Markstrat 2016 athens university of economics & business
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Transcript of Markstrat 2016 athens university of economics & business
MarkStrat
Strategy: Years 1-4
Team Omicron
Athens University of Economics & Business (AUEB)
March 2016
MarkStrat
Year 1
Team Omicron
Athens University of Economics & Business (AUEB)
March 2016
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
3
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
4
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
5
Production per Brand
Marketing
Mix
Forecasted Size (Period 1)
308
247242
171
228
0
100
200
300
400
Buffs Singles Pros
Units *10^3
Others HiEarners
Market Share within Segment (Period 0)
69%
26%
97% 98%
31%
74%
96%
0%
20%
40%
60%
80%
100%
MS (%)
Others HiEarners Buffs Singles Pros
3%
4%
2%
Expensive Sonite Cheap Sonite
Potential Demand Sales (Period 1)
690
506
0
200
400
600
800
Cheap Sonite Expensive Sonite
Projected Demand
Sales (*10^3)
Production Team Omicron (Period 1)
155
108
0
100
200
Expensive Sonite Cheap Sonite
Production (*10^3)
21.4% 22.4% Projected
MS
86-130 124-186
Year 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
6
Targeting Strategy per Brand – Contribution Evaluation
Marketing
Mix Year 1
Note 2: Manufacturer Selling Price
Desired Retail Price per Segment Desired MSP2 per Segment
238
395
493
289273
0
100
200
300
400
500
Desired Price1
Others Pros Singles Buffs HiEarners
Note 1: Prices are based on Conjoint Analysis of Practice Session; Still not available to our Session
90 99135
75 69
74 74
161
161
74
0
100
200
300296
236
173 164
Desired Price1
Others
143
HiEarners Pros Singles Buffs
Mnf’s Contribution Tranfer Cost3
Note 3: Initial Estimation of production similar to Period 0
Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution)
600
200
400
800
0
*10^3 $
Period 0 Period 5 Period 1
Pros HiEarners Singles Buffs Others
200
100
50
150
250
0
*10^3 $
Period 1 Period 5 Period 0
Pros & Others our
priority segments
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
7
Targeting Strategy per Brand – Attributes Evaluation
Marketing
Mix Year 1
Desired Attributes per Segment vs. SOLD Desired Attributes per Segment vs. SONO
273289
238225
0
100
200
300
Price
$
SOLD Others Singles Buffs
0
20
40
60
80
100
5-100
Power
34,9
12,0
45,4
88,4
0
2
4
6
8
10
3-10
Design
3,0
6,7
8,1
4,2
0
10
20
30
40
50
Max. Frequency
29,2
19,0
43,5
25,0
5-50
273
493
395
480
0
100
200
300
400
500
Price
$
SONO Buffs HiEarners Pros
0
100
68,8 75,0
5-100
Power
72,1
88,4
0
100
32,5
Max. Frequency
43,5 40,0
5-50
38,8
0
10
Design
8,0
3-10
4,2
8,3 9,1
Relative
Importance
Relative
Importance
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
8
Targeting Strategy per Brand – Summary
Marketing
Mix Year 1
Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand
0
20
40
60
80
Singles Others Buffs
53,6
%
60,9 62,4
44,0
70,6 71,5
46,0
54,3
43,3
Pros
67,3
HiEarners
0
5
10
15
20
%
Others
0,6
Pros
16,2
Buffs
16,1
11,5 12,3
0,5 0,3
HiEarners
16,4
4,4
Singles
5,2
SONO SOLD
SOLD Others SONO Pros
The largest segment in units (economy of scales)
Customers with similar needs
Looking for cheap, low performance products
Brand Awareness: 62,4% (second highest)
Purchase Intentions: 16,1%(highest one)
Market Share: 16,1%
Actual size this period: Size: 260KU, 25,7%
Forecasted size next period: size: 308KU, 25,8%
Forecasted size in 5 periods: Size: 619KU, 28,2%
Largest segment in terms of profit margin
High quality, high performance & easy 2 use
Price as an indication of quality
Brand Awareness: 70,6% (second highest)
Purchase Intentions: 16,2%(second highest)
Market Share: 16,3%
Actual size this period: Size: 196KU, 19,3%
Forecasted size next period: size: 242KU, 20,2%
Forecasted size in 5 periods: Size: 406KU, 18,5%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
9
Pricing & Advertising per Brand & Segment
Marketing
Mix Year 1
9 10 11 12 13 14 15 16 17 18
0,0
350,0
200,0
100,0
300,0
250,0
150,0
50,0
"Expensive" Sonites
"Cheap" Sonites
Growth vs. Period -1 Sonite Market
Growth
SOLD
Decrease the price >10%; Price will
be significant parameter for the brand
to be preferred
Price will remain at similar level vs.
previous year
Sales in million $ (Period 0)
BCG Matrix1 Retail Price per Brand
SONO
Advertising per Brand
<1/3 of total advertising budget will be allocated to SOLD;
>10% of SOLD advertising budget will be invested on
“research”
>2/3 of total advertising budget will be allocated to SONO;
>10% of SONO advertising budget will be invested on
“research”
SOLD
SONO
Strategic Decisions2
Evaluate whether is worthwhile the
existence in our portfolio of Question marks
& Dogs
Investment in Star Brands in order to move
them to “Cash Cow Segment”
Note 2: Source: http://www.mbatools.co.uk/Marketing/bgcgrowthmatrix.htm & http://www.mbatools.co.uk/Marketing/bgcgrowthmatrix.htm Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
10
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
11
Sonites Journey
Sales
Force Year 1
Team
Omicron
Mass
Merchandisers
Department
Stores
Specialty
Stores
Distributors
Margin 40%
Distributors
Margin 30%
Distributors
Margin 30% -
10% Discounted
retail price
SOLD
SONO
Base Transfer
Cost $74
Base Transfer
Cost $161
Customers
Team
Omicron
R&D
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
12
Sales Force per Brand & Segment
Sales
Force
Coverage (Period 0)
26
3938
26
4040
0
15
30
45
Specialty stores Depart. stores Mass Merchandis.
Coverage (%) Expensive Sonite Cheap Sonite
10 10 10 10 10 10
FTEs for 100% coverage
39
2626
38
2525
0
15
30
45
Depart. stores Specialty stores Mass Merchandis.
# FTEs Cheap Sonite Expensive Sonite
SOLD Potential
400
0
200
100
300 246
4
Units *10^3
3 23 58
84
Specialty
59
68
Mass
176
119 119
34 7 12
Depart
Others HiEarners Pros Singles Buffs
SONO Potential
0
400
300
200
100
Units *10^3
Mass
133
13 73
47
Depart
192
121
70
Specialty
365
45
117
154
49
20
24
6
15
22
25
0
15
30
# FTEs
Mass Depart Specialty
Expensive Sonite Cheap Sonite
FTEs Team Omicron (Period 1)
Year 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
13
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
14
Market Research – Ordered Reports
Market
Research Year 1
Industry Benchmarking
Consumer Survey
Consumer Panel
Distribution Panel
Semantic Scales
Market Forecast
MDS Scaling
Competitive advertising
Competitive SFE
Advertising Experiment
SFE Experiment
Conjoint Analysis
Evaluation of our performance/decisions
Mainly for the re-allocation of FF to Channels
Evaluation of Targeting strategy
Evaluation of Coverage strategy
Contribution to R&D Decisions
Projected Demand Sales define our production & strategy
Contribution mainly to advertising research
All Teams will allocate Budget between Ads & SFE, so…
Understand through Distribution Panel (in Period 1)
Based on the assumption that nothing changes
Based on the assumption that nothing changes
No significant changes expected in Period 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
15
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
16
Profit & Loss Account – Base Case Scenario1
P&L
Account Year 1
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled
Company Performance Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit Total SOLD SONO
Base R&D project PSOLD PSONO
Sales
Units sold2 U 272,000 117,000 155,000
Average retail price $ 370 225 480
Average selling price3 $ 237 148 304
Revenues K$ 64,487 17,350 47,137
Production
Units produced U 263,000 108,000 155,000
Current unit transfer cost4 $ - 69 151
Average unit transfer cost $ 116 69 151
Cost of goods sold K$ -31,440 -8,100 -23,339
Units in inventory U 0 0 0
Inventory holding cost K$ 0 0 0
Inventory disposal loss K$ 0 0 0
Contribution before marketing K$ 33,047 9,250 23,798
Marketing
Advertising expenditures K$ -3,838 - 1,075 - 2,763
Advertising research
expenditures K$ -491 - 138 - 353
Sales force K$ -2,493 - 1,113 - 1,380
Contribution after marketing K$ 26,225 6,924 19,302
Note 3: Based on the projected allocation of brands per channel (Result: Margin for SOLD=61.0% & for SONO = 60.6% Note 2: Includes also 9k units current inventory Note 1: Base Case Scenario is based on the assumption that we sell exactly the produced amount of units
COMPANY PERFORMANCE
Unit Total Sonite
market
Vodite
market
Sales
Units sold U 272,000 272,000 0
Average retail price $ 370 370 0
Average selling price $ 237 237 0
Revenues K$ 64,487 64,487 0
Production
Units produced U 263,000 263,000 0
Cost of goods sold K$ -31,440 -31,440 0
Inventory holding cost K$ 0 0 0
Inventory disposal loss K$ 0 0 0
