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Miracles
How
Markstrat
works
Unchallenging
Industry
Who beats the dead
horse stronger?
• Sacrificed first two periods
• Was comfortably 1st by Period 3
• Took a loan in Period 3
• Had maximum budget by Period 4
• Dumped Move
• MOSH became first in terms of market
share value
• Took a risk with the price of firstVodite
• Became by far the most profitable
product
• Weaken competing firms by fighting in each
segment
• Targeted professionals and high earners
• Always plan ahead
• Positioned brands by using historical data to
forecast demands of customers
• Used Market data to identify most feasible
opportunities to invest in advertising
• Introduced a new product to target Explorers,
a small and contracting but profitable
industry
• FirmT was making progress inVodites
research
Entrepreneurial
RiskTaking
Strategic
Planning
Use of
Market Data
Ruthlessness
Absolute
Hegemony
Big Adjustments
Mistakes
Sonites Big Decisions and Mistakes
Period 1 2 3 4 5 6 7
MOSH: for shoppers
Dump MOVE and
develop a new brand
MOSH for shoppers
MOPRO: for professionals
Keep setting price lower
than their expectation for
professionals
MOPRO:
Not allocating enough
advertising budget for the
new product.
MOHE: for high earners
The production plan we set was
too low ( 100k units). 120K units
were produced. It is estimated
that 31K units of potential sales
have been lost.
MOEX: for explorers
We decided to make the
most of the market by
adding MOEX into our
brand portfolio.
Brand Firm Features Design Battery Display Power Price
MOVE Miracles 4.3 1.6 5.9 3.1 2.5 4.2
Shoppers Ideal 1.9 5.1 2.9 4.4 4.3 3.1
Specialty	
Stores
Mass	Merch.
Online	
Stores
Total
MOVE 1 1 1 3
Contribution after marketing: -156K
Big Adjustments
Mistakes
Sonites Big Decisions and Mistakes
Period 1 2 3 4 5 6 7
MOSH: for shoppers
Dump MOVE and
develop a new brand
MOSH for shoppers
MOPRO: for professionals
Keep setting price lower
than their expectation for
professionals
MOPRO:
Not allocating enough
advertising budget for the
new product.
MOHE: for high earners
The production plan we set was
too low ( 100k units). 120K units
were produced. It is estimated
that 31K units of potential sales
have been lost.
MOEX: for explorers
We decided to make the
most of the market by
adding MOEX into our
brand portfolio.
Mopro
Advertising
Media
Advertising
Research
Advertising
Budget in
total
Contributio
n after
marketing
Brand
Awareness
Price
Period 3 2500 500 3000 5395 41% 420
Period 4 3300 700 4000 12129 65% 410
Period 5 2800 400 3200 23097 76% 430
Period 2 3 4 5 6 7 8 9 10
MOPRO 420 410 430 445 475 510 495 505
ROCK 413 413 422 438 456 475 480 492 499
Advertising Budget
Pricing
Big Adjustments
Mistakes
Sonites Big Decisions and Mistakes
Period 1 2 3 4 5 6 7
MOSH: for shoppers
Dump MOVE and
develop a new brand
MOSH for shoppers
MOPRO: for professionals
Keep setting price lower
than their expectation for
professionals
MOPRO:
Not allocating enough
advertising budget for the
new product.
MOHE: for high earners
The production plan we set was
too low ( 100k units). 120K units
were produced. It is estimated
that 31K units of potential sales
have been lost.
MOEX: for explorers
We decided to make the
most of the market by
adding MOEX into our
brand portfolio.
201*50%=100 20%20%80 120
160
165
170
175
180
185
190
195
200
205
Period 3 Period 4
Market Size
Market Size
Big Adjustments
Mistakes
Sonites Big Decisions and Mistakes
Period 1 2 3 4 5 6 7
MOSH: for shoppers
Dump MOVE and
develop a new brand
MOSH for shoppers
MOPRO: for professionals
Keep setting price lower
than their expectation for
professionals
MOPRO:
Not allocating enough
advertising budget for the
new product.
MOHE: for high earners
The production plan we set was
too low ( 100k units). 120K units
were produced. It is estimated
that 31K units of potential sales
have been lost.
MOEX: for explorers
We decided to make the
most of the market by
adding MOEX into our
brand portfolio.
Period	7 Period	8 Period	9 Period	10
Revenues 9,744 10,030 10,504 11,617
Cost	of	goods	sold -8,911 -8,114 -7,749 -7,693
Inventory	holding	cost -175 -46 0 0
Inventory	disposal	loss 0 0 0 0
Contribution	before	marketing 658 1,870 2,755 3,924
Advertising	media -1,800 -800 -800 -840
Advertising	research -300 -160 -160 -160
Commercial	costs -672 -645 -660 -669
Contribution	after	marketing -2,113 265 1,135 2,255
,000
Total
$1,542
Period 6 Period 7 Period 8 Period 10Period 9
Meking:
Innovators
Meany:
Adopters
Meking:
Innovators
Mewin:
Followers
Meking:
Innovators
Meany:
Adopters
Meking:
Innovators
Meany:
Adopters
Mewin:
Followers
Meking:
Innovators
Meany:
Adopters
Period 6 7 8 9 10
Big Adjustments
Mistakes
First leaning towards
modest margins but then
shifted to premium
pricing, to increase profit
Sacrificed on advertising
expenses on sonites to set
benchmarking prices for
vodites ($1,400)
Commercial team not aligned.
Too many in mass merchandise
and not speciality stores.
Strategy to capture all
the segments (followers
& adopters) before the
competitors
Meany production plan
too low (81k), 8k units
sales lost
Forecast mistake,
overproduced Mewin and
under produced Meany.
