SlideShare a Scribd company logo

Markstrat 2016 athens university of economics & business

•
•
A
Andreas Marinis

Presentation of Markstrat strategy - Athens University of Economics and Business

Business
1 of 115
Download to read offline
MarkStrat Strategy: Years 1-4 Team Omicron Athens University of Economics & Business (AUEB) March 2016
MarkStrat Year 1 Team Omicron Athens University of Economics & Business (AUEB) March 2016
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 3 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 4 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 5 Production per Brand Marketing Mix Forecasted Size (Period 1) 308 247242 171 228 0 100 200 300 400 Buffs Singles Pros Units *10^3 OthersHiEarners Market Share within Segment (Period 0) 69% 26% 97% 98% 31% 74% 96% 0% 20% 40% 60% 80% 100% MS (%) OthersHiEarnersBuffs Singles Pros 3% 4% 2% Expensive SoniteCheap Sonite Potential Demand Sales (Period 1) 690 506 0 200 400 600 800 Cheap Sonite Expensive Sonite Projected Demand Sales (*10^3) Production Team Omicron (Period 1) 155 108 0 100 200 Expensive SoniteCheap Sonite Production (*10^3) 21.4% 22.4%Projected MS 86-130 124-186 Year 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 6 Targeting Strategy per Brand – Contribution Evaluation Marketing Mix Year 1 Note 2: Manufacturer Selling Price Desired Retail Price per Segment Desired MSP2 per Segment 238 395 493 289273 0 100 200 300 400 500 Desired Price1 OthersProsSinglesBuffs HiEarners Note 1: Prices are based on Conjoint Analysis of Practice Session; Still not available to our Session 90 99 135 75 69 74 74 161 161 74 0 100 200 300 296 236 173164 Desired Price1 Others 143 HiEarnersProsSinglesBuffs Mnf’s ContributionTranfer Cost3 Note 3: Initial Estimation of production similar to Period 0 Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution) 600 200 400 800 0 *10^3 $ Period 0 Period 5Period 1 Pros HiEarnersSinglesBuffs Others 200 100 50 150 250 0 *10^3 $ Period 1 Period 5Period 0 Pros & Others our priority segments
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 7 Targeting Strategy per Brand – Attributes Evaluation Marketing Mix Year 1 Desired Attributes per Segment vs. SOLD Desired Attributes per Segment vs. SONO 273 289 238 225 0 100 200 300 Price $ SOLDOthersSinglesBuffs 0 20 40 60 80 100 5-100 Power 34,9 12,0 45,4 88,4 0 2 4 6 8 10 3-10 Design 3,0 6,7 8,1 4,2 0 10 20 30 40 50 Max. Frequency 29,2 19,0 43,5 25,0 5-50 273 493 395 480 0 100 200 300 400 500 Price $ SONOBuffs HiEarnersPros 0 100 68,8 75,0 5-100 Power 72,1 88,4 0 100 32,5 Max. Frequency 43,5 40,0 5-50 38,8 0 10 Design 8,0 3-10 4,2 8,3 9,1 Relative Importance Relative Importance
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 8 Targeting Strategy per Brand – Summary Marketing Mix Year 1 Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand 0 20 40 60 80 Singles OthersBuffs 53,6 % 60,9 62,4 44,0 70,6 71,5 46,0 54,3 43,3 Pros 67,3 HiEarners 0 5 10 15 20 % Others 0,6 Pros 16,2 Buffs 16,1 11,5 12,3 0,5 0,3 HiEarners 16,4 4,4 Singles 5,2 SONOSOLD SOLD Others SONO Pros The largest segment in units (economy of scales) Customers with similar needs Looking for cheap, low performance products Brand Awareness: 62,4% (second highest) Purchase Intentions: 16,1%(highest one) Market Share: 16,1% Actual size this period: Size: 260KU, 25,7% Forecasted size next period: size: 308KU, 25,8% Forecasted size in 5 periods: Size: 619KU, 28,2% Largest segment in terms of profit margin High quality, high performance & easy 2 use Price as an indication of quality Brand Awareness: 70,6% (second highest) Purchase Intentions: 16,2%(second highest) Market Share: 16,3% Actual size this period: Size: 196KU, 19,3% Forecasted size next period: size: 242KU, 20,2% Forecasted size in 5 periods: Size: 406KU, 18,5%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 9 Pricing & Advertising per Brand & Segment Marketing Mix Year 1 9 10 11 12 13 14 15 16 17 18 0,0 350,0 200,0 100,0 300,0 250,0 150,0 50,0 "Expensive" Sonites "Cheap" Sonites Growth vs. Period -1Sonite Market Growth SOLD Decrease the price >10%; Price will be significant parameter for the brand to be preferred Price will remain at similar level vs. previous year Sales in million $ (Period 0) BCG Matrix1 Retail Price per Brand SONO Advertising per Brand <1/3 of total advertising budget will be allocated to SOLD; >10% of SOLD advertising budget will be invested on “research” >2/3 of total advertising budget will be allocated to SONO; >10% of SONO advertising budget will be invested on “research” SOLD SONO Strategic Decisions2 Evaluate whether is worthwhile the existence in our portfolio of Question marks & Dogs Investment in Star Brands in order to move them to “Cash Cow Segment” Note 2: Source: http://www.mbatools.co.uk/Marketing/bgcgrowthmatrix.htm & http://www.mbatools.co.uk/Marketing/bgcgrowthmatrix.htm Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 10 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 11 Sonites Journey Sales Force Year 1 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price SOLD SONO Base Transfer Cost $74 Base Transfer Cost $161 Customers Team Omicron R&D
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 12 Sales Force per Brand & Segment Sales Force Coverage (Period 0) 26 3938 26 4040 0 15 30 45 Specialty stores Depart. stores Mass Merchandis. Coverage (%) Expensive SoniteCheap Sonite 10 10 10 10 10 10 FTEs for 100% coverage 39 2626 38 2525 0 15 30 45 Depart. storesSpecialty stores Mass Merchandis. # FTEs Cheap Sonite Expensive Sonite SOLD Potential 400 0 200 100 300 246 4 Units *10^3 3 23 58 84 Specialty 59 68 Mass 176 119 119 34 7 12 Depart OthersHiEarnersProsSinglesBuffs SONO Potential 0 400 300 200 100 Units *10^3 Mass 133 13 73 47 Depart 192 121 70 Specialty 365 45 117 154 49 20 24 6 15 22 25 0 15 30 # FTEs MassDepartSpecialty Expensive SoniteCheap Sonite FTEs Team Omicron (Period 1) Year 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 13 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 14 Market Research – Ordered Reports Market Research Year 1 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Mainly for the re-allocation of FF to Channels Evaluation of Targeting strategy Evaluation of Coverage strategy Contribution to R&D Decisions Projected Demand Sales define our production & strategy Contribution mainly to advertising research All Teams will allocate Budget between Ads & SFE, so… Understand through Distribution Panel (in Period 1) Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 15 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 16 Profit & Loss Account – Base Case Scenario1 P&L Account Year 1 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Company Performance Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO Base R&D project PSOLD PSONO Sales Units sold2 U 272,000 117,000 155,000 Average retail price $ 370 225 480 Average selling price3 $ 237 148 304 Revenues K$ 64,487 17,350 47,137 Production Units produced U 263,000 108,000 155,000 Current unit transfer cost4 $ - 69 151 Average unit transfer cost $ 116 69 151 Cost of goods sold K$ -31,440 -8,100 -23,339 Units in inventory U 0 0 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 33,047 9,250 23,798 Marketing Advertising expenditures K$ -3,838 - 1,075 - 2,763 Advertising research expenditures K$ -491 - 138 - 353 Sales force K$ -2,493 - 1,113 - 1,380 Contribution after marketing K$ 26,225 6,924 19,302 Note 3: Based on the projected allocation of brands per channel (Result: Margin for SOLD=61.0% & for SONO = 60.6% Note 2: Includes also 9k units current inventory Note 1: Base Case Scenario is based on the assumption that we sell exactly the produced amount of units COMPANY PERFORMANCE Unit Total Sonite market Vodite market Sales Units sold U 272,000 272,000 0 Average retail price $ 370 370 0 Average selling price $ 237 237 0 Revenues K$ 64,487 64,487 0 Production Units produced U 263,000 263,000 0 Cost of goods sold K$ -31,440 -31,440 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 33,047 33,047 0 Marketing Advertising expenditures K$ -3,838 -3,838 0 Advertising research expenditures K$ -491 -491 0 Sales force K$ -2,493 -2,493 0 Contribution after marketing K$ 26,225 26,225 0 Other expenses Market research studies K$ -326 - 326 - Research and development K$ 0 - - Interest paid K$ 0 Exceptional cost or profit K$ 0 Net contribution K$ 25,899 Next period budget K$ 10,360
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 17 Profit & Loss Account – “Pessimistic” Scenario1 P&L Account Year 1 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Company Performance Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO Base R&D project PSOLD PSONO Sales Units sold2 U 219,000 95,000 124,000 Average retail price $ 369 225 480 Average selling price3 $ 237 148 304 Revenues K$ 51,798 14,088 37,710 Production Units produced U 210,000 86,000 124,000 Current unit transfer cost4 $ - 72 157 Average unit transfer cost $ 120 72 157 Cost of goods sold K$ -26,306 -6,796 -19,510 Units in inventory U 0 0 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 25,492 7,292 18,200 Marketing Advertising expenditures K$ -3,838 - 1,075 - 2,763 Advertising research expenditures K$ -491 - 138 - 353 Sales force K$ -2,493 - 1,113 - 1,380 Contribution after marketing K$ 18,670 4,966 13,704 Note 3: Based on the projected allocation of brands per channel (Result: Margin for SOLD=61.0% & for SONO = 60.6% Note 2: Includes also 9k units current inventory Note 1: Pessimistic Scenario is based on the assumption that we sell 80% of the produced amount of units COMPANY PERFORMANCE Unit Total Sonite market Vodite market Sales Units sold U 219,000 219,000 0 Average retail price $ 369 369 0 Average selling price $ 237 237 0 Revenues K$ 51,798 51,798 0 Production Units produced U 210,000 210,000 0 Cost of goods sold K$ -26,306 -26,306 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 25,492 25,492 0 Marketing Advertising expenditures K$ -3,838 -3,838 0 Advertising research expenditures K$ -491 -491 0 Sales force K$ -2,493 -2,493 0 Contribution after marketing K$ 18,670 18,670 0 Other expenses Market research studies K$ -326 - 326 - Research and development K$ 0 - - Interest paid K$ 0 Exceptional cost or profit K$ 0 Net contribution K$ 18,344 Next period budget K$ 7,338
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 18 Profit & Loss Account – “Optimistic” Scenario1 P&L Account Year 1 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Company Performance Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO Base R&D project PSOLD PSONO Sales Units sold2 U 325,000 139,000 186,000 Average retail price $ 371 225 480 Average selling price3 $ 237 148 304 Revenues K$ 77,177 20,613 56,564 Production Units produced U 316,000 130,000 186,000 Current unit transfer cost4 $ - 67 144 Average unit transfer cost $ 111 67 144 Cost of goods sold K$ -36,177 -9,324 -26,854 Units in inventory U 0 0 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 41,000 11,289 29,711 Marketing Advertising expenditures K$ -3,838 - 1,075 - 2,763 Advertising research expenditures K$ -491 - 138 - 353 Sales force K$ -2,493 - 1,113 - 1,380 Contribution after marketing K$ 34,178 8,963 25,215 Note 3: Based on the projected allocation of brands per channel (Result: Margin for SOLD=61.0% & for SONO = 60.6% Note 2: Includes also 9k units current inventory Note 1: Optimistic Scenario is based on the assumption that we sell 120% of the produced amount of units COMPANY PERFORMANCE Unit Total Sonite market Vodite market Sales Units sold U 325,000 325,000 0 Average retail price $ 371 371 0 Average selling price $ 237 237 0 Revenues K$ 77,177 77,177 0 Production Units produced U 316,000 316,000 0 Cost of goods sold K$ -36,177 -36,177 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 41,000 41,000 0 Marketing Advertising expenditures K$ -3,838 -3,838 0 Advertising research expenditures K$ -491 -491 0 Sales force K$ -2,493 -2,493 0 Contribution after marketing K$ 34,178 34,178 0 Other expenses Market research studies K$ -326 - 326 - Research and development K$ 0 - - Interest paid K$ 0 Exceptional cost or profit K$ 0 Net contribution K$ 33,852 Next period budget K$ 13,541
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 19 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 20 Next Actions Year 1 Internal KPIs for evaluation of Decisions SONO market share >40% in Pros in Period 1 SOLD market share >30% in Others in Period 1 Sell all the SONO produced units in Period 1 >85% coverage of Specialty stores regarding SONO in Period 1 >80% coverage of Department stores regarding both Sonites in Period 1 Net contribution >25K$ in Period 1 Leader in Expensive Sonite in Period 1 (regardless Segment) Confirmation that the 2 targeted segments deliver the highest contribution for Team O Highest purchase intention in the 2 targeted Segments >85% Brand Awareness in the 2 targeted Segments Deliver the right message to the right segments 5Digit Budget (in K$) for Period 2
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 21 Next Actions Year 1 Study Benchmarking Studies Close the knowledge gap by studying Market Research Target Growth Segments more precisely either by … Advertising and changing the perceived attributes or by … Investing on slight differentiation of existing brands via R&D Re-evaluate # of SFE Market Sizing per Segment for next period(s) Estimate market share for the requested production levels Focus on “rich” segments Focus on being first in all important KPIs Achieve the largest available Budget for next period for… Launching the “VOTE”!!!! Actions regarding upcoming Periods
MarkStrat Year 2 Team Omicron Athens University of Economics & Business (AUEB) April 2016
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 2 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 3 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 4 Brand Portfolio Brand Portfolio Year 2 Brands SOLD Projects PSOLD Target Segment Others SONO PSONO Pros SOLO PSOLD Singles SONY PSONO HiEarners VOTE PVOTE Innovators Existing Brand Introduced Brand R&D
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 5 R&D – Vodite Project Brand Portfolio Year 2 Desired Attributes – Innovators 77 15 61 6 56 0 20 40 60 80 Innovators Scale DiameterMax FreqAutonomy Design Weight Relative Importance Desired Attributes – Early Adopters 68 12 41 8 46 0 20 40 60 80 Scale Early Adopters Relative Importance Desired Attributes – Followers 55 12 56 8 59 0 20 40 60 80 Scale Innovators Relative Importance On-Line Queries – Budget for R&D ~ $9,65M 63 13 60 7 60 0 20 40 60 80 Attributes Scale On-Line Query Output $9.65MR&D Budget $260Base Cost
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 6 Breakeven Point & Payback Period – Vodite Project Brand Portfolio Year 2 VODITE TOTAL COSTS - PERIOD R&D K$ 9.650 Advertising Budget K$ 2.000 Advertising Research K$ 500 Sales Force K$ 1.000 Market Research K$ 300 Total K$ 13.450 Breakeven Point Base Transfer Cost $ 260 Retail Price $ 900 Mnf’s Selling price $ 540 Mnf’s Contribution $ 280 Breakeven Point Units 48.000 Vodites Market Size (Period 3) Units >100.000 Feasible Estimated Vodite Dispensed Units Period 3 Units 50.000 Breakeven Point Units 48.000 Payback Period Months 11.5 Payback Period 0 5 10 15 20 25 30 35 40 45 50 55 60 40.000 20.000 0 10.000 30.000 R&D & Marketing $ Total Costs Base Transfer Cost Mnf’s Revenue Vodite Dispensed Units (*10^3) Breakeven Point 0 1 2 3 4 5 6 7 8 9 10 11 12 -15.000 0 -10.000 -5.000 5.000 Net Project Contribution (*10^3 $) Months Payback Period Months
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 7 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 8 Production per "Brand Category” Marketing Mix Forecasted Size (Period 2) 348 312318 204219 0 100 200 300 400 Pros OthersHiEarnersSinglesBuffs Units *10^3 Market Share within Segment (Period 1) 77% 34% 99% 98% 23% 66% 95% 0% 20% 40% 60% 80% 100% MS (%) OthersHiEarnersPros 5% 2%1% SinglesBuffs Expensive SoniteCheap Sonite Potential Demand Sales (Period 2) 875 526 0 300 600 900 Cheap Sonite Expensive Sonite Projected Demand Sales (*10^3) Year 2 8080 202 80 0 100 200 300 SOLO SONYSOLD SONO Production (*10^3) 16.7% 15.2%Projected MS 64-96 162-242 Production Team Omicron (Period 2) 9.1%23.1% +10 inven. 64-96 64-96
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 9 Targeting Strategy per Brand – Contribution Evaluation Marketing Mix Year 2 Note 1: Manufacturer Selling Price Desired Retail Price per Segment Desired MSP1 per Segment 215 466446 288 333 0 100 200 300 400 500 Desired Price SinglesBuffs OthersHiEarnersPros 71 110 138 151 66 129 63 129 129 63 0 100 200 300 129 HiEarners 280 Desired Price OthersPros 267 SinglesBuffs 173 200 Mnf’s ContributionTranfer Cost2 Note 2: Initial Estimation of production similar to Period 1 Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution) 200 800 600 400 0 Period 6 *10^3 $ Period 2Period 1 OthersBuffs Pros HiEarnersSingles 300 0 100 150 250 200 50 Period 6 *10^3 $ Period 2Period 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 10 Brand Awareness & Purchase Intention Evolution Marketing Mix Year 2 Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand 0 20 40 60 80 % 67,3 HiEarners 43,3 54,3 Others 60,9 53,6 ProsSingles 46,0 62,4 70,6 Buffs 44,0 71,5 0 5 10 15 20 25 5,2 ProsSingles HiEarners 4,4 16,4 16,1 0,3 Buffs 16,2 0,5 11,5 0,6 12,3 Others % SONOSOLD Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand 0 20 40 60 80 % 63,4 HiEarners 42,9 57,1 Others 63,2 51,9 ProsSingles 47,9 63,5 77,0 Buffs 44,4 68,3 0 5 10 15 20 25 4,5 ProsSingles HiEarners 5,1 17,3 17,2 0,4 Buffs 24,1 0,2 12,8 0,8 11,2 Others % Period0Period1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 11 Segments’ Characteristics – Summary Marketing Mix Year 2 SOLD Others SONO Pros The largest segment in units (economy of scales) Customers with similar needs Looking for cheap, low performance products Brand Awareness: 63,5% (highest one) Purchase Intentions: 17,2% (highest one) Market Share: 19,3% Actual size this period: Size: 294KU, 24,4% Forecasted size next period: size: 348KU, 24,8% Forecasted size in 5 periods: Size: 691KU, 29,3% Largest segment in terms of profit margin High quality, high performance & easy 2 use Price as an indication of quality Brand Awareness: 77,0% (highest one) Purchase Intentions: 24,1% (highest one) Market Share: 27,5% Actual size this period: Size: 268KU, 22,3% Forecasted size next period: size: 318KU, 22,7% Forecasted size in 5 periods: Size: 459KU, 19,4% SOLO Singles SONY Hi-Earners Customers who live alone, quite price-sensitive Use Sonites for personal purposes Actual size this period: Size: 165KU, 13,7% Forecasted size next period: size: 204KU, 14,5% Forecasted size in 5 periods: Size: 538KU, 22,8% High incomes, purchase motivated by status Expensive products Performance, convenience Actual size this period: Size: 253KU, 21,0% Forecasted size next period: size: 312KU, 22,3% Forecasted size in 5 periods: Size: 494KU, 20,9% Average levels of performance & convenience
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 12 Pricing & Advertising per Brand & Segment Marketing Mix Year 2 0 4 8 12 16 20 24 28 32 36 40 300,0 400,0 200,0 100,0 0,0 "Expensive" Sonites "Cheap" Sonites Value Growth vs. Period 0 Sonite Market Growth Sales in million $ (Period 1) BCG Matrix – Product Category1 Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites Dispensed Units (Period 1) BCG Matrix – Segment -8 -4 0 4 8 12 16 20 24 28 32 36 40 300,0 200,0 100,0 0,0 400,0 Units Growth vs. Period 0 HiEarners Singles Pros Buffs Others Sonite Market Growth Dispensed Units (Period 1) BCG Matrix – Channel 8 12 16 20 24 28 32 36 40 400,0 200,0 600,0 0,0 Specialty Mass Merch. Department Units Growth vs. Period 0 Sonite Market Growth Category Majority of Advertising expenses & Sales Force for the “expensive” Sonites. Launch new brand in a segment already targeted by competitors Marketing Strategy Segment Channel Primary focus on Pros. Start prioritizing HiEarners & Singles. Start sacrificing Others. Advertising budget will be allocated accordingly Focus on the growth channel of Department Stores, where margins are also in our favor. Allocate Sales Force accordingly
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 13 Pricing per Brand vs. Segment Marketing Mix Year 2 Desired Price per Segment – Semantic Scales 333 288 446 466 215 0 100 200 300 400 500 $ Price HiEarnersPros OthersSinglesBuffs Relative Importance Desired Price per Segment – Regression 325 271 459 484 221 0 100 200 300 400 500 $ Price Relative Importance Actual Price per Brand 211 456 239 450 0 100 200 300 400 500 Actual Price $ SONOSOLD SOLO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 14 Advertising Budget & Research per Brand Marketing Mix Year 2 Allocated mainly regarding the potential SOLD 17% of Budget to Research SONO 17% of Budget to Research SOLO 21% of Budget to Research SONY 21% of Budget to Research Maintain Brand Awareness Levels & Change Perceived Attributes Increase Brand Awareness Levels & Change Perceived Attributes Commence the Awareness Commence the Awareness Brand Awareness per Segment & Brand – P1 0 20 40 60 80 % 63,4 HiEarners 42,9 57,1 Others 63,2 51,9 ProsSingles 47,9 63,5 77,0 Buffs 44,4 68,3 Brand Awareness per Segment & Brand – P0 0 20 40 60 80 % 67,3 HiEarners 43,3 54,3 Others 60,9 53,6 ProsSingles 46,0 62,4 70,6 Buffs 44,0 71,5
