The group presents key learnings from their market driving strategy simulation. They deviated from their strategic plan for the VODITES and SONITES markets, capturing different market shares than expected. They learned about the importance of innovators, anticipating competition, and focusing on long-term strategy over short-term gains. Additionally, they learned to modify products and advertising based on evolving customer preferences and perceptions rather than technical details. Other learnings included matching internal operations to consumer needs, maintaining a manageable number of brands, and competing through innovation rather than price wars.
This document contains information about Group B10's performance over 8 periods in a simulated market. It lists the members of Group B10 and provides data on the group's total market share, revenue, expenses, and brand portfolio over time. It also outlines the strategies Group B10 employed in each period, and summarizes the outcomes and lessons learned. The group worked to modify existing products, launch new products to target different segments, and expand into the Vodite market while maintaining their Sonite market share.
The document discusses strategies for market-driving organizations versus market-driven organizations. It defines market-driving firms as those that shape or change markets by eliminating, adding, or modifying players and their functions. They rewrite industry rules and compete in new arenas. Their core values inspire radical business concepts and they often teach potential customers to consume their value propositions.
Knowledge & experience makes me positively sure that Being market Driven, Customer Driven is not enough for companies to survive in the market now.
If you need a copy of the Power point presentation email your request @ dngrtz2000@hotmail.com, will send you your copy immediately.
1. Arndt, 1979, Towards a concept of domesticated markets
2. Jaworski et al, 2000, Market-driven vs. driving markets
3. Day, 1981, Strategic market analysis and definition
4. Caldwell et al, 2005, Promoting competitive markets
This document provides an overview of market-driven strategy and its key components. It discusses how becoming market-oriented, determining distinctive capabilities, matching customer value requirements to capabilities, and achieving superior performance are characteristics of a market-driven strategy. It also outlines the steps in developing corporate strategy, including defining the corporate mission, establishing strategic business units, assigning resources, and planning for new or terminating older businesses. Finally, it discusses the challenges of implementing market-driven strategy in today's globalized and technologically advanced business environment.
The document discusses the importance of adopting a market-driven strategy that begins with understanding customers and competitors in order to create superior value. It outlines the key characteristics of becoming a market-oriented organization such as acquiring market information, developing distinctive capabilities, and aligning organizational structure and processes around satisfying customer needs. The challenges of implementing a market-driven strategy in today's global and technologically changing environment are also addressed.
Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...Michael Skok
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 4 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/
This document contains information about Group B10's performance over 8 periods in a simulated market. It lists the members of Group B10 and provides data on the group's total market share, revenue, expenses, and brand portfolio over time. It also outlines the strategies Group B10 employed in each period, and summarizes the outcomes and lessons learned. The group worked to modify existing products, launch new products to target different segments, and expand into the Vodite market while maintaining their Sonite market share.
The document discusses strategies for market-driving organizations versus market-driven organizations. It defines market-driving firms as those that shape or change markets by eliminating, adding, or modifying players and their functions. They rewrite industry rules and compete in new arenas. Their core values inspire radical business concepts and they often teach potential customers to consume their value propositions.
Knowledge & experience makes me positively sure that Being market Driven, Customer Driven is not enough for companies to survive in the market now.
If you need a copy of the Power point presentation email your request @ dngrtz2000@hotmail.com, will send you your copy immediately.
1. Arndt, 1979, Towards a concept of domesticated markets
2. Jaworski et al, 2000, Market-driven vs. driving markets
3. Day, 1981, Strategic market analysis and definition
4. Caldwell et al, 2005, Promoting competitive markets
This document provides an overview of market-driven strategy and its key components. It discusses how becoming market-oriented, determining distinctive capabilities, matching customer value requirements to capabilities, and achieving superior performance are characteristics of a market-driven strategy. It also outlines the steps in developing corporate strategy, including defining the corporate mission, establishing strategic business units, assigning resources, and planning for new or terminating older businesses. Finally, it discusses the challenges of implementing market-driven strategy in today's globalized and technologically advanced business environment.
