Marketing Strategies Marketplace Live Simulation Blue Chip Technologies Situational Analysis & Sustainable Competitive Advantage Presentation Marketing Strategies, MARK 390, Loyola University Chicago

1. BLUE CHIP TECHNOLOGIES
Situational Analysis &
Sustainable Competitive Advantage

2. EXTERNAL ANALYSIS
Customer analysis
● Segments:
○ Costcutter(Low Price)
○ Workhorse(Largest segment)
○ Traveler(Portability)
○ Innovator(Performance)
○ Mercedes(Least price sensitive segment)
● Need and Wants:
○ Costcutter - Peace of mind-safe(133)
○ Workhorse - Peace of mind-safe(125)
○ Traveler - Can connect to office when on
road(128)
○ Innovator - Vendor is technical leader(129)
○ Mercedes - Security(130)
● Media Preferences:
○ Costcutter - Sports Magazines(140)
○ Workhorse - General Business Magazine(126)
○ Traveler - New Venture Magazine(124)
○ Innovator - New Venture Magazine(148)
○ Mercedes - General New Magazine(139)

3. EXTERNAL ANALYSIS
Competitor Analysis
● Bytes - Indirect competitor
Plant located in Sao Paulo, Sales offices in Chicago and Sao Paulo
Segments targeted: Innovator, Traveler, Workhorse
● Adonis Worldwide - Direct competitor
Plant located in Warsaw, Sales offices in Toronto, Paris, Moscow and London
Segments targeted: Workhorse, Traveler
● Overall strengths and weaknesses analysis of competitors’ Brand Judgment, Ad Copy
Judgment, Price Judgment

4. EXTERNAL ANALYSIS
Market/Industry Analysis
● Size of Entire Microcomputer Market
The potential demand for the entire market, including all segments, is 220,405 units.
The potential dollars to accumulate are $581,760,693, which was calculated from the equation:
units demanded * price willingness to pay
● Number of Units Sold to Date
The total number of units sold from Quarter 1 to Quarter 4 is 9,025 units
● Percent of Demand Satisfied
The total demand satisfied is (9,025 / 220,405) * 100% = 4.09%

5. INTERNAL ANALYSIS - PAST PERFORMANCE
Income Statement
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Gross Profit
Sales 0 0 1,425,700 2,699,350
- COGS & Rebates 0 0 715,394 1,900,075
= Gross Profit 0 0 710,306 799,275
Expenses
Sales Office Expenses 0 340,000 430,769 1,050,500
+ Research 72,800 120,000 40,000 220,000
+ Excess Capacity Cost 0 0 693,162 0
+ Other Expenses 0 0 271,507 279,897
= Total Expenses 72,800 460,000 1,435,439 1,550,297
Operating Profit -72,800 -460,000 -725,133 -751,022
+ Interest Gain/Charge 13,920 0 20,700 (38,468)
= Net Income -58,880 -460,000 -704,433 -789,490
Cash Flow
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Beginning Cash Balance 0 13,120 381,120 1
Receipts and Disbursements from Operating Activities
Revenues 0 0 1,425,700 2,699,350
- Production 0 0 732,037 1,798,432
- Sales Office Expenses 0 340,000 430,769 1,050,500
- Marketing Research 72,800 0 40,000 100,000
- Excess Capacity Cost 0 0 693,162 0
Other Income/Expenses 13,920 (120,000) (231,274) (452,132)
= Net Operating Cash Flow -58,880 -460,000 -700,543 -701,714
Investing Activities
Fixed Plant Capacity 0 1,100,000 0 0
= Total Investing Activities 0 1,100,000 0 0
Financing Activities
Increase in Common Stock 1,000,000 1,000,000 1,000,000 1,000,000
+ Emergency Loan 0 0 699,424 (699,424)
+ 3 Month Certificate (928,000) 928,000 (1,380,000) 1,380,000
= Total Financing Activities 72,000 1,928,000 319,424 1,680,576
Cash Balance, End of Period 13,120 381,120 1 978,864

6. INTERNAL ANALYSIS - STRENGTHS AND
WEAKNESSES
Brand Judgement
Price Judgement
Company Brand Costcutter Innovator Mercedes Workhorse Travele
Colt Z280 63 6 1 41 11
Bytes Work Byte 55 62 38 78 30
Blue Chip
Charger 2.0 55 62 38 78 30
Technologies
Adonis Worldwide Hephaestus II 55 62 38 78 30
Bytes Big Byte 2.0 29 78 49 62 10
Adonis Worldwide Hermes II 29 49 8 37 76
Bytes Travel Byte 22 24 1 22 68
Ad Judgement
r
Blue Chip
Technologies
Company Ad Costcutter Innovator Mercedes Workhorse Traveler
Blue Chip Technologies Colt Z280 73 40 45 70 53
Adonis Worldwide No Attack 70 47 48 75 62
Bytes Work Byte 57 58 45 79 52
Bytes Big Byte 2.0 52 71 73 72 44
Bytes Travel Byte 49 45 45 51 67
Adonis Worldwide The Nomad 41 38 49 59 77
Blue Chip Technologies Charger 2.0 35 57 44 62 22
Company Brand Costcutter Innovator Mercedes Workhorse Travele
r
Blue Chip Technologies Colt Z280 100 100 100 100 100
Blue Chip Technologies Charger 2.0 97 100 100 100 100
Bytes Travel Byte 86 100 100 100 100
Adonis Worldwide Hephaestus II 76 100 100 100 100
Adonis Worldwide Hermes II 73 100 100 100 100
Bytes Work Byte 68 100 100 93 100
Bytes Big Byte 2.0 54 90 100 74 83

7. INTERNAL ANALYSIS - BALANCED
SCORECARD
Strengths:
Weaknesses:
Market Performance,
Financial Performance,
Investment in Future
Wealth, Marketing

8. VALUE PROPOSITION
“Blue Chip Technologies offers desktop personal computers at a
competitively low price equipped with trustworthy new technology.”
-Blue
Chip Technologies Business Plan, 2014
The Charger Models:
The reliable, efficient model for the modern
professional.
● Speed
● Security
● Connectivity
The Colt Models:
Simplicity and ease for professional
and personal use.
● Simple user interface
● Security
● Basic applications

9. SEGMENTS
● Costcutter
● Workhorse
● Innovator
● Travel
● Mercedes

10. POSITIONING

12. SCA - Assets and Competencies
Assets
-Fast-track opening new
sales offices
-Low price offerings
-Large sales force
-Good inventory control
-Limited competitors in
each region
Competencies
-Desktop specific
-Sales office management
-Targeting advertisement
-High operating capacity