Contribution before marketing K$ 33,047 33,047 0
Marketing
Advertising expenditures K$ -3,838 -3,838 0
Advertising research expenditures K$ -491 -491 0
Sales force K$ -2,493 -2,493 0
Contribution after marketing K$ 26,225 26,225 0
Other expenses
Market research studies K$ -326 -
326
-
Research and development K$ 0
-
-
Interest paid K$ 0
Exceptional cost or profit K$ 0
Net contribution K$ 25,899
Next period budget K$ 10,360
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
17
Profit & Loss Account – “Pessimistic” Scenario1
P&L
Account Year 1
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled
Company Performance Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit Total SOLD SONO
Base R&D project PSOLD PSONO
Sales
Units sold2 U 219,000 95,000 124,000
Average retail price $ 369 225 480
Average selling price3 $ 237 148 304
Revenues K$ 51,798 14,088 37,710
Production
Units produced U 210,000 86,000 124,000
Current unit transfer cost4 $ - 72 157
Average unit transfer cost $ 120 72 157
Cost of goods sold K$ -26,306 -6,796 -19,510
Units in inventory U 0 0 0
Inventory holding cost K$ 0 0 0
Inventory disposal loss K$ 0 0 0
Contribution before marketing K$ 25,492 7,292 18,200
Marketing
Advertising expenditures K$ -3,838 - 1,075 - 2,763
Advertising research
expenditures K$ -491 - 138 - 353
Sales force K$ -2,493 - 1,113 - 1,380
Contribution after marketing K$ 18,670 4,966 13,704
Note 3: Based on the projected allocation of brands per channel (Result: Margin for SOLD=61.0% & for SONO = 60.6% Note 2: Includes also 9k units current inventory Note 1: Pessimistic Scenario is based on the assumption that we sell 80% of the produced amount of units
COMPANY PERFORMANCE
Unit Total Sonite
market
Vodite
market
Sales
Units sold U 219,000 219,000 0
Average retail price $ 369 369 0
Average selling price $ 237 237 0
Revenues K$ 51,798 51,798 0
Production
Units produced U 210,000 210,000 0
Cost of goods sold K$ -26,306 -26,306 0
Inventory holding cost K$ 0 0 0
Inventory disposal loss K$ 0 0 0
Contribution before marketing K$ 25,492 25,492 0
Marketing
Advertising expenditures K$ -3,838 -3,838 0
Advertising research expenditures K$ -491 -491 0
Sales force K$ -2,493 -2,493 0
Contribution after marketing K$ 18,670 18,670 0
Other expenses
Market research studies K$ -326 -
326
-
Research and development K$ 0
-
-
Interest paid K$ 0
Exceptional cost or profit K$ 0
Net contribution K$ 18,344
Next period budget K$ 7,338
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
18
Profit & Loss Account – “Optimistic” Scenario1
P&L
Account Year 1
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled
Company Performance Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit Total SOLD SONO
Base R&D project PSOLD PSONO
Sales
Units sold2 U 325,000 139,000 186,000
Average retail price $ 371 225 480
Average selling price3 $ 237 148 304
Revenues K$ 77,177 20,613 56,564
Production
Units produced U 316,000 130,000 186,000
Current unit transfer cost4 $ - 67 144
Average unit transfer cost $ 111 67 144
Cost of goods sold K$ -36,177 -9,324 -26,854
Units in inventory U 0 0 0
Inventory holding cost K$ 0 0 0
Inventory disposal loss K$ 0 0 0
Contribution before marketing K$ 41,000 11,289 29,711
Marketing
Advertising expenditures K$ -3,838 - 1,075 - 2,763
Advertising research
expenditures K$ -491 - 138 - 353
Sales force K$ -2,493 - 1,113 - 1,380
Contribution after marketing K$ 34,178 8,963 25,215
Note 3: Based on the projected allocation of brands per channel (Result: Margin for SOLD=61.0% & for SONO = 60.6% Note 2: Includes also 9k units current inventory Note 1: Optimistic Scenario is based on the assumption that we sell 120% of the produced amount of units
COMPANY PERFORMANCE
Unit Total Sonite
market
Vodite
market
Sales
Units sold U 325,000 325,000 0
Average retail price $ 371 371 0
Average selling price $ 237 237 0
Revenues K$ 77,177 77,177 0
Production
Units produced U 316,000 316,000 0
Cost of goods sold K$ -36,177 -36,177 0
Inventory holding cost K$ 0 0 0
Inventory disposal loss K$ 0 0 0
Contribution before marketing K$ 41,000 41,000 0
Marketing
Advertising expenditures K$ -3,838 -3,838 0
Advertising research expenditures K$ -491 -491 0
Sales force K$ -2,493 -2,493 0
Contribution after marketing K$ 34,178 34,178 0
Other expenses
Market research studies K$ -326 -
326
-
Research and development K$ 0
-
-
Interest paid K$ 0
Exceptional cost or profit K$ 0
Net contribution K$ 33,852
Next period budget K$ 13,541
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
19
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
20
Next
Actions Year 1
Internal KPIs for evaluation of Decisions
SONO market share >40% in Pros in
Period 1
SOLD market share >30% in Others in
Period 1
Sell all the SONO produced units in
Period 1
>85% coverage of Specialty stores
regarding SONO in Period 1
>80% coverage of Department stores
regarding both Sonites in Period 1
Net contribution >25K$ in Period 1
Leader in Expensive Sonite in Period 1
(regardless Segment)
Confirmation that the 2 targeted segments
deliver the highest contribution for Team O
Highest purchase intention in the 2
targeted Segments
>85% Brand Awareness in the 2 targeted
Segments
Deliver the right message to the right
segments
5Digit Budget (in K$) for Period 2
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
21
Next
Actions Year 1
Study Benchmarking Studies
Close the knowledge gap by studying
Market Research
Target Growth Segments more precisely
either by …
Advertising and changing the perceived
attributes or by …
Investing on slight differentiation of existing
brands via R&D
Re-evaluate # of SFE
Market Sizing per Segment for next
period(s)
Estimate market share for the requested
production levels
Focus on “rich” segments
Focus on being first in all important KPIs
Achieve the largest available Budget for
next period for…
Launching the “VOTE”!!!!
Actions regarding upcoming Periods
MarkStrat
Year 2
Team Omicron
Athens University of Economics & Business (AUEB)
April 2016
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
2
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
3
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
4
Brand Portfolio
Brand
Portfolio Year 2
Brands
SOLD
Projects
PSOLD
Target Segment
Others
SONO PSONO Pros
SOLO PSOLD Singles
SONY PSONO HiEarners
VOTE PVOTE Innovators
Existing Brand
Introduced Brand
R&D
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
5
R&D – Vodite Project
Brand
Portfolio Year 2
Desired Attributes – Innovators
77
15
61
6
56
0
20
40
60
80
Innovators
Scale Diameter Max Freq Autonomy Design Weight
Relative
Importance
Desired Attributes – Early Adopters
68
12
41
8
46
0
20
40
60
80
Scale
Early Adopters
Relative
Importance
Desired Attributes – Followers
55
12
56
8
59
0
20
40
60
80
Scale
Innovators
Relative
Importance
On-Line Queries – Budget for R&D ~ $9,65M
63
13
60
7
60
0
20
40
60
80
Attributes
Scale
On-Line
Query
Output
$9.65M R&D Budget $260 Base Cost
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
6
Breakeven Point & Payback Period – Vodite Project
Brand
Portfolio Year 2
VODITE TOTAL COSTS - PERIOD
R&D K$ 9.650
Advertising Budget K$ 2.000
Advertising Research K$ 500
Sales Force K$ 1.000
Market Research K$ 300
Total K$ 13.450
Breakeven Point
Base Transfer Cost $ 260
Retail Price $ 900
Mnf’s Selling price $ 540
Mnf’s Contribution $ 280
Breakeven Point Units 48.000
Vodites Market Size (Period 3) Units >100.000
Feasible
Estimated Vodite Dispensed Units Period 3 Units 50.000
Breakeven Point Units 48.000
Payback Period Months 11.5
Payback Period
0 5 10 15 20 25 30 35 40 45 50 55 60
40.000
20.000
0
10.000
30.000
R&D & Marketing
$
Total Costs
Base Transfer Cost
Mnf’s Revenue
Vodite
Dispensed
Units (*10^3)
Breakeven
Point
0 1 2 3 4 5 6 7 8 9 10 11 12
-15.000
0
-10.000
-5.000
5.000
Net Project Contribution (*10^3 $)
Months
Payback
Period
Months
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
7
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
8
Production per "Brand Category”
Marketing
Mix
Forecasted Size (Period 2)
348312318
204219
0
100
200
300
400
Pros Others HiEarners Singles Buffs
Units *10^3
Market Share within Segment (Period 1)
77%
34%
99% 98%
23%
66%
95%
0%
20%
40%
60%
80%
100%
MS (%)
Others HiEarners Pros
5%
2% 1%
Singles Buffs
Expensive Sonite Cheap Sonite
Potential Demand Sales (Period 2)
875
526
0
300
600
900
Cheap Sonite Expensive Sonite
Projected Demand
Sales (*10^3)
Year 2
8080
202
80
0
100
200
300
SOLO SONY SOLD SONO
Production (*10^3)
16.7% 15.2% Projected
MS
64-96 162-242
Production Team Omicron (Period 2)
9.1% 23.1%
+10 inven.