The document discusses the importance of adopting a market-driven strategy that begins with understanding customers and competitors in order to create superior value. It outlines the key characteristics of becoming a market-oriented organization such as acquiring market information, developing distinctive capabilities, and aligning organizational structure and processes around satisfying customer needs. The challenges of implementing a market-driven strategy in today's global and technologically changing environment are also addressed.
Driving to Market - How to "Drive" Competitive Advantage in your Go To Market...Michael Skok
Developed for the Harvard Innovation Lab workshop series on Startup Secrets.
This is part 4 of the 5 part series by Michael J Skok on how to get competitive advantage as a startup.
Michael's slides are the agenda for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/
This document discusses a review of the retail market and supplier performance conducted by Strategic Horizons. It provides background on Strategic Horizons and its joint venture @TheCoalFace Review, which brings together skills and experience from consumer goods, retail directors, and market research. The review aims to gather insights from retailers and suppliers on key priorities and issues, identify strengths and areas for improvement, and develop action plans to help businesses prepare for future growth. The structure assesses relationship management, supply chain, brand development, personnel quality, and customer management. Benefits for retailers include benchmarking competitive strengths and leveraging trading relationships. Benefits for suppliers include understanding customer priorities and engaging more effectively.
Real world sourcing - Taking on a New CategoryBravoSolution
Starting a new category, whether an experienced practitioner or a newcomer to the procurement profession can be a daunting prospect. However the process is remarkably similar regardless of the specific category.
The briefing laid out a plan of approach for taking on a new category, or starting out on Category Management for the first time.
This document outlines strategic marketing projections and objectives for different time periods for a company's product line. It identifies target customer segments and the products positioned for each segment. It sets objectives for each period such as market share goals, feature expectations, awareness levels, pricing and unit sales. For example, in period 3-4 the objectives for the "Hermits" segment are to retain a 12% market share and increase it to 13% with an upgraded product delivering more features at a slightly higher price point.
This document provides an overview of strategic planning concepts and processes. It defines key terms like vision and intent statements, core competencies, layers of advantage, and strategic mapping. Tools for strategic planning like the four quadrant chart and SWOT analysis are also introduced to help assess opportunities, strengths, weaknesses and threats. The overall aim is to help companies develop a strategic plan to achieve their vision and goals.
Raisio was initially a successful food company with good products and research potential, but lacked a strong differentiation. After developing a cholesterol-lowering margarine containing stanol ester, it struggled to capitalize fully due to contractual issues with partners and an inability to adapt quickly to changes. While it had early advantages, Raisio failed to seize the opportunity as competition emerged and it faced challenges in production, coordination, and adapting its business model.
Team U analyzed their past performance over 8 rounds. In rounds 1-3 they had the highest net contribution and market capitalization but made mistakes like inadequate advertising spending. Rounds 4 saw low sales due to conservative forecasting. Rounds 5-8 showed improved forecasting, R&D, and consistent advertising/sales spending resulting in only one inventory issue. Going forward, they recommend focusing on existing brands, targeted advertising, and matching hiring to demand. Predictions are for net contribution and SPI to increase 16.67% based on improved strategies.
The document discusses the Arthur D. Little (ADL) matrix, a strategic management tool developed in the 1970s. It outlines the four steps to create an ADL matrix: 1) determining strategic business units, 2) identifying industrial maturity phases, 3) determining competitive position, and 4) plotting on the matrix. The matrix analyzes businesses across two dimensions: competitive position (dominant to weak) and industry maturity (embryonic to aging). For each combination, it provides strategic recommendations. The document also discusses how BPCL used the ADL matrix to develop strategies as it transitioned to a deregulated oil market in India.
