MKTG601: Marketing Strategy for Minnesota Micromotors
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This document contains a marketing strategy report from an MBA group for fiscal years 2013 to 2015. It outlines the fundamentals of their strategy, which focuses on product quality and pricing, customer relationship management, and developing differentiated pricing. It details their strategic growth pillars of demonstrating product leadership through superior quality, driving product advocacy, and devising differentiated pricing to maximize profits. The results section shows they achieved a 10.4% market share, $83 million in cumulative revenue, and $10 million in cumulative profits as of the fourth quarter of fiscal year 2015.
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MKTG601: Marketing Strategy for Minnesota Micromotors
- 1. MBA PT Class of ’14 MKTG 601 Group B Marketing Strategy Report
- 2. Marketing Strategy FY ‘13 – ‘15 MBA PT Class of ’14 MKTG 601 Group B
- 3. AGENDA MBA PT Class of ’14 MKTG 601 Group B Overview of marketing strategy Key takeaways Summary of results Questions MM
- 4. GUIDANCE BY BOARD MBA PT Class of ’14 MKTG 601 Group B MM MARKET SHARE REVENUE OP PROFIT CLIENTS STRATEGIC GROWTH PILLARS
- 5. FUNDAMENTALS OF STRATEGY MBA PT Class of ’14 MKTG 601 Group B MM Product quality Product pricing Customer Relationship Management
- 6. MUST-DO BEHAVIOURS MBA PT Class of ’14 MKTG 601 Group B MM Devise differentiated pricing to maximise profits Drive product advocacy Demonstrate product leadership through superior quality creating conveying extracting value
- 7. Demonstrate product leadership through superior quality MBA PT Class of ’14 MKTG 601 Group B MM Research & Development (R&D) Patience Seed R&D investments from the very onset Laser focus on core product capabilities for key revenue generators Realistic expectations Consistent R&D spend for all 16 quarters Prioritise Power-to-Size Ratio, Thermal Resistance to a lesser extent
- 8. Drive product advocacy MBA PT Class of ’14 MKTG 601 Group B MM Customer Relationship Management Sales competency, surveillance & NPD Efficient use of limited resources Customer retention Invest in human capital (training & marcom) Allocate sales force proportional to revenue Invest in existing client relationships (large customers)
- 9. Devise differentiated pricing to maximise profits MBA PT Class of ’14 MKTG 601 Group B MM Differentiated Pricing Strategy Convey premiumisation & performance leadership Leverage on research to optimise pricing Mitigate possibility of channel conflicts Charge price premiums, do not compete on price Consistent research spend for all 16 quarters Exercise discretion when setting distributor discounts
- 10. STRENGTHENING THE VALUE PROPOSITION MBA PT Class of ’14 MKTG 601 Group B MM [Premium = desired value by customers – actual value delivered] Constantly minding & mining the gap between performance premiums delivered & price premiums charged Q4 2015 Segment A purchases as % of total sales per quarter Price premium as % of actual price Performance premium as % of actual Power-to-Size Ratio performance
- 11. RESULTS AS OF Q4 FY '15 MBA PT Class of ’14 MKTG 601 Group B MM MARKET SHARE CUM. REVENUE CUM. PROFIT CLIENTS STRATEGIC GROWTH PILLARS 10.4% $83M $10M Segment A Segment B Segment C Segment D Small
- 12. MBA PT Class of ’14 MKTG 601 Group B MM THANK YOU