64-96 64-96
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
9
Targeting Strategy per Brand – Contribution Evaluation
Marketing
Mix Year 2
Note 1: Manufacturer Selling Price
Desired Retail Price per Segment Desired MSP1 per Segment
215
466446
288333
0
100
200
300
400
500
Desired Price
Singles Buffs Others HiEarners Pros
71110 138 151
66
129 63
129 129
63
0
100
200
300
129
HiEarners
280
Desired Price
Others Pros
267
Singles Buffs
173 200
Mnf’s Contribution Tranfer Cost2
Note 2: Initial Estimation of production similar to Period 1
Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution)
200
800
600
400
0
Period 6
*10^3 $
Period 2 Period 1
Others Buffs Pros HiEarners Singles
300
0
100
150
250
200
50
Period 6
*10^3 $
Period 2 Period 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
10
Brand Awareness & Purchase Intention Evolution
Marketing
Mix Year 2
Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand
0
20
40
60
80
%
67,3
HiEarners
43,3
54,3
Others
60,9 53,6
Pros Singles
46,0
62,4
70,6
Buffs
44,0
71,5
0
5
10
15
20
25
5,2
Pros Singles HiEarners
4,4
16,4 16,1
0,3
Buffs
16,2
0,5
11,5
0,6
12,3
Others
% SONO SOLD
Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand
0
20
40
60
80
%
63,4
HiEarners
42,9
57,1
Others
63,2
51,9
Pros Singles
47,9
63,5
77,0
Buffs
44,4
68,3
0
5
10
15
20
25
4,5
Pros Singles HiEarners
5,1
17,3 17,2
0,4
Buffs
24,1
0,2
12,8
0,8
11,2
Others
%
Period 0
P
eriod 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
11
Segments’ Characteristics – Summary
Marketing
Mix Year 2
SOLD Others SONO Pros
The largest segment in units (economy of scales)
Customers with similar needs
Looking for cheap, low performance products
Brand Awareness: 63,5% (highest one)
Purchase Intentions: 17,2% (highest one)
Market Share: 19,3%
Actual size this period: Size: 294KU, 24,4%
Forecasted size next period: size: 348KU, 24,8%
Forecasted size in 5 periods: Size: 691KU, 29,3%
Largest segment in terms of profit margin
High quality, high performance & easy 2 use
Price as an indication of quality
Brand Awareness: 77,0% (highest one)
Purchase Intentions: 24,1% (highest one)
Market Share: 27,5%
Actual size this period: Size: 268KU, 22,3%
Forecasted size next period: size: 318KU, 22,7%
Forecasted size in 5 periods: Size: 459KU, 19,4%
SOLO Singles SONY Hi-Earners
Customers who live alone, quite price-sensitive
Use Sonites for personal purposes
Actual size this period: Size: 165KU, 13,7%
Forecasted size next period: size: 204KU, 14,5%
Forecasted size in 5 periods: Size: 538KU, 22,8%
High incomes, purchase motivated by status
Expensive products
Performance, convenience
Actual size this period: Size: 253KU, 21,0%
Forecasted size next period: size: 312KU, 22,3%
Forecasted size in 5 periods: Size: 494KU, 20,9%
Average levels of performance & convenience
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
12
Pricing & Advertising per Brand & Segment
Marketing
Mix Year 2
0 4 8 12 16 20 24 28 32 36 40
300,0
400,0
200,0
100,0
0,0
"Expensive" Sonites
"Cheap" Sonites
Value Growth vs.
Period 0
Sonite Market
Growth
Sales in million $ (Period 1)
BCG Matrix – Product Category1
Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites
Dispensed Units (Period 1)
BCG Matrix – Segment
-8 -4 0 4 8 12 16 20 24 28 32 36 40
300,0
200,0
100,0
0,0
400,0
Units Growth vs.
Period 0
HiEarners
Singles
Pros
Buffs Others
Sonite Market
Growth
Dispensed Units (Period 1)
BCG Matrix – Channel
8 12 16 20 24 28 32 36 40
400,0
200,0
600,0
0,0
Specialty
Mass Merch.
Department
Units Growth vs.
Period 0
Sonite Market
Growth
Category
Majority of Advertising expenses & Sales Force for
the “expensive” Sonites. Launch new brand in a
segment already targeted by competitors
Marketing Strategy
Segment
Channel
Primary focus on Pros. Start prioritizing HiEarners &
Singles. Start sacrificing Others. Advertising budget
will be allocated accordingly
Focus on the growth channel of Department Stores,
where margins are also in our favor. Allocate Sales
Force accordingly
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
13
Pricing per Brand vs. Segment
Marketing
Mix Year 2
Desired Price per Segment – Semantic Scales
333288
446 466
215
0
100
200
300
400
500
$
Price
HiEarners Pros Others Singles Buffs
Relative
Importance
Desired Price per Segment – Regression
325
271
459484
221
0
100
200
300
400
500
$
Price
Relative
Importance
Actual Price per Brand
211
456
239
450
0
100
200
300
400
500
Actual Price
$ SONO SOLD SOLO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
14
Advertising Budget & Research per Brand
Marketing
Mix Year 2
Allocated mainly regarding the potential
SOLD 17% of Budget to Research
SONO 17% of Budget to Research
SOLO 21% of Budget to Research
SONY 21% of Budget to Research
Maintain Brand Awareness Levels &
Change Perceived Attributes
Increase Brand Awareness Levels &
Change Perceived Attributes
Commence the Awareness
Commence the Awareness
Brand Awareness per Segment & Brand – P1
0
20
40
60
80
%
63,4
HiEarners
42,9
57,1
Others
63,2
51,9
Pros Singles
47,9
63,5
77,0
Buffs
44,4
68,3
Brand Awareness per Segment & Brand – P0
0
20
40
60
80
%
67,3
HiEarners
43,3
54,3
Others
60,9 53,6
Pros Singles
46,0
62,4
70,6
Buffs
44,0
71,5
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
15
Perceptual Objectives per Brand
Marketing
Mix Year 2
Desired Economy – MDS
-20
-10
0
10
20
+-20
7,6
Economy
12,2
2,5
-12,3 -10,0
Singles Pros Buffs Others HiEarners Change perceived attributes via MDS
Dimensions
Desired Performance – MDS
-20
-10
0
10
20
13,3
Performance
-10,5
4,4
9,5
0,9
+-20
Desired Convenience – MDS
-20
-10
0
10
20
+-20
-3,6
10,4 9,7
2,8
-6,2
Convenience
Advertising Objective per Brand - Economy
12
-10
8
-12
-20
-10
0
10
20
Economy
+-20 SONO SOLD SONY SOLO
Advertising Objective per Brand - Performance
-10
10
14
-20
-10
0
10
20
Performance
+-20
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
16
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
17
Sonites Journey
Sales
Force Year 2
Team
Omicron
Mass
Merchandisers
Department
Stores
Specialty
Stores
Distributors
Margin 40%
Distributors
Margin 30%
Distributors
Margin 30% -
10% Discounted
retail price
SOLO
SONY
Customers
Team
Omicron
R&D
SOLD
SONO
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
18
Sales Force per Brand & Segment
Sales
Force
SOLD Potential
400
200
100
300
0
Units *10^3
224
3 33 11
Mass
40
10
Specialty
45
66
117 5
Depart
117 55
170
Singles HiEarners Others Pros Buffs
SONO Potential
300
500
200
100
0
400
222
134
126
80
56
Specialty
411
51
156
Units *10^3
122
Mass
71
51
Depart
Year 2
FTEs
13
19
5
10
23
26
5
1110
11
25
9
0
15
30
Specialty stores
# FTEs
Depart. stores Mass Merchandis.