Effective Enterprise Markets: What makes them work and whyLisa Beckers
The document discusses effective enterprise markets, what makes them work, and why markets are a good medium for forecasting. It provides examples of prediction market prices on current events. Markets work because traders buy low and sell high, incorporating diverse views into prices. Markets generally outperform alternatives like polls and experts in accuracy. The advantages of using markets for forecasting are that they are numerically precise, consistently applied to many issues, frequently updated, and hard to manipulate. The document discusses considerations for designing effective enterprise prediction markets.
Practical dos and don'ts of enterprise prediction marketsKM Chicago
The document discusses effective enterprise markets, what makes them work, and why markets are a good medium for forecasting. It provides examples of prediction market prices on current events. Markets work because traders buy low and sell high, incorporating diverse views into prices. Markets generally outperform alternatives like polls and experts in accuracy. The advantages of using markets for forecasting include incentives for truth-telling, numerical precision, and frequent updating. The document discusses considerations for designing effective enterprise prediction markets.
The document discusses the strategies and decision-making process of a company playing a business simulation game over 9 periods, focusing on being the first mover in the emerging Vodie market, setting objectives to dominate specific segments, and balancing budgets to fund R&D, production, and marketing while maintaining stock performance and market share leadership. Key lessons highlighted include benefits of early market entry, importance of long-term strategies and goals, need for flexibility, and budget management challenges of running a large diversified business.
1. The document discusses key elements of a strategic plan including determining the product market, level of commitment to resources, and objectives and plans for each functional area.
2. It also outlines the strategic planning process including collecting data, analyzing the situation, developing objectives and strategies, and measuring progress toward goals.
3. Finally, it provides examples of strategic planning tools like the wants-gets grid, conceptual map, value chain analysis, five forces of competition, and requisites for a learning organization.
This document discusses portfolio management and analysis strategies for multi-business and multi-regional companies. It introduces several portfolio analysis matrices used to evaluate a company's business units, including the Boston Box, GE/McKinsey matrix, and AD Little lifecycle matrix. These tools assess factors like market share, growth rate, and competitive strength to determine optimal strategies for each business, such as holding, building, harvesting, or divesting. The document also notes limitations of these approaches and discusses using portfolio analysis for international markets.
This document provides an overview of 5 types of M&A deals: overcapacity, geographic roll-up, product or market expansion, R&D, and industry convergence. It describes the strategic objective and value hypothesis for each type. It then provides examples and analyses of specific deals that fall under each category, such as Daimler-Chrysler (overcapacity), Marionnaud (geographic roll-up), and Diageo/Ketel One and Diageo/Seagrams (product expansion).
Detailed Business Plan For Company PowerPoint Presentation SlidesSlideTeam
Leave behind your competitors and convince the investors to invest in your business idea using professionally designed content-ready Detailed business Plan for Company Presentation Slides. Incorporate these relevant templates of an investor pitch deck PowerPoint presentation to add a story to your idea. Download now: https://www.slideteam.net/complete-powerpoint-decks-presentations/detailed-business-plan-for-company-powerpoint-presentation-slides.html
Detailed Business Plan For Company PowerPoint Presentation SlidesSlideTeam
Leave behind your competitors and convince the investors to invest in your business idea using professionally designed content-ready Detailed business Plan for Company Presentation Slides. Incorporate these relevant templates of an investor pitch deck PowerPoint presentation to add a story to your idea.
This document provides an overview of an MBA course titled "Advanced Strategic Management". The course aims to help students gain expertise in strategic management concepts and techniques. It focuses on applying these concepts to understand business performance, generate strategy options, assess options under uncertainty, select strategies, and implement chosen strategies. The course also aims to integrate knowledge from prior courses and develop students' general management skills and judgment. It covers key concepts like strategic competitiveness, sources of above-normal profits, levels of strategy, and common elements of successful strategies.
