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Aristocrats - Markstrat Story
Team Organization . 1


                     Line of Attack . 2


                 Product Life Cycle. 3


              Strength n Weakness. 4


    Consumer Satisfaction Criteria. 5


           Four P’s Implementation. 6


         Mistakes n Lesson’s learnt. 7


                  Future of the firm. 8



Agenda
Advertising Budget, Sales




                                                e
                                            c
                                        Pri
                                      ,
                                   ion
                                  t
                              p
                          rce
                         e
                       gP
                    in
                 s
                i
            ert
           v
        d
      ,A
  D
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                              n
                        tio
                      uc
               od
             Pr


                                                    Final Decision




                     Team Organization
Targeting Specific Segments




        Early Entry to Vodite market




Line Of Attack
Massacre of Low Performers




 Shift of Focus from R&D to
     Marketing and Sales




Line Of Attack
SAKE            SAFE




    -Hiearners
                 -Buffs
    -Pros
    -Buffs




                          Product Lifecycle
Period =1
SAKE




 -Hiearners
 -Pros
 -Buffs




                          Product Lifecycle
              Period =3
VAVA
SAKE               SAGE




                              -Innovators
 -Hiearners
                   -Singles
                              -Adopters
 -Buffs




                                            Product Lifecycle
              Period =4
VAVA                VAFT
SAKE          SAGE




                                     -Innovators
 -Hiearners
              -Singles
                                     -Adopters              -Followers
 -Buffs




                                                   Product Lifecycle
                         Period =7
VAFT - Followers
Product Engineers




                       SAGE - Singles                      SAKE - HiEarners




 - Ideal Products




                    Strengths
Sales Team
Value in M$




                           -Maximum Sales




              Strengths
Media Team
                                            Performance




                              Convenience
                                             Performance




                              Convenience
- Right Perceptions




                      Strengths
Product   Price
Pricing Strategy
                                  VAFT      $580

                                  VOOM      $610

                                  VUDU      $661

                                  VUYU      $700




                                                    Economy




                        Economy




                   Weakness
‘E’ and ‘O’ - access to High Budgets




                                              ‘O’ team
                                       First Mover Advantage




                      Competitor - Strengths
‘E’ playing Twister in     ‘U’ robbing from Vodite
        Sonites                  consumers


                         VUDU = $661 - 30% Market Share in 8th
                         VUYU = $700 - Launched
                         Revenue = $107,419
                         Costs of Goods Sold = $40,494




        Competitor - Strengths
Contributiuon After Marketing Across Markets
                           150


                  112.5




                  Value in M$
                                75


                       37.5


                                 0
                                     A   E   I            O   U        Y

Lack Of Balance
Across Markets                                   Sonite       Vodite




            Competitor - Weakness
Inventory Holding Cost + Disposal Cost
14000


10500


7000


3500


   0
           A     E     I     O     U     Y

                                                 Aggressive Production
                                                       Planning




                      Competitor - Weakness
Weaker Sales Force




               Competitor - Weakness
Vodites




 Sonites




                                    Media Team
                        - Missed Consumer’s Ideal Perceptions




           Competitor - Weakness
Followers
                                                      Innovators
                               Singles
     Hiearners




- Brand Awareness
                                                - Price
                        - Cheap Product
- Product Performance                                                   - Cheap Price
                                                - Higher Frequency
                        - Higher Power
- Product convenience                                                   - Distribution Coverage
                        - Distribution Coverage - Distribution Coverage
- Distribution Coverage
- Price




    Consumer’s Satisfaction Criteria - All 4Ps
Right Product met Consumer’s Needs              Left Money on Table     (emphasis        )




  Comprehensive Distribution Coverage          Excellent Adspend + Precise Positioning




                                    Tradeoff :
                    conservative production Vs Inventory Costs



                   4Ps- Implementation
Huge bets on Product
    Development
 (VAVA + Upgrade)
(Missed MDS report)




                         Slippage of Perceptual
                            Objective Values



                            Few Stock Outs



                       Late in Reducing base cost of VAFT




                                             Accidental Mistakes
Engineer                                                 Marketeer



   “A good plan today is better than a perfect plan tomorrow”



           “He did not marry her because he loved her”



                         Art Vs Science




                  Lessons Learnt
• Strengths



     • Balanced Focus - Sonites / Vodites



     • Flexibility to change strategy as market demands



     • Strong Sales Force / Apt Advertising



• Weakness



     • Emphasis on Pricing Strategies




     Future of the Firm - Don’t Mess Up!!!
Questions???