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 15 Perceptual Objectives per Brand Marketing Mix Year 2 Desired Economy – MDS -20 -10 0 10 20 +-20 7,6 Economy 12,2 2,5 -12,3 -10,0 Singles ProsBuffs OthersHiEarnersChange perceived attributes via MDS Dimensions Desired Performance – MDS -20 -10 0 10 20 13,3 Performance -10,5 4,4 9,5 0,9 +-20 Desired Convenience – MDS -20 -10 0 10 20 +-20 -3,6 10,4 9,7 2,8 -6,2 Convenience Advertising Objective per Brand - Economy 12 -10 8 -12 -20 -10 0 10 20 Economy +-20 SONOSOLD SONYSOLO Advertising Objective per Brand - Performance -10 10 1 4 -20 -10 0 10 20 Performance +-20
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 16 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 17 Sonites Journey Sales Force Year 2 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price SOLO SONY Customers Team Omicron R&D SOLD SONO
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 18 Sales Force per Brand & Segment Sales Force SOLD Potential 400 200 100 300 0 Units *10^3 224 333 11 Mass 40 10 Specialty 45 66 117 5 Depart 117 55 170 Singles HiEarners OthersProsBuffs SONO Potential 300 500 200 100 0 400 222 134 126 80 56 Specialty 411 51 156 Units *10^3 122 Mass 71 51 Depart Year 2 FTEs 13 19 5 10 23 26 5 1110 11 25 9 0 15 30 Specialty stores # FTEs Depart. stores Mass Merchandis. SONOSOLD SOLO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 19 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 20 Sonites Market Research – Ordered Reports Market Research Year 2 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Mainly for the re-allocation of FF to Channels Evaluation of Targeting strategy Evaluation of Coverage strategy Contribution to R&D Decisions Projected Demand Sales define our production & strategy Not used for Decisions of Period 1 All Teams will allocate Budget between Ads & SFE, so… Understand through Distribution Panel (in Period 1) Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 21 Vodites Market Research – Ordered Reports Market Research Year 2 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Still no marketed brand Still no marketed brand Still no marketed brand Contribution to Advertising messages decisions Projected Demand Sales define our production & strategy Still no marketed brand Still no marketed brand Still no marketed brand Still no marketed brand Still no marketed brand Still no marketed brand
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 22 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 23 Profit & Loss Account – Base Case Scenario1 P&L Account Year 2 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY Base R&D project PSOLD PSONO PSOLD PSONO Sales Units sold2 U 452,000 90,000 202,000 80,000 80,000 Average retail price $ 368 211 456 239 450 Average selling price3 $ 236 140 289 158 285 Revenues K$ 106,463 12,557 58,427 12,643 22,835 Production Units produced U 442,000 80,000 202,000 80,000 80,000 Current unit transfer cost4 $ - 63 129 63 129 Average unit transfer cost $ 104 63 129 63 129 Cost of goods sold K$ -47,088 -5,670 -26,058 -5,040 -10,320 Units in inventory U 0 0 0 0 0 Inventory holding cost K$ 0 0 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 Contribution before marketing K$ 59,375 6,887 32,369 7,603 12,515 Marketing Advertising expenditures K$ -5,450 - 800 - 2,850 - 900 - 900 Advertising research expenditures K$ -1,230 - 160 - 570 - 250 - 250 Sales force K$ -3,744 - 869 - 1,315 - 557 - 1,003 Contribution after marketing K$ 48,951 5,058 27,634 5,896 10,362 Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Base Case Scenario is based on the assumption that we sell exactly the produced amount of units
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 24 Profit & Loss Account – “Pessimistic” Scenario1 P&L Account Year 2 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Pessimistic Scenario is based on the assumption that we sell 80% of the produced amount of units Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY Base R&D project PSOLD PSONO PSOLD PSONO Sales Units sold2 U 363,600 74,000 161,600 64,000 64,000 Average retail price $ 367 211 456 239 450 Average selling price3 $ 235 140 289 158 285 Revenues K$ 85,449 10,325 46,742 10,114 18,268 Production Units produced U 353,600 64,000 161,600 64,000 64,000 Current unit transfer cost4 $ - 63 129 63 129 Average unit transfer cost $ 104 63 129 63 129 Cost of goods sold K$ -37,796 -4,662 -20,846 -4,032 -8,256 Units in inventory U 0 0 0 0 0 Inventory holding cost K$ 0 0 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 Contribution before marketing K$ 47,653 5,663 25,896 6,082 10,012 Marketing Advertising expenditures K$ -5,450 - 800 - 2,850 - 900 - 900 Advertising research expenditures K$ -1,230 - 160 - 570 - 250 - 250 Sales force K$ -3,744 - 869 - 1,315 - 557 - 1,003 Contribution after marketing K$ 37,229 3,834 21,161 4,375 7,859
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 25 Profit & Loss Account – “Optimistic” Scenario1 P&L Account Year 2 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Optimistic Scenario is based on the assumption that we sell 120% of the produced amount of units Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY Base R&D project PSOLD PSONO PSOLD PSONO Sales Units sold2 U 540,400 106,000 242,400 96,000 96,000 Average retail price $ 368 211 456 239 450 Average selling price3 $ 236 140 289 158 285 Revenues K$ 127,476 14,789 70,113 15,172 27,402 Production Units produced U 530,400 96,000 242,400 96,000 96,000 Current unit transfer cost4 $ - 63 129 63 129 Average unit transfer cost $ 104 63 129 63 129 Cost of goods sold K$ -56,380 -6,678 -31,270 -6,048 -12,384 Units in inventory U 0 0 0 0 0 Inventory holding cost K$ 0 0 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 Contribution before marketing K$ 71,096 8,111 38,843 9,124 15,018 Marketing Advertising expenditures K$ -5,450 - 800 - 2,850 - 900 - 900 Advertising research expenditures K$ -1,230 - 160 - 570 - 250 - 250 Sales force K$ -3,744 - 869 - 1,315 - 557 - 1,003 Contribution after marketing K$ 60,672 6,282 34,108 7,417 12,865
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 26 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 27 Next Actions Year 2 Evaluation of Scorecard – Year 1 SONO market share >40% in Pros in Period 1 SOLD market share >30% in Others in Period 1 Sell all the SONO produced units in Period 1 >85% coverage of Specialty stores regarding SONO in Period 1 >80% coverage of Department stores regarding both Sonites in Period 1 Net contribution >25K$ in Period 1 Leader in Expensive Sonite in Period 1 (regardless Segment) Confirmation that the 2 targeted segments deliver the highest contribution for Team O Highest purchase intention in the 2 targeted Segments >85% Brand Awareness in the 2 targeted Segments Deliver the right message to the right segments 5Digit Budget (in K$) for Period 2 Achieved Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 28 Next Actions Year 2 Internal KPIs for evaluation of Decisions SONO market share >30% in Pros in Period 2 SOLD market share >20% in Others in Period 2 Sell all the SONO & SONY produced units in Period 2 >60% coverage of Specialty stores regarding SONO in Period 2 >52% coverage of Department stores regarding all Sonites in Period 2 Net contribution >37K$ in Period 2 Leader in Expensive Sonite in Period 1 (regardless Segment) >55% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >15K$ Budget for Period 2
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 29 Next Actions Year 2 Study Benchmarking Studies Close the knowledge gap by studying Market Research Target Growth Segments more precisely either by … Advertising and changing the perceived attributes or by … Investing on slight differentiation of existing brands via R&D Re-evaluate # of SFE Market Sizing per Segment for next period(s) Estimate market share for the requested production levels Focus on “rich” segments Focus on being first in all important KPIs Achieve the largest available Budget for next period for… Launching the “VOTE”!!!! Actions regarding upcoming Periods
MarkStrat Year 3 Team Omicron Athens University of Economics & Business (AUEB) April 2016
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 2 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 3 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 4 Brand Portfolio Brand Portfolio Year 3 Brands SOLD Projects PSOLD Target Segment Others SONO PSONO Pros SOLO PSOLD Singles SONY PSONO HiEarners VOTE PVOTE Innovators Existing Brand Introduced Brand R&D VOTE PVOTE Early Adopters Partially Withdraw
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 5 R&D – Vodite Project Brand Portfolio Year 3 Desired Attributes – Innovators 77 15 61 6 56 0 20 40 60 80 Innovators Scale DiameterMax FreqAutonomy Design Weight Relative Importance Desired Attributes – Early Adopters 68 12 41 8 46 0 20 40 60 80 Scale Early Adopters Relative Importance Desired Attributes – Followers 55 12 56 8 59 0 20 40 60 80 Scale Innovators Relative Importance On-Line Queries – Budget for R&D ~ $9,65M 63 13 60 7 60 0 20 40 60 80 Attributes Scale On-Line Query Output $9.65MR&D Budget $260Base Cost
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 6 Breakeven Point & Payback Period – Vodite Project Brand Portfolio Year 3 VODITE TOTAL COSTS - PERIOD R&D K$ 9.650 Advertising Budget K$ 3.567 Advertising Research K$ 711 Sales Force K$ 1.472 Market Research K$ 76 Total K$ 15.476 Breakeven Point Base Transfer Cost $ 265 Retail Price $ 8101 Mnf’s Selling price $ 486 Mnf’s Contribution $ 219 Breakeven Point Units 71.000 Vodites Market Size (Period 3) Units ~165.000 Feasible Estimated Vodite Dispensed Units Period 3 Units 83.000 Breakeven Point Units 71.000 Payback Period Months 10.1 Payback Period 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 0 50.000 40.000 30.000 20.000 10.000 $ Total Costs Base Transfer Cost Mnf’s Revenue R&D & Marketing Vodite Dispensed Units (*10^3) Breakeven Point 0 1 2 3 4 5 6 7 8 9 10 11 12 5.000 -15.000 0 -5.000 -10.000 -20.000 Net Project Contribution (*10^3 $) Payback Period Months Note 1: Weight average of VOTE’s & VOLT’s retail price based on estimated demand sales
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 7 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 8 Production per "Brand Category” Marketing Mix Forecasted Size (Period 3) 374378368 243 218 0 100 200 300 400 Pros OthersHiEarnersSinglesBuffs Units *10^3 Market Share within Segment (Period 2) 84% 40% 100% 98% 16% 60% 94% 0% 20% 40% 60% 80% 100% MS (%) OthersHiEarnersPros 6% 2%0% SinglesBuffs Expensive SoniteCheap Sonite Potential Demand Sales (Period 3) 1,044 537 0 400 800 1,200 Cheap Sonite Expensive Sonite Projected Demand Sales (*10^3) Year 3 84 1 383 100 0 200 400 600 SOLO SONYSOLD SONO Production (*10^3) 16.9% 0,2%Projected MS 80-120 306-460 Production Team Omicron (Period 3) 8,0%36.7% +1,4 inven. 67-1011 +41 inven. +7,4 inven.
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 9 Targeting Strategy per Brand – Contribution Evaluation Marketing Mix Year 3 Note 1: Manufacturer Selling Price Desired Retail Price per Segment Desired MSP1 per Segment 205 462444 267 331 0 100 200 300 400 500 OthersBuffs HiEarnersSingles Pros Desired Price 88 104 156 166 67 111 56 111 111 56 0 100 200 300 Desired Price Others 123 HiEarners 277 Pros 267 Singles 160 199 Buffs Mnf’s ContributionTranfer Cost2 Note 2: Initial Estimation of production similar to Period 1 Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution) 0 800 400 200 600 *10^3 $ Period 2Period 1 Period 6Period 3 Period 7 ProsBuffs Singles HiEarners Others 50 0 250 200 150 100 300 Period 2 Period 6Period 1 *10^3 $ Period 3 Period 7
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 10 Brand Awareness & Purchase Intention Evolution Marketing Mix Year 3 Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand 0 20 40 60 80 HiEarners 43,3 67,3 62,460,9 Others % 54,3 Buffs 46,0 71,5 44,0 Pros 70,6 Singles 53,6 0 5 10 15 20 25 % Pros 0,5 Others 0,6 16,1 HiEarners 16,4 0,3 16,2 Singles 12,3 Buffs 5,2 11,5 4,4 0 20 40 60 80 % Pros 63,2 Others 63,5 HiEarners 68,3 42,9 Singles 51,9 47,9 Buffs 44,4 63,4 57,1 77,0 0 5 10 15 20 25 HiEarners 5,1 17,3 24,1 17,2 Singles 0,4 0,8 % Pros 0,2 Others 11,2 Buffs 12,8 4,5 Period0Period1 63 4341 59 49 49 66 80 5964 899 29 10 10 26 101111 0 20 40 60 80 100 % OthersHiEarnersProsSinglesBuffs 17 00 10 4 1 16 50 7 17 200 5 1 0 9 6 13 0 10 20 30 40 50 % HiEarnersPros OthersSinglesBuffs Period2 SOLOSOLD SONO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 11 Segments’ Characteristics (Sonite Market) – Summary Marketing Mix Year 3 SOLD Others SONO Pros Large segment in units (economy of scales) Customers with similar needs Looking for cheap, low performance products Brand Awareness: 62,7% (second highest) Purchase Intentions: 17,2% (second highest) Market Share: 16,6% Actual size this period: Size: 316KU, 23,0% Forecasted size next period: size: 374KU, 23,6% Largest segment in terms of profit margin High quality, high performance & easy 2 use Price as an indication of quality Brand Awareness: 80,2% (highest one) Purchase Intentions: 50,0% (highest one) Market Share: 45,9% Actual size this period: Size: 325KU, 23,7% Forecasted size next period: size: 368KU, 23,3% SOLO Singles SONY Hi-Earners Customers who live alone, quite price-sensitive Use Sonites for personal purposes Actual size this period: Size: 189KU, 13,8% Forecasted size next period: size: 243KU, 15,4% High incomes, purchase motivated by status Expensive products Performance, convenience Actual size this period: Size: 319KU, 23,3% Forecasted size next period: size: 378KU, 23,9% Average levels of performance & convenience Brand Awareness: 29,2% (in one year) Purchase Intentions: 5,1% Market Share: 3,1% Brand Awareness: 26,2% (in one year) Purchase Intentions: 9,3% Market Share: 7,5%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 12 Segments’ Characteristics (Vodite Market) – Summary Marketing Mix Year 3 The largest segment in the early days The first users of Vodite products Try new ideas at some risk, Income above average Forecasted size next period: size: 100KU, 60,2% Forecasted size in 5 periods: Size: 173KU, 14,4% Larger segment than innovators, Opinion leaders Adopt Vodites after innovs, but before the majority Average income level Forecasted size next period: size: 50KU, 30,1% Forecasted size in 5 periods: Size: 289KU, 24,0% VOTE Innovators VOLT Adopters
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 13 Pricing & Advertising per Brand & Segment Marketing Mix Year 3 0 4 8 12 16 20 24 28 600,0 800,0 1.000,0 400,0 200,0 0,0 "Cheap" Sonites "Expensive" Sonites Value Growth vs. Period 1 Sonite Market Growth Dispensed Units (Period 2) BCG Matrix – Product Category1 Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites Dispensed Units (Period 2) BCG Matrix – Segment -4 0 4 8 12 16 20 24 28 32 36 40 0,0 400,0 300,0 200,0 100,0 Value Growth vs. Period 1 Buffs Others Singles HiEarners Pros Sonite Market Growth Dispensed Units (Period 2) BCG Matrix – Channel 8 10 12 14 16 18 800,0 600,0 200,0 0,0 400,0 Value Growth vs. Period 1 Department Mass Merch. Specialty Sonite Market Growth Category Majority of Advertising expenses & Sales Force for the “expensive” Sonites. Launch new brand in a segment already targeted by competitors Marketing Strategy Segment Channel Primary focus on Pros. Start prioritizing HiEarners. Start sacrificing Others. Advertising budget will be allocated accordingly Focus on the growth channel of Department Stores, where margins are also in our favor. Allocate Sales Force accordingly
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 14 Pricing per Brand vs. Segment Marketing Mix Year 3 Desired Price per Segment – Semantic Scales 331 267 444 462 205 0 100 200 300 400 500 $ Price HiEarnersPros OthersSinglesBuffs Relative Importance Desired Price per Segment – Regression 325 251 459 467 212 0 100 200 300 400 500 $ Price Relative Importance Actual Price per Brand 199 452 169 440 0 100 200 300 400 500 Actual Price $ SONOSOLD SOLO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 15 Advertising Budget & Research per Brand Marketing Mix Year 3 Allocated mainly regarding the potential SOLD 17% of Budget to Research SONO 17% of Budget to Research SOLO ---- SONY 21% of Budget to Research Maintain Brand Awareness Levels & Change Perceived Attributes Increase Brand Awareness Levels & Change Perceived Attributes Partially Withdraw Commence the Awareness Brand Awareness per Segment & Brand – P2 0 20 40 60 80 100 % 59,1 HiEarners 41,1 58,7 Others 63,8 49,1 ProsSingles 48,6 62,7 80,2 Buffs 42,8 65,7 Brand Awareness per Segment & Brand – P1 0 20 40 60 80 100 % 63,4 HiEarners 42,9 57,1 Others 63,2 51,9 ProsSingles 47,9 63,5 77,0 Buffs 44,4 68,3
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 16 Perceptual Objectives per Brand Marketing Mix Year 3 0 1 2 3 4 5 6 7 Price 5,85,7 Scale 2,2 3,8 2,7 SinglesBuffs Pros OthersHiEarnersChange perceived attributes via Semantic Scales 0 1 2 3 4 5 6 7 5,5 Scale Power 2,4 4,6 4,3 5,8 Advertising Objective per Brand - Price 0 1 2 3 4 5 6 7 2,4 5,8 Economy 5,8 Scale 2,1 SONYSOLOSONOSOLD Advertising Objective per Brand - Power 0 1 2 3 4 5 6 7 Performance 2,4 4,5 5,6 4,6 Scale Desired Price Desired Power
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 17 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 18 Sonites Journey Sales Force Year 3 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price SOLO SONY Customers Team Omicron R&D SOLD SONO
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 19 Vodites Journey Sales Force Year 3 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price VOTE Customers Team Omicron R&D VOLT
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 20 Sales Force per Brand & Segment Sales Force “Cheap Sonite” Potential 200 0 500 400 100 300 124 DepartSpecialty 41 36 215 Units *10^3 6 Mass 72 40 195 132 ProsSingles HiEarners OthersBuffs “Expensive Sonite” Potential 400 300 200 0 500 100 84 Mass 155 152 Depart 71 473 74 69 159 158 96 Units *10^3 292 Specialty Year 3 FTEs 9 14 3 8 25 31 111 9 28 14 0 15 30 45 # FTEs Specialty stores Mass Merchandis.Depart. stores SOLOSONOSOLD SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 21 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 22 Sonites Market Research – Ordered Reports Market Research Year 3 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Mainly for the re-allocation of FF to Channels Evaluation of Targeting strategy Saving Budget Contribution to R&D Decisions Projected Demand Sales define our production & strategy Not used for Decisions of Period 1 Understand through Industry Benchmarking Understand through Industry Benchmarking Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 3
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 23 Vodites Market Research – Ordered Reports Market Research Year 3 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Saving Budget Contribution to Advertising messages decisions Projected Demand Sales define our production & strategy Understand through Industry Benchmarking Understand through Industry Benchmarking Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 3 Will not be used Saving Budget Mainly for the re-allocation of FF to Channels
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 24 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 25 Profit & Loss Account – Base Case Scenario1 P&L Account Year 3 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY VOTE VOLT Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE Sales Units sold2 U 720,000 101,000 383,000 5,000 91,000 85,000 55,000 Average retail price $ 481 199 452 169 440 850 733 Average selling price3 $ 289 119 271 101 264 510 440 Revenues K$ 207,999 12,059 103,870 507 24,024 43,350 24,189 Production Units produced U 720,000 101,000 383,000 5,000 91,000 85,000 55,000 Current unit transfer cost4 $ - 56 111 56 111 265 265 Average unit transfer cost $ 133 56 111 56 111 265 265 Cost of goods sold K$ -95,650 -5,656 -42,513 -280 -10,101 -22,525 -14,575 Units in inventory U 35,000 0 0 37,000 0 0 0 Inventory holding cost K$ -525 0 0 -166 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 0 0 Contribution before marketing K$ 111,824 6,403 61,357 61 13,923 20,825 9,614 Marketing Advertising expenditures K$ -8,248 -580 -3,100 -1 -1,000 -2,700 -867 Advertising research expenditures K$ -1,801 -119 -680 -1 -290 -556 -155 Sales force K$ -4,586 -534 -1,425 -22 -1,113 -1,024 -468 Contribution after marketing K$ 97,548 5,170 56,152 37 11,520 16,545 8,124 Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Base Case Scenario is based on the assumption that we sell exactly the produced amount of units
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 26 Profit & Loss Account – “Pessimistic” Scenario1 P&L Account Year 3 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Pessimistic Scenario is based on the assumption that we sell 80% of the produced amount of units Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY VOTE VOLT Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE Sales Units sold2 U 576,000 80,800 306,400 4,000 72,800 68,000 44,000 Average retail price $ 481 199 452 169 440 850 733 Average selling price3 $ 289 119 271 101 264 510 440 Revenues K$ 166,399 9,648 83,096 406 19,219 34,680 19,351 Production Units produced U 576,000 80,800 306,400 4,000 72,800 68,000 44,000 Current unit transfer cost4 $ - 56 111 56 111 265 265 Average unit transfer cost $ 133 56 111 56 111 265 265 Cost of goods sold K$ -76,520 -4,525 -34,010 -224 -8,081 -18,020 -11,660 Units in inventory U 38,000 0 0 38,000 0 0 0 Inventory holding cost K$ -570 0 0 -170 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 0 0 Contribution before marketing K$ 89,309 5,123 49,085 11 11,138 16,660 7,691 Marketing Advertising expenditures K$ -8,248 -580 -3,100 -1 -1,000 -2,700 -867 Advertising research expenditures K$ -1,801 -119 -680 -1 -290 -556 -155 Sales force K$ -4,586 -534 -1,425 -22 -1,113 -1,024 -468 Contribution after marketing K$ 75,074 3,890 43,880 -13 8,735 12,380 6,201
