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Final Report: Key Learning Points
Group ???????

Professor Steven Sweldens
Market Driving Strategy

                            Marta ANTUNEZ RUZ
                            Benni AZARIA
                            Aman CHOPRA
                            Jatin KHANNA
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
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
Learning 1 : Reflection on our Strategic Plan

  Planned                    Actual
  Growth/Share Matrix        Growth/Share Matrix
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
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.
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
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
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.

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Market driving strategies

  • 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

  1. 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.
  2. 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.
  3. 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.
  4. 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
  5. 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.