Strategic brand presentation
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Strategic brand presentation
- 1. Miracles
- 2. How Markstrat works Unchallenging Industry Who beats the dead horse stronger?
- 3. • Sacrificed first two periods • Was comfortably 1st by Period 3 • Took a loan in Period 3 • Had maximum budget by Period 4 • Dumped Move • MOSH became first in terms of market share value • Took a risk with the price of firstVodite • Became by far the most profitable product • Weaken competing firms by fighting in each segment • Targeted professionals and high earners • Always plan ahead • Positioned brands by using historical data to forecast demands of customers • Used Market data to identify most feasible opportunities to invest in advertising • Introduced a new product to target Explorers, a small and contracting but profitable industry • FirmT was making progress inVodites research Entrepreneurial RiskTaking Strategic Planning Use of Market Data Ruthlessness Absolute Hegemony
- 8. Big Adjustments Mistakes Sonites Big Decisions and Mistakes Period 1 2 3 4 5 6 7 MOSH: for shoppers Dump MOVE and develop a new brand MOSH for shoppers MOPRO: for professionals Keep setting price lower than their expectation for professionals MOPRO: Not allocating enough advertising budget for the new product. MOHE: for high earners The production plan we set was too low ( 100k units). 120K units were produced. It is estimated that 31K units of potential sales have been lost. MOEX: for explorers We decided to make the most of the market by adding MOEX into our brand portfolio.
- 9. Brand Firm Features Design Battery Display Power Price MOVE Miracles 4.3 1.6 5.9 3.1 2.5 4.2 Shoppers Ideal 1.9 5.1 2.9 4.4 4.3 3.1 Specialty Stores Mass Merch. Online Stores Total MOVE 1 1 1 3 Contribution after marketing: -156K
- 10. Big Adjustments Mistakes Sonites Big Decisions and Mistakes Period 1 2 3 4 5 6 7 MOSH: for shoppers Dump MOVE and develop a new brand MOSH for shoppers MOPRO: for professionals Keep setting price lower than their expectation for professionals MOPRO: Not allocating enough advertising budget for the new product. MOHE: for high earners The production plan we set was too low ( 100k units). 120K units were produced. It is estimated that 31K units of potential sales have been lost. MOEX: for explorers We decided to make the most of the market by adding MOEX into our brand portfolio.
- 11. Mopro Advertising Media Advertising Research Advertising Budget in total Contributio n after marketing Brand Awareness Price Period 3 2500 500 3000 5395 41% 420 Period 4 3300 700 4000 12129 65% 410 Period 5 2800 400 3200 23097 76% 430 Period 2 3 4 5 6 7 8 9 10 MOPRO 420 410 430 445 475 510 495 505 ROCK 413 413 422 438 456 475 480 492 499 Advertising Budget Pricing
- 12. Big Adjustments Mistakes Sonites Big Decisions and Mistakes Period 1 2 3 4 5 6 7 MOSH: for shoppers Dump MOVE and develop a new brand MOSH for shoppers MOPRO: for professionals Keep setting price lower than their expectation for professionals MOPRO: Not allocating enough advertising budget for the new product. MOHE: for high earners The production plan we set was too low ( 100k units). 120K units were produced. It is estimated that 31K units of potential sales have been lost. MOEX: for explorers We decided to make the most of the market by adding MOEX into our brand portfolio.
- 13. 201*50%=100 20%20%80 120 160 165 170 175 180 185 190 195 200 205 Period 3 Period 4 Market Size Market Size
- 14. Big Adjustments Mistakes Sonites Big Decisions and Mistakes Period 1 2 3 4 5 6 7 MOSH: for shoppers Dump MOVE and develop a new brand MOSH for shoppers MOPRO: for professionals Keep setting price lower than their expectation for professionals MOPRO: Not allocating enough advertising budget for the new product. MOHE: for high earners The production plan we set was too low ( 100k units). 120K units were produced. It is estimated that 31K units of potential sales have been lost. MOEX: for explorers We decided to make the most of the market by adding MOEX into our brand portfolio.
- 15. Period 7 Period 8 Period 9 Period 10 Revenues 9,744 10,030 10,504 11,617 Cost of goods sold -8,911 -8,114 -7,749 -7,693 Inventory holding cost -175 -46 0 0 Inventory disposal loss 0 0 0 0 Contribution before marketing 658 1,870 2,755 3,924 Advertising media -1,800 -800 -800 -840 Advertising research -300 -160 -160 -160 Commercial costs -672 -645 -660 -669 Contribution after marketing -2,113 265 1,135 2,255 ,000 Total $1,542
- 16. Period 6 Period 7 Period 8 Period 10Period 9 Meking: Innovators Meany: Adopters Meking: Innovators Mewin: Followers Meking: Innovators Meany: Adopters Meking: Innovators Meany: Adopters Mewin: Followers Meking: Innovators Meany: Adopters
- 18. Period 6 7 8 9 10 Big Adjustments Mistakes First leaning towards modest margins but then shifted to premium pricing, to increase profit Sacrificed on advertising expenses on sonites to set benchmarking prices for vodites ($1,400) Commercial team not aligned. Too many in mass merchandise and not speciality stores. Strategy to capture all the segments (followers & adopters) before the competitors Meany production plan too low (81k), 8k units sales lost Forecast mistake, overproduced Mewin and under produced Meany. Lost sales Vodites Big Decisions and Mistakes
- 19. LessonsLearned 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 1 2 3 4 5 6 7 8 9 10 Market Share Index by Industry Berlin Warsaw Paris London Madrid Rome RiskTaking First Mover Advantage Draining Competition