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 27 Profit & Loss Account – “Optimistic” Scenario1 P&L Account Year 3 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Optimistic Scenario is based on the assumption that we sell 120% of the produced amount of units Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY VOTE VOLT Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE Sales Units sold2 U 864,000 121,200 459,600 6,000 109,200 102,000 66,000 Average retail price $ 481 199 452 169 440 850 733 Average selling price3 $ 289 119 271 101 264 510 440 Revenues K$ 249,599 14,471 124,644 608 28,829 52,020 29,027 Production Units produced U 864,000 121,200 459,600 6,000 109,200 102,000 66,000 Current unit transfer cost4 $ - 56 111 56 111 265 265 Average unit transfer cost $ 133 56 111 56 111 265 265 Cost of goods sold K$ -114,780 -6,787 -51,016 -336 -12,121 -27,030 -17,490 Units in inventory U 38,000 0 0 38,000 0 0 0 Inventory holding cost K$ -570 0 0 -170 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 0 0 Contribution before marketing K$ 134,249 7,684 73,628 102 16,708 24,990 11,537 Marketing Advertising expenditures K$ -8,248 -580 -3,100 -1 -1,000 -2,700 -867 Advertising research expenditures K$ -1,801 -119 -680 -1 -290 -556 -155 Sales force K$ -4,586 -534 -1,425 -22 -1,113 -1,024 -468 Contribution after marketing K$ 120,014 6,451 68,423 78 14,305 20,710 10,047
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 28 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 29 Next Actions Year 3 Evaluation of Scorecard – Year 1 SONO market share >40% in Pros in Period 1 SOLD market share >30% in Others in Period 1 Sell all the SONO produced units in Period 1 >85% coverage of Specialty stores regarding SONO in Period 1 >80% coverage of Department stores regarding both Sonites in Period 1 Net contribution >25K$ in Period 1 Leader in Expensive Sonite in Period 1 (regardless Segment) Confirmation that the 2 targeted segments deliver the highest contribution for Team O Highest purchase intention in the 2 targeted Segments >85% Brand Awareness in the 2 targeted Segments Deliver the right message to the right segments 5Digit Budget (in K$) for Period 2 Achieved Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 30 Next Actions Year 3 Evaluation of Scorecard – Year 2 SONO market share >30% in Pros in Period 2 SOLD market share >20% in Others in Period 2 Sell all the SONO & SONY produced units in Period 2 >60% coverage of Specialty stores regarding SONO in Period 2 >52% coverage of Department stores regarding all Sonites in Period 2 Net contribution >37K$ in Period 2 Leader in Expensive Sonite in Period 1 (regardless Segment) >55% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >15K$ Budget for Period 2 Achieved Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 31 Next Actions Year 3 Internal KPIs for evaluation of Decisions SONO market share >50% in Pros in Period 3 Sell all the VOTE & VOLT produced units in Period 3 Sell all the SONO & SONY produced units in Period 3 >55% coverage of Specialty stores regarding SONO in Period 3 >45% coverage of Department stores regarding all Sonites in Period 3 Net contribution >45K$ in Period 2 Leader in Expensive Sonite in Period 1 (regardless Segment) >30% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >18K$ Budget for Period 2
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 32 Next Actions Year 3 Study Benchmarking Studies Close the knowledge gap by studying Market Research Target Growth Segments more precisely either by … Advertising and changing the perceived attributes or by … Investing on slight differentiation of existing brands via R&D Re-evaluate # of SFE Market Sizing per Segment for next period(s) Estimate market share for the requested production levels Focus on “rich” segments Focus on being first in all important KPIs Achieve the largest available Budget for next period for… Launching the “VOTE”!!!! Actions regarding upcoming Periods
MarkStrat Year 4 Team Omicron Athens University of Economics & Business (AUEB) May 2016
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 2 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 3 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 4 Partially Withdraw Brand Portfolio Brand Portfolio Year 4 Brands SOLD Projects PSOLD Target Segment Others SONO PSONO Pros / Buffs SOLO PSOLD Singles SONY PSONO HiEarners VOTE PVOTE Innovators / Early Adopters Existing Brand Introduced Brand R&D VOLT PVOTE Early Adopters / Followers Partially Withdraw PSONY PVOLI Next period assignment
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 5 R&D – Vodite Project Brand Portfolio Year 4 Desired Attributes – Innovators 61 15 51 6 57 0 20 40 60 80 Innovators Scale DiameterMax FreqAutonomy Design Weight Relative Importance Desired Attributes – Early Adopters 68 12 42 7 50 0 20 40 60 80 Scale Early Adopters Relative Importance Desired Attributes – Followers 47 9 59 7 62 0 20 40 60 80 Scale Innovators Relative Importance On-Line Queries – Budget for R&D ~ $2,34M 70 16 55 7 60 0 20 40 60 80 Attributes Scale On-Line Query Output $2.34MR&D Budget $272Base Cost
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 6 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 7 Production per "Brand Category” Marketing Mix Forecasted Size (Period 4) 275 357 382 296 185 0 100 200 300 400 Pros OthersHiEarnersSinglesBuffs Units *10^3 Market Share within Segment (Period 4) 67% 18% 96% 94% 33% 82% 90% 0% 20% 40% 60% 80% 100% MS (%) OthersHiEarnersPros 10% 6%5% SinglesBuffs Expensive SoniteCheap Sonite Potential Demand Sales (Period 4) 905 590 0 400 800 1,200 Cheap Sonite Expensive Sonite Projected Demand Sales (*10^3) Year 4 70 1 250 73 0 200 400 600 SOLO SONYSOLD SONO Production (*10^3) Production Team Omicron (Period 4) +64 inven. +41 inven. +29 inven.+114 inven.
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 8 Targeting Strategy per Brand – Contribution Evaluation Marketing Mix Year 4 Note 1: Manufacturer Selling Price Desired Retail Price per Segment Desired MSP1 per Segment 205 462444 267 331 0 100 200 300 400 500 OthersBuffs HiEarnersSingles Pros Desired Price 88 104 156 166 67 111 56 111 111 56 0 100 200 300 Desired Price Others 123 HiEarners 277 Pros 267 Singles 160 199 Buffs Mnf’s ContributionTranfer Cost2 Note 2: Initial Estimation of production similar to Period 1 Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution) 0 800 400 200 600 *10^3 $ Period 3Period 2 Period 7Period 3 Period 8 ProsBuffs Singles HiEarners Others 50 0 250 200 150 100 300 Period 3 Period 7Period 2 *10^3 $ Period 3 Period 8
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 9 Brand Awareness & Purchase Intention Evolution Marketing Mix Year 4 64 4443 63 52 48 68 77 57 63 0 20 40 60 80 % Pros OthersHiEarnersSinglesBuffs 17 00 11 5 1 17 24 5 13 0 5 10 15 20 25 HiEarnersSingles % Pros OthersBuffs Period1 63 4341 59 49 49 66 80 5964 899 29 10 10 26 101111 0 20 40 60 80 100 % OthersHiEarnersProsSinglesBuffs 17 00 10 4 1 16 50 7 17 200 5 1 0 9 6 13 0 10 20 30 40 50 % HiEarnersPros OthersSinglesBuffs Period3 SOLOSOLD SONO SONY 59 4038 54 45 48 63 79 5862 788 26 9 14 36 141616 0 20 40 60 80 % OthersHiEarnersProsSinglesBuffs 16 00 42 1 11 26 3 13 2 00 2 1 0 15 11 3 0 5 10 15 20 25 30 % HiEarnersPros OthersSinglesBuffs Period4 Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 10 Segments’ Characteristics (Sonite Market) – Summary Marketing Mix Year 4 SOLD Others Large segment in units (economy of scales) Customers with similar needs Looking for cheap, low performance products Brand Awareness: 59,2% (highest one) Purchase Intentions: 16,0% (highest one) Market Share: 17,4% Actual size this period: Size: 230KU, 17,9% Forecasted size next period: size: 275KU, 18,4% SOLO Singles SONY Hi-Earners Customers who live alone, quite price-sensitive Use Sonites for personal purposes Actual size this period: Size: 219KU, 17,1% Forecasted size next period: size: 296KU, 19,8% High incomes, purchase motivated by status Expensive products Performance, convenience Actual size this period: Size: 312KU, 24,4% Forecasted size next period: size: 357KU, 23,9% Average levels of performance & convenience Brand Awareness: 26,3% (highest one) Purchase Intentions: 1,9% Market Share: 0,2% Brand Awareness: 36,4% (highest one) Purchase Intentions: 15,4% Market Share: 14,6%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 11 Segments’ Characteristics (Sonite Market) – Summary Marketing Mix Year 4 SONO Buffs 15% SONO Pros 85% Among the first to use Sonite products Demand high performance products Quite price-sensitive, incomes not necessarily high Brand Awareness: 62,4% Purchase Intentions: 13,2% Market Share: 18,5% Actual size this period: Size: 187KU, 14,6% Forecasted size next period: size: 185KU, 12,4% Largest segment in terms of profit margin High quality, high performance & easy 2 use Price as an indication of quality Brand Awareness: 79,0% (highest one) Purchase Intentions: 25,5% (highest one) Market Share: 31,0% Actual size this period: Size: 334KU, 26,0% Forecasted size next period: size: 382KU, 25,5%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 12 Segments’ Characteristics (Vodite Market) – Summary Marketing Mix Year 4 VOTE Innovators 40% VOTE Adopters 30% The largest segment in the early days The first users of Vodite products Try new ideas at some risk, Income above average Brand Awareness: 26,3% (second highest) Purchase Intentions: 29,4% (highest one) Actual size this period: Size: 55KU, 56,3% Forecasted size next period: size: 69KU, 40,6% Forecasted size in 5 periods: Size: 100KU, 10,4% Larger segment than innovators, Opinion leaders Adopt Vodites after innovs, but before the majority Average income level Brand Awareness: 15,5% Purchase Intentions: 17,0% Actual size this period: Size: 33KU, 33,6% Forecasted size next period: size: 75KU, 44,4% Forecasted size in 5 periods: Size: 199KU, 20,6% VOTE Followers 30% The bulk of potential customers Perceive more risk in buying new products Forecasted size next period: size: 25KU, 15,1% Forecasted size in 5 periods: Size: 665KU, 69,0% Income level below average Brand Awareness: 26,5% (highest one) Purchase Intentions: 25,2% Actual size this period: Size: 10KU, 10,1%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 13 Segments’ Characteristics (Vodite Market) – Summary Marketing Mix Year 4 VOLT Adopters 70% VOLT Followers 30% Larger segment than innovators, Opinion leaders Adopt Vodites after innovs, but before the majority Average income level Brand Awareness: 21,5% Purchase Intentions: 38,1% (highest one) Actual size this period: Size: 33KU, 33,6% Forecasted size next period: size: 75KU, 44,4% Forecasted size in 5 periods: Size: 199KU, 20,6% The bulk of potential customers Perceive more risk in buying new products Income level below average Brand Awareness: 15,3% Purchase Intentions: 19,2% Actual size this period: Size: 10KU, 10,1% Forecasted size next period: size: 25KU, 15,1% Forecasted size in 5 periods: Size: 665KU, 69,0%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 14 Pricing & Advertising per Brand & Segment Marketing Mix Year 4 0 4 8 12 16 20 24 28 600,0 800,0 1.000,0 400,0 200,0 0,0 "Cheap" Sonites "Expensive" Sonites Value Growth vs. Period 1 Sonite Market Growth Dispensed Units (Period 3) BCG Matrix – Product Category1 Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites Dispensed Units (Period 3) BCG Matrix – Segment -4 0 4 8 12 16 20 24 28 32 36 40 0,0 400,0 300,0 200,0 100,0 Value Growth vs. Period 1 Buffs Others Singles HiEarners Pros Sonite Market Growth Dispensed Units (Period 3) BCG Matrix – Channel 8 10 12 14 16 18 800,0 600,0 200,0 0,0 400,0 Value Growth vs. Period 1 Department Mass Merch. Specialty Sonite Market Growth Category Majority of Advertising expenses & Sales Force for the “expensive” Sonites. Launch new brand in a segment already targeted by competitors Marketing Strategy Segment Channel Primary focus on Pros. Start prioritizing HiEarners. Start sacrificing Others. Advertising budget will be allocated accordingly Focus on the growth channel of Department Stores, where margins are also in our favor. Allocate Sales Force accordingly
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 15 Pricing per Brand vs. Segment Marketing Mix Year 4 Desired Price per Segment – Semantic Scales 331 267 444 462 205 0 100 200 300 400 500 $ Price HiEarnersPros OthersSinglesBuffs Relative Importance Desired Price per Segment – Regression 325 251 459 467 212 0 100 200 300 400 500 $ Price Relative Importance Actual Price per Brand 181 425 140 415 0 100 200 300 400 500 Actual Price $ SONOSOLD SOLO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 16 Advertising Budget & Research per Brand Marketing Mix Year 4 Allocated mainly regarding the potential SOLD 17% of Budget to Research SONO 17% of Budget to Research SOLO ---- SONY 21% of Budget to Research Maintain Brand Awareness Levels & Change Perceived Attributes Increase Brand Awareness Levels & Change Perceived Attributes Partially Withdraw Commence the Awareness Brand Awareness per Segment & Brand – P2 0 20 40 60 80 100 % 59,1 HiEarners 41,1 58,7 Others 63,8 49,1 ProsSingles 48,6 62,7 80,2 Buffs 42,8 65,7 Brand Awareness per Segment & Brand – P1 0 20 40 60 80 100 % 63,4 HiEarners 42,9 57,1 Others 63,2 51,9 ProsSingles 47,9 63,5 77,0 Buffs 44,4 68,3
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 17 Perceptual Objectives per Brand Marketing Mix Year 4 0 1 2 3 4 5 6 7 Price 5,85,7 Scale 2,2 3,8 2,7 SinglesBuffs Pros OthersHiEarnersChange perceived attributes via Semantic Scales 0 1 2 3 4 5 6 7 5,5 Scale Power 2,4 4,6 4,3 5,8 Advertising Objective per Brand - Price 0 1 2 3 4 5 6 7 2,4 5,8 Economy 5,8 Scale 2,1 SONYSOLOSONOSOLD Advertising Objective per Brand - Power 0 1 2 3 4 5 6 7 Performance 2,4 4,5 5,6 4,6 Scale Desired Price Desired Power
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 18 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 19 Sonites Journey Sales Force Year 4 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price SOLO SONY Customers Team Omicron R&D SOLD SONO
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 20 Vodites Journey Sales Force Year 4 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price VOTE Customers Team Omicron R&D VOLT
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 21 Sales Force per Brand & Segment Sales Force “Cheap Sonite” Potential 200 0 500 400 100 300 124 DepartSpecialty 41 36 215 Units *10^3 6 Mass 72 40 195 132 ProsSingles HiEarners OthersBuffs “Expensive Sonite” Potential 400 300 200 0 500 100 84 Mass 155 152 Depart 71 473 74 69 159 158 96 Units *10^3 292 Specialty Year 4 FTEs 2118 9 31 42 78 111 23 44 21 0 15 30 45 60 75 90 # FTEs Specialty stores Mass Merchandis.Depart. stores SOLOSONOSOLD SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 22 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 23 Sonites Market Research – Ordered Reports Market Research Year 4 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Mainly for the re-allocation of FF to Channels Evaluation of Targeting strategy Saving Budget Contribution to R&D Decisions Projected Demand Sales define our production & strategy Not used for Decisions of Period 1 Understand through Industry Benchmarking Understand through Industry Benchmarking Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 4
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 24 Vodites Market Research – Ordered Reports Market Research Year 4 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Saving Budget Contribution to Advertising messages decisions Projected Demand Sales define our production & strategy Understand through Industry Benchmarking Understand through Industry Benchmarking Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 4 Will not be used Saving Budget Mainly for the re-allocation of FF to Channels
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 25 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 26 Breakeven Point per Brand – Required dispensed units P&L Account Year 4 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit SOLD SONO SOLO SONY VOTE VOLT Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE Sales Units sold2 U 45,250 60,157 6,460 24,900 25,125 31,964 Average retail price $ 179 419 140 409 725 670 Average selling price3 $ 118 265 95 268 449 415 Revenues K$ 5,332 15,928 615 6,666 11,272 13,255 Production Units produced U 45,250 60,157 6,460 24,900 25,125 31,964 Current unit transfer cost4 $ 53 100 58 101 250 250 Average unit transfer cost $ 53 100 58 101 250 250 Cost of goods sold K$ -2,398 -6,016 -375 -2,515 -6,281 -7,991 Units in inventory U 77,150 253,843 35,540 60,100 23,875 42,036 Inventory holding cost K$ -1,157 -3,808 -165 -902 -358 -631 Inventory disposal loss K$ 0 0 0 0 0 0 Contribution before marketing K$ 1,776 6,105 76 3,250 4,633 4,633 Marketing Advertising expenditures K$ -504 -1,999 -1 -900 -1,500 -1,500 Advertising research expenditures K$ -94 -400 -1 -190 -360 -360 Sales force K$ -1,178 -3,706 -74 -2,160 -2,773 -2,773 Contribution after marketing K$ 0 0 0 0 0 0 Comment regarding feasibility Feasible Easy Impossible1 Easy Feasible Difficult Note 3: Based on the projected allocation of brands per channel Note 2: Required dispensed units Note 1: Withdrawal of brand means now 480K loss; if we sell zero, we lose 270K. Money worth more now (Time Value of Money)
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 27 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 28 Next Actions Year 4 Evaluation of Scorecard – Year 1 SONO market share >40% in Pros in Period 1 SOLD market share >30% in Others in Period 1 Sell all the SONO produced units in Period 1 >85% coverage of Specialty stores regarding SONO in Period 1 >80% coverage of Department stores regarding both Sonites in Period 1 Net contribution >25K$ in Period 1 Leader in Expensive Sonite in Period 1 (regardless Segment) Confirmation that the 2 targeted segments deliver the highest contribution for Team O Highest purchase intention in the 2 targeted Segments >85% Brand Awareness in the 2 targeted Segments Deliver the right message to the right segments 5Digit Budget (in K$) for Period 4 Achieved Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 29 Next Actions Year 4 Evaluation of Scorecard – Year 2 SONO market share >30% in Pros in Period 4 SOLD market share >20% in Others in Period 4 Sell all the SONO & SONY produced units in Period 4 >60% coverage of Specialty stores regarding SONO in Period 4 >52% coverage of Department stores regarding all Sonites in Period 4 Net contribution >37K$ in Period 4 Leader in Expensive Sonite in Period 1 (regardless Segment) >55% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >15K$ Budget for Period 4 Achieved Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 30 Next Actions Year 4 Internal KPIs for evaluation of Decisions SONO market share >50% in Pros in Period 4 Sell all the VOTE & VOLT produced units in Period 4 Sell all the SONO & SONY produced units in Period 4 >55% coverage of Specialty stores regarding SONO in Period 4 >45% coverage of Department stores regarding all Sonites in Period 4 Net contribution >45K$ in Period 4 Leader in Expensive Sonite in Period 1 (regardless Segment) >30% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >18K$ Budget for Period 4 Achieved Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 31 Next Actions Year 4 Internal KPIs for evaluation of Decisions SONO market share >50% in Pros in Period 4 Sell all the VOTE & VOLT produced units in Period 4 Sell all the SONO & SONY produced units in Period 4 >55% coverage of Specialty stores regarding SONO in Period 4 >45% coverage of Department stores regarding all Sonites in Period 4 Net contribution >50K$ in Period 4 Leader in Expensive Sonite in Period 1 (regardless Segment) >30% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >20K$ Budget for Period 4
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 32 Next Actions Year 4 Study Benchmarking Studies Close the knowledge gap by studying Market Research Target Growth Segments more precisely either by … Advertising and changing the perceived attributes or by … Investing on slight differentiation of existing brands via R&D Re-evaluate # of SFE Market Sizing per Segment for next period(s) Estimate market share for the requested production levels Focus on “rich” segments Focus on being first in all important KPIs Achieve the largest available Budget for next period for… Relaunch SONY & VOTE Actions regarding upcoming Periods
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 33 Team Omicron Thank you! Eva Gallou Kristi Kakomanoli Andreas Marinis Vassilis Raftis Zoi Sfyri Rodoula Siourtou Savvas Soranoglou Panagiota Vlachopoulou