Lost sales
Vodites Big Decisions and Mistakes
LessonsLearned
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1 2 3 4 5 6 7 8 9 10
Market Share Index by Industry
Berlin Warsaw Paris London Madrid Rome
RiskTaking
First Mover Advantage
Draining Competition
Strategic brand presentation

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Strategic brand presentation

  • 3. • Sacrificed first two periods • Was comfortably 1st by Period 3 • Took a loan in Period 3 • Had maximum budget by Period 4 • Dumped Move • MOSH became first in terms of market share value • Took a risk with the price of firstVodite • Became by far the most profitable product • Weaken competing firms by fighting in each segment • Targeted professionals and high earners • Always plan ahead • Positioned brands by using historical data to forecast demands of customers • Used Market data to identify most feasible opportunities to invest in advertising • Introduced a new product to target Explorers, a small and contracting but profitable industry • FirmT was making progress inVodites research Entrepreneurial RiskTaking Strategic Planning Use of Market Data Ruthlessness Absolute Hegemony
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Big Adjustments Mistakes Sonites Big Decisions and Mistakes Period 1 2 3 4 5 6 7 MOSH: for shoppers Dump MOVE and develop a new brand MOSH for shoppers MOPRO: for professionals Keep setting price lower than their expectation for professionals MOPRO: Not allocating enough advertising budget for the new product. MOHE: for high earners The production plan we set was too low ( 100k units). 120K units were produced. It is estimated that 31K units of potential sales have been lost. MOEX: for explorers We decided to make the most of the market by adding MOEX into our brand portfolio.
  • 9. Brand Firm Features Design Battery Display Power Price MOVE Miracles 4.3 1.6 5.9 3.1 2.5 4.2 Shoppers Ideal 1.9 5.1 2.9 4.4 4.3 3.1 Specialty Stores Mass Merch. Online Stores Total MOVE 1 1 1 3 Contribution after marketing: -156K
  • 10. Big Adjustments Mistakes Sonites Big Decisions and Mistakes Period 1 2 3 4 5 6 7 MOSH: for shoppers Dump MOVE and develop a new brand MOSH for shoppers MOPRO: for professionals Keep setting price lower than their expectation for professionals MOPRO: Not allocating enough advertising budget for the new product. MOHE: for high earners The production plan we set was too low ( 100k units). 120K units were produced. It is estimated that 31K units of potential sales have been lost. MOEX: for explorers We decided to make the most of the market by adding MOEX into our brand portfolio.
  • 11. Mopro Advertising Media Advertising Research Advertising Budget in total Contributio n after marketing Brand Awareness Price Period 3 2500 500 3000 5395 41% 420 Period 4 3300 700 4000 12129 65% 410 Period 5 2800 400 3200 23097 76% 430 Period 2 3 4 5 6 7 8 9 10 MOPRO 420 410 430 445 475 510 495 505 ROCK 413 413 422 438 456 475 480 492 499 Advertising Budget Pricing
  • 12. Big Adjustments Mistakes Sonites Big Decisions and Mistakes Period 1 2 3 4 5 6 7 MOSH: for shoppers Dump MOVE and develop a new brand MOSH for shoppers MOPRO: for professionals Keep setting price lower than their expectation for professionals MOPRO: Not allocating enough advertising budget for the new product. MOHE: for high earners The production plan we set was too low ( 100k units). 120K units were produced. It is estimated that 31K units of potential sales have been lost. MOEX: for explorers We decided to make the most of the market by adding MOEX into our brand portfolio.
  • 14. Big Adjustments Mistakes Sonites Big Decisions and Mistakes Period 1 2 3 4 5 6 7 MOSH: for shoppers Dump MOVE and develop a new brand MOSH for shoppers MOPRO: for professionals Keep setting price lower than their expectation for professionals MOPRO: Not allocating enough advertising budget for the new product. MOHE: for high earners The production plan we set was too low ( 100k units). 120K units were produced. It is estimated that 31K units of potential sales have been lost. MOEX: for explorers We decided to make the most of the market by adding MOEX into our brand portfolio.
  • 15. Period 7 Period 8 Period 9 Period 10 Revenues 9,744 10,030 10,504 11,617 Cost of goods sold -8,911 -8,114 -7,749 -7,693 Inventory holding cost -175 -46 0 0 Inventory disposal loss 0 0 0 0 Contribution before marketing 658 1,870 2,755 3,924 Advertising media -1,800 -800 -800 -840 Advertising research -300 -160 -160 -160 Commercial costs -672 -645 -660 -669 Contribution after marketing -2,113 265 1,135 2,255 ,000 Total $1,542
  • 16. Period 6 Period 7 Period 8 Period 10Period 9 Meking: Innovators Meany: Adopters Meking: Innovators Mewin: Followers Meking: Innovators Meany: Adopters Meking: Innovators Meany: Adopters Mewin: Followers Meking: Innovators Meany: Adopters
  • 17.
  • 18. Period 6 7 8 9 10 Big Adjustments Mistakes First leaning towards modest margins but then shifted to premium pricing, to increase profit Sacrificed on advertising expenses on sonites to set benchmarking prices for vodites ($1,400) Commercial team not aligned. Too many in mass merchandise and not speciality stores. Strategy to capture all the segments (followers & adopters) before the competitors Meany production plan too low (81k), 8k units sales lost Forecast mistake, overproduced Mewin and under produced Meany. Lost sales Vodites Big Decisions and Mistakes
  • 19. LessonsLearned 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 1 2 3 4 5 6 7 8 9 10 Market Share Index by Industry Berlin Warsaw Paris London Madrid Rome RiskTaking First Mover Advantage Draining Competition