MarkStrat Final Presentation Industry 1 Team U Marilyn Ho Mario Kojima James Kong Patricia Lee Annie Liu

Agenda Summary of results Goals and objectives Long-term strategy Notable shifts in tactics Conclusion and lessons learned

Starting Point SULI market share – 18.4% (2nd ) SUSI market share – 3.7% (Last) Total Sonite market share: 22.2% (3rd) ROI: 2.76 (1st)

Summary of Results Total Sonite market share: 24.8% (3rd) Total Vodite market share: 52.3% (1st) ROI: 11.13 current (1st); 6.41 cumulative (1st)

Goals and Objectives Achieve #1 rank in industry Maximize profits Optimize portfolio to take advantage of market growth opportunities Develop marketing expertise

Long-Term Strategy Segmentation: Tailored products for selected segments Customer-driven decision-making Strategic competitive analysis

Customer-Driven Decision-Making Paid attention to customer’s ideal attributes and their evolution Recognize trade-offs between customer wants and company profitability

SUSI Perception without considering price - Others Perception considering price - Others

SULI Perception without considering price Perception considering price High Earners Professionals Singles Perception considering price High Earners Professionals Singles

VODITE Perception without considering price Innovators Early Adopters Followers Perception considering price Innovators Early Adopters Followers

Strategic Competitive Analysis Anticipatory competitive positioning Competitive benchmarking

Anticipatory Competitive Positioning Example: positioning SUSI in the Others segment

Competitive Benchmarking Research & Development (Period 1-3) Example: entry into Vodite market Period 3 - complete our first Vodite - observe Teams A & O; anticipate they are developing a lower-end product Period 4 - launch our Vodite - expect Team A and/or O will launch this period as well

Notable Shifts in Tactics: Sonite #1 #2 Situation: Drop in market share despite better product and lower price Decision: Increased SULI’s mass merchandise distribution sixfold Situation: Drop in market share due to introduction of new brands without enough marketing support Decision: Drop new brands.

Notable Shifts in Tactics: Vodite #1 #2 Situation: Drop in market share despite introduction of new brand for Followers Decision: New brand is closer to Innovators & Early Adopters, so reposition brands. Situation: Drop in market share due to competitive pressures and underproduction Decision: Be more aggressive with production.

Conclusion and Lessons Learned Company position strengthened by consistent strategy: high growth markets continuous reassessment of tactical implementation decisions Developed better understanding of advertising, distribution, and production planning