Recommended

MarkStrat Simulation report
MarkStrat Simulation reportMarkStrat Simulation report
MarkStrat Simulation reportShruti Raj
 
Markstrat annual presentation
Markstrat annual presentationMarkstrat annual presentation
Markstrat annual presentationVishal Prashar, B.Eng., MBA
 
Mark strat simulation( firm presentation)
Mark strat simulation( firm presentation)Mark strat simulation( firm presentation)
Mark strat simulation( firm presentation)Evelyne Otto
 
Strategic marketing management report
Strategic marketing management reportStrategic marketing management report
Strategic marketing management reportAndrea Cappozzo
 
Final Report Presentation Team Red O
Final Report Presentation Team Red OFinal Report Presentation Team Red O
Final Report Presentation Team Red OXu Bim
 
Markstrat 2015 - Team Kamikaze
Markstrat 2015 - Team Kamikaze Markstrat 2015 - Team Kamikaze
Markstrat 2015 - Team Kamikaze Paola Aulisa
 
MARKSTRAT Business Simulation Presentation
MARKSTRAT Business Simulation PresentationMARKSTRAT Business Simulation Presentation
MARKSTRAT Business Simulation Presentationcaamch2
 
Markstrat presentation
Markstrat presentationMarkstrat presentation
Markstrat presentationphanquang144
 

Recommended

MarkStrat Simulation report
MarkStrat Simulation reportMarkStrat Simulation report
MarkStrat Simulation reportShruti Raj
 
Markstrat annual presentation
Markstrat annual presentationMarkstrat annual presentation
Markstrat annual presentationVishal Prashar, B.Eng., MBA
 
Mark strat simulation( firm presentation)
Mark strat simulation( firm presentation)Mark strat simulation( firm presentation)
Mark strat simulation( firm presentation)Evelyne Otto
 
Strategic marketing management report
Strategic marketing management reportStrategic marketing management report
Strategic marketing management reportAndrea Cappozzo
 
Final Report Presentation Team Red O
Final Report Presentation Team Red OFinal Report Presentation Team Red O
Final Report Presentation Team Red OXu Bim
 
Markstrat 2015 - Team Kamikaze
Markstrat 2015 - Team Kamikaze Markstrat 2015 - Team Kamikaze
Markstrat 2015 - Team Kamikaze Paola Aulisa
 
MARKSTRAT Business Simulation Presentation
MARKSTRAT Business Simulation PresentationMARKSTRAT Business Simulation Presentation
MARKSTRAT Business Simulation Presentationcaamch2
 
Markstrat presentation
Markstrat presentationMarkstrat presentation
Markstrat presentationphanquang144
 
Strategic Marketing Week 11
Strategic Marketing Week 11Strategic Marketing Week 11
Strategic Marketing Week 11Mark Tayar
 
Markstrat 2014
Markstrat 2014Markstrat 2014
Markstrat 2014Raphael Chicheportiche
 
Markstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel Company
Markstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel CompanyMarkstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel Company
Markstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel CompanyLillian Psylla
 
Team I - Markstrat Final Presentation at UC Davis
Team I - Markstrat Final Presentation at UC DavisTeam I - Markstrat Final Presentation at UC Davis
Team I - Markstrat Final Presentation at UC Davisbkfirebird
 
Marketing Simulation
Marketing SimulationMarketing Simulation
Marketing Simulationjaikishan_nitdgp
 
Markstrat ppt
Markstrat ppt Markstrat ppt
Markstrat ppt Swayambhar Majumder
 
MKT 440: Markstrat Presentation
MKT 440: Markstrat PresentationMKT 440: Markstrat Presentation
MKT 440: Markstrat PresentationAlex Sugano
 
Final Markstrat Marketing Plan
Final Markstrat Marketing PlanFinal Markstrat Marketing Plan
Final Markstrat Marketing PlanAllison Stokes
 
Markstrat - LouieInc
Markstrat - LouieIncMarkstrat - LouieInc
Markstrat - LouieIncLouis Morin
 
Markstrat Ceo Debrief
Markstrat Ceo DebriefMarkstrat Ceo Debrief
Markstrat Ceo DebriefAllison Stokes
 
Marketing Strategy Simulation Learning Note
Marketing Strategy Simulation Learning NoteMarketing Strategy Simulation Learning Note
Marketing Strategy Simulation Learning NotePrajakta Talathi
 
Markstrat simulation reflection
Markstrat simulation reflectionMarkstrat simulation reflection
Markstrat simulation reflectionAmit Sati
 
SABRE Business Simulation Results 2016_Nazar Smal
SABRE Business Simulation Results 2016_Nazar SmalSABRE Business Simulation Results 2016_Nazar Smal
SABRE Business Simulation Results 2016_Nazar SmalNazar Smal, MBA
 
Markstrat Presentation
Markstrat PresentationMarkstrat Presentation
Markstrat PresentationMuthuraman Jayaraman
 
Markstrat web participant-handbook-chap 1 a 3
Markstrat web participant-handbook-chap 1 a 3Markstrat web participant-handbook-chap 1 a 3
Markstrat web participant-handbook-chap 1 a 3Master MOI
 
BCG Matrix and GE Matrix of Tide
BCG Matrix and GE Matrix of TideBCG Matrix and GE Matrix of Tide
BCG Matrix and GE Matrix of TideFahad Ur Rehman Khan
 
Markstrat ppt copy
Markstrat ppt copyMarkstrat ppt copy
Markstrat ppt copySwayambhar Majumder
 
Waqas analysis
Waqas analysisWaqas analysis
Waqas analysisWaqas Ahmad
 
SABRE Business Simulations
SABRE Business SimulationsSABRE Business Simulations
SABRE Business SimulationsFrank Lin
 
Business simulation
Business simulation Business simulation
Business simulation Nibras Hussein
 
Mopar-Magneti Marelli Case Anno 2015/2016
Mopar-Magneti Marelli Case Anno 2015/2016 Mopar-Magneti Marelli Case Anno 2015/2016
Mopar-Magneti Marelli Case Anno 2015/2016Emanuele Marfisi
 
Decathlon Aequalis
Decathlon AequalisDecathlon Aequalis
Decathlon AequalisEmanuele Marfisi
 

More Related Content

What's hot

Strategic Marketing Week 11
Strategic Marketing Week 11Strategic Marketing Week 11
Strategic Marketing Week 11Mark Tayar
 
Markstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel Company
Markstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel CompanyMarkstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel Company
Markstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel CompanyLillian Psylla
 
Team I - Markstrat Final Presentation at UC Davis
Team I - Markstrat Final Presentation at UC DavisTeam I - Markstrat Final Presentation at UC Davis
Team I - Markstrat Final Presentation at UC Davisbkfirebird
 
MKT 440: Markstrat Presentation
MKT 440: Markstrat PresentationMKT 440: Markstrat Presentation
MKT 440: Markstrat PresentationAlex Sugano
 
Final Markstrat Marketing Plan
Final Markstrat Marketing PlanFinal Markstrat Marketing Plan
Final Markstrat Marketing PlanAllison Stokes
 
Markstrat - LouieInc
Markstrat - LouieIncMarkstrat - LouieInc
Markstrat - LouieIncLouis Morin
 
Marketing Strategy Simulation Learning Note
Marketing Strategy Simulation Learning NoteMarketing Strategy Simulation Learning Note
Marketing Strategy Simulation Learning NotePrajakta Talathi
 
Markstrat simulation reflection
Markstrat simulation reflectionMarkstrat simulation reflection
Markstrat simulation reflectionAmit Sati
 
SABRE Business Simulation Results 2016_Nazar Smal
SABRE Business Simulation Results 2016_Nazar SmalSABRE Business Simulation Results 2016_Nazar Smal
SABRE Business Simulation Results 2016_Nazar SmalNazar Smal, MBA
 
Markstrat web participant-handbook-chap 1 a 3
Markstrat web participant-handbook-chap 1 a 3Markstrat web participant-handbook-chap 1 a 3
Markstrat web participant-handbook-chap 1 a 3Master MOI
 
SABRE Business Simulations
SABRE Business SimulationsSABRE Business Simulations
SABRE Business SimulationsFrank Lin
 

What's hot (20)

Strategic Marketing Week 11
Strategic Marketing Week 11Strategic Marketing Week 11
Strategic Marketing Week 11
 
Markstrat 2014
Markstrat 2014Markstrat 2014
Markstrat 2014
 
Markstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel Company
Markstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel CompanyMarkstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel Company
Markstrat Challenge:10-year Report & 3-year Marketing Plan - Lobel Company
 
Team I - Markstrat Final Presentation at UC Davis
Team I - Markstrat Final Presentation at UC DavisTeam I - Markstrat Final Presentation at UC Davis
Team I - Markstrat Final Presentation at UC Davis
 
Marketing Simulation
Marketing SimulationMarketing Simulation
Marketing Simulation
 
Markstrat ppt
Markstrat ppt Markstrat ppt
Markstrat ppt
 
MKT 440: Markstrat Presentation
MKT 440: Markstrat PresentationMKT 440: Markstrat Presentation
MKT 440: Markstrat Presentation
 
Final Markstrat Marketing Plan
Final Markstrat Marketing PlanFinal Markstrat Marketing Plan
Final Markstrat Marketing Plan
 
Markstrat - LouieInc
Markstrat - LouieIncMarkstrat - LouieInc
Markstrat - LouieInc
 
Markstrat Ceo Debrief
Markstrat Ceo DebriefMarkstrat Ceo Debrief
Markstrat Ceo Debrief
 
Marketing Strategy Simulation Learning Note
Marketing Strategy Simulation Learning NoteMarketing Strategy Simulation Learning Note
Marketing Strategy Simulation Learning Note
 
Markstrat simulation reflection
Markstrat simulation reflectionMarkstrat simulation reflection
Markstrat simulation reflection
 
SABRE Business Simulation Results 2016_Nazar Smal
SABRE Business Simulation Results 2016_Nazar SmalSABRE Business Simulation Results 2016_Nazar Smal
SABRE Business Simulation Results 2016_Nazar Smal
 
Markstrat Presentation
Markstrat PresentationMarkstrat Presentation
Markstrat Presentation
 
Markstrat web participant-handbook-chap 1 a 3
Markstrat web participant-handbook-chap 1 a 3Markstrat web participant-handbook-chap 1 a 3
Markstrat web participant-handbook-chap 1 a 3
 
BCG Matrix and GE Matrix of Tide
BCG Matrix and GE Matrix of TideBCG Matrix and GE Matrix of Tide
BCG Matrix and GE Matrix of Tide
 
Markstrat ppt copy
Markstrat ppt copyMarkstrat ppt copy
Markstrat ppt copy
 
Waqas analysis
Waqas analysisWaqas analysis
Waqas analysis
 
SABRE Business Simulations
SABRE Business SimulationsSABRE Business Simulations
SABRE Business Simulations
 
Business simulation
Business simulation Business simulation
Business simulation
 

Viewers also liked

Mopar-Magneti Marelli Case Anno 2015/2016
Mopar-Magneti Marelli Case Anno 2015/2016 Mopar-Magneti Marelli Case Anno 2015/2016
Mopar-Magneti Marelli Case Anno 2015/2016Emanuele Marfisi
 
Group8 Vespa Marketing Presentation
Group8 Vespa Marketing PresentationGroup8 Vespa Marketing Presentation
Group8 Vespa Marketing Presentationkonstrukt.it
 
Airplane Simulation Analysis Anno 2014/2015
Airplane Simulation Analysis Anno 2014/2015Airplane Simulation Analysis Anno 2014/2015
Airplane Simulation Analysis Anno 2014/2015Emanuele Marfisi
 

Viewers also liked (7)

Mopar-Magneti Marelli Case Anno 2015/2016
Mopar-Magneti Marelli Case Anno 2015/2016 Mopar-Magneti Marelli Case Anno 2015/2016
Mopar-Magneti Marelli Case Anno 2015/2016
 
Decathlon Aequalis
Decathlon AequalisDecathlon Aequalis
Decathlon Aequalis
 
Gruppo 54 impresa 9.3.a
Gruppo 54 impresa 9.3.aGruppo 54 impresa 9.3.a
Gruppo 54 impresa 9.3.a
 
Group8 Vespa Marketing Presentation
Group8 Vespa Marketing PresentationGroup8 Vespa Marketing Presentation
Group8 Vespa Marketing Presentation
 
Airplane Simulation Analysis Anno 2014/2015
Airplane Simulation Analysis Anno 2014/2015Airplane Simulation Analysis Anno 2014/2015
Airplane Simulation Analysis Anno 2014/2015
 
Heineken buy&amp;drink
Heineken buy&amp;drinkHeineken buy&amp;drink
Heineken buy&amp;drink
 
Caso Apple Anno 2015/2016
Caso Apple Anno 2015/2016Caso Apple Anno 2015/2016
Caso Apple Anno 2015/2016
 

Similar to Markstrat 2016 athens university of economics &amp; business

Strategic brand presentation
Strategic brand presentationStrategic brand presentation
Strategic brand presentationPim Leeuwenkamp
 
Go to market strategy ppt kapil rawal (1).1
Go to market strategy ppt kapil rawal (1).1Go to market strategy ppt kapil rawal (1).1
Go to market strategy ppt kapil rawal (1).1SomnathShah1
 
Go to market strategy Autofit Pvt. Ltd. - kapil rawal
Go to market strategy Autofit Pvt. Ltd. - kapil rawalGo to market strategy Autofit Pvt. Ltd. - kapil rawal
Go to market strategy Autofit Pvt. Ltd. - kapil rawalAryanGupta191
 
