TuChainz aims to position its brands as premium goods targeting the high-end market. Its initial strategy was to develop and launch TEEBO to serve diverse customer needs through a portfolio of quality brands. TuChainz produces exceptional results as the #2 company in its industry and markets 3 of the top 6 best-selling products. It sees opportunities to increase market share in the growing Vodite market by repositioning its TOPS product for professionals and introducing a new Vodite product called PEONS focused on followers. Metrics will measure success through contribution margin, share price, inventory levels, customer base growth and satisfaction. Forecasts predict stable Sonite revenues with TEEBO dominating the new Vodite market

1. TuChainz
M510 MarketStrat Presentation
3/2 MBA Class of 2015

2. Agenda
▪ Our Mission, Initial Strategy, and Market Position
▪ Business Opportunities – Vodite & Sonite Brand
▪ Our Action: How we plan to take advantage
▪ Objectives: metrics – how we measure our success
▪ Forecast – what do we expect
▪ Risk & Mitigation

3. Our Mission is to tailor our products towards high
end market to position our brand as premium goods
Product Leadership: Become the #1 in Sonites and Vodites market
We enjoy the kind of success that rewards our shareholders by
becoming the top market leader.

4. Our Initial Strategy was to R&D and launch
TEEBO to serve customers with various needs
– Portfolio Diversification: Bring to the world a portfolio of
quality brands that anticipate and satisfy people's desires
and needs.
– Every period, we are insatiably curious about our
customers reaction to our goods and how we can further
set the marketing mix, research, and commercial
strategies. Our focus is to tailor towards specialty stores.

5. WE PRODUCE EXCEPTIONAL RESULTS
Our Position maintained #2 in the SPI of 1762
with the highest cumulative net contribution of
108 millions
• Profit Maximization: Maximize long-term return
to shareowners while being mindful of our overall
responsibilities.

6. Our company products 3 out of top 6 best
selling products in the market.

7. The Vodite sector provides TuChainz with an Opportunity
to increase value through its First Mover Advantage
VODITE MARKET
Segments
Growth

8. Product R’s dominance of the Professional segment allows
for an Opportunity to re-gain Sonite market share
SONITE MARKET
Ideal Professional Specs
Design
Index
Display Processing
Power
Size
Team Racks Specs
Price

9. To take advantage of the opportunities presented,
TuChainz will re-tailor TOPS towards Professionals and
introduce a new Vodite product focused on Followers
Tailoring TOPS
Introducing PEONS

10. Objectives—Metrics: How do we
measure our success?
Profit
Customer
Product
• Contribution Margin
Period 3 Average: $22.4M TuChainz: $45M
90th percentile Yes
• Share Price Index
Period 3 Average: 1,380.80 TuChainz: 1,762
90th percentile Yes
• Ending Inventory
Ending inventory levels below 5% of actual
production

11. Objectives—Metrics: How do we
measure our success?
Profit
Customer
Product
• Customer Base
Does our actual customer base match our
intended customer base?
Are our advertising efforts targeting our intended
audience(s)?
Has our customer base increased from the
previous year?
• Customer Satisfaction
Do Actual Purchase percentages for each
product and customer base exceed
Purchase Intention percentages? Yes.

12. Objectives—Metrics: How do we
measure our success?
Advertising Expenditures vs. Customer Distribution
Distribution of
TONE
Customers
Advertising
Expenditures
Distributions
Explorers
Shoppers
8.97%
5%
24.12%
35%
High Earners
55.78%
40%
Savers
*Available Inventory = Beginning Inventory + Actual Production
15%
Professionals
Ending Inventory as a Percentage of Available Inventory*
9.44%
1.69%
5%

13. Forecasts for Sonites to remain Stable, with high
optimism for TEEBO to Dominate the Vodite Market
•
•
Sonites:
– Products TONE and TOPS revenues continue to increase, and sales figures
will lead Sonite market within the next five periods
– Revenue Projections (000s):
– Contribution margin will also improve as COGS and marketing costs will
decrease relative to competition
Vodites:
– First Mover Advantage
• Market share expectations/goals should be high moving forward (75% - 80%)

14. Risk Assessment/Potential Barriers
Risk
Threat
Impact
Mitigation Strategy
Achieve limited success
in Sonite market as a
result of placing too
much emphasis on
Vodite market entrance
Low
High
Continue to invest capital towards Sonite
market through advertising, R&D, etc. Also,
maintain brand image of delivering high
quality to target market (professionals and
high earners)
Prices in Vodite market
will be undercut when
others enter market,
resulting in decreased
market share
High
Medium
Place high emphasis on maintaining
purchase intentions of customers. Ensure
that enough output is produced to meet
consumer demand so not to leave potential
revenue market share on the table for
others to capture
POWOW R&D efforts
may prove
unsuccessful/cannibalize
TONE sales
Medium
Medium
Ensure to target professionals in marketing
efforts as well as set a lower price to
differentiate product from TONE