sonite Launched in Period Target Segment Market share - Value Market share - Unit Rec. retail price Base CostLOCK 0 Savers 3.1% 4.7% 195 116LOHA 4 High Earners 3.2% 1.8% 500 188LOOP 0 Professionals 3.9% 2.6% 435 197LOOT 8 Shoppers 2.4% 2.9% 245 163LOSH 3 Shoppers 9.5% 12.6% 225 111 2
  • 3. MARKET : Launched in Market share - Market share - Rec. retail price Base CostVODITES Period Value Unit LELI 7 11.2% 10.5% 990 373 LELO 8 0.9% 0.7% 1,259 373 3
  • 4. 4
  • 5. TEAM L-SPI 1493 1290 1362 1380 1320 1383 1425 1151 1000Period Period 0 Period Period 1 2 Period Period 3 4 Period 5 Period 6 Period 7 8 5
  • 6. SPI:1151 2 products Lock & Loop Earning before Taxes: 18456 Loop($500) Target Professionals Advertising: 4916K$ Lock($250) -- Target SaversPeriod 1 Commercial Team Cost: 1332$ SPI:1290 Invested in LOSH A product for Shoppers Earning before Taxes:23476 Advertising: 4080K$ Commercial Team Cost: 1290K$ Made our first mistake!!Period2 R&D : 1250 Analysis & SPI:1362 Earning before Taxes:23534 Launched LOSH -$240 Invested in LOHA A product for High Earners Strategies Advertising : 5640K$ Loop -$485 Commercial Team Cost: 1921$ Lock - $210 Reduced PricePeriod3 R&D: 1110 Price Race on SPI: 1380 LOHA launched- $500 Earning before Taxes:20285 Loop- $435 Advertising: 5649K$ Lock - $195 Commercial Team Cost: 2796K$ Losh - $230 Focus on one productPeriod 4 R&D : 2945 Invested in LELI Our Vodite planned for period 6 6
  • 7. SPI-1493 Lock starts sinking! Earnings-$28225K Invested in LELI Advertising:6267 Frantic increase in commercial team size Commercial Team:4001Period 5 Losh doing well SPI- 1320 Budget hit! Earnings-$22472K Modification of Lock Advertising:6684 Had to hold back on decision to launch Vodite Commercial Team:4350Period 6 Analysis & SPI- 1383 Earnings- -$16437K Launched LELI -$995 Modified Loop picks up sales Strategies Advertising:15374 Loop & Loha not doing well Commercial Team :6011Period 7 Investment in LOOT- Targeted at the growing shoppers segment SPI- 1425 Launched another vodite LELO Earnings- -$18139K Launched Loot Advertising:16728 Losh is the saving grace Commercial Team :6661Period 8 7
  • 8. What We Did?? Poor commercial team size initially In period 3, didnt know how to use the loan sanctionedMistakes In period 4, price of Loop was reduced drastically- Professionals are not price sensitive. Budget too little for so many products Focused on developing a product for every segment Decision to focus on our prime product (Losh) pays offPositives Decision to modify Lock and take advantage of its brand awareness works SPI dips only in one period (6th), growth in every other period 8
  • 9. The first thought that strikes you is the Create demand for Commercial Teams first thought that your products and are as crucial as Always think of 2-3 strikes your fulfill them too. In ourHave one product for advertizing spend. periods ahead. competitor too. That case, ourONLY one segment. Demand creation can Foresight saves is the reason why competitors took only be met by sales nasty surprises. great strategies advantage of our staff. fail, because they are advertizing. duplicated by other players. 9
  • 10. The market size is increasing by approx 30% for Sonites and aprox 330% for VoditesThe savers segment is increasing to 48% and the shoppers segment to 37% in the next 5 years.Over the next 5 years the shoppers segment on an average increases by 5.8% while the savers are increasing by 10.9%.The other segments are reducing and hence the above said 2 segments can be targeted to get the maximum returns. Set targets for market shares well in advance and try to stick to them. 10
  • 11. Commercial teams should be allocated in such a way so that maximum sales can be availed from the variousavenues: Mass Merchandisers, Specialty Stores and Online Stores.With unlimited budget, comes unlimited responsibility. Always remember that advertizing is an expense that willultimately be deducted from the revenues to get the EBIT. Spend prudently when you have unlimited budget.Customize each product for a particular segment and price it accordingly. Avoid cannibalization of products.The advertising expenditure and commercial team size needs to be competitive with