MarkStratIndustry Gorilla - Team Lexis

2

Product Portfolio-Sonites

Sonite Launched in Period Target Segment Market share - Value Market share - Unit Rec. retail price Base Cost

LOCK 0 Savers 3.1% 4.7% 195 116

LOHA 4 High Earners 3.2% 1.8% 500 188

LOOP 0 Professionals 3.9% 2.6% 435 197

LOOT 8 Shoppers 2.4% 2.9% 245 163

LOSH 3 Shoppers 9.5% 12.6% 225 111

3

Product Portfolio-Vodite

MARKET : VODITES

Launched in Period

Market share - Value

Market share - Unit Rec. retail price Base Cost

LELI 7 11.2% 10.5% 990 373

LELO 8 0.9% 0.7% 1,259 373

4

MDS- Standings

5

Period 0

Period 1

Period 2

Period 3

Period 4

Period 5

Period 6

Period 7

Period 8

10001151

1290 1362 13801493

1320 1383 1425

TEAM L-SPI

6

Period 1

• SPI:1151 2 products – Lock & Loop• Earning before Taxes: 18456 Loop($500) – Target Professionals • Advertising: 4916K$ Lock($250) -- Target Savers • Commercial Team Cost: 1332$

Period2

•SPI:1290 Invested in LOSH– A product for Shoppers

•Earning before Taxes:23476•Advertising: 4080K$ •Commercial Team Cost: 1290K$ Made our first mistake!!•R&D : 1250

Period3

•SPI:1362 Launched LOSH -$240

•Earning before Taxes:23534 Invested in LOHA – A product for High Earners

•Advertising : 5640K$ Loop -$485 •Commercial Team Cost: 1921$ Lock - $210•R&D: 1110 Price Race on

Period 4

•SPI: 1380 LOHA launched- $500•Earning before Taxes:20285 Loop- $435•Advertising: 5649K$ Lock - $195•Commercial Team Cost: 2796K$ Losh - $230 – Focus on one product•R&D : 2945 Invested in LELI – Our Vodite planned for period 6

Reduced Price

Analysis &

Strategies

7

Period 5

•SPI-1493 Lock starts sinking!

•Earnings-$28225K Invested in LELI

•Advertising:6267 Frantic increase in commercial team size•Commercial Team:4001 Losh doing well

Period 6

•SPI- 1320 Budget hit! •Earnings-$22472K Modification of Lock•Advertising:6684 Had to hold back on decision to launch Vodite•Commercial Team:4350

Period 7

•SPI- 1383 Launched LELI -$995•Earnings- -$16437K Modified Loop picks up sales•Advertising:15374 Loop & Loha not doing well•Commercial Team :6011 Investment in LOOT- Targeted at the growing shoppers segment

Period 8

•SPI- 1425 Launched another vodite LELO•Earnings- -$18139K Launched Loot•Advertising:16728 Losh is the saving grace•Commercial Team :6661

Analysis &

Strategies

8

• Poor commercial team size initially• In period 3, didn’t know how to use

the loan sanctioned• In period 4, price of Loop was

reduced drastically- Professionals are not price sensitive.

• Budget too little for so many products

Mistakes

• Focused on developing a product for every segment

• Decision to focus on our prime product (Losh) pays off

• Decision to modify Lock and take advantage of its brand awareness works

• SPI dips only in one period (6th), growth in every other period

Positives

What We Did??

9

Key Marketing TAKEAWAYS

Have one product for ONLY one

segment.

Create demand for your products and fulfill them too. In our case, our competitors

took advantage of our advertizing.

Commercial Teams are as

crucial as advertizing

spend. Demand creation can only be met by sales

staff.

Always think of 2-3 periods ahead. Foresight saves nasty surprises.

The first thought that strikes you

is the first thought that strikes your

competitor too. That is the

reason why great strategies fail,

because they are duplicated by other players.

10

Recommendations for the future to the new management team on what strategies they should

pursue

The market size is increasing by approx 30% for Sonites and aprox 330% for Vodites

The 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.

11

Commercial teams should be allocated in such a way so that maximum sales can be availed from the various avenues: Mass Merchandisers, Specialty Stores and Online Stores.

With unlimited budget, comes unlimited responsibility. Always remember that advertizing is an expense that will ultimately 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 respect to the market.

Don’t copy your market leader, but mark his moves.

Recommendations for the future to the new management team on what strategies they should

pursue

12

Thank You