Strategic brand presentation
Strategic brand presentationStrategic brand presentation
Strategic brand presentationManisha Mahaldar
 
Samsung Young Marketer Contest 2007 (Final Round)
Samsung Young Marketer Contest 2007 (Final Round)Samsung Young Marketer Contest 2007 (Final Round)
Samsung Young Marketer Contest 2007 (Final Round)siriornsutheerawong
 
Jack wolfskin marketing strategy
Jack wolfskin marketing strategyJack wolfskin marketing strategy
Jack wolfskin marketing strategyJasper Schwenzow
 
Marketing Analytics: Data Quality, Data Matching & Marketing Metrics
Marketing Analytics: Data Quality, Data Matching & Marketing MetricsMarketing Analytics: Data Quality, Data Matching & Marketing Metrics
Marketing Analytics: Data Quality, Data Matching & Marketing MetricsSenturus
 
Puma analysis presentation transcript
Puma analysis presentation transcriptPuma analysis presentation transcript
Puma analysis presentation transcriptZeira Bear's Darling
 
Swatch Case Study
Swatch Case StudySwatch Case Study
Swatch Case StudyWai Kit Ng
 
WOOD 365Gaston January 2020 1January 2020 1Value.docx
WOOD 365Gaston January 2020 1January 2020 1Value.docxWOOD 365Gaston January 2020 1January 2020 1Value.docx
WOOD 365Gaston January 2020 1January 2020 1Value.docxhelzerpatrina
 
WOOD 365Gaston January 2020 1January 2020 1Value.docx
WOOD 365Gaston January 2020 1January 2020 1Value.docxWOOD 365Gaston January 2020 1January 2020 1Value.docx
WOOD 365Gaston January 2020 1January 2020 1Value.docxlefrancoishazlett
 
OuterSpace Presentation
OuterSpace PresentationOuterSpace Presentation
OuterSpace PresentationDylan Rolison
 
FMCG (Industry)_ITC (company)_Wills lifestyle (product)
FMCG (Industry)_ITC (company)_Wills lifestyle (product)FMCG (Industry)_ITC (company)_Wills lifestyle (product)
FMCG (Industry)_ITC (company)_Wills lifestyle (product)Monu Tiwari
 

Similar to Markstrat 2016 athens university of economics &amp; business (20)

Final project
Final projectFinal project
Final project
 
Strategic brand presentation
Strategic brand presentationStrategic brand presentation
Strategic brand presentation
 
Go to market strategy ppt kapil rawal (1).1
Go to market strategy ppt kapil rawal (1).1Go to market strategy ppt kapil rawal (1).1
Go to market strategy ppt kapil rawal (1).1
 
Go to market strategy Autofit Pvt. Ltd. - kapil rawal
Go to market strategy Autofit Pvt. Ltd. - kapil rawalGo to market strategy Autofit Pvt. Ltd. - kapil rawal
Go to market strategy Autofit Pvt. Ltd. - kapil rawal
 
Strategic brand presentation
Strategic brand presentationStrategic brand presentation
Strategic brand presentation
 
85135104 fastrack-mps
85135104 fastrack-mps85135104 fastrack-mps
85135104 fastrack-mps
 
Samsung Young Marketer Contest 2007 (Final Round)
Samsung Young Marketer Contest 2007 (Final Round)Samsung Young Marketer Contest 2007 (Final Round)
Samsung Young Marketer Contest 2007 (Final Round)
 
Jack wolfskin marketing strategy
Jack wolfskin marketing strategyJack wolfskin marketing strategy
Jack wolfskin marketing strategy
 
Marketing Analytics: Data Quality, Data Matching & Marketing Metrics
Marketing Analytics: Data Quality, Data Matching & Marketing MetricsMarketing Analytics: Data Quality, Data Matching & Marketing Metrics
Marketing Analytics: Data Quality, Data Matching & Marketing Metrics
 
Puma analysis presentation transcript
Puma analysis presentation transcriptPuma analysis presentation transcript
Puma analysis presentation transcript
 
doc
docdoc
doc
 
Silver Marketing: The State of Play in Asia
Silver Marketing: The State of Play in AsiaSilver Marketing: The State of Play in Asia
Silver Marketing: The State of Play in Asia
 
Swatch Case Study
Swatch Case StudySwatch Case Study
Swatch Case Study
 
WOOD 365Gaston January 2020 1January 2020 1Value.docx
WOOD 365Gaston January 2020 1January 2020 1Value.docxWOOD 365Gaston January 2020 1January 2020 1Value.docx
WOOD 365Gaston January 2020 1January 2020 1Value.docx
 
WOOD 365Gaston January 2020 1January 2020 1Value.docx
WOOD 365Gaston January 2020 1January 2020 1Value.docxWOOD 365Gaston January 2020 1January 2020 1Value.docx
WOOD 365Gaston January 2020 1January 2020 1Value.docx
 
ZQK JV
ZQK JVZQK JV
ZQK JV
 
Smp 20069 presentation
Smp 20069 presentationSmp 20069 presentation
Smp 20069 presentation
 
PUMA analysis
PUMA analysisPUMA analysis
PUMA analysis
 
OuterSpace Presentation
OuterSpace PresentationOuterSpace Presentation
OuterSpace Presentation
 
FMCG (Industry)_ITC (company)_Wills lifestyle (product)
FMCG (Industry)_ITC (company)_Wills lifestyle (product)FMCG (Industry)_ITC (company)_Wills lifestyle (product)
FMCG (Industry)_ITC (company)_Wills lifestyle (product)
 

Recently uploaded

Marketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet CreationsMarketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet Creationsnakalysalcedo61
 
rishikeshgirls.in- Rishikesh call girl.pdf
rishikeshgirls.in- Rishikesh call girl.pdfrishikeshgirls.in- Rishikesh call girl.pdf
rishikeshgirls.in- Rishikesh call girl.pdfmuskan1121w
 
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...lizamodels9
 
/:Call Girls In Jaypee Siddharth - 5 Star Hotel New Delhi ➥9990211544 Top Esc...
/:Call Girls In Jaypee Siddharth - 5 Star Hotel New Delhi ➥9990211544 Top Esc.../:Call Girls In Jaypee Siddharth - 5 Star Hotel New Delhi ➥9990211544 Top Esc...
/:Call Girls In Jaypee Siddharth - 5 Star Hotel New Delhi ➥9990211544 Top Esc...lizamodels9
 
Monte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSMMonte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSMRavindra Nath Shukla
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,noida100girls
 
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...lizamodels9
 
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableDipal Arora
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024christinemoorman
 
Catalogue ONG NUOC PPR DE NHAT .pdf
Catalogue ONG NUOC PPR DE NHAT .pdfCatalogue ONG NUOC PPR DE NHAT .pdf
Catalogue ONG NUOC PPR DE NHAT .pdfOrient Homes
 
Cash Payment 9602870969 Escort Service in Udaipur Call Girls
Cash Payment 9602870969 Escort Service in Udaipur Call GirlsCash Payment 9602870969 Escort Service in Udaipur Call Girls
Cash Payment 9602870969 Escort Service in Udaipur Call GirlsApsara Of India
 
Vip Female Escorts Noida 9711199171 Greater Noida Escorts Service
Vip Female Escorts Noida 9711199171 Greater Noida Escorts ServiceVip Female Escorts Noida 9711199171 Greater Noida Escorts Service
Vip Female Escorts Noida 9711199171 Greater Noida Escorts Serviceankitnayak356677
 
Progress Report - Oracle Database Analyst Summit
Progress Report - Oracle Database Analyst SummitProgress Report - Oracle Database Analyst Summit
Progress Report - Oracle Database Analyst SummitHolger Mueller
 
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptx
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptxBanana Powder Manufacturing Plant Project Report 2024 Edition.pptx
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptxgeorgebrinton95
 
Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...lizamodels9
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...lizamodels9
 
Call Girls in Mehrauli Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Mehrauli Delhi 💯Call Us 🔝8264348440🔝Call Girls in Mehrauli Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Mehrauli Delhi 💯Call Us 🔝8264348440🔝soniya singh
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis UsageNeil Kimberley
 

Recently uploaded (20)

Marketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet CreationsMarketing Management Business Plan_My Sweet Creations
Marketing Management Business Plan_My Sweet Creations
 
rishikeshgirls.in- Rishikesh call girl.pdf
rishikeshgirls.in- Rishikesh call girl.pdfrishikeshgirls.in- Rishikesh call girl.pdf
rishikeshgirls.in- Rishikesh call girl.pdf
 
KestrelPro Flyer Japan IT Week 2024 (English)
KestrelPro Flyer Japan IT Week 2024 (English)KestrelPro Flyer Japan IT Week 2024 (English)
KestrelPro Flyer Japan IT Week 2024 (English)
 
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
Lowrate Call Girls In Laxmi Nagar Delhi ❤️8860477959 Escorts 100% Genuine Ser...
 
/:Call Girls In Jaypee Siddharth - 5 Star Hotel New Delhi ➥9990211544 Top Esc...
/:Call Girls In Jaypee Siddharth - 5 Star Hotel New Delhi ➥9990211544 Top Esc.../:Call Girls In Jaypee Siddharth - 5 Star Hotel New Delhi ➥9990211544 Top Esc...
/:Call Girls In Jaypee Siddharth - 5 Star Hotel New Delhi ➥9990211544 Top Esc...
 
Monte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSMMonte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSM
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
 
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
 
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024
 
Catalogue ONG NUOC PPR DE NHAT .pdf
Catalogue ONG NUOC PPR DE NHAT .pdfCatalogue ONG NUOC PPR DE NHAT .pdf
Catalogue ONG NUOC PPR DE NHAT .pdf
 
Cash Payment 9602870969 Escort Service in Udaipur Call Girls
Cash Payment 9602870969 Escort Service in Udaipur Call GirlsCash Payment 9602870969 Escort Service in Udaipur Call Girls
Cash Payment 9602870969 Escort Service in Udaipur Call Girls
 
Vip Female Escorts Noida 9711199171 Greater Noida Escorts Service
Vip Female Escorts Noida 9711199171 Greater Noida Escorts ServiceVip Female Escorts Noida 9711199171 Greater Noida Escorts Service
Vip Female Escorts Noida 9711199171 Greater Noida Escorts Service
 
Progress Report - Oracle Database Analyst Summit
Progress Report - Oracle Database Analyst SummitProgress Report - Oracle Database Analyst Summit
Progress Report - Oracle Database Analyst Summit
 
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptx
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptxBanana Powder Manufacturing Plant Project Report 2024 Edition.pptx
Banana Powder Manufacturing Plant Project Report 2024 Edition.pptx
 
Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
 
Call Girls in Mehrauli Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Mehrauli Delhi 💯Call Us 🔝8264348440🔝Call Girls in Mehrauli Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Mehrauli Delhi 💯Call Us 🔝8264348440🔝
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage
 