SONO SOLD SOLO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
19
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
20
Sonites Market Research – Ordered Reports
Market
Research Year 2
Industry Benchmarking
Consumer Survey
Consumer Panel
Distribution Panel
Semantic Scales
Market Forecast
MDS Scaling
Competitive advertising
Competitive SFE
Advertising Experiment
SFE Experiment
Conjoint Analysis
Evaluation of our performance/decisions
Mainly for the re-allocation of FF to Channels
Evaluation of Targeting strategy
Evaluation of Coverage strategy
Contribution to R&D Decisions
Projected Demand Sales define our production & strategy
Not used for Decisions of Period 1
All Teams will allocate Budget between Ads & SFE, so…
Understand through Distribution Panel (in Period 1)
Based on the assumption that nothing changes
Based on the assumption that nothing changes
No significant changes expected in Period 1
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
21
Vodites Market Research – Ordered Reports
Market
Research Year 2
Industry Benchmarking
Consumer Survey
Consumer Panel
Distribution Panel
Semantic Scales
Market Forecast
MDS Scaling
Competitive advertising
Competitive SFE
Advertising Experiment
SFE Experiment
Conjoint Analysis
Evaluation of our performance/decisions
Still no marketed brand
Still no marketed brand
Still no marketed brand
Contribution to Advertising messages decisions
Projected Demand Sales define our production & strategy
Still no marketed brand
Still no marketed brand
Still no marketed brand
Still no marketed brand
Still no marketed brand
Still no marketed brand
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
22
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
23
Profit & Loss Account – Base Case Scenario1
P&L
Account Year 2
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled
Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit Total SOLD SONO SOLO SONY
Base R&D project PSOLD PSONO PSOLD PSONO
Sales
Units sold2 U 452,000 90,000 202,000 80,000 80,000
Average retail price $ 368 211 456 239 450
Average selling price3 $ 236 140 289 158 285
Revenues K$ 106,463 12,557 58,427 12,643 22,835
Production
Units produced U 442,000 80,000 202,000 80,000 80,000
Current unit transfer cost4 $ - 63 129 63 129
Average unit transfer cost $ 104 63 129 63 129
Cost of goods sold K$ -47,088 -5,670 -26,058 -5,040 -10,320
Units in inventory U 0 0 0 0 0
Inventory holding cost K$ 0 0 0 0 0
Inventory disposal loss K$ 0 0 0 0 0
Contribution before marketing K$ 59,375 6,887 32,369 7,603 12,515
Marketing
Advertising expenditures K$ -5,450 - 800 - 2,850 - 900 - 900
Advertising research expenditures K$ -1,230 - 160 - 570 - 250 - 250
Sales force K$ -3,744 - 869 - 1,315 - 557 - 1,003
Contribution after marketing K$ 48,951 5,058 27,634 5,896 10,362
Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Base Case Scenario is based on the assumption that we sell exactly the produced amount of units
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
24
Profit & Loss Account – “Pessimistic” Scenario1
P&L
Account Year 2
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Pessimistic Scenario is based on the assumption that we sell 80% of the produced amount of units
Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit Total SOLD SONO SOLO SONY
Base R&D project PSOLD PSONO PSOLD PSONO
Sales
Units sold2 U 363,600 74,000 161,600 64,000 64,000
Average retail price $ 367 211 456 239 450
Average selling price3 $ 235 140 289 158 285
Revenues K$ 85,449 10,325 46,742 10,114 18,268
Production
Units produced U 353,600 64,000 161,600 64,000 64,000
Current unit transfer cost4 $ - 63 129 63 129
Average unit transfer cost $ 104 63 129 63 129
Cost of goods sold K$ -37,796 -4,662 -20,846 -4,032 -8,256
Units in inventory U 0 0 0 0 0
Inventory holding cost K$ 0 0 0 0 0
Inventory disposal loss K$ 0 0 0 0 0
Contribution before marketing K$ 47,653 5,663 25,896 6,082 10,012
Marketing
Advertising expenditures K$ -5,450 - 800 - 2,850 - 900 - 900
Advertising research expenditures K$ -1,230 - 160 - 570 - 250 - 250
Sales force K$ -3,744 - 869 - 1,315 - 557 - 1,003
Contribution after marketing K$ 37,229 3,834 21,161 4,375 7,859
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
25
Profit & Loss Account – “Optimistic” Scenario1
P&L
Account Year 2
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Optimistic Scenario is based on the assumption that we sell 120% of the produced amount of units
Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit Total SOLD SONO SOLO SONY
Base R&D project PSOLD PSONO PSOLD PSONO
Sales
Units sold2 U 540,400 106,000 242,400 96,000 96,000
Average retail price $ 368 211 456 239 450
Average selling price3 $ 236 140 289 158 285
Revenues K$ 127,476 14,789 70,113 15,172 27,402
Production
Units produced U 530,400 96,000 242,400 96,000 96,000
Current unit transfer cost4 $ - 63 129 63 129
Average unit transfer cost $ 104 63 129 63 129
Cost of goods sold K$ -56,380 -6,678 -31,270 -6,048 -12,384
Units in inventory U 0 0 0 0 0
Inventory holding cost K$ 0 0 0 0 0
Inventory disposal loss K$ 0 0 0 0 0
Contribution before marketing K$ 71,096 8,111 38,843 9,124 15,018
Marketing
Advertising expenditures K$ -5,450 - 800 - 2,850 - 900 - 900
Advertising research expenditures K$ -1,230 - 160 - 570 - 250 - 250
Sales force K$ -3,744 - 869 - 1,315 - 557 - 1,003
Contribution after marketing K$ 60,672 6,282 34,108 7,417 12,865
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
26
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
27
Next
Actions Year 2
Evaluation of Scorecard – Year 1
SONO market share >40% in Pros in
Period 1
SOLD market share >30% in Others in
Period 1
Sell all the SONO produced units in
Period 1
>85% coverage of Specialty stores
regarding SONO in Period 1
>80% coverage of Department stores
regarding both Sonites in Period 1
Net contribution >25K$ in Period 1
Leader in Expensive Sonite in Period 1
(regardless Segment)
Confirmation that the 2 targeted segments
deliver the highest contribution for Team O
Highest purchase intention in the 2
targeted Segments
>85% Brand Awareness in the 2 targeted
Segments
Deliver the right message to the right
segments
5Digit Budget (in K$) for Period 2
Achieved
Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
28
Next
Actions Year 2
Internal KPIs for evaluation of Decisions
SONO market share >30% in Pros in
Period 2
SOLD market share >20% in Others in
Period 2
Sell all the SONO & SONY produced units
in Period 2
>60% coverage of Specialty stores
regarding SONO in Period 2
>52% coverage of Department stores
regarding all Sonites in Period 2
Net contribution >37K$ in Period 2
Leader in Expensive Sonite in Period 1
(regardless Segment)
>55% Brand Awareness for SONY among
HiEarners
Highest purchase intention in Pros &
Singles Segments
>85% Brand Awareness for SONO among
Pros
Deliver the right message to the right
segments
>15K$ Budget for Period 2
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
29
Next
Actions Year 2
Study Benchmarking Studies
Close the knowledge gap by studying
Market Research
Target Growth Segments more precisely
either by …
Advertising and changing the perceived
attributes or by …
Investing on slight differentiation of existing
brands via R&D
Re-evaluate # of SFE
Market Sizing per Segment for next
period(s)
Estimate market share for the requested
production levels
Focus on “rich” segments
Focus on being first in all important KPIs
Achieve the largest available Budget for
next period for…
Launching the “VOTE”!!!!
Actions regarding upcoming Periods
MarkStrat
Year 3
Team Omicron
Athens University of Economics & Business (AUEB)
April 2016
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
2
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
3
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
4
Brand Portfolio
Brand
Portfolio Year 3
Brands
SOLD
Projects
PSOLD
Target Segment
Others
SONO PSONO Pros
SOLO PSOLD Singles
SONY PSONO HiEarners
VOTE PVOTE Innovators
Existing Brand
Introduced Brand
R&D
VOTE PVOTE Early Adopters
Partially Withdraw
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
5
R&D – Vodite Project
Brand
Portfolio Year 3
Desired Attributes – Innovators
77
15
61
6
56
0
20
40
60
80
Innovators
Scale Diameter Max Freq Autonomy Design Weight
Relative
Importance
Desired Attributes – Early Adopters
68
12
41
8
46
0
20
40
60
80
Scale
Early Adopters
Relative
Importance
Desired Attributes – Followers
55
12
56
8
59
0
20
40
60
80
Scale
Innovators
Relative
Importance
On-Line Queries – Budget for R&D ~ $9,65M
63
13
60
7
60
0
20
40
60
80
Attributes
Scale
On-Line
Query
Output
$9.65M R&D Budget $260 Base Cost
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
6
Breakeven Point & Payback Period – Vodite Project
Brand
Portfolio Year 3
VODITE TOTAL COSTS - PERIOD
R&D K$ 9.650
Advertising Budget K$ 3.567
Advertising Research K$ 711
Sales Force K$ 1.472
Market Research K$ 76
Total K$ 15.476
Breakeven Point
Base Transfer Cost $ 265
Retail Price $ 8101
Mnf’s Selling price $ 486
Mnf’s Contribution $ 219
Breakeven Point Units 71.000
Vodites Market Size (Period 3) Units ~165.000
Feasible
Estimated Vodite Dispensed Units Period 3 Units 83.000
Breakeven Point Units 71.000
Payback Period Months 10.1
Payback Period
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85
0
50.000
40.000
30.000
20.000
10.000
$
Total Costs
Base Transfer Cost
Mnf’s Revenue
R&D & Marketing
Vodite
Dispensed
Units (*10^3)
Breakeven
Point
0 1 2 3 4 5 6 7 8 9 10 11 12
5.000
-15.000
0
-5.000
-10.000
-20.000
Net Project Contribution (*10^3 $)
Payback
Period
Months
Note 1: Weight average of VOTE’s & VOLT’s retail price based on estimated demand sales
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
7
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
8
Production per "Brand Category”
Marketing
Mix
Forecasted Size (Period 3)
374378368
243218
0
100
200
300
400
Pros Others HiEarners Singles Buffs
Units *10^3
Market Share within Segment (Period 2)
84%
40%
100% 98%
16%
60%
94%
0%
20%
40%
60%
80%
100%
MS (%)
Others HiEarners Pros
6%
2% 0%
Singles Buffs
Expensive Sonite Cheap Sonite
Potential Demand Sales (Period 3)
1,044
537
0
400
800
1,200
Cheap Sonite Expensive Sonite
Projected Demand
Sales (*10^3)
Year 3
841
383
100
0
200
400
600
SOLO SONY SOLD SONO
Production (*10^3)
16.9% 0,2% Projected
MS
80-120 306-460
Production Team Omicron (Period 3)
8,0% 36.7%
+1,4 inven.
67-101 1
+41 inven. +7,4 inven.
