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Marketing management report 1
Marketing management report 1
Marketing management report 1
Marketing management report 1
Marketing management report 1
Marketing management report 1
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Marketing management report 1

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  • 1. Rennes International School of Business ESC RENNESExecutive Master of Business Administration EMBA COHORT 1 (2003 - 2004) Marketing Management Conducted by: Dr. Rod McCOLL Marketing Management 1 By Magdy A. Sattar Abed El-Hamid Mohamad November, 2003 Cairo, Egypt
  • 2. TABLE OF CONTENTSIntroduction & Objective II1. Buyer Preferences ……………………………………………………….2 1-1 Sonite Customers ………....…………………………….2 1-2 Vodite Customers ……………………………………….22. Strengths & Weaknesses of E-FIRM ……………………………………….3 2-1 Opportunities ……….………………………………………3 2-2 Threats ……………………………………………….3 2-3 Strengths ……………………………………………….3 2-4 Weaknesses ………………………………………………..43. Competitor analysis ……….……………………………………………….4 4-1 Strengths .……………………………………………….4 4-2 Weaknesses .……………………………………………….44. Current strategy ……….……………………………………………………….55. Future Plan ……….……………………………………………………….5 6-1 Objectives .……………………………………………….5 6-2 Strategy .……………………………………………….5 6-3 Tactics .……………………………………………….5EMBA CairoRennes International School of Business 1
  • 3. INTRODUCTION & OBJECTIVEThe purpose of this report is to submit a Market plan for “E-Firm”, focusing on buyerpreferences, strengths and weaknesses of “E-Firm”, competitor analysis, currentstrategy, and future objectives, strategy, and tactics. The objective for me and myteam partner is to build our analytical skills and develop our ability to workeffectively in a team situation. 1. BUYER PREFERENCE 1.1 SONITE CUSTOMERS  Buffs (BU):They demand high-performance products, less concerned by the convenient of theproducts, and they are quite price-sensitive.  Singles (SI):They demand average levels of both performance and convenience products, and theyare quite price-sensitive.  Professionals (PR):They demand high quality, high-performance, easy to use products, and they canafford expensive products. They view price as an indication of quality.  High earners (HI):They demand performance and convenience from the products, and they usually buyfairly expensive products.  Others (OT):This segment is the largest, they demand low performance and average convenientproducts, and they are looking for cheap products. 1.2 VODITE CUSTOMERS  Innovators (IN):A small percentage of the total potential consumers, they demand products that satisfytheir desire and interest, and their income levels are above average.  Early adopters (AD):They are opinion leaders and helpful in advertising the new products to other potentialbuyers, they are critical to the adoption process of the products, and they have anaverage income level.  Followers (FO):They represent the bulk of potential consumers; their income level is usually belowaverage.EMBA CairoRennes International School of Business 2
  • 4. 2. SWOT ANALYSIS OF E-FIRM 2.1 OPPORTUNITS  Sonite Market growth rate is suitable for the industry (total Sonite market growth rate during next five periods is expected to be 38%)  Market is expected to have a significant increase during next five periods in two segments (others 98%, singles 86%)  Economic situation is stable GNP growth rate is stable 4% and inflation rate is also stable 4%  There are a brand new market ready to start which is Vodite market 2.2 THREATS  Two main profitable segments are expected to decrease over the next five periods (Professionals –14%, Buff –33%).  The increase in one of the most profitable segments (Hi-earner) over the next five periods is so small 6%. 2.3 STRENGTH  Market leader during the last 4 periods with total Market share of 27% in Period 4.  The best in financial situation. The highest market capitalization (534,900 K$), the highest contribution margin (47,836 K$), the highest return on Investment 5.43% in period 4 and 4.94 % cumulative and the highest next year budget 19,150 K$.  We have good position in total brands awareness by consumer in segments (Buffs, Professionals and Hi earners).EMBA CairoRennes International School of Business 3
  • 5. 2.4 WEAKNESS  Our coverage through the five segments is not doing well because our two products are almost the same in Technical specifications so they target the same segments (Professionals, Buff, and High earners) and ignores two Segments (others and Singles).  Our sales force is not enough for covering the three distribution channels, but; we could increase our contribution by 2,605 K$ in SEMI product and 278 K$ in SELF product if we increased our sales force by 10 for each channel. 3 COMPETITOR ANALYSIS Our market studies ratings of competitors on key success factors.Competitor Market Net Stock Return on Distribution Brand Sales and Purchase Name Capitalizati Contribut price investment coverage by Awareness Market intention on ion index channel shares U group G G G G E E E E O group G G G F G G P G I group F P F P G P F P A group F F F F F P F P Where E = excellent, G = good, F = fair, P = poor 4.1 STRENGTHS  Good distribution coverage influences their brand awareness and encourages the increase of buyers purchasing intention. 4.2 WEAKNESSES  Bad management of firm capital reduces net contribution of the products; witch affects their financial position and increases the risks. EMBA Cairo Rennes International School of Business 4
  • 6. 4 CURUNT STRATEGY  A holding strategy for PR, and HI, segments to continue yielding large position cash flow. 5 FUTURE PLAN 6.1 OBJECTIVES  Maintain our strong existing in professional, Hi-Earners and Buff segment even if they are shrinking.  Increase our sales in the fast growing two segments (others and Singles) and try to gain more market share from them with relevant contribution margin.  Achieve 50 % Market share of Vodite Market to be also the market leader of this market.  Achieve the sales target for the next five periods.  Achieve the share of each targeted segment for the next five periods. 6.2 STRATEGY  A building strategy for SI segment and spend more money to keep up with fast growing market.  A harvest strategy for PR segment to increase short-term cash flow regardless of long-term.  Attack opportunities “VEST”. 6.3 TACTICS  Increase Advertising budget, sales force for SEMI product to attack more High earner and to maintain our market share in professional segment against the competition from Both U and I firms in this segment  For the sonit market, introduce one new brand “SEXY”, and modify one of the existing to target more Single and Others segments.  The launching of “VEST”.EMBA CairoRennes International School of Business 5

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