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Markstrat Presentation

  • 2. Team Organization . 1 Line of Attack . 2 Product Life Cycle. 3 Strength n Weakness. 4 Consumer Satisfaction Criteria. 5 Four P’s Implementation. 6 Mistakes n Lesson’s learnt. 7 Future of the firm. 8 Agenda
  • 3. Advertising Budget, Sales e c Pri , ion t p rce e gP in s i ert v d ,A D R& n tio uc od Pr Final Decision Team Organization
  • 4. Targeting Specific Segments Early Entry to Vodite market Line Of Attack
  • 5. Massacre of Low Performers Shift of Focus from R&D to Marketing and Sales Line Of Attack
  • 6. SAKE SAFE -Hiearners -Buffs -Pros -Buffs Product Lifecycle Period =1
  • 7. SAKE -Hiearners -Pros -Buffs Product Lifecycle Period =3
  • 8. VAVA SAKE SAGE -Innovators -Hiearners -Singles -Adopters -Buffs Product Lifecycle Period =4
  • 9. VAVA VAFT SAKE SAGE -Innovators -Hiearners -Singles -Adopters -Followers -Buffs Product Lifecycle Period =7
  • 10. VAFT - Followers Product Engineers SAGE - Singles SAKE - HiEarners - Ideal Products Strengths
  • 11. Sales Team Value in M$ -Maximum Sales Strengths
  • 12. Media Team Performance Convenience Performance Convenience - Right Perceptions Strengths
  • 13. Product Price Pricing Strategy VAFT $580 VOOM $610 VUDU $661 VUYU $700 Economy Economy Weakness
  • 14. ‘E’ and ‘O’ - access to High Budgets ‘O’ team First Mover Advantage Competitor - Strengths
  • 15. ‘E’ playing Twister in ‘U’ robbing from Vodite Sonites consumers VUDU = $661 - 30% Market Share in 8th VUYU = $700 - Launched Revenue = $107,419 Costs of Goods Sold = $40,494 Competitor - Strengths
  • 16. Contributiuon After Marketing Across Markets 150 112.5 Value in M$ 75 37.5 0 A E I O U Y Lack Of Balance Across Markets Sonite Vodite Competitor - Weakness
  • 17. Inventory Holding Cost + Disposal Cost 14000 10500 7000 3500 0 A E I O U Y Aggressive Production Planning Competitor - Weakness
  • 18. Weaker Sales Force Competitor - Weakness
  • 19. Vodites Sonites Media Team - Missed Consumer’s Ideal Perceptions Competitor - Weakness
  • 20. Followers Innovators Singles Hiearners - Brand Awareness - Price - Cheap Product - Product Performance - Cheap Price - Higher Frequency - Higher Power - Product convenience - Distribution Coverage - Distribution Coverage - Distribution Coverage - Distribution Coverage - Price Consumer’s Satisfaction Criteria - All 4Ps
  • 21. Right Product met Consumer’s Needs Left Money on Table (emphasis ) Comprehensive Distribution Coverage Excellent Adspend + Precise Positioning Tradeoff : conservative production Vs Inventory Costs 4Ps- Implementation
  • 22. Huge bets on Product Development (VAVA + Upgrade) (Missed MDS report) Slippage of Perceptual Objective Values Few Stock Outs Late in Reducing base cost of VAFT Accidental Mistakes
  • 23. Engineer Marketeer “A good plan today is better than a perfect plan tomorrow” “He did not marry her because he loved her” Art Vs Science Lessons Learnt
  • 24. • Strengths • Balanced Focus - Sonites / Vodites • Flexibility to change strategy as market demands • Strong Sales Force / Apt Advertising • Weakness • Emphasis on Pricing Strategies Future of the Firm - Don’t Mess Up!!!