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
9
Targeting Strategy per Brand – Contribution Evaluation
Marketing
Mix Year 3
Note 1: Manufacturer Selling Price
Desired Retail Price per Segment Desired MSP1 per Segment
205
462444
267
331
0
100
200
300
400
500
Others Buffs HiEarners Singles Pros
Desired Price
88 104156 166
67
111 56
111 111
56
0
100
200
300
Desired Price
Others
123
HiEarners
277
Pros
267
Singles
160
199
Buffs
Mnf’s Contribution Tranfer Cost2
Note 2: Initial Estimation of production similar to Period 1
Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution)
0
800
400
200
600
*10^3 $
Period 2 Period 1 Period 6 Period 3 Period 7
Pros Buffs Singles HiEarners Others
50
0
250
200
150
100
300
Period 2 Period 6 Period 1
*10^3 $
Period 3 Period 7
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
10
Brand Awareness & Purchase Intention Evolution
Marketing
Mix Year 3
Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand
0
20
40
60
80
HiEarners
43,3
67,3 62,4 60,9
Others
%
54,3
Buffs
46,0
71,5
44,0
Pros
70,6
Singles
53,6
0
5
10
15
20
25
%
Pros
0,5
Others
0,6
16,1
HiEarners
16,4
0,3
16,2
Singles
12,3
Buffs
5,2
11,5
4,4
0
20
40
60
80
%
Pros
63,2
Others
63,5
HiEarners
68,3
42,9
Singles
51,9 47,9
Buffs
44,4
63,4 57,1
77,0
0
5
10
15
20
25
HiEarners
5,1
17,3
24,1
17,2
Singles
0,4 0,8
%
Pros
0,2
Others
11,2
Buffs
12,8
4,5
Period 0
P
eriod 1
63
4341
5949 49
66
80
5964
899
29
10 10
26
101111
0
20
40
60
80
100
%
Others HiEarners Pros Singles Buffs
17
00
104 1
16
50
7
17
2005
1 0
96
13
0
10
20
30
40
50
%
HiEarners Pros Others Singles Buffs
Period 2
SOLO SOLD
SONO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
11
Segments’ Characteristics (Sonite Market) – Summary
Marketing
Mix Year 3
SOLD Others SONO Pros
Large segment in units (economy of scales)
Customers with similar needs
Looking for cheap, low performance products
Brand Awareness: 62,7% (second highest)
Purchase Intentions: 17,2% (second highest)
Market Share: 16,6%
Actual size this period: Size: 316KU, 23,0%
Forecasted size next period: size: 374KU, 23,6%
Largest segment in terms of profit margin
High quality, high performance & easy 2 use
Price as an indication of quality
Brand Awareness: 80,2% (highest one)
Purchase Intentions: 50,0% (highest one)
Market Share: 45,9%
Actual size this period: Size: 325KU, 23,7%
Forecasted size next period: size: 368KU, 23,3%
SOLO Singles SONY Hi-Earners
Customers who live alone, quite price-sensitive
Use Sonites for personal purposes
Actual size this period: Size: 189KU, 13,8%
Forecasted size next period: size: 243KU, 15,4%
High incomes, purchase motivated by status
Expensive products
Performance, convenience
Actual size this period: Size: 319KU, 23,3%
Forecasted size next period: size: 378KU, 23,9%
Average levels of performance & convenience
Brand Awareness: 29,2% (in one year)
Purchase Intentions: 5,1%
Market Share: 3,1%
Brand Awareness: 26,2% (in one year)
Purchase Intentions: 9,3%
Market Share: 7,5%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
12
Segments’ Characteristics (Vodite Market) – Summary
Marketing
Mix Year 3
The largest segment in the early days
The first users of Vodite products
Try new ideas at some risk, Income above average
Forecasted size next period: size: 100KU, 60,2%
Forecasted size in 5 periods: Size: 173KU, 14,4%
Larger segment than innovators, Opinion leaders
Adopt Vodites after innovs, but before the majority
Average income level
Forecasted size next period: size: 50KU, 30,1%
Forecasted size in 5 periods: Size: 289KU, 24,0%
VOTE Innovators VOLT Adopters
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
13
Pricing & Advertising per Brand & Segment
Marketing
Mix Year 3
0 4 8 12 16 20 24 28
600,0
800,0
1.000,0
400,0
200,0
0,0
"Cheap" Sonites
"Expensive" Sonites
Value Growth vs.
Period 1
Sonite Market
Growth
Dispensed Units (Period 2)
BCG Matrix – Product Category1
Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites
Dispensed Units (Period 2)
BCG Matrix – Segment
-4 0 4 8 12 16 20 24 28 32 36 40
0,0
400,0
300,0
200,0
100,0
Value Growth vs.
Period 1
Buffs
Others
Singles
HiEarners
Pros
Sonite Market
Growth
Dispensed Units (Period 2)
BCG Matrix – Channel
8 10 12 14 16 18
800,0
600,0
200,0
0,0
400,0
Value Growth vs.
Period 1
Department
Mass Merch.
Specialty
Sonite Market
Growth
Category
Majority of Advertising expenses & Sales Force for
the “expensive” Sonites. Launch new brand in a
segment already targeted by competitors
Marketing Strategy
Segment
Channel
Primary focus on Pros. Start prioritizing HiEarners.
Start sacrificing Others. Advertising budget will be
allocated accordingly
Focus on the growth channel of Department Stores,
where margins are also in our favor. Allocate Sales
Force accordingly
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
14
Pricing per Brand vs. Segment
Marketing
Mix Year 3
Desired Price per Segment – Semantic Scales
331
267
444 462
205
0
100
200
300
400
500
$
Price
HiEarners Pros Others Singles Buffs
Relative
Importance
Desired Price per Segment – Regression
325
251
459 467
212
0
100
200
300
400
500
$
Price
Relative
Importance
Actual Price per Brand
199
452
169
440
0
100
200
300
400
500
Actual Price
$ SONO SOLD SOLO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
15
Advertising Budget & Research per Brand
Marketing
Mix Year 3
Allocated mainly regarding the potential
SOLD 17% of Budget to Research
SONO 17% of Budget to Research
SOLO ----
SONY 21% of Budget to Research
Maintain Brand Awareness Levels &
Change Perceived Attributes
Increase Brand Awareness Levels &
Change Perceived Attributes
Partially Withdraw
Commence the Awareness
Brand Awareness per Segment & Brand – P2
0
20
40
60
80
100
%
59,1
HiEarners
41,1
58,7
Others
63,8
49,1
Pros Singles
48,6
62,7
80,2
Buffs
42,8
65,7
Brand Awareness per Segment & Brand – P1
0
20
40
60
80
100
%
63,4
HiEarners
42,9
57,1
Others
63,2
51,9
Pros Singles
47,9
63,5
77,0
Buffs
44,4
68,3
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
16
Perceptual Objectives per Brand
Marketing
Mix Year 3
0
1
2
3
4
5
6
7
Price
5,8 5,7
Scale
2,2
3,8
2,7
Singles Buffs Pros Others HiEarners Change perceived attributes via
Semantic Scales
0
1
2
3
4
5
6
7
5,5
Scale
Power
2,4
4,6 4,3
5,8
Advertising Objective per Brand - Price
0
1
2
3
4
5
6
7
2,4
5,8
Economy
5,8
Scale
2,1
SONY SOLO SONO SOLD
Advertising Objective per Brand - Power
0
1
2
3
4
5
6
7
Performance
2,4
4,5
5,6
4,6
Scale
Desired Price Desired Power
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
17
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
18
Sonites Journey
Sales
Force Year 3
Team
Omicron
Mass
Merchandisers
Department
Stores
Specialty
Stores
Distributors
Margin 40%
Distributors
Margin 30%
Distributors
Margin 30% -
10% Discounted
retail price
SOLO
SONY
Customers
Team
Omicron
R&D
SOLD
SONO
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
19
Vodites Journey
Sales
Force Year 3
Team
Omicron
Mass
Merchandisers
Department
Stores
Specialty
Stores
Distributors
Margin 40%
Distributors
Margin 30%
Distributors
Margin 30% -
10% Discounted
retail price
VOTE
Customers
Team
Omicron
R&D
VOLT
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
20
Sales Force per Brand & Segment
Sales
Force
“Cheap Sonite” Potential
200
0
500
400
100
300
124
Depart Specialty
41 36
215
Units *10^3
6
Mass
72
40
195
132
Pros Singles HiEarners Others Buffs
“Expensive Sonite” Potential
400
300
200
0
500
100 84
Mass
155
152
Depart
71
473
74
69 159
158 96
Units *10^3
292
Specialty
Year 3
FTEs
9
14
3
8
25
31
111
9
28
14
0
15
30
45
# FTEs
Specialty stores Mass Merchandis. Depart. stores
SOLO SONO SOLD SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
21
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
22
Sonites Market Research – Ordered Reports
Market
Research Year 3
Industry Benchmarking
Consumer Survey
Consumer Panel
Distribution Panel
Semantic Scales
Market Forecast
MDS Scaling
Competitive advertising
Competitive SFE
Advertising Experiment
SFE Experiment
Conjoint Analysis
Evaluation of our performance/decisions
Mainly for the re-allocation of FF to Channels
Evaluation of Targeting strategy
Saving Budget
Contribution to R&D Decisions
Projected Demand Sales define our production & strategy
Not used for Decisions of Period 1
Understand through Industry Benchmarking
Understand through Industry Benchmarking
Based on the assumption that nothing changes
Based on the assumption that nothing changes
No significant changes expected in Period 3
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
23
Vodites Market Research – Ordered Reports
Market
Research Year 3
Industry Benchmarking
Consumer Survey
Consumer Panel
Distribution Panel
Semantic Scales
Market Forecast
MDS Scaling
Competitive advertising
Competitive SFE
Advertising Experiment
SFE Experiment
Conjoint Analysis
Evaluation of our performance/decisions
Saving Budget
Contribution to Advertising messages decisions
Projected Demand Sales define our production & strategy
Understand through Industry Benchmarking
Understand through Industry Benchmarking
Based on the assumption that nothing changes
Based on the assumption that nothing changes
No significant changes expected in Period 3
Will not be used
Saving Budget
Mainly for the re-allocation of FF to Channels