Corporate Positioning w Messaging FrameworkDavid Castro
The document discusses positioning Skyway's application development product in the Java market. It analyzes the $6 billion market opportunity and customer needs around inaccurate solutions, slow delivery, and inflexible processes. A perceptual map shows Skyway positioned for high accuracy and fast delivery using model-based and collaborative tools, compared to competitors relying on hand coding and waterfall methods. The objective is to define Skyway's optimal market position based on customer attributes of accuracy and speed.
Strategic Planning for More Effective Product ManagementSVPMA
Strategic Planning for More Effective Product Management by Brian Lawley
Go to link below for notes from this event at SVPMA Monthly Event May 2012
http://svpma.org/2012/05/may-2012-event/
Marico faced challenges with its initial outbound supply chain as it sought to expand into new areas and increase penetration in rural India. Forecasting accuracy was only 70%, leading to stockouts costing 30% of potential sales. Planning issues included a 30-day cycle, spreadsheets, and only one planner. This supply chain could not support Marico's growth strategy. To address this, Marico implemented SAP solutions including APO, along with custom software MIDAS and MINET, to improve demand forecasting, planning, and provide real-time supply chain visibility. This redesign led to decreased stockouts, lower inventory levels, improved salesforce productivity, and increased turnover.
The document outlines Hungerit's strategy planning process which includes analyzing the company's strengths, weaknesses, opportunities and risks. It discusses analyzing Hungerit's market position and financial performance over time. Two main strategies are considered: entering a new market or developing a new product. A sensitivity analysis will be done to select the best short and long-term strategies considering Hungerit's capabilities and market conditions.
This document discusses a review of the retail market and supplier performance conducted by Strategic Horizons. It provides background on Strategic Horizons and its joint venture @TheCoalFace Review, which brings together skills and experience from consumer goods, retail directors, and market research. The review aims to gather insights from retailers and suppliers on key priorities and issues, identify strengths and areas for improvement, and develop action plans to help businesses prepare for future growth. The structure assesses relationship management, supply chain, brand development, personnel quality, and customer management. Benefits for retailers include benchmarking competitive strengths and leveraging trading relationships. Benefits for suppliers include understanding customer priorities and engaging more effectively.
Real world sourcing - Taking on a New CategoryBravoSolution
Starting a new category, whether an experienced practitioner or a newcomer to the procurement profession can be a daunting prospect. However the process is remarkably similar regardless of the specific category.
The briefing laid out a plan of approach for taking on a new category, or starting out on Category Management for the first time.
This document outlines strategic marketing projections and objectives for different time periods for a company's product line. It identifies target customer segments and the products positioned for each segment. It sets objectives for each period such as market share goals, feature expectations, awareness levels, pricing and unit sales. For example, in period 3-4 the objectives for the "Hermits" segment are to retain a 12% market share and increase it to 13% with an upgraded product delivering more features at a slightly higher price point.
This document provides an overview of strategic planning concepts and processes. It defines key terms like vision and intent statements, core competencies, layers of advantage, and strategic mapping. Tools for strategic planning like the four quadrant chart and SWOT analysis are also introduced to help assess opportunities, strengths, weaknesses and threats. The overall aim is to help companies develop a strategic plan to achieve their vision and goals.
Raisio was initially a successful food company with good products and research potential, but lacked a strong differentiation. After developing a cholesterol-lowering margarine containing stanol ester, it struggled to capitalize fully due to contractual issues with partners and an inability to adapt quickly to changes. While it had early advantages, Raisio failed to seize the opportunity as competition emerged and it faced challenges in production, coordination, and adapting its business model.
Team U analyzed their past performance over 8 rounds. In rounds 1-3 they had the highest net contribution and market capitalization but made mistakes like inadequate advertising spending. Rounds 4 saw low sales due to conservative forecasting. Rounds 5-8 showed improved forecasting, R&D, and consistent advertising/sales spending resulting in only one inventory issue. Going forward, they recommend focusing on existing brands, targeted advertising, and matching hiring to demand. Predictions are for net contribution and SPI to increase 16.67% based on improved strategies.