Markstrat 2016 athens university of economics &amp; business

  • 1. MarkStrat Strategy: Years 1-4 Team Omicron Athens University of Economics & Business (AUEB) March 2016
  • 2. MarkStrat Year 1 Team Omicron Athens University of Economics & Business (AUEB) March 2016
  • 3. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 3 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
  • 4. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 4 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
  • 5. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 5 Production per Brand Marketing Mix Forecasted Size (Period 1) 308 247242 171 228 0 100 200 300 400 Buffs Singles Pros Units *10^3 OthersHiEarners Market Share within Segment (Period 0) 69% 26% 97% 98% 31% 74% 96% 0% 20% 40% 60% 80% 100% MS (%) OthersHiEarnersBuffs Singles Pros 3% 4% 2% Expensive SoniteCheap Sonite Potential Demand Sales (Period 1) 690 506 0 200 400 600 800 Cheap Sonite Expensive Sonite Projected Demand Sales (*10^3) Production Team Omicron (Period 1) 155 108 0 100 200 Expensive SoniteCheap Sonite Production (*10^3) 21.4% 22.4%Projected MS 86-130 124-186 Year 1
  • 6. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 6 Targeting Strategy per Brand – Contribution Evaluation Marketing Mix Year 1 Note 2: Manufacturer Selling Price Desired Retail Price per Segment Desired MSP2 per Segment 238 395 493 289273 0 100 200 300 400 500 Desired Price1 OthersProsSinglesBuffs HiEarners Note 1: Prices are based on Conjoint Analysis of Practice Session; Still not available to our Session 90 99 135 75 69 74 74 161 161 74 0 100 200 300 296 236 173164 Desired Price1 Others 143 HiEarnersProsSinglesBuffs Mnf’s ContributionTranfer Cost3 Note 3: Initial Estimation of production similar to Period 0 Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution) 600 200 400 800 0 *10^3 $ Period 0 Period 5Period 1 Pros HiEarnersSinglesBuffs Others 200 100 50 150 250 0 *10^3 $ Period 1 Period 5Period 0 Pros & Others our priority segments
  • 7. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 7 Targeting Strategy per Brand – Attributes Evaluation Marketing Mix Year 1 Desired Attributes per Segment vs. SOLD Desired Attributes per Segment vs. SONO 273 289 238 225 0 100 200 300 Price $ SOLDOthersSinglesBuffs 0 20 40 60 80 100 5-100 Power 34,9 12,0 45,4 88,4 0 2 4 6 8 10 3-10 Design 3,0 6,7 8,1 4,2 0 10 20 30 40 50 Max. Frequency 29,2 19,0 43,5 25,0 5-50 273 493 395 480 0 100 200 300 400 500 Price $ SONOBuffs HiEarnersPros 0 100 68,8 75,0 5-100 Power 72,1 88,4 0 100 32,5 Max. Frequency 43,5 40,0 5-50 38,8 0 10 Design 8,0 3-10 4,2 8,3 9,1 Relative Importance Relative Importance
  • 8. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 8 Targeting Strategy per Brand – Summary Marketing Mix Year 1 Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand 0 20 40 60 80 Singles OthersBuffs 53,6 % 60,9 62,4 44,0 70,6 71,5 46,0 54,3 43,3 Pros 67,3 HiEarners 0 5 10 15 20 % Others 0,6 Pros 16,2 Buffs 16,1 11,5 12,3 0,5 0,3 HiEarners 16,4 4,4 Singles 5,2 SONOSOLD SOLD Others SONO Pros The largest segment in units (economy of scales) Customers with similar needs Looking for cheap, low performance products Brand Awareness: 62,4% (second highest) Purchase Intentions: 16,1%(highest one) Market Share: 16,1% Actual size this period: Size: 260KU, 25,7% Forecasted size next period: size: 308KU, 25,8% Forecasted size in 5 periods: Size: 619KU, 28,2% Largest segment in terms of profit margin High quality, high performance & easy 2 use Price as an indication of quality Brand Awareness: 70,6% (second highest) Purchase Intentions: 16,2%(second highest) Market Share: 16,3% Actual size this period: Size: 196KU, 19,3% Forecasted size next period: size: 242KU, 20,2% Forecasted size in 5 periods: Size: 406KU, 18,5%
  • 9. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 9 Pricing & Advertising per Brand & Segment Marketing Mix Year 1 9 10 11 12 13 14 15 16 17 18 0,0 350,0 200,0 100,0 300,0 250,0 150,0 50,0 "Expensive" Sonites "Cheap" Sonites Growth vs. Period -1Sonite Market Growth SOLD Decrease the price >10%; Price will be significant parameter for the brand to be preferred Price will remain at similar level vs. previous year Sales in million $ (Period 0) BCG Matrix1 Retail Price per Brand SONO Advertising per Brand <1/3 of total advertising budget will be allocated to SOLD; >10% of SOLD advertising budget will be invested on “research” >2/3 of total advertising budget will be allocated to SONO; >10% of SONO advertising budget will be invested on “research” SOLD SONO Strategic Decisions2 Evaluate whether is worthwhile the existence in our portfolio of Question marks & Dogs Investment in Star Brands in order to move them to “Cash Cow Segment” Note 2: Source: http://www.mbatools.co.uk/Marketing/bgcgrowthmatrix.htm & http://www.mbatools.co.uk/Marketing/bgcgrowthmatrix.htm Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites
  • 10. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 10 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
  • 11. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 11 Sonites Journey Sales Force Year 1 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price SOLD SONO Base Transfer Cost $74 Base Transfer Cost $161 Customers Team Omicron R&D
  • 12. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 12 Sales Force per Brand & Segment Sales Force Coverage (Period 0) 26 3938 26 4040 0 15 30 45 Specialty stores Depart. stores Mass Merchandis. Coverage (%) Expensive SoniteCheap Sonite 10 10 10 10 10 10 FTEs for 100% coverage 39 2626 38 2525 0 15 30 45 Depart. storesSpecialty stores Mass Merchandis. # FTEs Cheap Sonite Expensive Sonite SOLD Potential 400 0 200 100 300 246 4 Units *10^3 3 23 58 84 Specialty 59 68 Mass 176 119 119 34 7 12 Depart OthersHiEarnersProsSinglesBuffs SONO Potential 0 400 300 200 100 Units *10^3 Mass 133 13 73 47 Depart 192 121 70 Specialty 365 45 117 154 49 20 24 6 15 22 25 0 15 30 # FTEs MassDepartSpecialty Expensive SoniteCheap Sonite FTEs Team Omicron (Period 1) Year 1
  • 13. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 13 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
  • 14. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 14 Market Research – Ordered Reports Market Research Year 1 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Mainly for the re-allocation of FF to Channels Evaluation of Targeting strategy Evaluation of Coverage strategy Contribution to R&D Decisions Projected Demand Sales define our production & strategy Contribution mainly to advertising research All Teams will allocate Budget between Ads & SFE, so… Understand through Distribution Panel (in Period 1) Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 1
  • 15. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 15 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
  • 16. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 16 Profit & Loss Account – Base Case Scenario1 P&L Account Year 1 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Company Performance Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO Base R&D project PSOLD PSONO Sales Units sold2 U 272,000 117,000 155,000 Average retail price $ 370 225 480 Average selling price3 $ 237 148 304 Revenues K$ 64,487 17,350 47,137 Production Units produced U 263,000 108,000 155,000 Current unit transfer cost4 $ - 69 151 Average unit transfer cost $ 116 69 151 Cost of goods sold K$ -31,440 -8,100 -23,339 Units in inventory U 0 0 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 33,047 9,250 23,798 Marketing Advertising expenditures K$ -3,838 - 1,075 - 2,763 Advertising research expenditures K$ -491 - 138 - 353 Sales force K$ -2,493 - 1,113 - 1,380 Contribution after marketing K$ 26,225 6,924 19,302 Note 3: Based on the projected allocation of brands per channel (Result: Margin for SOLD=61.0% & for SONO = 60.6% Note 2: Includes also 9k units current inventory Note 1: Base Case Scenario is based on the assumption that we sell exactly the produced amount of units COMPANY PERFORMANCE Unit Total Sonite market Vodite market Sales Units sold U 272,000 272,000 0 Average retail price $ 370 370 0 Average selling price $ 237 237 0 Revenues K$ 64,487 64,487 0 Production Units produced U 263,000 263,000 0 Cost of goods sold K$ -31,440 -31,440 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 33,047 33,047 0 Marketing Advertising expenditures K$ -3,838 -3,838 0 Advertising research expenditures K$ -491 -491 0 Sales force K$ -2,493 -2,493 0 Contribution after marketing K$ 26,225 26,225 0 Other expenses Market research studies K$ -326 - 326 - Research and development K$ 0 - - Interest paid K$ 0 Exceptional cost or profit K$ 0 Net contribution K$ 25,899 Next period budget K$ 10,360
  • 17. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 17 Profit & Loss Account – “Pessimistic” Scenario1 P&L Account Year 1 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Company Performance Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO Base R&D project PSOLD PSONO Sales Units sold2 U 219,000 95,000 124,000 Average retail price $ 369 225 480 Average selling price3 $ 237 148 304 Revenues K$ 51,798 14,088 37,710 Production Units produced U 210,000 86,000 124,000 Current unit transfer cost4 $ - 72 157 Average unit transfer cost $ 120 72 157 Cost of goods sold K$ -26,306 -6,796 -19,510 Units in inventory U 0 0 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 25,492 7,292 18,200 Marketing Advertising expenditures K$ -3,838 - 1,075 - 2,763 Advertising research expenditures K$ -491 - 138 - 353 Sales force K$ -2,493 - 1,113 - 1,380 Contribution after marketing K$ 18,670 4,966 13,704 Note 3: Based on the projected allocation of brands per channel (Result: Margin for SOLD=61.0% & for SONO = 60.6% Note 2: Includes also 9k units current inventory Note 1: Pessimistic Scenario is based on the assumption that we sell 80% of the produced amount of units COMPANY PERFORMANCE Unit Total Sonite market Vodite market Sales Units sold U 219,000 219,000 0 Average retail price $ 369 369 0 Average selling price $ 237 237 0 Revenues K$ 51,798 51,798 0 Production Units produced U 210,000 210,000 0 Cost of goods sold K$ -26,306 -26,306 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 25,492 25,492 0 Marketing Advertising expenditures K$ -3,838 -3,838 0 Advertising research expenditures K$ -491 -491 0 Sales force K$ -2,493 -2,493 0 Contribution after marketing K$ 18,670 18,670 0 Other expenses Market research studies K$ -326 - 326 - Research and development K$ 0 - - Interest paid K$ 0 Exceptional cost or profit K$ 0 Net contribution K$ 18,344 Next period budget K$ 7,338
  • 18. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 18 Profit & Loss Account – “Optimistic” Scenario1 P&L Account Year 1 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Company Performance Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO Base R&D project PSOLD PSONO Sales Units sold2 U 325,000 139,000 186,000 Average retail price $ 371 225 480 Average selling price3 $ 237 148 304 Revenues K$ 77,177 20,613 56,564 Production Units produced U 316,000 130,000 186,000 Current unit transfer cost4 $ - 67 144 Average unit transfer cost $ 111 67 144 Cost of goods sold K$ -36,177 -9,324 -26,854 Units in inventory U 0 0 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 41,000 11,289 29,711 Marketing Advertising expenditures K$ -3,838 - 1,075 - 2,763 Advertising research expenditures K$ -491 - 138 - 353 Sales force K$ -2,493 - 1,113 - 1,380 Contribution after marketing K$ 34,178 8,963 25,215 Note 3: Based on the projected allocation of brands per channel (Result: Margin for SOLD=61.0% & for SONO = 60.6% Note 2: Includes also 9k units current inventory Note 1: Optimistic Scenario is based on the assumption that we sell 120% of the produced amount of units COMPANY PERFORMANCE Unit Total Sonite market Vodite market Sales Units sold U 325,000 325,000 0 Average retail price $ 371 371 0 Average selling price $ 237 237 0 Revenues K$ 77,177 77,177 0 Production Units produced U 316,000 316,000 0 Cost of goods sold K$ -36,177 -36,177 0 Inventory holding cost K$ 0 0 0 Inventory disposal loss K$ 0 0 0 Contribution before marketing K$ 41,000 41,000 0 Marketing Advertising expenditures K$ -3,838 -3,838 0 Advertising research expenditures K$ -491 -491 0 Sales force K$ -2,493 -2,493 0 Contribution after marketing K$ 34,178 34,178 0 Other expenses Market research studies K$ -326 - 326 - Research and development K$ 0 - - Interest paid K$ 0 Exceptional cost or profit K$ 0 Net contribution K$ 33,852 Next period budget K$ 13,541
  • 19. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 19 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions
  • 20. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 20 Next Actions Year 1 Internal KPIs for evaluation of Decisions SONO market share >40% in Pros in Period 1 SOLD market share >30% in Others in Period 1 Sell all the SONO produced units in Period 1 >85% coverage of Specialty stores regarding SONO in Period 1 >80% coverage of Department stores regarding both Sonites in Period 1 Net contribution >25K$ in Period 1 Leader in Expensive Sonite in Period 1 (regardless Segment) Confirmation that the 2 targeted segments deliver the highest contribution for Team O Highest purchase intention in the 2 targeted Segments >85% Brand Awareness in the 2 targeted Segments Deliver the right message to the right segments 5Digit Budget (in K$) for Period 2
  • 21. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 21 Next Actions Year 1 Study Benchmarking Studies Close the knowledge gap by studying Market Research Target Growth Segments more precisely either by … Advertising and changing the perceived attributes or by … Investing on slight differentiation of existing brands via R&D Re-evaluate # of SFE Market Sizing per Segment for next period(s) Estimate market share for the requested production levels Focus on “rich” segments Focus on being first in all important KPIs Achieve the largest available Budget for next period for… Launching the “VOTE”!!!! Actions regarding upcoming Periods
  • 22. MarkStrat Year 2 Team Omicron Athens University of Economics & Business (AUEB) April 2016
  • 23. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 2 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 24. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 3 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 25. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 4 Brand Portfolio Brand Portfolio Year 2 Brands SOLD Projects PSOLD Target Segment Others SONO PSONO Pros SOLO PSOLD Singles SONY PSONO HiEarners VOTE PVOTE Innovators Existing Brand Introduced Brand R&D
  • 26. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 5 R&D – Vodite Project Brand Portfolio Year 2 Desired Attributes – Innovators 77 15 61 6 56 0 20 40 60 80 Innovators Scale DiameterMax FreqAutonomy Design Weight Relative Importance Desired Attributes – Early Adopters 68 12 41 8 46 0 20 40 60 80 Scale Early Adopters Relative Importance Desired Attributes – Followers 55 12 56 8 59 0 20 40 60 80 Scale Innovators Relative Importance On-Line Queries – Budget for R&D ~ $9,65M 63 13 60 7 60 0 20 40 60 80 Attributes Scale On-Line Query Output $9.65MR&D Budget $260Base Cost
  • 27. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 6 Breakeven Point & Payback Period – Vodite Project Brand Portfolio Year 2 VODITE TOTAL COSTS - PERIOD R&D K$ 9.650 Advertising Budget K$ 2.000 Advertising Research K$ 500 Sales Force K$ 1.000 Market Research K$ 300 Total K$ 13.450 Breakeven Point Base Transfer Cost $ 260 Retail Price $ 900 Mnf’s Selling price $ 540 Mnf’s Contribution $ 280 Breakeven Point Units 48.000 Vodites Market Size (Period 3) Units >100.000 Feasible Estimated Vodite Dispensed Units Period 3 Units 50.000 Breakeven Point Units 48.000 Payback Period Months 11.5 Payback Period 0 5 10 15 20 25 30 35 40 45 50 55 60 40.000 20.000 0 10.000 30.000 R&D & Marketing $ Total Costs Base Transfer Cost Mnf’s Revenue Vodite Dispensed Units (*10^3) Breakeven Point 0 1 2 3 4 5 6 7 8 9 10 11 12 -15.000 0 -10.000 -5.000 5.000 Net Project Contribution (*10^3 $) Months Payback Period Months
  • 28. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 7 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 29. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 8 Production per "Brand Category” Marketing Mix Forecasted Size (Period 2) 348 312318 204219 0 100 200 300 400 Pros OthersHiEarnersSinglesBuffs Units *10^3 Market Share within Segment (Period 1) 77% 34% 99% 98% 23% 66% 95% 0% 20% 40% 60% 80% 100% MS (%) OthersHiEarnersPros 5% 2%1% SinglesBuffs Expensive SoniteCheap Sonite Potential Demand Sales (Period 2) 875 526 0 300 600 900 Cheap Sonite Expensive Sonite Projected Demand Sales (*10^3) Year 2 8080 202 80 0 100 200 300 SOLO SONYSOLD SONO Production (*10^3) 16.7% 15.2%Projected MS 64-96 162-242 Production Team Omicron (Period 2) 9.1%23.1% +10 inven. 64-96 64-96
  • 30. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 9 Targeting Strategy per Brand – Contribution Evaluation Marketing Mix Year 2 Note 1: Manufacturer Selling Price Desired Retail Price per Segment Desired MSP1 per Segment 215 466446 288 333 0 100 200 300 400 500 Desired Price SinglesBuffs OthersHiEarnersPros 71 110 138 151 66 129 63 129 129 63 0 100 200 300 129 HiEarners 280 Desired Price OthersPros 267 SinglesBuffs 173 200 Mnf’s ContributionTranfer Cost2 Note 2: Initial Estimation of production similar to Period 1 Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution) 200 800 600 400 0 Period 6 *10^3 $ Period 2Period 1 OthersBuffs Pros HiEarnersSingles 300 0 100 150 250 200 50 Period 6 *10^3 $ Period 2Period 1
  • 31. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 10 Brand Awareness & Purchase Intention Evolution Marketing Mix Year 2 Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand 0 20 40 60 80 % 67,3 HiEarners 43,3 54,3 Others 60,9 53,6 ProsSingles 46,0 62,4 70,6 Buffs 44,0 71,5 0 5 10 15 20 25 5,2 ProsSingles HiEarners 4,4 16,4 16,1 0,3 Buffs 16,2 0,5 11,5 0,6 12,3 Others % SONOSOLD Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand 0 20 40 60 80 % 63,4 HiEarners 42,9 57,1 Others 63,2 51,9 ProsSingles 47,9 63,5 77,0 Buffs 44,4 68,3 0 5 10 15 20 25 4,5 ProsSingles HiEarners 5,1 17,3 17,2 0,4 Buffs 24,1 0,2 12,8 0,8 11,2 Others % Period0Period1
  • 32. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 11 Segments’ Characteristics – Summary Marketing Mix Year 2 SOLD Others SONO Pros The largest segment in units (economy of scales) Customers with similar needs Looking for cheap, low performance products Brand Awareness: 63,5% (highest one) Purchase Intentions: 17,2% (highest one) Market Share: 19,3% Actual size this period: Size: 294KU, 24,4% Forecasted size next period: size: 348KU, 24,8% Forecasted size in 5 periods: Size: 691KU, 29,3% Largest segment in terms of profit margin High quality, high performance & easy 2 use Price as an indication of quality Brand Awareness: 77,0% (highest one) Purchase Intentions: 24,1% (highest one) Market Share: 27,5% Actual size this period: Size: 268KU, 22,3% Forecasted size next period: size: 318KU, 22,7% Forecasted size in 5 periods: Size: 459KU, 19,4% SOLO Singles SONY Hi-Earners Customers who live alone, quite price-sensitive Use Sonites for personal purposes Actual size this period: Size: 165KU, 13,7% Forecasted size next period: size: 204KU, 14,5% Forecasted size in 5 periods: Size: 538KU, 22,8% High incomes, purchase motivated by status Expensive products Performance, convenience Actual size this period: Size: 253KU, 21,0% Forecasted size next period: size: 312KU, 22,3% Forecasted size in 5 periods: Size: 494KU, 20,9% Average levels of performance & convenience
  • 33. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 12 Pricing & Advertising per Brand & Segment Marketing Mix Year 2 0 4 8 12 16 20 24 28 32 36 40 300,0 400,0 200,0 100,0 0,0 "Expensive" Sonites "Cheap" Sonites Value Growth vs. Period 0 Sonite Market Growth Sales in million $ (Period 1) BCG Matrix – Product Category1 Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites Dispensed Units (Period 1) BCG Matrix – Segment -8 -4 0 4 8 12 16 20 24 28 32 36 40 300,0 200,0 100,0 0,0 400,0 Units Growth vs. Period 0 HiEarners Singles Pros Buffs Others Sonite Market Growth Dispensed Units (Period 1) BCG Matrix – Channel 8 12 16 20 24 28 32 36 40 400,0 200,0 600,0 0,0 Specialty Mass Merch. Department Units Growth vs. Period 0 Sonite Market Growth Category Majority of Advertising expenses & Sales Force for the “expensive” Sonites. Launch new brand in a segment already targeted by competitors Marketing Strategy Segment Channel Primary focus on Pros. Start prioritizing HiEarners & Singles. Start sacrificing Others. Advertising budget will be allocated accordingly Focus on the growth channel of Department Stores, where margins are also in our favor. Allocate Sales Force accordingly
  • 34. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 13 Pricing per Brand vs. Segment Marketing Mix Year 2 Desired Price per Segment – Semantic Scales 333 288 446 466 215 0 100 200 300 400 500 $ Price HiEarnersPros OthersSinglesBuffs Relative Importance Desired Price per Segment – Regression 325 271 459 484 221 0 100 200 300 400 500 $ Price Relative Importance Actual Price per Brand 211 456 239 450 0 100 200 300 400 500 Actual Price $ SONOSOLD SOLO SONY
  • 35. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 14 Advertising Budget & Research per Brand Marketing Mix Year 2 Allocated mainly regarding the potential SOLD 17% of Budget to Research SONO 17% of Budget to Research SOLO 21% of Budget to Research SONY 21% of Budget to Research Maintain Brand Awareness Levels & Change Perceived Attributes Increase Brand Awareness Levels & Change Perceived Attributes Commence the Awareness Commence the Awareness Brand Awareness per Segment & Brand – P1 0 20 40 60 80 % 63,4 HiEarners 42,9 57,1 Others 63,2 51,9 ProsSingles 47,9 63,5 77,0 Buffs 44,4 68,3 Brand Awareness per Segment & Brand – P0 0 20 40 60 80 % 67,3 HiEarners 43,3 54,3 Others 60,9 53,6 ProsSingles 46,0 62,4 70,6 Buffs 44,0 71,5
  • 36. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 15 Perceptual Objectives per Brand Marketing Mix Year 2 Desired Economy – MDS -20 -10 0 10 20 +-20 7,6 Economy 12,2 2,5 -12,3 -10,0 Singles ProsBuffs OthersHiEarnersChange perceived attributes via MDS Dimensions Desired Performance – MDS -20 -10 0 10 20 13,3 Performance -10,5 4,4 9,5 0,9 +-20 Desired Convenience – MDS -20 -10 0 10 20 +-20 -3,6 10,4 9,7 2,8 -6,2 Convenience Advertising Objective per Brand - Economy 12 -10 8 -12 -20 -10 0 10 20 Economy +-20 SONOSOLD SONYSOLO Advertising Objective per Brand - Performance -10 10 1 4 -20 -10 0 10 20 Performance +-20
