1. Nectarine, Inc.
Kevin Moriarty, President – Overall Leadership
Heather Hanson, VP Brand Management
Duriel Holley, VP Marketing Research
Brian Schlosnagle, VP Finance
Lauren Tanzer, VP Sales Management
2. Executive Summary
Nectarine, Inc. aims to build products that provide cutting
edge technology while creating tools to allow customers to
efficiently accomplish their goals in a practical manner. The
company focuses on large, highly competitive segments in
the largest geographic markets while striving to minimize
distribution costs to allow the price of their products to
remain competitive. As a leader in the industry, Nectarine,
Inc. targets their products to be the first to market to provide
the best computers to their customers across the world.
3. Market Performance
• Innovator and Traveler
segments were highest
in demand.
• Costcutter and
Workhorse show more
R&D might be needed.
4. Market Performance
• Turned net profit for division beginning quarter 7
• Increased ROI % over 5 times our percentage from
quarter 2
5. Performance During the Past Year
We were conservative in
our approach to refining
products and getting to
know markets/sales
locations
Total Gross Margin:
$18,497,357
Total Revenues:
$42,619,350
Revenues have steadily
increased over last 4
quarters of sales
Market share and demand for our
products started moderately but
we increased in sales and demand
in second half.
6. Assessment of Current Situation and Market
Our Customers
Market Growth 75-150%
All segments
Overall Market Share: 9%
Our Competition
sPCtrum
Compact Intelligence
Solutions
RoadRunner
More aggressive in
Increasing product line
Opening sales offices
Advertising locally
7. Assessment of Current Situation and Market
C. Nectarine’s Attributes
Strengths
Profitable in Quarter 4
109% increase in sales
High focus on products
meeting customer needs
Weakness
Brand awareness
Slow office expansion
Limited product portfolio
D. Next Year
Potential Issues
Rapid expansion of
competition
Opportunities
Tap into other market
segments
Improve brands to
appeal to more
customers
Expand advertisement to
create brand awareness
8. Financial Performance YR1 & YR2
Revenues
steadily
increased from
Q4 – Q8
Adding new
brands, R&D
features and
sales offices
helped to
increase
revenues
9. Brand Profitability
Profitability varied across our five products
Need to determine which products to continue to build and
which to sunset moving into YR3
10. Regional Profitability
All three regions
proved to be vital
to our company’s
sales
Ideally, we will look
to build our
regional profit in
APAC and EMEA, as
the expenses are
lower in those
areas
12. Marketing Plan - Pricing
Undercut competitors
Large rebates for new products
13. Marketing Plan - Advertising
Regional ads
Dense regions first
Humble beginnings
Local Ads
Quality ads
Humble beginnings
14. Marketing Plan – Sales Channel
Finish expanding
region with least
presence
Expand Sales Force
conservatively
Conservative
expansion
Establish presence
in all regions
15. Marketing Plan – Significant Events
Change primary focus
3 Times
Enhance core business products
Understanding advertising impact
Branding and reaching out to audience
Expanding sales office locations
17. Marketing Strategy for the Next Year
A. Brand Strategy
Investment in R&D to improve brand offerings and increase
competitive advantage
Innovator, Mercedes, and Traveler
B. Pricing Strategy
Increase prices slightly to build brand reputation and profits
C. Advertising Strategy
Increase ad copy judgment to diversify in other forms of media
D. Sales Channel
Maintain offices and sales force
18. Lessons Learned
Err on the side of being aggressive early on
Establish a presence in all regions as early as possible
Develop many brands to meet market needs
Strategically invest in R&D
Streamline resources to the more profitable brands and segments
Use market research to improve offerings
19. Future Plans
Increase brand judgment to >95
Invest in R&D to meet market specifications
Redesign product for Workhorse segment
Increase total market share to >15%
Maintain >200% net profit increase next quarter
20. Conclusion
Nectarine, Inc. had a slower start than anticipated, but
improved our strategy going into Q5 to position us to
capture more sales and increased profits through the
second year.
With new and improved computers and R&D futures in Q5-
Q8, and additional resources in our existing sales offices,
we found customers were impressed with our offerings.
Keep an eye out for even more products in new regions
coming out in the near future!
Editor's Notes
Revenues steadily increased from Q4 – Q8, likely due to adding new brands, R&D features and sales offices helped to increase revenues.
Profitability varied across our five products, with Hermes 4.0 being our most profitable product, followed by Galileo 4.0. Given the brand profitability, we’ll need to determine which products to continue to build and which to sunset moving forward.
All three regions proved to be vital to our company’s sales, with regional profits being slightly higher in the Americas. That said, the expenses to run an office in the Americas are higher than in the other two regions, so ideally, we will look to build our regional profit in APAC and EMEA, as the expenses are lower in those areas.
Err on the side of being aggressive in strategy, development, and use of investment resources in the early stages, rather than waiting to “play catch up” in second half
Establish a presence in all regions as early as possible, opening all possible offices as quickly as possible, rather than focusing on 1 or 2 cities or regions
Develop more brands to meet the needs of evolving market
Invest in R&D crucial in brand management and remaining competitive
As more offices open, streamline resources (advertising, sales force) to the more profitable brands and segments
Market research was a valuable tool for improving our own advertising, sales force, and pricing to be more competitive in the market place