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
24
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
25
Profit & Loss Account – Base Case Scenario1
P&L
Account Year 3
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled
Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit Total SOLD SONO SOLO SONY VOTE VOLT
Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE
Sales
Units sold2 U 720,000 101,000 383,000 5,000 91,000 85,000 55,000
Average retail price $ 481 199 452 169 440 850 733
Average selling price3 $ 289 119 271 101 264 510 440
Revenues K$ 207,999 12,059 103,870 507 24,024 43,350 24,189
Production
Units produced U 720,000 101,000 383,000 5,000 91,000 85,000 55,000
Current unit transfer cost4 $ - 56 111 56 111 265 265
Average unit transfer cost $ 133 56 111 56 111 265 265
Cost of goods sold K$ -95,650 -5,656 -42,513 -280 -10,101 -22,525 -14,575
Units in inventory U 35,000 0 0 37,000 0 0 0
Inventory holding cost K$ -525 0 0 -166 0 0 0
Inventory disposal loss K$ 0 0 0 0 0 0 0
Contribution before marketing K$ 111,824 6,403 61,357 61 13,923 20,825 9,614
Marketing
Advertising expenditures K$ -8,248 -580 -3,100 -1 -1,000 -2,700 -867
Advertising research expenditures K$ -1,801 -119 -680 -1 -290 -556 -155
Sales force K$ -4,586 -534 -1,425 -22 -1,113 -1,024 -468
Contribution after marketing K$ 97,548 5,170 56,152 37 11,520 16,545 8,124
Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Base Case Scenario is based on the assumption that we sell exactly the produced amount of units
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
26
Profit & Loss Account – “Pessimistic” Scenario1
P&L
Account Year 3
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Pessimistic Scenario is based on the assumption that we sell 80% of the produced amount of units
Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit Total SOLD SONO SOLO SONY VOTE VOLT
Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE
Sales
Units sold2 U 576,000 80,800 306,400 4,000 72,800 68,000 44,000
Average retail price $ 481 199 452 169 440 850 733
Average selling price3 $ 289 119 271 101 264 510 440
Revenues K$ 166,399 9,648 83,096 406 19,219 34,680 19,351
Production
Units produced U 576,000 80,800 306,400 4,000 72,800 68,000 44,000
Current unit transfer cost4 $ - 56 111 56 111 265 265
Average unit transfer cost $ 133 56 111 56 111 265 265
Cost of goods sold K$ -76,520 -4,525 -34,010 -224 -8,081 -18,020 -11,660
Units in inventory U 38,000 0 0 38,000 0 0 0
Inventory holding cost K$ -570 0 0 -170 0 0 0
Inventory disposal loss K$ 0 0 0 0 0 0 0
Contribution before marketing K$ 89,309 5,123 49,085 11 11,138 16,660 7,691
Marketing
Advertising expenditures K$ -8,248 -580 -3,100 -1 -1,000 -2,700 -867
Advertising research expenditures K$ -1,801 -119 -680 -1 -290 -556 -155
Sales force K$ -4,586 -534 -1,425 -22 -1,113 -1,024 -468
Contribution after marketing K$ 75,074 3,890 43,880 -13 8,735 12,380 6,201
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
27
Profit & Loss Account – “Optimistic” Scenario1
P&L
Account Year 3
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled Note 3: Based on the projected allocation of brands per channel Note 2: Includes also 10k units current inventory Note 1: Optimistic Scenario is based on the assumption that we sell 120% of the produced amount of units
Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit Total SOLD SONO SOLO SONY VOTE VOLT
Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE
Sales
Units sold2 U 864,000 121,200 459,600 6,000 109,200 102,000 66,000
Average retail price $ 481 199 452 169 440 850 733
Average selling price3 $ 289 119 271 101 264 510 440
Revenues K$ 249,599 14,471 124,644 608 28,829 52,020 29,027
Production
Units produced U 864,000 121,200 459,600 6,000 109,200 102,000 66,000
Current unit transfer cost4 $ - 56 111 56 111 265 265
Average unit transfer cost $ 133 56 111 56 111 265 265
Cost of goods sold K$ -114,780 -6,787 -51,016 -336 -12,121 -27,030 -17,490
Units in inventory U 38,000 0 0 38,000 0 0 0
Inventory holding cost K$ -570 0 0 -170 0 0 0
Inventory disposal loss K$ 0 0 0 0 0 0 0
Contribution before marketing K$ 134,249 7,684 73,628 102 16,708 24,990 11,537
Marketing
Advertising expenditures K$ -8,248 -580 -3,100 -1 -1,000 -2,700 -867
Advertising research expenditures K$ -1,801 -119 -680 -1 -290 -556 -155
Sales force K$ -4,586 -534 -1,425 -22 -1,113 -1,024 -468
Contribution after marketing K$ 120,014 6,451 68,423 78 14,305 20,710 10,047
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
28
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
29
Next
Actions Year 3
Evaluation of Scorecard – Year 1
SONO market share >40% in Pros in
Period 1
SOLD market share >30% in Others in
Period 1
Sell all the SONO produced units in
Period 1
>85% coverage of Specialty stores
regarding SONO in Period 1
>80% coverage of Department stores
regarding both Sonites in Period 1
Net contribution >25K$ in Period 1
Leader in Expensive Sonite in Period 1
(regardless Segment)
Confirmation that the 2 targeted segments
deliver the highest contribution for Team O
Highest purchase intention in the 2
targeted Segments
>85% Brand Awareness in the 2 targeted
Segments
Deliver the right message to the right
segments
5Digit Budget (in K$) for Period 2
Achieved
Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
30
Next
Actions Year 3
Evaluation of Scorecard – Year 2
SONO market share >30% in Pros in
Period 2
SOLD market share >20% in Others in
Period 2
Sell all the SONO & SONY produced units
in Period 2
>60% coverage of Specialty stores
regarding SONO in Period 2
>52% coverage of Department stores
regarding all Sonites in Period 2
Net contribution >37K$ in Period 2
Leader in Expensive Sonite in Period 1
(regardless Segment)
>55% Brand Awareness for SONY among
HiEarners
Highest purchase intention in Pros &
Singles Segments
>85% Brand Awareness for SONO among
Pros
Deliver the right message to the right
segments
>15K$ Budget for Period 2
Achieved
Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
31
Next
Actions Year 3
Internal KPIs for evaluation of Decisions
SONO market share >50% in Pros in
Period 3
Sell all the VOTE & VOLT produced units
in Period 3
Sell all the SONO & SONY produced units
in Period 3
>55% coverage of Specialty stores
regarding SONO in Period 3
>45% coverage of Department stores
regarding all Sonites in Period 3
Net contribution >45K$ in Period 2
Leader in Expensive Sonite in Period 1
(regardless Segment)
>30% Brand Awareness for SONY among
HiEarners
Highest purchase intention in Pros &
Singles Segments
>85% Brand Awareness for SONO among
Pros
Deliver the right message to the right
segments
>18K$ Budget for Period 2
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
32
Next
Actions Year 3
Study Benchmarking Studies
Close the knowledge gap by studying
Market Research
Target Growth Segments more precisely
either by …
Advertising and changing the perceived
attributes or by …
Investing on slight differentiation of existing
brands via R&D
Re-evaluate # of SFE
Market Sizing per Segment for next
period(s)
Estimate market share for the requested
production levels
Focus on “rich” segments
Focus on being first in all important KPIs
Achieve the largest available Budget for
next period for…
Launching the “VOTE”!!!!
Actions regarding upcoming Periods
MarkStrat
Year 4
Team Omicron
Athens University of Economics & Business (AUEB)
May 2016
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
2
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
3
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
4
Partially Withdraw
Brand Portfolio
Brand
Portfolio Year 4
Brands
SOLD
Projects
PSOLD
Target Segment
Others
SONO PSONO Pros / Buffs
SOLO PSOLD Singles
SONY PSONO HiEarners
VOTE PVOTE Innovators / Early Adopters
Existing Brand
Introduced Brand
R&D
VOLT PVOTE Early Adopters / Followers
Partially Withdraw
PSONY
PVOLI Next period
assignment
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
5
R&D – Vodite Project
Brand
Portfolio Year 4
Desired Attributes – Innovators
61
15
51
6
57
0
20
40
60
80
Innovators
Scale Diameter Max Freq Autonomy Design Weight
Relative
Importance
Desired Attributes – Early Adopters
68
12
42
7
50
0
20
40
60
80
Scale
Early Adopters
Relative
Importance
Desired Attributes – Followers
47
9
59
7
62
0
20
40
60
80
Scale
Innovators
Relative
Importance
On-Line Queries – Budget for R&D ~ $2,34M
70
16
55
7
60
0
20
40
60
80
Attributes
Scale
On-Line
Query
Output
$2.34M R&D Budget $272 Base Cost
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
6
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
7
Production per "Brand Category”
Marketing
Mix
Forecasted Size (Period 4)
275
357382
296
185
0
100
200
300
400
Pros Others HiEarners Singles Buffs
Units *10^3
Market Share within Segment (Period 4)
67%
18%
96% 94%
33%
82%90%
0%
20%
40%
60%
80%
100%
MS (%)
Others HiEarners Pros
10%
6% 5%
Singles Buffs
Expensive Sonite Cheap Sonite
Potential Demand Sales (Period 4)
905
590
0
400
800
1,200
Cheap Sonite Expensive Sonite
Projected Demand
Sales (*10^3)
Year 4
701
250
73
0
200
400
600
SOLO SONY SOLD SONO
Production (*10^3)
Production Team Omicron (Period 4)
+64 inven. +41 inven. +29 inven. +114 inven.
