Markstrat

World Sec A ; Firm O

Anubhav Rawat Dr. Rohit Goswami Mudit Vyas Ranajay Sengupta Bagchi Shrey Chakravarty

Saikat

Strategy Period 1
A

Market share
E I O U 19% 11% 21% 16% 23%

10% Y

Target one product to only one segment of the market Products targeted to their respective markets: SOLD High Earners ; SONO Buffs Initiate R & D using different decision making tools to custom build any new projects to their market.
Stock Price Index
Stock Price Index 1225 1130 1355

909

1063

994

FLOW OF PRESENTATION
Introduction Getting to Know the Basics Climbing Up Going Down

Stabilizing
Looking Forward

Learning

Introduction
Know the Market Segmentation and Targeting R&D and Production

Proper pricing and setting motives

Advertising and Distribution

HOW TO GO ABOUT MAKING DECISIONS

SONITE VODITE VORG VOAR

SOLD
SONO

VORS
SORG VOMV

SOMV

VOSB

YoY SPI (Secondary Axis) ; Net Contribution (Primary Axis)

SPI V/s Net Contribution
40000 35000 30000 Axis Title

25000
20000 15000 10000 5000 0 1 2 31005 3 30148 4 25990 5 31747 6 11934 7 26214 8 37192

Net contribution 22195 SPI

1225

1802

1455

1516

1581

1223

1382

1515

Getting To Know The Basics

Too Many Stock Price Stock Price Numbers Index : 1225 Index : 1802 !! Identifying products and their corresponding target segments SOLD Hi- Earners SONO Buffs Check forecasted growth of the target segments Learnt to focus on one segment per product Optimal Sales force? Right Distribution Channel ? Started using the various Newsletters & Market Research surveys
Period 1 Period 2

Going Down
Period 3

Strategy: Push the existing products in the targeted segments. Diversify as income rises.
Period 4 Stock Price Index : 1581

Period 5

Stock Price Index : 1455

Stock Price Index : 1223

Introduced SORG for professionals Reason: Wanted to Tap the unexplored market Implication: SORG gained market share marginally Learning: The MDS dimensions need to be accurately matched

Manufactured huge volume of new product SONO targetting Buffs in spite of knowing that it was not in sync with their needs Reason: We did not have R & D budget to improve product as focus shifted to the Vodite R & D. Implication: Huge inventory for SONO Learning: Better know your customers well.

The Comeback!
Period 6 Stock Price Index : 1223 Period 7 Stock Price Index : 1382 Period 8 Stock Price Index : 1515

Why did it Happen ???

Lost focus in Distribution channel Improper allotment/reduction of Sales force Catch 22 situation: Lose market share or Negative contribution margin Prediction of Customer perception went wrong
DECISIONS Delay in modification of SONO Heavy investment in Vodite R&D SONO was allowed a natural death REASONS

Gap between Consumer needs and product characteristics Competition was getting a stronger foothold
Negative contribution margin

Stabilizing
Learning Shed away the products which are not performing If you cant go up bring your competitors down If you expect your market share to shrink, plan out corresponding decrease in your expenditures Watch out the distributor margin and price your product accordingly Allocation of resources must match purchase intentions.

Learning
Real time use of analysis tools and market research : Semantic scales, Multidimensional Scaling, Conjoint Analysis, Perceptual Map, Competitors' Details Gave us chance to practice on the entire marketing process: 4P Take Informed, Wise Decisions, Choose precise target, Know the needs of customers

If Company is doing good enough its not a good news : Competitor is building on some strategy Example: Nokia vs. Samsung 80
60 40 20 0 Q1 2007 Q2 2011 NOKIA SAMSUNG

Learning (contd)
Markets do evolve faster than we perceive: Segmentation, Positioning, and Targeting cannot be static Short term goals does not help build a concrete long term goal If you are a market leader you are not safe to threats: Example: Research in Motion Proper Distribution and Advertising leads the game when products cannot be differentiated much