Capstone Decision Making —— Taun Taun Team Presentation
Transcript of Capstone Decision Making —— Taun Taun Team Presentation
MARKSTRAT
SIMULATION
MKT 6339
UTD SPRING 2014
BUFFALO
Team TaunTaun
Paul Flesher
Zhaodi(Jodi) Liu
Tanachai Thosapornvichai
Michael Stone
STARTING POSITION & STRATEGY
• Sonite Market – 20% Market Share
Initial Position
• Vodites are the KEY
• Be first to Vodites
• Maintain position in Sonites
• Avoid spreading to thin
Initial Strategy
OBJECTIVES & ACTUAL PERFORMANCE
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1,000
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TaunTaun
Legend
Resolute
Marvelus
Sharks
• WIN
• 50% Vodite Market Share
• 10% Sonite Market Share
Objectives
• Cum Net Contribution = $904M
• 55% Vodite Market Share
• 8% Sonite Market Share
Actual Performance
STRATEGY: TRIAL ROUNDS R&D Queries vs. Feasibility Studies
Sonite Feasibility Studies Never Profitable
Determine Required Budget for first Vodite
STRATEGY: PERIODS 1 & 2
Target profitable segments
TOPS – Maximize penetration
TONE – Maintain market presence
Needed $6.4 M, Period 2 Budget = $8.1
Expected Loss of NC in Period 2
Cut Advertising & CT to $1.7 M
STRATEGY: PERIOD 3 & 4TEEK Period 3 Period 4
Target Innovators Innovators
Price $2,000 $1,850
Production 111,000 140,000
Sales 95,000 168,000
Net Contribution $63 M $107 M
Price Semantic 6.5 6.5
Period 3 Results TEEK TOPS TONE
Net Contribution 63,471 12,590 3589
Marketing Expenses 4,227 1,662 993
Return on Marketing Investment
15.0 7.6 3.6
• Market
Size?
• Price?
• Production?
Vodite
• ROMI
• Drop TONE Sonite
STRATEGY: PERIOD 5
New Competition
Launch 2 Vodites
TEMOC
TEMAK
Cancel Sonite for Savers
STRATEGY: PERIOD 5 & BEYOND
Reposition TEEK (Adopters)
Market Growth??
Theory: Pricing is King
Set as close to ideal point as possible
Estimated Actual
Period 4 72+66+20= 158 74+71+23= 168
Period 5 84+110+77= 271 49+70+58= 177
POSITION GOING FORWARD
Meet Customer Preferences
Research & Development
P9 Update for TEMOC/TEMAK
New Sonite for Savers?
Vodite pricing now optimal
Top ROMI Brands
Sonite: 5.74 vs. 4.56 (R, 2nd)
Vodite: 8.72 vs. 3.17 (R, 2nd)
• $849
• 4.24 - Perception 4.37 - Ideal
TEMOC
#1 Vodite
23.9% Mkt Share
• $899
• 4.64 - Perception 4.37 - Ideal
TEMAK
#3 Vodite
16.3% Mkt Share
• $999
• 4.96 - Perception 4.91- Ideal
TEEK
#4 Vodite
14.9% Mkt Share
IMPORTANT LESSONS LEARNED
• First mover has a big advantage
• Always consider ROI
• Brand awareness is vital
• Pricing matters
• Be organized & have defined roles
• Study the competition
• Be decisive
QUESTIONS?