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
8
Targeting Strategy per Brand – Contribution Evaluation
Marketing
Mix Year 4
Note 1: Manufacturer Selling Price
Desired Retail Price per Segment Desired MSP1 per Segment
205
462444
267
331
0
100
200
300
400
500
Others Buffs HiEarners Singles Pros
Desired Price
88 104156 166
67
111 56
111 111
56
0
100
200
300
Desired Price
Others
123
HiEarners
277
Pros
267
Singles
160
199
Buffs
Mnf’s Contribution Tranfer Cost2
Note 2: Initial Estimation of production similar to Period 1
Segment Size Evolution (Retail Values) Segment Size Evolution (Mnf’s Contribution)
0
800
400
200
600
*10^3 $
Period 3 Period 2 Period 7 Period 3 Period 8
Pros Buffs Singles HiEarners Others
50
0
250
200
150
100
300
Period 3 Period 7 Period 2
*10^3 $
Period 3 Period 8
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
9
Brand Awareness & Purchase Intention Evolution
Marketing
Mix Year 4
64
4443
63
5248
6877
5763
0
20
40
60
80
%
Pros Others HiEarners Singles Buffs
17
00
11
5
1
17
24
5
13
0
5
10
15
20
25
HiEarners Singles
%
Pros Others Buffs
Period 1
63
4341
5949 49
66
80
5964
899
29
10 10
26
101111
0
20
40
60
80
100
%
Others HiEarners Pros Singles Buffs
17
00
104 1
16
50
7
17
2005
1 0
96
130
10
20
30
40
50
%
HiEarners Pros Others Singles Buffs
Period 3
SOLO SOLD
SONO SONY
59
4038
5445 48
63
79
5862
788
26
914
36
141616
0
20
40
60
80
%
Others HiEarners Pros Singles Buffs
16
0042 1
11
26
3
13
200
21 0
15
113
0
5
10
15
20
25
30
%
HiEarners Pros Others Singles Buffs
Period 4
Brand Awareness per Segment & Brand Purchase Intention per Segment & Brand
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
10
Segments’ Characteristics (Sonite Market) – Summary
Marketing
Mix Year 4
SOLD Others
Large segment in units (economy of scales)
Customers with similar needs
Looking for cheap, low performance products
Brand Awareness: 59,2% (highest one)
Purchase Intentions: 16,0% (highest one)
Market Share: 17,4%
Actual size this period: Size: 230KU, 17,9%
Forecasted size next period: size: 275KU, 18,4%
SOLO Singles SONY Hi-Earners
Customers who live alone, quite price-sensitive
Use Sonites for personal purposes
Actual size this period: Size: 219KU, 17,1%
Forecasted size next period: size: 296KU, 19,8%
High incomes, purchase motivated by status
Expensive products
Performance, convenience
Actual size this period: Size: 312KU, 24,4%
Forecasted size next period: size: 357KU, 23,9%
Average levels of performance & convenience
Brand Awareness: 26,3% (highest one)
Purchase Intentions: 1,9%
Market Share: 0,2%
Brand Awareness: 36,4% (highest one)
Purchase Intentions: 15,4%
Market Share: 14,6%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
11
Segments’ Characteristics (Sonite Market) – Summary
Marketing
Mix Year 4
SONO Buffs 15% SONO Pros 85%
Among the first to use Sonite products
Demand high performance products
Quite price-sensitive, incomes not necessarily high
Brand Awareness: 62,4%
Purchase Intentions: 13,2%
Market Share: 18,5%
Actual size this period: Size: 187KU, 14,6%
Forecasted size next period: size: 185KU, 12,4%
Largest segment in terms of profit margin
High quality, high performance & easy 2 use
Price as an indication of quality
Brand Awareness: 79,0% (highest one)
Purchase Intentions: 25,5% (highest one)
Market Share: 31,0%
Actual size this period: Size: 334KU, 26,0%
Forecasted size next period: size: 382KU, 25,5%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
12
Segments’ Characteristics (Vodite Market) – Summary
Marketing
Mix Year 4
VOTE Innovators 40% VOTE Adopters 30%
The largest segment in the early days
The first users of Vodite products
Try new ideas at some risk, Income above average
Brand Awareness: 26,3% (second highest)
Purchase Intentions: 29,4% (highest one)
Actual size this period: Size: 55KU, 56,3%
Forecasted size next period: size: 69KU, 40,6%
Forecasted size in 5 periods: Size: 100KU, 10,4%
Larger segment than innovators, Opinion leaders
Adopt Vodites after innovs, but before the majority
Average income level
Brand Awareness: 15,5%
Purchase Intentions: 17,0%
Actual size this period: Size: 33KU, 33,6%
Forecasted size next period: size: 75KU, 44,4%
Forecasted size in 5 periods: Size: 199KU, 20,6%
VOTE Followers 30%
The bulk of potential customers
Perceive more risk in buying new products
Forecasted size next period: size: 25KU, 15,1%
Forecasted size in 5 periods: Size: 665KU, 69,0%
Income level below average
Brand Awareness: 26,5% (highest one)
Purchase Intentions: 25,2%
Actual size this period: Size: 10KU, 10,1%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
13
Segments’ Characteristics (Vodite Market) – Summary
Marketing
Mix Year 4
VOLT Adopters 70% VOLT Followers 30%
Larger segment than innovators, Opinion leaders
Adopt Vodites after innovs, but before the majority
Average income level
Brand Awareness: 21,5%
Purchase Intentions: 38,1% (highest one)
Actual size this period: Size: 33KU, 33,6%
Forecasted size next period: size: 75KU, 44,4%
Forecasted size in 5 periods: Size: 199KU, 20,6%
The bulk of potential customers
Perceive more risk in buying new products
Income level below average
Brand Awareness: 15,3%
Purchase Intentions: 19,2%
Actual size this period: Size: 10KU, 10,1%
Forecasted size next period: size: 25KU, 15,1%
Forecasted size in 5 periods: Size: 665KU, 69,0%
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
14
Pricing & Advertising per Brand & Segment
Marketing
Mix Year 4
0 4 8 12 16 20 24 28
600,0
800,0
1.000,0
400,0
200,0
0,0
"Cheap" Sonites
"Expensive" Sonites
Value Growth vs.
Period 1
Sonite Market
Growth
Dispensed Units (Period 3)
BCG Matrix – Product Category1
Note 1: Aggregated Results of all “Cheap” & “Expensive” Sonites
Dispensed Units (Period 3)
BCG Matrix – Segment
-4 0 4 8 12 16 20 24 28 32 36 40
0,0
400,0
300,0
200,0
100,0
Value Growth vs.
Period 1
Buffs
Others
Singles
HiEarners
Pros
Sonite Market
Growth
Dispensed Units (Period 3)
BCG Matrix – Channel
8 10 12 14 16 18
800,0
600,0
200,0
0,0
400,0
Value Growth vs.
Period 1
Department
Mass Merch.
Specialty
Sonite Market
Growth
Category
Majority of Advertising expenses & Sales Force for
the “expensive” Sonites. Launch new brand in a
segment already targeted by competitors
Marketing Strategy
Segment
Channel
Primary focus on Pros. Start prioritizing HiEarners.
