Taun Taun Team got the First place in Capstone Decision Making Class.

1. MARKSTRAT
SIMULATION
MKT 6339
UTD SPRING 2014
BUFFALO
Team TaunTaun
Paul Flesher
Zhaodi(Jodi) Liu
Tanachai Thosapornvichai
Michael Stone

2. STARTING POSITION & STRATEGY
Initial Position
• Sonite Market – 20% Market Share
Initial Strategy
• Vodites are the KEY
• Be first to Vodites
• Maintain position in Sonites
• Avoid spreading to thin

3. OBJECTIVES & ACTUAL PERFORMANCE
1,000
800
600
400
200
0
0 1 2 3 4 5 6 7 8
TaunTaun
Legend
Resolute
Marvelus
Sharks
Objectives
• WIN
• 50% Vodite Market Share
• 10% Sonite Market Share
Actual Performance
• Cum Net Contribution = $904M
• 55% Vodite Market Share
• 8% Sonite Market Share

4. STRATEGY: TRIAL ROUNDS
 R&D Queries vs. Feasibility Studies
 Sonite Feasibility Studies Never Profitable
 Determine Required Budget for first Vodite

5. STRATEGY: PERIODS 1 & 2
Target profitable segments
TOPS – Maximize penetration
TONE – Maintain market presence
Needed $6.4 M, Period 2 Budget = $8.1
Expected Loss of NC in Period 2
Cut Advertising & CT to $1.7 M

6. STRATEGY: PERIOD 3 & 4
TEEK Period 3 Period 4
Target Innovators Innovators
Price $2,000 $1,850
Production 111,000 140,000
Sales 95,000 168,000
Net Contribution $63 M $107 M
Price Semantic 6.5 6.5
• Market
Size?
• Price?
• Production?
Period 3 Results TEEK TOPS TONE
Net Contribution 63,471 12,590 3589
Marketing Expenses 4,227 1,662 993
Return on Marketing
15.0 7.6 3.6
Investment
Vodite
• ROMI
• Drop TONE Sonite

7. STRATEGY: PERIOD 5
 New Competition
 Launch 2 Vodites
 TEMOC
 TEMAK
 Cancel Sonite for
Savers

8. STRATEGY: PERIOD 5 & BEYOND
 Reposition TEEK (Adopters)
 Market Growth??
 Theory: Pricing is King
 Set as close to ideal point as
possible
Estimated Actual
Period 4 72+66+20= 158 74+71+23= 168
Period 5 84+110+77= 271 49+70+58= 177

9. POSITION GOING FORWARD
 Meet Customer Preferences
 Research & Development
 P9 Update for TEMOC/TEMAK
 New Sonite for Savers?
 Vodite pricing now optimal
 Top ROMI Brands
 Sonite: 5.74 vs. 4.56 (R, 2nd)
 Vodite: 8.72 vs. 3.17 (R, 2nd)
• $849
• 4.24 - Perception 4.37 - Ideal
TEMOC
#1 Vodite
23.9% Mkt Share
• $899
• 4.64 - Perception 4.37 - Ideal
TEMAK
#3 Vodite
16.3% Mkt Share
• $999
• 4.96 - Perception 4.91- Ideal
TEEK
#4 Vodite
14.9% Mkt Share

10. IMPORTANT LESSONS LEARNED
• First mover has a big advantage
• Always consider ROI
• Brand awareness is vital
• Pricing matters
• Be organized & have defined roles
• Study the competition
• Be decisive

11. QUESTIONS?