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Total Sales
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Sonite Market
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Total Market
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Profit
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Overview of performance - Increase in revenue by approx. 150 % - contribution margin rose by 217 % - growth in marketshare among target customers from 34.3% (P0) to 59.80% (P6) --> increase by approx. 75% Marketshare among professionals in P6
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Strategy Segmentation o focusing on 2 segments Professionals and High Earners o better understanding of customer needs o fine-tune product offerings o more effective marketing Value vs. price decrease o Target customer are not price sensitive o Expect high-quality, high performance, easy to use products offer value and no price decrease
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Porter’s generic strategy o SEMI focuses on Professionals and High Earner’s o advertisement targets to 75% Pros and to 25% HiEarners o Differentiation by fine-tuned products, good service Focus
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Salesforce Number of salespeople employed was always above average Periodical adjustment in accordance with growth of firm Concentration on specialty and dept. stores good service high revenue
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Segmenting,Targeting,Positioning Initially, targeting and the price strategy was contradictory Allocating percentages largely over Buffs, Singles and Professionals. Ambiguous borders among the segments whose needs noticeably differ from each
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Segmenting,Targeting,Positioning Trying to be all things to all market Current inventory rises Frankly, we were not sure whether to divest the brand or not. Maybe being profitable survivor? Why not exit? Though, considerable amount of the revenue was coming from our brand Self due to high price($550).
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Segmenting,Targeting,Positioning SWOT analysis Competitors: SIBA($350/$171) of I and Sono($300/$226) of O SELF($234/$400) Value positions? Performance, price and relational? Differentiation focus strategy Flanking Attack Strategy
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Differentiation Focus Following is the strategy, we have followed over the course of the simulation Targeting solely concentrated over the Buffs who were shrinking in size (focusing on niches) Repositioned the brand with respect to their ideal points (attributes,MDS).
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Market Share of SELF
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Contribution by brand Self
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What is SESS? SESS is the new brand of our firm. It is a product which is targeted for the Singles segment. It had only one serious competitor. It was in the market for 3 periods.
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Overview of performance
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Strategy Why Singles segment? Singles segment was fastly growing. Only one brand to compete with. Value vs. Price Not the cheapest but the optimal product. Creation of value through advertising. Distribution and sales force focused on mass merchandisers where Singles do their shopping.
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