  • 37. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 16 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 38. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 17 Sonites Journey Sales Force Year 2 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price SOLO SONY Customers Team Omicron R&D SOLD SONO
  • 39. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 18 Sales Force per Brand & Segment Sales Force SOLD Potential 400 200 100 300 0 Units *10^3 224 333 11 Mass 40 10 Specialty 45 66 117 5 Depart 117 55 170 Singles HiEarners OthersProsBuffs SONO Potential 300 500 200 100 0 400 222 134 126 80 56 Specialty 411 51 156 Units *10^3 122 Mass 71 51 Depart Year 2 FTEs 13 19 5 10 23 26 5 1110 11 25 9 0 15 30 Specialty stores # FTEs Depart. stores Mass Merchandis. SONOSOLD SOLO SONY
  • 40. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 19 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 41. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 20 Sonites Market Research – Ordered Reports Market Research Year 2 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Mainly for the re-allocation of FF to Channels Evaluation of Targeting strategy Evaluation of Coverage strategy Contribution to R&D Decisions Projected Demand Sales define our production & strategy Not used for Decisions of Period 1 All Teams will allocate Budget between Ads & SFE, so… Understand through Distribution Panel (in Period 1) Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 1
  • 42. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 21 Vodites Market Research – Ordered Reports Market Research Year 2 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Still no marketed brand Still no marketed brand Still no marketed brand Contribution to Advertising messages decisions Projected Demand Sales define our production & strategy Still no marketed brand Still no marketed brand Still no marketed brand Still no marketed brand Still no marketed brand Still no marketed brand
  • 43. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 22 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 44. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 23 Profit & Loss Account – Base Case Scenario1 P&L Account Year 2 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY Base R&D project PSOLD PSONO PSOLD PSONO Sales Units sold2 U 452,000 90,000 202,000 80,000 80,000 Average retail price $ 368 211 456 239 450 Average selling price3 $ 236 140 289 158 285 Revenues K$ 106,463 12,557 58,427 12,643 22,835 Production Units produced U 442,000 80,000 202,000 80,000 80,000 Current unit transfer cost4 $ - 63 129 63 129 Average unit transfer cost $ 104 63 129 63 129 Cost of goods sold K$ -47,088 -5,670 -26,058 -5,040 -10,320 Units in inventory U 0 0 0 0 0 Inventory holding cost K$ 0 0 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 Contribution before marketing K$ 59,375 6,887 32,369 7,603 12,515 Marketing Advertising expenditures K$ -5,450 - 800 - 2,850 - 900 - 900 Advertising research expenditures K$ -1,230 - 160 - 570 - 250 - 250 Sales force K$ -3,744 - 869 - 1,315 - 557 - 1,003 Contribution after marketing K$ 48,951 5,058 27,634 5,896 10,362 Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Base Case Scenario is based on the assumption that we sell exactly the produced amount of units
  • 45. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 24 Profit & Loss Account – “Pessimistic” Scenario1 P&L Account Year 2 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Pessimistic Scenario is based on the assumption that we sell 80% of the produced amount of units Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY Base R&D project PSOLD PSONO PSOLD PSONO Sales Units sold2 U 363,600 74,000 161,600 64,000 64,000 Average retail price $ 367 211 456 239 450 Average selling price3 $ 235 140 289 158 285 Revenues K$ 85,449 10,325 46,742 10,114 18,268 Production Units produced U 353,600 64,000 161,600 64,000 64,000 Current unit transfer cost4 $ - 63 129 63 129 Average unit transfer cost $ 104 63 129 63 129 Cost of goods sold K$ -37,796 -4,662 -20,846 -4,032 -8,256 Units in inventory U 0 0 0 0 0 Inventory holding cost K$ 0 0 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 Contribution before marketing K$ 47,653 5,663 25,896 6,082 10,012 Marketing Advertising expenditures K$ -5,450 - 800 - 2,850 - 900 - 900 Advertising research expenditures K$ -1,230 - 160 - 570 - 250 - 250 Sales force K$ -3,744 - 869 - 1,315 - 557 - 1,003 Contribution after marketing K$ 37,229 3,834 21,161 4,375 7,859
  • 46. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 25 Profit & Loss Account – “Optimistic” Scenario1 P&L Account Year 2 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Optimistic Scenario is based on the assumption that we sell 120% of the produced amount of units Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY Base R&D project PSOLD PSONO PSOLD PSONO Sales Units sold2 U 540,400 106,000 242,400 96,000 96,000 Average retail price $ 368 211 456 239 450 Average selling price3 $ 236 140 289 158 285 Revenues K$ 127,476 14,789 70,113 15,172 27,402 Production Units produced U 530,400 96,000 242,400 96,000 96,000 Current unit transfer cost4 $ - 63 129 63 129 Average unit transfer cost $ 104 63 129 63 129 Cost of goods sold K$ -56,380 -6,678 -31,270 -6,048 -12,384 Units in inventory U 0 0 0 0 0 Inventory holding cost K$ 0 0 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 Contribution before marketing K$ 71,096 8,111 38,843 9,124 15,018 Marketing Advertising expenditures K$ -5,450 - 800 - 2,850 - 900 - 900 Advertising research expenditures K$ -1,230 - 160 - 570 - 250 - 250 Sales force K$ -3,744 - 869 - 1,315 - 557 - 1,003 Contribution after marketing K$ 60,672 6,282 34,108 7,417 12,865
  • 47. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 26 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 48. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 27 Next Actions Year 2 Evaluation of Scorecard – Year 1 SONO market share >40% in Pros in Period 1 SOLD market share >30% in Others in Period 1 Sell all the SONO produced units in Period 1 >85% coverage of Specialty stores regarding SONO in Period 1 >80% coverage of Department stores regarding both Sonites in Period 1 Net contribution >25K$ in Period 1 Leader in Expensive Sonite in Period 1 (regardless Segment) Confirmation that the 2 targeted segments deliver the highest contribution for Team O Highest purchase intention in the 2 targeted Segments >85% Brand Awareness in the 2 targeted Segments Deliver the right message to the right segments 5Digit Budget (in K$) for Period 2 Achieved Not Achieved
  • 49. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 28 Next Actions Year 2 Internal KPIs for evaluation of Decisions SONO market share >30% in Pros in Period 2 SOLD market share >20% in Others in Period 2 Sell all the SONO & SONY produced units in Period 2 >60% coverage of Specialty stores regarding SONO in Period 2 >52% coverage of Department stores regarding all Sonites in Period 2 Net contribution >37K$ in Period 2 Leader in Expensive Sonite in Period 1 (regardless Segment) >55% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >15K$ Budget for Period 2
  • 50. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 29 Next Actions Year 2 Study Benchmarking Studies Close the knowledge gap by studying Market Research Target Growth Segments more precisely either by … Advertising and changing the perceived attributes or by … Investing on slight differentiation of existing brands via R&D Re-evaluate # of SFE Market Sizing per Segment for next period(s) Estimate market share for the requested production levels Focus on “rich” segments Focus on being first in all important KPIs Achieve the largest available Budget for next period for… Launching the “VOTE”!!!! Actions regarding upcoming Periods
  • 51. MarkStrat Year 3 Team Omicron Athens University of Economics & Business (AUEB) April 2016
  • 52. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 2 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 53. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 3 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 54. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 4 Brand Portfolio Brand Portfolio Year 3 Brands SOLD Projects PSOLD Target Segment Others SONO PSONO Pros SOLO PSOLD Singles SONY PSONO HiEarners VOTE PVOTE Innovators Existing Brand Introduced Brand R&D VOTE PVOTE Early Adopters Partially Withdraw
  • 55. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 5 R&D – Vodite Project Brand Portfolio Year 3 Desired Attributes – Innovators 77 15 61 6 56 0 20 40 60 80 Innovators Scale DiameterMax FreqAutonomy Design Weight Relative Importance Desired Attributes – Early Adopters 68 12 41 8 46 0 20 40 60 80 Scale Early Adopters Relative Importance Desired Attributes – Followers 55 12 56 8 59 0 20 40 60 80 Scale Innovators Relative Importance On-Line Queries – Budget for R&D ~ $9,65M 63 13 60 7 60 0 20 40 60 80 Attributes Scale On-Line Query Output $9.65MR&D Budget $260Base Cost
  • 56. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 6 Breakeven Point & Payback Period – Vodite Project Brand Portfolio Year 3 VODITE TOTAL COSTS - PERIOD R&D K$ 9.650 Advertising Budget K$ 3.567 Advertising Research K$ 711 Sales Force K$ 1.472 Market Research K$ 76 Total K$ 15.476 Breakeven Point Base Transfer Cost $ 265 Retail Price $ 8101 Mnf’s Selling price $ 486 Mnf’s Contribution $ 219 Breakeven Point Units 71.000 Vodites Market Size (Period 3) Units ~165.000 Feasible Estimated Vodite Dispensed Units Period 3 Units 83.000 Breakeven Point Units 71.000 Payback Period Months 10.1 Payback Period 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 0 50.000 40.000 30.000 20.000 10.000 $ Total Costs Base Transfer Cost Mnf’s Revenue R&D & Marketing Vodite Dispensed Units (*10^3) Breakeven Point 0 1 2 3 4 5 6 7 8 9 10 11 12 5.000 -15.000 0 -5.000 -10.000 -20.000 Net Project Contribution (*10^3 $) Payback Period Months Note 1: Weight average of VOTE’s & VOLT’s retail price based on estimated demand sales
  • 57. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 7 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 58. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 8 Production per "Brand Category” Marketing Mix Forecasted Size (Period 3) 374378368 243 218 0 100 200 300 400 Pros OthersHiEarnersSinglesBuffs Units *10^3 Market Share within Segment (Period 2) 84% 40% 100% 98% 16% 60% 94% 0% 20% 40% 60% 80% 100% MS (%) OthersHiEarnersPros 6% 2%0% SinglesBuffs Expensive SoniteCheap Sonite Potential Demand Sales (Period 3) 1,044 537 0 400 800 1,200 Cheap Sonite Expensive Sonite Projected Demand Sales (*10^3) Year 3 84 1 383 100 0 200 400 600 SOLO SONYSOLD SONO Production (*10^3) 16.9% 0,2%Projected MS 80-120 306-460 Production Team Omicron (Period 3) 8,0%36.7% +1,4 inven. 67-1011 +41 inven. +7,4 inven.
  • 59. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 9 Targeting Strategy per Brand – Contribution Evaluation Marketing Mix Year 3 Note 1: Manufacturer Selling Price Desired Retail Price per Segment Desired MSP1 per Segment 205 462444 267 331 0 100 200 300 400 500 OthersBuffs HiEarnersSingles Pros Desired Price 88 104 156 166 67 111 56 111 111 56 0 100 200 300 Desired Price Others 123 HiEarners 277 Pros 267 Singles 160 199 Buffs Mnf’s ContributionTranfer Cost2 Note 2: Initial Estimation of production similar to Period 1 Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution) 0 800 400 200 600 *10^3 $ Period 2Period 1 Period 6Period 3 Period 7 ProsBuffs Singles HiEarners Others 50 0 250 200 150 100 300 Period 2 Period 6Period 1 *10^3 $ Period 3 Period 7
  • 60. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 10 Brand Awareness & Purchase Intention Evolution Marketing Mix Year 3 Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand 0 20 40 60 80 HiEarners 43,3 67,3 62,460,9 Others % 54,3 Buffs 46,0 71,5 44,0 Pros 70,6 Singles 53,6 0 5 10 15 20 25 % Pros 0,5 Others 0,6 16,1 HiEarners 16,4 0,3 16,2 Singles 12,3 Buffs 5,2 11,5 4,4 0 20 40 60 80 % Pros 63,2 Others 63,5 HiEarners 68,3 42,9 Singles 51,9 47,9 Buffs 44,4 63,4 57,1 77,0 0 5 10 15 20 25 HiEarners 5,1 17,3 24,1 17,2 Singles 0,4 0,8 % Pros 0,2 Others 11,2 Buffs 12,8 4,5 Period0Period1 63 4341 59 49 49 66 80 5964 899 29 10 10 26 101111 0 20 40 60 80 100 % OthersHiEarnersProsSinglesBuffs 17 00 10 4 1 16 50 7 17 200 5 1 0 9 6 13 0 10 20 30 40 50 % HiEarnersPros OthersSinglesBuffs Period2 SOLOSOLD SONO SONY
  • 61. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 11 Segments’ Characteristics (Sonite Market) – Summary Marketing Mix Year 3 SOLD Others SONO Pros Large segment in units (economy of scales) Customers with similar needs Looking for cheap, low performance products Brand Awareness: 62,7% (second highest) Purchase Intentions: 17,2% (second highest) Market Share: 16,6% Actual size this period: Size: 316KU, 23,0% Forecasted size next period: size: 374KU, 23,6% Largest segment in terms of profit margin High quality, high performance & easy 2 use Price as an indication of quality Brand Awareness: 80,2% (highest one) Purchase Intentions: 50,0% (highest one) Market Share: 45,9% Actual size this period: Size: 325KU, 23,7% Forecasted size next period: size: 368KU, 23,3% SOLO Singles SONY Hi-Earners Customers who live alone, quite price-sensitive Use Sonites for personal purposes Actual size this period: Size: 189KU, 13,8% Forecasted size next period: size: 243KU, 15,4% High incomes, purchase motivated by status Expensive products Performance, convenience Actual size this period: Size: 319KU, 23,3% Forecasted size next period: size: 378KU, 23,9% Average levels of performance & convenience Brand Awareness: 29,2% (in one year) Purchase Intentions: 5,1% Market Share: 3,1% Brand Awareness: 26,2% (in one year) Purchase Intentions: 9,3% Market Share: 7,5%
  • 62. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 12 Segments’ Characteristics (Vodite Market) – Summary Marketing Mix Year 3 The largest segment in the early days The first users of Vodite products Try new ideas at some risk, Income above average Forecasted size next period: size: 100KU, 60,2% Forecasted size in 5 periods: Size: 173KU, 14,4% Larger segment than innovators, Opinion leaders Adopt Vodites after innovs, but before the majority Average income level Forecasted size next period: size: 50KU, 30,1% Forecasted size in 5 periods: Size: 289KU, 24,0% VOTE Innovators VOLT Adopters
  • 63. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 13 Pricing & Advertising per Brand & Segment Marketing Mix Year 3 0 4 8 12 16 20 24 28 600,0 800,0 1.000,0 400,0 200,0 0,0 "Cheap" Sonites "Expensive" Sonites Value Growth vs. Period 1 Sonite Market Growth Dispensed Units (Period 2) BCG Matrix – Product Category1 Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites Dispensed Units (Period 2) BCG Matrix – Segment -4 0 4 8 12 16 20 24 28 32 36 40 0,0 400,0 300,0 200,0 100,0 Value Growth vs. Period 1 Buffs Others Singles HiEarners Pros Sonite Market Growth Dispensed Units (Period 2) BCG Matrix – Channel 8 10 12 14 16 18 800,0 600,0 200,0 0,0 400,0 Value Growth vs. Period 1 Department Mass Merch. Specialty Sonite Market Growth Category Majority of Advertising expenses & Sales Force for the “expensive” Sonites. Launch new brand in a segment already targeted by competitors Marketing Strategy Segment Channel Primary focus on Pros. Start prioritizing HiEarners. Start sacrificing Others. Advertising budget will be allocated accordingly Focus on the growth channel of Department Stores, where margins are also in our favor. Allocate Sales Force accordingly
  • 64. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 14 Pricing per Brand vs. Segment Marketing Mix Year 3 Desired Price per Segment – Semantic Scales 331 267 444 462 205 0 100 200 300 400 500 $ Price HiEarnersPros OthersSinglesBuffs Relative Importance Desired Price per Segment – Regression 325 251 459 467 212 0 100 200 300 400 500 $ Price Relative Importance Actual Price per Brand 199 452 169 440 0 100 200 300 400 500 Actual Price $ SONOSOLD SOLO SONY
  • 65. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 15 Advertising Budget & Research per Brand Marketing Mix Year 3 Allocated mainly regarding the potential SOLD 17% of Budget to Research SONO 17% of Budget to Research SOLO ---- SONY 21% of Budget to Research Maintain Brand Awareness Levels & Change Perceived Attributes Increase Brand Awareness Levels & Change Perceived Attributes Partially Withdraw Commence the Awareness Brand Awareness per Segment & Brand – P2 0 20 40 60 80 100 % 59,1 HiEarners 41,1 58,7 Others 63,8 49,1 ProsSingles 48,6 62,7 80,2 Buffs 42,8 65,7 Brand Awareness per Segment & Brand – P1 0 20 40 60 80 100 % 63,4 HiEarners 42,9 57,1 Others 63,2 51,9 ProsSingles 47,9 63,5 77,0 Buffs 44,4 68,3
  • 66. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 16 Perceptual Objectives per Brand Marketing Mix Year 3 0 1 2 3 4 5 6 7 Price 5,85,7 Scale 2,2 3,8 2,7 SinglesBuffs Pros OthersHiEarnersChange perceived attributes via Semantic Scales 0 1 2 3 4 5 6 7 5,5 Scale Power 2,4 4,6 4,3 5,8 Advertising Objective per Brand - Price 0 1 2 3 4 5 6 7 2,4 5,8 Economy 5,8 Scale 2,1 SONYSOLOSONOSOLD Advertising Objective per Brand - Power 0 1 2 3 4 5 6 7 Performance 2,4 4,5 5,6 4,6 Scale Desired Price Desired Power
  • 67. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 17 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 68. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 18 Sonites Journey Sales Force Year 3 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price SOLO SONY Customers Team Omicron R&D SOLD SONO
  • 69. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 19 Vodites Journey Sales Force Year 3 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price VOTE Customers Team Omicron R&D VOLT
  • 70. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 20 Sales Force per Brand & Segment Sales Force “Cheap Sonite” Potential 200 0 500 400 100 300 124 DepartSpecialty 41 36 215 Units *10^3 6 Mass 72 40 195 132 ProsSingles HiEarners OthersBuffs “Expensive Sonite” Potential 400 300 200 0 500 100 84 Mass 155 152 Depart 71 473 74 69 159 158 96 Units *10^3 292 Specialty Year 3 FTEs 9 14 3 8 25 31 111 9 28 14 0 15 30 45 # FTEs Specialty stores Mass Merchandis.Depart. stores SOLOSONOSOLD SONY
  • 71. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 21 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 72. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 22 Sonites Market Research – Ordered Reports Market Research Year 3 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Mainly for the re-allocation of FF to Channels Evaluation of Targeting strategy Saving Budget Contribution to R&D Decisions Projected Demand Sales define our production & strategy Not used for Decisions of Period 1 Understand through Industry Benchmarking Understand through Industry Benchmarking Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 3
  • 73. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 23 Vodites Market Research – Ordered Reports Market Research Year 3 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Saving Budget Contribution to Advertising messages decisions Projected Demand Sales define our production & strategy Understand through Industry Benchmarking Understand through Industry Benchmarking Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 3 Will not be used Saving Budget Mainly for the re-allocation of FF to Channels
  • 74. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 24 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 75. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 25 Profit & Loss Account – Base Case Scenario1 P&L Account Year 3 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY VOTE VOLT Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE Sales Units sold2 U 720,000 101,000 383,000 5,000 91,000 85,000 55,000 Average retail price $ 481 199 452 169 440 850 733 Average selling price3 $ 289 119 271 101 264 510 440 Revenues K$ 207,999 12,059 103,870 507 24,024 43,350 24,189 Production Units produced U 720,000 101,000 383,000 5,000 91,000 85,000 55,000 Current unit transfer cost4 $ - 56 111 56 111 265 265 Average unit transfer cost $ 133 56 111 56 111 265 265 Cost of goods sold K$ -95,650 -5,656 -42,513 -280 -10,101 -22,525 -14,575 Units in inventory U 35,000 0 0 37,000 0 0 0 Inventory holding cost K$ -525 0 0 -166 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 0 0 Contribution before marketing K$ 111,824 6,403 61,357 61 13,923 20,825 9,614 Marketing Advertising expenditures K$ -8,248 -580 -3,100 -1 -1,000 -2,700 -867 Advertising research expenditures K$ -1,801 -119 -680 -1 -290 -556 -155 Sales force K$ -4,586 -534 -1,425 -22 -1,113 -1,024 -468 Contribution after marketing K$ 97,548 5,170 56,152 37 11,520 16,545 8,124 Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Base Case Scenario is based on the assumption that we sell exactly the produced amount of units
  • 76. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 26 Profit & Loss Account – “Pessimistic” Scenario1 P&L Account Year 3 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Pessimistic Scenario is based on the assumption that we sell 80% of the produced amount of units Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY VOTE VOLT Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE Sales Units sold2 U 576,000 80,800 306,400 4,000 72,800 68,000 44,000 Average retail price $ 481 199 452 169 440 850 733 Average selling price3 $ 289 119 271 101 264 510 440 Revenues K$ 166,399 9,648 83,096 406 19,219 34,680 19,351 Production Units produced U 576,000 80,800 306,400 4,000 72,800 68,000 44,000 Current unit transfer cost4 $ - 56 111 56 111 265 265 Average unit transfer cost $ 133 56 111 56 111 265 265 Cost of goods sold K$ -76,520 -4,525 -34,010 -224 -8,081 -18,020 -11,660 Units in inventory U 38,000 0 0 38,000 0 0 0 Inventory holding cost K$ -570 0 0 -170 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 0 0 Contribution before marketing K$ 89,309 5,123 49,085 11 11,138 16,660 7,691 Marketing Advertising expenditures K$ -8,248 -580 -3,100 -1 -1,000 -2,700 -867 Advertising research expenditures K$ -1,801 -119 -680 -1 -290 -556 -155 Sales force K$ -4,586 -534 -1,425 -22 -1,113 -1,024 -468 Contribution after marketing K$ 75,074 3,890 43,880 -13 8,735 12,380 6,201
