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Markstrat 2014
Team Mandela analyzed their company's performance over three periods: 1) Period 0-3 focused on figuring out new markets but performance suffered from spreading resources too thin. 2) Period 4-6 saw a decline as focus shifted from existing brands to R&D and advertising budgets were too low. 3) Period 7-9 pushed for market penetration and cost-cutting, but R&D spending had been excessive in prior periods. Lessons included the importance of focused marketing research, budget management, and not spreading resources too widely.
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Markstrat 2014
- 1. MANDELA David Bador, DorBiran, Yoni Reichel, Raphael Chicheportiche IMAGE
- 2. Introduction Period 0-3:« Slow & Steady » Period 4-6: « The Decline » Period 7-9: « The Final Push » Team Mandela MarkStrat 1000 1030 1185 1554 1388 1576 1657 1606 2097 2306 15 18 24 41 26 52 46 50 74 86 0 10 20 30 40 50 60 70 80 90 100 0 500 1000 1500 2000 2500 0 1 2 3 4 5 6 7 8 9 ERA 1 ERA 2 ERA 3 ERAS: SPI: 1000$ 2306$ EBT: 15M$ 86M$ Sonite: Most and Move Vodite: Me OVERVIEW:
- 3. Period 0-3: “Slow& Steady Team Mandela MarkStrat 800 900 1000 1100 1200 1300 1400 1500 1600 0 1 2 3 Periods Overvie w
- 4. Period 0-3: “Slow& Steady Team Mandela MarkStrat Figuring out the Sonite Market Early Vodite R&D Goals "Most" was focused on the Savers and "Move" was focused on the shoppers. Create PEMedio and PEMental, to attract the followers and early adapters, for future penetration into the Vodite Market while financing feasibility studies in increments over time. Performance
- 5. Period 0-3: “Slow& Steady Team Mandela MarkStrat The main focus should have been on one segment due to the decrease of costs in the economies in learning development for the Vodite Market We didn't protect the market share that we acquired and that's why we lost a good chunk of it to LLAMA in period 4. We could have produced more units and sold much more to the market in general. We should have avoided trying to get some of LLAMA's Market Shares and focused more efforts on targeting the weaker competitors. Avoiding Pitfalls
- 6. Period 4-6: “Thedecline” Team Mandela MarkStrat 1350 1400 1450 1500 1550 1600 1650 1700 3 4 5 6 PERIODS SPI Overview
- 7. Period 4-6: “Thedecline” Team Mandela MarkStrat Expend Sonite market Consolidate our Sonite Portfolio Goals R&D Vodite Two new Sonites: • Money High earners • Mopro Professional • No meet Projection • “Most” • “Move” upgrade Power • Lose Awarness Performance PEMEDIO Future ME
- 8. Team Mandela MarkStrat TheLoan Period 4-6: “The decline” Prevent monopolistic situation Enhance the commercial teams and increase our advertising budgets; Finish developing our Vodite: PeMedio 4 million loan to return in 3 years at 5% interest
- 9. Team Mandela MarkStrat Avoiding Pitfalls Period4-6: “The decline” Too much R&D rather than focus on existing brands: MOST & MOVE We didn’t allocated enough money on our commercial teams . Poor advertising decision
- 10. Period 7-9: “TheFinal Push” Overvie w 1250 1450 1650 1850 2050 2250 2450 6 7 8 9 PERIODS SPI Team Mandela MarkStrat
- 11. Period 7-9: “TheFinal Push” Team Mandela MarkStrat Penetrate Vodite Market Cut Excess Cost Lower Inventory Holding Costs Goals • 1st period in market = #1 • 2nd period in market = #2 • Reduced R&D spending to 0 • Consolidated Brand Portfolio • Accurate or Underestimated Sonite Brands • Overproduction for ME Performance
- 12. Avoiding Pitfalls Period 7-9: “TheFinal Push” Channel share. • Llama’s focus on commercial teams Highest cumulative R&D expenditures. • Average of $6M of R&D per brand (3). Llama averaged $4M+ per brand (4). R&D in 6 consecutive periods. • Less budget for advertising & sales force. • This is when Llama took over Team Mandela MarkStrat
- 13. Future Periods Most Mov e Me Other Marketing R&D To Vodites •Gain back lost MS – keeping a growth of 2%/year. • R&D to lower costs and enlarge margins • R&D to adapt the product to the customer’s changing needs. • Current cash cow. • Enlarge Marketing to achieve a bigger MS. • Cost reduction through R&D. • R&D to adapt the product to the customer’s changing needs • Adapt marketing expenses to achieve a bigger MS. • Cost reduction through R&D is a must. • R&D to adapt the product to the customer’s changing needs • R&D to come out with new product to different segments Team Mandela MarkStrat
- 14. Team Members • Workunder budget constraint • Marketing research • Team Work Raphael ChicheporticheYoni Reichel • To raise awareness advertising is key, but after that let the sales force do their job. • Don’t spread your resources too thin • Sunk costs are hard to justify, but must be. Team Mandela MarkStrat Dor Biran • How important Marketing Research is. • How to manage a budget. • The role of a marketing manager David Bador • When you run out of capital, backtrack and see where to allocate yourself properly and always look at the options that are both existent and non-existent. • Investing a significant amount of capital in any specific point won't always give back positive results • Never be afraid to take risks even if it means there is a chance you might lose.