1 BUILDING A MATRIX IBL ANSWERS

DAY 2 2 IBL 1. What is IBL’s relative share for product 1? 1.5:1  Table 5.1 (1,500 divided by 1,000) = 1.5:1

DAY What will IBL’S relative market share be for product 1 in year 3?  Chart 5.4 year 3 sales forecast 1,815  Chart 5.5 company b, year 3 sales forecast 1,562 IBL

DAY What will IBL’S relative market share be for product 1 in year 3? 1.16:1  (1815 divided by 1562) = 1.16:1 IBL

DAY What is annual growth of the market for product 1?  Table %, 22%, and 25% IBL

DAY What will be the total market volume for product 1 in year 3?  Table 5.1 sales as 1,500. Table 5.2 absolute market share of 15%. Market size in year  1 = 1500 x 100 = 10, IBL

DAY What will be the total market volume for product 1 in year 3?  Thus market size for year 3 is found from the % figures in Table ,000 x 22% x 25% = 15,250 IBL

DAY What is absolute market share of IBL’S product 1 in year 3?  Table 5.3, year 3 (1815) divide by answer to question 4 (15,250) = 11.9 IBL

DAY 2 9 IBL 6. Is the market growth in current year, high or low, relative to industry average of 10%?  HIGH at 20, 22, 25%

DAY Table 5.1  RMSRMG 1.5:120% 2:19% 0.9:112% 0.6:110% 0.5:1 5% 0.2:1 3% 0.1:1 22%

DAY % 10% 0% IBL

DAY Table 5.1 contribution  VOLUMESIZE 1, , ,

DAY % 10% 0% IBL

DAY DO YOU THINK PORTFOLIO IS WELL BALANCED? WHY?WHAT DO YOU RECOMMEND? IBL

DAY % 10% 0% RMS 1:16.1 MG 25% 1,

DAY Are signs ahead good, comparing IBLS product 1 with current situation? IBL

DAY % 10% 0%

DAY What is happening to main product? c. Losing market share in a growing market IBL

DAY % 10% 0%

DAY What policy should IBL pursue for product 1. D. Hold price increase promotion IBL

DAY % 10% 0%

DAY What other products would you invest in?  B. 3 and 7 IBL

DAY % 10% 0%

DAY Which product should you maintain current position?  2, 3, 4, 5, 6 or 7 IBL

DAY % 10% 0%

DAY Which combinations should be managed for cash options  c. 4, 5, 6 IBL

DAY % 10% 0%

DAY 2 28 IBL TRY TO USE ONLY TEN PRODUCTS  OR USE 20% that account for majority of turnover

DAY 2 29 PRODUCT STRATEGIES 1. TARGET FOR DEVELOPMENT 2. DEFEND FROM COMPETITION

DAY 2 30 PRODUCT STRATEGIES 3. MAINTAIN WITH MINIMUM RESOURCES? 4. WITHDRAW?

DAY 2 31 GROWTH STRATEGIES CURRENT NEW MARKETS PRESENT MARKETS NEW/FUTURE VERTICAL INTEGRATION VERTICAL INTEGRATION GROWTH PROD DEVELOP MARKET DEVELOP DIVERSIFY

DAY 2 32 MATRIX DESIGN TARGET KEY SUCCESS FACTORS MUST BE MEASURABLE FUTURE FOCUS

DAY 2 33 WHAT IS THE STRATEGY? MARKET GROWTH % P.A. MARKET SHARE %

DAY 2 34 WHAT IS THE STRATEGY? MARKET ATTRACTIVENESS PRODUCT STRENGTHS LOWMEDHIGH LOW MED HIGH

DAY 2 35 WHAT IS THE STRATEGY? PRICE COMPETITIVENESS QUALITY COMPETITIVENESS LOWMEDHIGH LOW MED HIGH

DAY 2 36 WHAT IS THE STRATEGY? INVESTMENT SALES POTENTIAL SALES POTENTIAL LOWMEDHIGH LOW MED HIGH

DAY 2 37 WHAT IS THE STRATEGY? MARKETING CAPABILITY DEVELOPMENT CAPABILITY 31 2 LOWMEDHIGH LOW MED HIGH

DAY 2 38 WHAT IS THE STRATEGY? RETURN ON INVESTMENT LEVEL OF RISK LOWMEDHIGH LOW MED HIGH