SABRE-TOOTHED TIGERS TEAM BLUE: DANIEL CALDERON OLIVER ELFENBAUM RENE POELLINETZ LINGCHAO WANG EMILY WASSERMAN MKTG TA: Jennifer Jia

GOAL AND TAKEAWAYS Main goal: Maximize net contribution What we learned from SABRE 1. Implement appropriate target market approach 2. Align marketing expenditure and productions 3. Marketing timing is important 4. When there is little market share potential, focus on profitability

5C ANALYSIS FrameworkSpartanFlash Company2 products positioned well in 2 high- growth market segments Limited budget No products at onset; Limited budget CompetitionNot very competitive Only 1 competing product in the 2 segments we aimed at Potential competition No competition at inception CustomerDefined preferences Unknown preference shift Unknown preferences ContextDefined segments with healthy growth Opportunity from emerging segment Emerging market CollaboratorSales force already in place; Market studies support No sales presence No market studies available

STRATEGY – PERIOD 1-3 Segmentation & Targeting: Treat at Wright; Trick at Cooper  Spend on advertisement in Spartan to increase product awareness R&D in Flash  NO R&D in Period 1 – not enough information available  R&D in Period 2 or 3 based on information from market studies Launch new product in Sheriff to capture more market share Perceptual shifts on Trick and Treat Key milestones Period 2: New product launched in Sheriff based on Trick’s R&D Period 3: R&D for new product in Flash based on market studies Pie chart of purchase intention in Wright & Period 0

SEGMENTATION DECISION NO.1 In Period 1, Sheriff emerges in Spartan Positioning: Trick has similar attributes as Sheriff’s preferences Decision: launch a new product targeting at Sheriff based on Trick’s R&D Thoughts: Combined target market approach might work better  Takeaway #1: Implement appropriate target market approach Add perceptual Period 1

OUTCOME – PERIOD 1-3 Add Market Period 3 Advertisement spending Add Purchase Period 3 Effective perceptual shifts Add Market share (Period 1-3) Leading market share Optimal product positioning Great market awareness

MIDPOINT SWOT ANALYSIS Strengths Positioning Awareness Budget Weaknesses Level of Production Declining Focus on Perceptions Opportunities Good product attributes in Flash R&D in Spartan to increase profitability Threats Competition from Orange team in Spartan Changes Preferences of Consumers  Takeaway #2: Align marketing expenditure and productions  Takeaway #3: Market timing is important To be reformatted

PERIOD 4 – 6 Strategies Keep market share in Spartan through advertisement spending and perceptual shifts Launch new product in Flash in Period 4 with huge advertisement DO R&D in Spartan to replace Treat by one with lower unit production costs Launch second product in Flash Key milestones Period 4: New product (Troop) launched in Flash Period 4: Treat replaced by new R&D Period 5: Second product (Trump) launched in Flash Period 6: Troop and Trump replaced by new R&D (unit production cost lowered by $150)

SEGMENTATION DECISION NO.2 In Period 4, we saw clear discrepancy in price preference between 5 segments Positioning: Troop is at ideal position to capture all segments Decision: Launch a new product (Trump) targeting at 2 high- price segments; Troop targets at low-price 3 segments Thoughts: Multiple Target Market Approach works  Takeaway #1: Implement appropriate target market approach Add Period 4

R&D STRATEGY In later periods, we have huge budgets Our products have great market awareness  Advertisement is no longer effective Doing R&D is becoming cheaper Our decision: DO R&D to lower unit production costs of existing products  In Period 4: Treat is replaced by a new product with $80 lower cost/unit; Only ~$1,000 were spent on R&D  In Period 6: Troop and Trump replaced by new products with $150 lower cost/unit; Only ~$3,500 were spent on R&D  Takeaway #4: When there is little market share potential, focus on profitability

OUTCOME

OUTCOME (CONT.) Total Accumulated Net Contributions (Period 1-6): Toothed Tigers: 283,657 (#1 in recitation) All Blue Teams: Max: 289,509 Median: 223,203 Mean: 199,425 Market Share by Value: 21.4% in Spartan; 47.6% in Flash

REFLECTIONS SUCCESSES Spending on advertisement in Spartan Good timing to enter Flash Successful segmentation strategies AREAS OF IMPROVEMENT Aligning marketing expenditure and production Perceptual shifts

GO TIGERS!