The document discusses the Arthur D. Little (ADL) matrix, a strategic management tool developed in the 1970s. It outlines the four steps to create an ADL matrix: 1) determining strategic business units, 2) identifying industrial maturity phases, 3) determining competitive position, and 4) plotting on the matrix. The matrix analyzes businesses across two dimensions: competitive position (dominant to weak) and industry maturity (embryonic to aging). For each combination, it provides strategic recommendations. The document also discusses how BPCL used the ADL matrix to develop strategies as it transitioned to a deregulated oil market in India.
Effective Enterprise Markets: What makes them work and whyLisa Beckers
The document discusses effective enterprise markets, what makes them work, and why markets are a good medium for forecasting. It provides examples of prediction market prices on current events. Markets work because traders buy low and sell high, incorporating diverse views into prices. Markets generally outperform alternatives like polls and experts in accuracy. The advantages of using markets for forecasting are that they are numerically precise, consistently applied to many issues, frequently updated, and hard to manipulate. The document discusses considerations for designing effective enterprise prediction markets.
Practical dos and don'ts of enterprise prediction marketsKM Chicago
The document discusses effective enterprise markets, what makes them work, and why markets are a good medium for forecasting. It provides examples of prediction market prices on current events. Markets work because traders buy low and sell high, incorporating diverse views into prices. Markets generally outperform alternatives like polls and experts in accuracy. The advantages of using markets for forecasting include incentives for truth-telling, numerical precision, and frequent updating. The document discusses considerations for designing effective enterprise prediction markets.
The document discusses the strategies and decision-making process of a company playing a business simulation game over 9 periods, focusing on being the first mover in the emerging Vodie market, setting objectives to dominate specific segments, and balancing budgets to fund R&D, production, and marketing while maintaining stock performance and market share leadership. Key lessons highlighted include benefits of early market entry, importance of long-term strategies and goals, need for flexibility, and budget management challenges of running a large diversified business.
1. The document discusses key elements of a strategic plan including determining the product market, level of commitment to resources, and objectives and plans for each functional area.
2. It also outlines the strategic planning process including collecting data, analyzing the situation, developing objectives and strategies, and measuring progress toward goals.
3. Finally, it provides examples of strategic planning tools like the wants-gets grid, conceptual map, value chain analysis, five forces of competition, and requisites for a learning organization.
This document discusses portfolio management and analysis strategies for multi-business and multi-regional companies. It introduces several portfolio analysis matrices used to evaluate a company's business units, including the Boston Box, GE/McKinsey matrix, and AD Little lifecycle matrix. These tools assess factors like market share, growth rate, and competitive strength to determine optimal strategies for each business, such as holding, building, harvesting, or divesting. The document also notes limitations of these approaches and discusses using portfolio analysis for international markets.
This document provides an overview of 5 types of M&A deals: overcapacity, geographic roll-up, product or market expansion, R&D, and industry convergence. It describes the strategic objective and value hypothesis for each type. It then provides examples and analyses of specific deals that fall under each category, such as Daimler-Chrysler (overcapacity), Marionnaud (geographic roll-up), and Diageo/Ketel One and Diageo/Seagrams (product expansion).
Detailed Business Plan For Company PowerPoint Presentation SlidesSlideTeam
Leave behind your competitors and convince the investors to invest in your business idea using professionally designed content-ready Detailed business Plan for Company Presentation Slides. Incorporate these relevant templates of an investor pitch deck PowerPoint presentation to add a story to your idea. Download now: https://www.slideteam.net/complete-powerpoint-decks-presentations/detailed-business-plan-for-company-powerpoint-presentation-slides.html
Detailed Business Plan For Company PowerPoint Presentation SlidesSlideTeam
Leave behind your competitors and convince the investors to invest in your business idea using professionally designed content-ready Detailed business Plan for Company Presentation Slides. Incorporate these relevant templates of an investor pitch deck PowerPoint presentation to add a story to your idea.