  • 77. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 27 Profit & Loss Account – “Optimistic” Scenario1 P&L Account Year 3 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Optimistic Scenario is based on the assumption that we sell 120% of the produced amount of units Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit Total SOLD SONO SOLO SONY VOTE VOLT Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE Sales Units sold2 U 864,000 121,200 459,600 6,000 109,200 102,000 66,000 Average retail price $ 481 199 452 169 440 850 733 Average selling price3 $ 289 119 271 101 264 510 440 Revenues K$ 249,599 14,471 124,644 608 28,829 52,020 29,027 Production Units produced U 864,000 121,200 459,600 6,000 109,200 102,000 66,000 Current unit transfer cost4 $ - 56 111 56 111 265 265 Average unit transfer cost $ 133 56 111 56 111 265 265 Cost of goods sold K$ -114,780 -6,787 -51,016 -336 -12,121 -27,030 -17,490 Units in inventory U 38,000 0 0 38,000 0 0 0 Inventory holding cost K$ -570 0 0 -170 0 0 0 Inventory disposal loss K$ 0 0 0 0 0 0 0 Contribution before marketing K$ 134,249 7,684 73,628 102 16,708 24,990 11,537 Marketing Advertising expenditures K$ -8,248 -580 -3,100 -1 -1,000 -2,700 -867 Advertising research expenditures K$ -1,801 -119 -680 -1 -290 -556 -155 Sales force K$ -4,586 -534 -1,425 -22 -1,113 -1,024 -468 Contribution after marketing K$ 120,014 6,451 68,423 78 14,305 20,710 10,047
  • 78. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 28 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 79. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 29 Next Actions Year 3 Evaluation of Scorecard – Year 1 SONO market share >40% in Pros in Period 1 SOLD market share >30% in Others in Period 1 Sell all the SONO produced units in Period 1 >85% coverage of Specialty stores regarding SONO in Period 1 >80% coverage of Department stores regarding both Sonites in Period 1 Net contribution >25K$ in Period 1 Leader in Expensive Sonite in Period 1 (regardless Segment) Confirmation that the 2 targeted segments deliver the highest contribution for Team O Highest purchase intention in the 2 targeted Segments >85% Brand Awareness in the 2 targeted Segments Deliver the right message to the right segments 5Digit Budget (in K$) for Period 2 Achieved Not Achieved
  • 80. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 30 Next Actions Year 3 Evaluation of Scorecard – Year 2 SONO market share >30% in Pros in Period 2 SOLD market share >20% in Others in Period 2 Sell all the SONO & SONY produced units in Period 2 >60% coverage of Specialty stores regarding SONO in Period 2 >52% coverage of Department stores regarding all Sonites in Period 2 Net contribution >37K$ in Period 2 Leader in Expensive Sonite in Period 1 (regardless Segment) >55% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >15K$ Budget for Period 2 Achieved Not Achieved
  • 81. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 31 Next Actions Year 3 Internal KPIs for evaluation of Decisions SONO market share >50% in Pros in Period 3 Sell all the VOTE & VOLT produced units in Period 3 Sell all the SONO & SONY produced units in Period 3 >55% coverage of Specialty stores regarding SONO in Period 3 >45% coverage of Department stores regarding all Sonites in Period 3 Net contribution >45K$ in Period 2 Leader in Expensive Sonite in Period 1 (regardless Segment) >30% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >18K$ Budget for Period 2
  • 82. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 32 Next Actions Year 3 Study Benchmarking Studies Close the knowledge gap by studying Market Research Target Growth Segments more precisely either by … Advertising and changing the perceived attributes or by … Investing on slight differentiation of existing brands via R&D Re-evaluate # of SFE Market Sizing per Segment for next period(s) Estimate market share for the requested production levels Focus on “rich” segments Focus on being first in all important KPIs Achieve the largest available Budget for next period for… Launching the “VOTE”!!!! Actions regarding upcoming Periods
  • 83. MarkStrat Year 4 Team Omicron Athens University of Economics & Business (AUEB) May 2016
  • 84. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 2 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 85. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 3 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 86. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 4 Partially Withdraw Brand Portfolio Brand Portfolio Year 4 Brands SOLD Projects PSOLD Target Segment Others SONO PSONO Pros / Buffs SOLO PSOLD Singles SONY PSONO HiEarners VOTE PVOTE Innovators / Early Adopters Existing Brand Introduced Brand R&D VOLT PVOTE Early Adopters / Followers Partially Withdraw PSONY PVOLI Next period assignment
  • 87. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 5 R&D – Vodite Project Brand Portfolio Year 4 Desired Attributes – Innovators 61 15 51 6 57 0 20 40 60 80 Innovators Scale DiameterMax FreqAutonomy Design Weight Relative Importance Desired Attributes – Early Adopters 68 12 42 7 50 0 20 40 60 80 Scale Early Adopters Relative Importance Desired Attributes – Followers 47 9 59 7 62 0 20 40 60 80 Scale Innovators Relative Importance On-Line Queries – Budget for R&D ~ $2,34M 70 16 55 7 60 0 20 40 60 80 Attributes Scale On-Line Query Output $2.34MR&D Budget $272Base Cost
  • 88. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 6 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 89. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 7 Production per "Brand Category” Marketing Mix Forecasted Size (Period 4) 275 357 382 296 185 0 100 200 300 400 Pros OthersHiEarnersSinglesBuffs Units *10^3 Market Share within Segment (Period 4) 67% 18% 96% 94% 33% 82% 90% 0% 20% 40% 60% 80% 100% MS (%) OthersHiEarnersPros 10% 6%5% SinglesBuffs Expensive SoniteCheap Sonite Potential Demand Sales (Period 4) 905 590 0 400 800 1,200 Cheap Sonite Expensive Sonite Projected Demand Sales (*10^3) Year 4 70 1 250 73 0 200 400 600 SOLO SONYSOLD SONO Production (*10^3) Production Team Omicron (Period 4) +64 inven. +41 inven. +29 inven.+114 inven.
  • 90. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 8 Targeting Strategy per Brand – Contribution Evaluation Marketing Mix Year 4 Note 1: Manufacturer Selling Price Desired Retail Price per Segment Desired MSP1 per Segment 205 462444 267 331 0 100 200 300 400 500 OthersBuffs HiEarnersSingles Pros Desired Price 88 104 156 166 67 111 56 111 111 56 0 100 200 300 Desired Price Others 123 HiEarners 277 Pros 267 Singles 160 199 Buffs Mnf’s ContributionTranfer Cost2 Note 2: Initial Estimation of production similar to Period 1 Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution) 0 800 400 200 600 *10^3 $ Period 3Period 2 Period 7Period 3 Period 8 ProsBuffs Singles HiEarners Others 50 0 250 200 150 100 300 Period 3 Period 7Period 2 *10^3 $ Period 3 Period 8
  • 91. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 9 Brand Awareness & Purchase Intention Evolution Marketing Mix Year 4 64 4443 63 52 48 68 77 57 63 0 20 40 60 80 % Pros OthersHiEarnersSinglesBuffs 17 00 11 5 1 17 24 5 13 0 5 10 15 20 25 HiEarnersSingles % Pros OthersBuffs Period1 63 4341 59 49 49 66 80 5964 899 29 10 10 26 101111 0 20 40 60 80 100 % OthersHiEarnersProsSinglesBuffs 17 00 10 4 1 16 50 7 17 200 5 1 0 9 6 13 0 10 20 30 40 50 % HiEarnersPros OthersSinglesBuffs Period3 SOLOSOLD SONO SONY 59 4038 54 45 48 63 79 5862 788 26 9 14 36 141616 0 20 40 60 80 % OthersHiEarnersProsSinglesBuffs 16 00 42 1 11 26 3 13 2 00 2 1 0 15 11 3 0 5 10 15 20 25 30 % HiEarnersPros OthersSinglesBuffs Period4 Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand
  • 92. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 10 Segments’ Characteristics (Sonite Market) – Summary Marketing Mix Year 4 SOLD Others Large segment in units (economy of scales) Customers with similar needs Looking for cheap, low performance products Brand Awareness: 59,2% (highest one) Purchase Intentions: 16,0% (highest one) Market Share: 17,4% Actual size this period: Size: 230KU, 17,9% Forecasted size next period: size: 275KU, 18,4% SOLO Singles SONY Hi-Earners Customers who live alone, quite price-sensitive Use Sonites for personal purposes Actual size this period: Size: 219KU, 17,1% Forecasted size next period: size: 296KU, 19,8% High incomes, purchase motivated by status Expensive products Performance, convenience Actual size this period: Size: 312KU, 24,4% Forecasted size next period: size: 357KU, 23,9% Average levels of performance & convenience Brand Awareness: 26,3% (highest one) Purchase Intentions: 1,9% Market Share: 0,2% Brand Awareness: 36,4% (highest one) Purchase Intentions: 15,4% Market Share: 14,6%
  • 93. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 11 Segments’ Characteristics (Sonite Market) – Summary Marketing Mix Year 4 SONO Buffs 15% SONO Pros 85% Among the first to use Sonite products Demand high performance products Quite price-sensitive, incomes not necessarily high Brand Awareness: 62,4% Purchase Intentions: 13,2% Market Share: 18,5% Actual size this period: Size: 187KU, 14,6% Forecasted size next period: size: 185KU, 12,4% Largest segment in terms of profit margin High quality, high performance & easy 2 use Price as an indication of quality Brand Awareness: 79,0% (highest one) Purchase Intentions: 25,5% (highest one) Market Share: 31,0% Actual size this period: Size: 334KU, 26,0% Forecasted size next period: size: 382KU, 25,5%
  • 94. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 12 Segments’ Characteristics (Vodite Market) – Summary Marketing Mix Year 4 VOTE Innovators 40% VOTE Adopters 30% The largest segment in the early days The first users of Vodite products Try new ideas at some risk, Income above average Brand Awareness: 26,3% (second highest) Purchase Intentions: 29,4% (highest one) Actual size this period: Size: 55KU, 56,3% Forecasted size next period: size: 69KU, 40,6% Forecasted size in 5 periods: Size: 100KU, 10,4% Larger segment than innovators, Opinion leaders Adopt Vodites after innovs, but before the majority Average income level Brand Awareness: 15,5% Purchase Intentions: 17,0% Actual size this period: Size: 33KU, 33,6% Forecasted size next period: size: 75KU, 44,4% Forecasted size in 5 periods: Size: 199KU, 20,6% VOTE Followers 30% The bulk of potential customers Perceive more risk in buying new products Forecasted size next period: size: 25KU, 15,1% Forecasted size in 5 periods: Size: 665KU, 69,0% Income level below average Brand Awareness: 26,5% (highest one) Purchase Intentions: 25,2% Actual size this period: Size: 10KU, 10,1%
  • 95. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 13 Segments’ Characteristics (Vodite Market) – Summary Marketing Mix Year 4 VOLT Adopters 70% VOLT Followers 30% Larger segment than innovators, Opinion leaders Adopt Vodites after innovs, but before the majority Average income level Brand Awareness: 21,5% Purchase Intentions: 38,1% (highest one) Actual size this period: Size: 33KU, 33,6% Forecasted size next period: size: 75KU, 44,4% Forecasted size in 5 periods: Size: 199KU, 20,6% The bulk of potential customers Perceive more risk in buying new products Income level below average Brand Awareness: 15,3% Purchase Intentions: 19,2% Actual size this period: Size: 10KU, 10,1% Forecasted size next period: size: 25KU, 15,1% Forecasted size in 5 periods: Size: 665KU, 69,0%
  • 96. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 14 Pricing & Advertising per Brand & Segment Marketing Mix Year 4 0 4 8 12 16 20 24 28 600,0 800,0 1.000,0 400,0 200,0 0,0 "Cheap" Sonites "Expensive" Sonites Value Growth vs. Period 1 Sonite Market Growth Dispensed Units (Period 3) BCG Matrix – Product Category1 Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites Dispensed Units (Period 3) BCG Matrix – Segment -4 0 4 8 12 16 20 24 28 32 36 40 0,0 400,0 300,0 200,0 100,0 Value Growth vs. Period 1 Buffs Others Singles HiEarners Pros Sonite Market Growth Dispensed Units (Period 3) BCG Matrix – Channel 8 10 12 14 16 18 800,0 600,0 200,0 0,0 400,0 Value Growth vs. Period 1 Department Mass Merch. Specialty Sonite Market Growth Category Majority of Advertising expenses & Sales Force for the “expensive” Sonites. Launch new brand in a segment already targeted by competitors Marketing Strategy Segment Channel Primary focus on Pros. Start prioritizing HiEarners. Start sacrificing Others. Advertising budget will be allocated accordingly Focus on the growth channel of Department Stores, where margins are also in our favor. Allocate Sales Force accordingly
  • 97. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 15 Pricing per Brand vs. Segment Marketing Mix Year 4 Desired Price per Segment – Semantic Scales 331 267 444 462 205 0 100 200 300 400 500 $ Price HiEarnersPros OthersSinglesBuffs Relative Importance Desired Price per Segment – Regression 325 251 459 467 212 0 100 200 300 400 500 $ Price Relative Importance Actual Price per Brand 181 425 140 415 0 100 200 300 400 500 Actual Price $ SONOSOLD SOLO SONY
  • 98. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 16 Advertising Budget & Research per Brand Marketing Mix Year 4 Allocated mainly regarding the potential SOLD 17% of Budget to Research SONO 17% of Budget to Research SOLO ---- SONY 21% of Budget to Research Maintain Brand Awareness Levels & Change Perceived Attributes Increase Brand Awareness Levels & Change Perceived Attributes Partially Withdraw Commence the Awareness Brand Awareness per Segment & Brand – P2 0 20 40 60 80 100 % 59,1 HiEarners 41,1 58,7 Others 63,8 49,1 ProsSingles 48,6 62,7 80,2 Buffs 42,8 65,7 Brand Awareness per Segment & Brand – P1 0 20 40 60 80 100 % 63,4 HiEarners 42,9 57,1 Others 63,2 51,9 ProsSingles 47,9 63,5 77,0 Buffs 44,4 68,3
  • 99. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 17 Perceptual Objectives per Brand Marketing Mix Year 4 0 1 2 3 4 5 6 7 Price 5,85,7 Scale 2,2 3,8 2,7 SinglesBuffs Pros OthersHiEarnersChange perceived attributes via Semantic Scales 0 1 2 3 4 5 6 7 5,5 Scale Power 2,4 4,6 4,3 5,8 Advertising Objective per Brand - Price 0 1 2 3 4 5 6 7 2,4 5,8 Economy 5,8 Scale 2,1 SONYSOLOSONOSOLD Advertising Objective per Brand - Power 0 1 2 3 4 5 6 7 Performance 2,4 4,5 5,6 4,6 Scale Desired Price Desired Power
  • 100. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 18 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 101. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 19 Sonites Journey Sales Force Year 4 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price SOLO SONY Customers Team Omicron R&D SOLD SONO
  • 102. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 20 Vodites Journey Sales Force Year 4 Team Omicron Mass Merchandisers Department Stores Specialty Stores Distributors Margin 40% Distributors Margin 30% Distributors Margin 30% - 10% Discounted retail price VOTE Customers Team Omicron R&D VOLT
  • 103. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 21 Sales Force per Brand & Segment Sales Force “Cheap Sonite” Potential 200 0 500 400 100 300 124 DepartSpecialty 41 36 215 Units *10^3 6 Mass 72 40 195 132 ProsSingles HiEarners OthersBuffs “Expensive Sonite” Potential 400 300 200 0 500 100 84 Mass 155 152 Depart 71 473 74 69 159 158 96 Units *10^3 292 Specialty Year 4 FTEs 2118 9 31 42 78 111 23 44 21 0 15 30 45 60 75 90 # FTEs Specialty stores Mass Merchandis.Depart. stores SOLOSONOSOLD SONY
  • 104. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 22 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 105. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 23 Sonites Market Research – Ordered Reports Market Research Year 4 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Mainly for the re-allocation of FF to Channels Evaluation of Targeting strategy Saving Budget Contribution to R&D Decisions Projected Demand Sales define our production & strategy Not used for Decisions of Period 1 Understand through Industry Benchmarking Understand through Industry Benchmarking Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 4
  • 106. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 24 Vodites Market Research – Ordered Reports Market Research Year 4 Industry Benchmarking Consumer Survey Consumer Panel Distribution Panel Semantic Scales Market Forecast MDS Scaling Competitive advertising Competitive SFE Advertising Experiment SFE Experiment Conjoint Analysis Evaluation of our performance/decisions Saving Budget Contribution to Advertising messages decisions Projected Demand Sales define our production & strategy Understand through Industry Benchmarking Understand through Industry Benchmarking Based on the assumption that nothing changes Based on the assumption that nothing changes No significant changes expected in Period 4 Will not be used Saving Budget Mainly for the re-allocation of FF to Channels
  • 107. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 25 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 108. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 26 Breakeven Point per Brand – Required dispensed units P&L Account Year 4 Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Contribution by Brand CONTRIBUTION BY BRAND (SONITE BRANDS) Sonite Brands Unit SOLD SONO SOLO SONY VOTE VOLT Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE Sales Units sold2 U 45,250 60,157 6,460 24,900 25,125 31,964 Average retail price $ 179 419 140 409 725 670 Average selling price3 $ 118 265 95 268 449 415 Revenues K$ 5,332 15,928 615 6,666 11,272 13,255 Production Units produced U 45,250 60,157 6,460 24,900 25,125 31,964 Current unit transfer cost4 $ 53 100 58 101 250 250 Average unit transfer cost $ 53 100 58 101 250 250 Cost of goods sold K$ -2,398 -6,016 -375 -2,515 -6,281 -7,991 Units in inventory U 77,150 253,843 35,540 60,100 23,875 42,036 Inventory holding cost K$ -1,157 -3,808 -165 -902 -358 -631 Inventory disposal loss K$ 0 0 0 0 0 0 Contribution before marketing K$ 1,776 6,105 76 3,250 4,633 4,633 Marketing Advertising expenditures K$ -504 -1,999 -1 -900 -1,500 -1,500 Advertising research expenditures K$ -94 -400 -1 -190 -360 -360 Sales force K$ -1,178 -3,706 -74 -2,160 -2,773 -2,773 Contribution after marketing K$ 0 0 0 0 0 0 Comment regarding feasibility Feasible Easy Impossible1 Easy Feasible Difficult Note 3: Based on the projected allocation of brands per channel Note 2: Required dispensed units Note 1: Withdrawal of brand means now 480K loss; if we sell zero, we lose 270K. Money worth more now (Time Value of Money)
  • 109. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 27 Agenda Marketing Mix Sales Force Market Research P&L Account Next Actions Brand Portfolio
  • 110. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 28 Next Actions Year 4 Evaluation of Scorecard – Year 1 SONO market share >40% in Pros in Period 1 SOLD market share >30% in Others in Period 1 Sell all the SONO produced units in Period 1 >85% coverage of Specialty stores regarding SONO in Period 1 >80% coverage of Department stores regarding both Sonites in Period 1 Net contribution >25K$ in Period 1 Leader in Expensive Sonite in Period 1 (regardless Segment) Confirmation that the 2 targeted segments deliver the highest contribution for Team O Highest purchase intention in the 2 targeted Segments >85% Brand Awareness in the 2 targeted Segments Deliver the right message to the right segments 5Digit Budget (in K$) for Period 4 Achieved Not Achieved
  • 111. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 29 Next Actions Year 4 Evaluation of Scorecard – Year 2 SONO market share >30% in Pros in Period 4 SOLD market share >20% in Others in Period 4 Sell all the SONO & SONY produced units in Period 4 >60% coverage of Specialty stores regarding SONO in Period 4 >52% coverage of Department stores regarding all Sonites in Period 4 Net contribution >37K$ in Period 4 Leader in Expensive Sonite in Period 1 (regardless Segment) >55% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >15K$ Budget for Period 4 Achieved Not Achieved
  • 112. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 30 Next Actions Year 4 Internal KPIs for evaluation of Decisions SONO market share >50% in Pros in Period 4 Sell all the VOTE & VOLT produced units in Period 4 Sell all the SONO & SONY produced units in Period 4 >55% coverage of Specialty stores regarding SONO in Period 4 >45% coverage of Department stores regarding all Sonites in Period 4 Net contribution >45K$ in Period 4 Leader in Expensive Sonite in Period 1 (regardless Segment) >30% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >18K$ Budget for Period 4 Achieved Not Achieved
  • 113. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 31 Next Actions Year 4 Internal KPIs for evaluation of Decisions SONO market share >50% in Pros in Period 4 Sell all the VOTE & VOLT produced units in Period 4 Sell all the SONO & SONY produced units in Period 4 >55% coverage of Specialty stores regarding SONO in Period 4 >45% coverage of Department stores regarding all Sonites in Period 4 Net contribution >50K$ in Period 4 Leader in Expensive Sonite in Period 1 (regardless Segment) >30% Brand Awareness for SONY among HiEarners Highest purchase intention in Pros & Singles Segments >85% Brand Awareness for SONO among Pros Deliver the right message to the right segments >20K$ Budget for Period 4
  • 114. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 32 Next Actions Year 4 Study Benchmarking Studies Close the knowledge gap by studying Market Research Target Growth Segments more precisely either by … Advertising and changing the perceived attributes or by … Investing on slight differentiation of existing brands via R&D Re-evaluate # of SFE Market Sizing per Segment for next period(s) Estimate market share for the requested production levels Focus on “rich” segments Focus on being first in all important KPIs Achieve the largest available Budget for next period for… Relaunch SONY & VOTE Actions regarding upcoming Periods
  • 115. MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou 33 Team Omicron Thank you! Eva Gallou Kristi Kakomanoli Andreas Marinis Vassilis Raftis Zoi Sfyri Rodoula Siourtou Savvas Soranoglou Panagiota Vlachopoulou