Start sacrificing Others. Advertising budget will be
allocated accordingly
Focus on the growth channel of Department Stores,
where margins are also in our favor. Allocate Sales
Force accordingly
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
15
Pricing per Brand vs. Segment
Marketing
Mix Year 4
Desired Price per Segment – Semantic Scales
331
267
444 462
205
0
100
200
300
400
500
$
Price
HiEarners Pros Others Singles Buffs
Relative
Importance
Desired Price per Segment – Regression
325
251
459 467
212
0
100
200
300
400
500
$
Price
Relative
Importance
Actual Price per Brand
181
425
140
415
0
100
200
300
400
500
Actual Price
$ SONO SOLD SOLO SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
16
Advertising Budget & Research per Brand
Marketing
Mix Year 4
Allocated mainly regarding the potential
SOLD 17% of Budget to Research
SONO 17% of Budget to Research
SOLO ----
SONY 21% of Budget to Research
Maintain Brand Awareness Levels &
Change Perceived Attributes
Increase Brand Awareness Levels &
Change Perceived Attributes
Partially Withdraw
Commence the Awareness
Brand Awareness per Segment & Brand – P2
0
20
40
60
80
100
%
59,1
HiEarners
41,1
58,7
Others
63,8
49,1
Pros Singles
48,6
62,7
80,2
Buffs
42,8
65,7
Brand Awareness per Segment & Brand – P1
0
20
40
60
80
100
%
63,4
HiEarners
42,9
57,1
Others
63,2
51,9
Pros Singles
47,9
63,5
77,0
Buffs
44,4
68,3
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
17
Perceptual Objectives per Brand
Marketing
Mix Year 4
0
1
2
3
4
5
6
7
Price
5,8 5,7
Scale
2,2
3,8
2,7
Singles Buffs Pros Others HiEarners Change perceived attributes via
Semantic Scales
0
1
2
3
4
5
6
7
5,5
Scale
Power
2,4
4,6 4,3
5,8
Advertising Objective per Brand - Price
0
1
2
3
4
5
6
7
2,4
5,8
Economy
5,8
Scale
2,1
SONY SOLO SONO SOLD
Advertising Objective per Brand - Power
0
1
2
3
4
5
6
7
Performance
2,4
4,5
5,6
4,6
Scale
Desired Price Desired Power
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
18
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
19
Sonites Journey
Sales
Force Year 4
Team
Omicron
Mass
Merchandisers
Department
Stores
Specialty
Stores
Distributors
Margin 40%
Distributors
Margin 30%
Distributors
Margin 30% -
10% Discounted
retail price
SOLO
SONY
Customers
Team
Omicron
R&D
SOLD
SONO
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
20
Vodites Journey
Sales
Force Year 4
Team
Omicron
Mass
Merchandisers
Department
Stores
Specialty
Stores
Distributors
Margin 40%
Distributors
Margin 30%
Distributors
Margin 30% -
10% Discounted
retail price
VOTE
Customers
Team
Omicron
R&D
VOLT
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
21
Sales Force per Brand & Segment
Sales
Force
“Cheap Sonite” Potential
200
0
500
400
100
300
124
Depart Specialty
41 36
215
Units *10^3
6
Mass
72
40
195
132
Pros Singles HiEarners Others Buffs
“Expensive Sonite” Potential
400
300
200
0
500
100 84
Mass
155
152
Depart
71
473
74
69 159
158 96
Units *10^3
292
Specialty
Year 4
FTEs
2118
9
31
42
78
111
23
44
21
0
15
30
45
60
75
90
# FTEs
Specialty stores Mass Merchandis. Depart. stores
SOLO SONO SOLD SONY
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
22
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
23
Sonites Market Research – Ordered Reports
Market
Research Year 4
Industry Benchmarking
Consumer Survey
Consumer Panel
Distribution Panel
Semantic Scales
Market Forecast
MDS Scaling
Competitive advertising
Competitive SFE
Advertising Experiment
SFE Experiment
Conjoint Analysis
Evaluation of our performance/decisions
Mainly for the re-allocation of FF to Channels
Evaluation of Targeting strategy
Saving Budget
Contribution to R&D Decisions
Projected Demand Sales define our production & strategy
Not used for Decisions of Period 1
Understand through Industry Benchmarking
Understand through Industry Benchmarking
Based on the assumption that nothing changes
Based on the assumption that nothing changes
No significant changes expected in Period 4
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
24
Vodites Market Research – Ordered Reports
Market
Research Year 4
Industry Benchmarking
Consumer Survey
Consumer Panel
Distribution Panel
Semantic Scales
Market Forecast
MDS Scaling
Competitive advertising
Competitive SFE
Advertising Experiment
SFE Experiment
Conjoint Analysis
Evaluation of our performance/decisions
Saving Budget
Contribution to Advertising messages decisions
Projected Demand Sales define our production & strategy
Understand through Industry Benchmarking
Understand through Industry Benchmarking
Based on the assumption that nothing changes
Based on the assumption that nothing changes
No significant changes expected in Period 4
Will not be used
Saving Budget
Mainly for the re-allocation of FF to Channels
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
25
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
26
Breakeven Point per Brand – Required dispensed units
P&L
Account Year 4
Note 4: Transfer cost is reduced by about 15% each time the cumulative production of a given product is doubled
Contribution by Brand
CONTRIBUTION BY BRAND
(SONITE BRANDS)
Sonite Brands Unit SOLD SONO SOLO SONY VOTE VOLT
Base R&D project PSOLD PSONO PSOLD PSONO PVOTE PVOTE
Sales
Units sold2 U 45,250 60,157 6,460 24,900 25,125 31,964
Average retail price $ 179 419 140 409 725 670
Average selling price3 $ 118 265 95 268 449 415
Revenues K$ 5,332 15,928 615 6,666 11,272 13,255
Production
Units produced U 45,250 60,157 6,460 24,900 25,125 31,964
Current unit transfer cost4 $ 53 100 58 101 250 250
Average unit transfer cost $ 53 100 58 101 250 250
Cost of goods sold K$ -2,398 -6,016 -375 -2,515 -6,281 -7,991
Units in inventory U 77,150 253,843 35,540 60,100 23,875 42,036
Inventory holding cost K$ -1,157 -3,808 -165 -902 -358 -631
Inventory disposal loss K$ 0 0 0 0 0 0
Contribution before marketing K$ 1,776 6,105 76 3,250 4,633 4,633
Marketing
Advertising expenditures K$ -504 -1,999 -1 -900 -1,500 -1,500
Advertising research expenditures K$ -94 -400 -1 -190 -360 -360
Sales force K$ -1,178 -3,706 -74 -2,160 -2,773 -2,773
Contribution after marketing K$ 0 0 0 0 0 0
Comment regarding feasibility Feasible Easy Impossible1 Easy Feasible Difficult
Note 3: Based on the projected allocation of brands per channel Note 2: Required dispensed units Note 1: Withdrawal of brand means now 480K loss; if we sell zero, we lose 270K. Money worth more now (Time Value of Money)
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
27
Agenda
Marketing Mix
Sales Force
Market Research
P&L Account
Next Actions
Brand Portfolio
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
28
Next
Actions Year 4
Evaluation of Scorecard – Year 1
SONO market share >40% in Pros in
Period 1
SOLD market share >30% in Others in
Period 1
Sell all the SONO produced units in
Period 1
>85% coverage of Specialty stores
regarding SONO in Period 1
>80% coverage of Department stores
regarding both Sonites in Period 1
Net contribution >25K$ in Period 1
Leader in Expensive Sonite in Period 1
(regardless Segment)
Confirmation that the 2 targeted segments
deliver the highest contribution for Team O
Highest purchase intention in the 2
targeted Segments
>85% Brand Awareness in the 2 targeted
Segments
Deliver the right message to the right
segments
5Digit Budget (in K$) for Period 4
Achieved
Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
29
Next
Actions Year 4
Evaluation of Scorecard – Year 2
SONO market share >30% in Pros in
Period 4
SOLD market share >20% in Others in
Period 4
Sell all the SONO & SONY produced units
in Period 4
>60% coverage of Specialty stores
regarding SONO in Period 4
>52% coverage of Department stores
regarding all Sonites in Period 4
Net contribution >37K$ in Period 4
Leader in Expensive Sonite in Period 1
(regardless Segment)
>55% Brand Awareness for SONY among
HiEarners
Highest purchase intention in Pros &
Singles Segments
>85% Brand Awareness for SONO among
Pros
Deliver the right message to the right
segments
>15K$ Budget for Period 4
Achieved
Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
30
Next
Actions Year 4
Internal KPIs for evaluation of Decisions
SONO market share >50% in Pros in
Period 4
Sell all the VOTE & VOLT produced units
in Period 4
Sell all the SONO & SONY produced units
in Period 4
>55% coverage of Specialty stores
regarding SONO in Period 4
>45% coverage of Department stores
regarding all Sonites in Period 4
Net contribution >45K$ in Period 4
Leader in Expensive Sonite in Period 1
(regardless Segment)
>30% Brand Awareness for SONY among
HiEarners
Highest purchase intention in Pros &
Singles Segments
>85% Brand Awareness for SONO among
Pros
Deliver the right message to the right
segments
>18K$ Budget for Period 4
Achieved
Not Achieved
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
31
Next
Actions Year 4
Internal KPIs for evaluation of Decisions
SONO market share >50% in Pros in
Period 4
Sell all the VOTE & VOLT produced units
in Period 4
Sell all the SONO & SONY produced units
in Period 4
>55% coverage of Specialty stores
regarding SONO in Period 4
>45% coverage of Department stores
regarding all Sonites in Period 4
Net contribution >50K$ in Period 4
Leader in Expensive Sonite in Period 1
(regardless Segment)
>30% Brand Awareness for SONY among
HiEarners
Highest purchase intention in Pros &
Singles Segments
>85% Brand Awareness for SONO among
Pros
Deliver the right message to the right
segments
>20K$ Budget for Period 4
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
32
Next
Actions Year 4
Study Benchmarking Studies
Close the knowledge gap by studying
Market Research
Target Growth Segments more precisely
either by …
Advertising and changing the perceived
attributes or by …
Investing on slight differentiation of existing
brands via R&D
Re-evaluate # of SFE
Market Sizing per Segment for next
period(s)
Estimate market share for the requested
production levels
Focus on “rich” segments
Focus on being first in all important KPIs
Achieve the largest available Budget for
next period for…
Relaunch SONY & VOTE
Actions regarding upcoming Periods
MarkStrat • Team Omicron • Eva Gallou – Kristi Kakomanoli – Andreas Marinis – Vassilis Raftis – Zoi Sfyri – Rodoula Siourtou – Savvas Soranoglou – Panagiota Vlachopoulou
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Team Omicron Thank you!
Eva
Gallou
Kristi
Kakomanoli
Andreas
Marinis
Vassilis
Raftis
Zoi
Sfyri
Rodoula
Siourtou
Savvas
Soranoglou
Panagiota
Vlachopoulou