This document provides an overview of an MBA course titled "Advanced Strategic Management". The course aims to help students gain expertise in strategic management concepts and techniques. It focuses on applying these concepts to understand business performance, generate strategy options, assess options under uncertainty, select strategies, and implement chosen strategies. The course also aims to integrate knowledge from prior courses and develop students' general management skills and judgment. It covers key concepts like strategic competitiveness, sources of above-normal profits, levels of strategy, and common elements of successful strategies.
Corporate Positioning w Messaging FrameworkDavid Castro
The document discusses positioning Skyway's application development product in the Java market. It analyzes the $6 billion market opportunity and customer needs around inaccurate solutions, slow delivery, and inflexible processes. A perceptual map shows Skyway positioned for high accuracy and fast delivery using model-based and collaborative tools, compared to competitors relying on hand coding and waterfall methods. The objective is to define Skyway's optimal market position based on customer attributes of accuracy and speed.
Strategic Planning for More Effective Product ManagementSVPMA
Strategic Planning for More Effective Product Management by Brian Lawley
Go to link below for notes from this event at SVPMA Monthly Event May 2012
http://svpma.org/2012/05/may-2012-event/
Marico faced challenges with its initial outbound supply chain as it sought to expand into new areas and increase penetration in rural India. Forecasting accuracy was only 70%, leading to stockouts costing 30% of potential sales. Planning issues included a 30-day cycle, spreadsheets, and only one planner. This supply chain could not support Marico's growth strategy. To address this, Marico implemented SAP solutions including APO, along with custom software MIDAS and MINET, to improve demand forecasting, planning, and provide real-time supply chain visibility. This redesign led to decreased stockouts, lower inventory levels, improved salesforce productivity, and increased turnover.
The document outlines Hungerit's strategy planning process which includes analyzing the company's strengths, weaknesses, opportunities and risks. It discusses analyzing Hungerit's market position and financial performance over time. Two main strategies are considered: entering a new market or developing a new product. A sensitivity analysis will be done to select the best short and long-term strategies considering Hungerit's capabilities and market conditions.
1. Final Report: Key Learning Points
Group ???????
Professor Steven Sweldens
Market Driving Strategy
Marta ANTUNEZ RUZ
Benni AZARIA
Aman CHOPRA
Jatin KHANNA
2. Actual v/s Planned
VODITES market
Deviation from the Plan:
• VERA lost market
contrary to our
expectation – from
95% to 60%
• Launched 1 Brand for
each segment
• Innovators & Early
Adopters market size
grew slower than our
expectations
3. Actual v/s Planned
SONITES market
Deviation from the Plan:
• SECT – we regained our
lost market – captured
58 % market although
we forecasted a slow
pickup.
• SELA – Our expectations
as per plan were higher
market share but we
P4 P5 P6 P7 P8 managed to capture only
Planned SECT 74 145 255 290 326
27%, mainly due to
SELA 47 92 128 145 162
Total 121 237 383 435 488
increased competition in
Actual SECT 44 61 216 420 540 Singles
SELA 80 180 264 244 240
Total 124 241 480 664 780
4. Learning 1 : Reflection on our Strategic Plan
Planned Actual
Growth/Share Matrix Growth/Share Matrix
5. Learning 2:
Advantages / Critical Learning of a First Mover
VODITES market
• Importance of ‘Innovators’ for success in Vodite market
• Cost structures – Lower R&D expense on improvisation of existing brand
• Anticipate the competition / new entrants and their entry strategies
• Focus on Long-term strategy and not to build strategies based on short-term
benefits
6. Learning 3:
Evolution of customers’ needs
SONITES and VODITES market
• Modify your product or advertising campaign based on evolving preferences
of your target segment
• Advertising and price strategies cannot overcome the shortcomings of an
inferior or badly designed product.
• You can re-capture your lost market share of established brands through
targeted advertising campaign.
• Base your advertising campaign on Customer’s perception and not promoting
technical or actual details of the product.
7. Other learning from MDS
• Price reduction or war is not the best strategy – Match
perception of product to customer needs
• Modify internal R&D and operations to match continuously
evolving consumer preferences
• Maintain optimum number of brands that you can handle with
limited resources available rather than launching more and
more brands to compete
8. Key Learning from MDS Cases
• Coke v/s Pepsi: 4 Principles of successful change management: Be market-
driven, control the change process, anticipate reactions to your changes
and then match internal changes with external changes.
• LG Electronics – Continuous product Improvement to match evolving
customer needs.
• Danone – Brand Portfolio Management
• DVR – Why good products may fail through bad advertising campaign ?
• Renova – Competing on innovation is better than price war
9. Thank you Professor Steven for being our mentor/consultant
and Special Thanks to the GURU Industry for keeping this
simulation challenging and exciting for us.
Editor's Notes
We were successful in our Strategic Marketing plan goal to conquer the Vodites market. With VERA we managed to have even better results than expected the first 3 periods. When competition entered the market we managed to keep expected 60% market share in innovators, but innovators market size did not grow as expected in P7 and P8.With VELA we expected to capture 60% of followers market in P7 and 55% in P8, competition was harder than expected but we managed to capture 42% in P7 and 50% in P8. Here also the market did not grow as fast as expected. We successfully introduced a new brand specific for Early Adopters and managed to get a 40% market share.
We were successful in the Strategic Marketing plan goal to “re-conquer” Sonites market. After completing our R&D projects for Vodites market, we refocused on building our market share for Sonites.With SECT we managed to have better results than projected. With our aggressive marketing and superior advertising campaign, we could re-capture 57.4% of Others market in contrast to a target of 50%. In addition, Others segment grew more than expected which made SECT a very strong brand with high contribution.With SELA we expected to capture 30% of Singles market in P8, competition was harder than expected but we managed to capture 27.2% share.
If we had to rewrite the plan now, we would take into account: Base business can also be very profitable, and we should allocate some resources to it. A strong base business in Sonites can generate cash for further R&D investments.Risk of too optimistic market size growth: Specially for new products introduction. Risk of harder competition in followers segment.Retaining market share in new markets is not easy.Lost opportunities by under-producing cost more than overproducing and inventory holding.
We were successful in our goal to be the first player in the Vodite market as well as maintaining market leadership once our competitors entered. We attribute much of our success to a few key learnings that we picked up continuously throughout the simulation: Importance of ‘Innovators’ for success: We paid great attention to designing our entry product to the exact specifications sought by this segment. We are aware that had we failed in our product design and pricing we would most likely have failed with our go-to-market strategy and goals.Cost structures: Having gained rapid success initially with large amounts of capital resources available to us we learned how to reap the benefits of a steep learning curve with the introduction of new products as responses to constantly changing customer needs and wants. We decided to introduce VESY to capture Early Adopters segment.Understanding the competitors: Since we were the first mover into this segment with gradually declining market share (still market leader by a large margin), we saw that the lack of price competition between market players allowed us to maintain a high margin on our initial and star product (with relatively high cost base) in the Vodite market. Focus on Long-term strategy and not to build strategies based on short-term benefits – We came back to improve Sonites after successfully launching Vodite (VERA) to reinforce SECT
1) Modify your product or advertising campaign based on evolving preferences of your target segment - Once we introduced our first product in the VODITES market we realized that the real value in the ‘Innovators’ segment was in responding to their evolving preferences, hence locking them in for the long term. As a result we focused much attention of predicting the direction of target markets preferences. We applied this insight across Vodite products and our new Sonite product once we acquired this awareness.2)Advertising and price strategies cannot overcome the shortcomings of an inferior or badly designed product3) You can re-capture your lost market share of established brands through targeted advertising campaign– For example, SECT – we regained our lost market share with advertising that focused on customer’s needs and we revived SECT brand.