Markstrat Final Management Report Paper
In Sonnet market was to create sustainable profit to scuffs sustainable growth with high margins, market share and enough budgets for Votive Entry. In order to achieve our objective, inspired by focusing on competition and Consumer focus, our strategy was to differentiate our brand & upgrade our products based on our target segments? needs.
To achieve our objective, although we had a new market Votive where there was a huge opportunity of being a market leader by spending considerable amount of budget, we allocated some of our reserves to Sonnet market as It was a such bigger market compared to Votive. Mainly, we focused on customer expectations. From conjoint analysis and semantic scales marketing research data, we analyzed the customer perceptions, ideal levels for product attributes, product features and modified our existing products or developed new products.
We tried to be the product leader by offering the best product to each segment targeted. We targeted SAM for Others, ASANA for Singles, SAIL Tort Pros Ana HI Earners Ana or outs. Meanwhile we 010 cost reaction projects for all brands to use cost advantage and sell with higher margins. We set the price mostly again based on customer perceptions and tried to lower the price or keep price increase at feasible levels. Based on the distribution panel surveys, we allocated the sales force to sales channels according to the shopping habits of segments and total sales figures.
First we decided on the total number of the sales force to be allocated to brands and then by weighted average, we divided them in between the distribution channels as shown on Appendix 2. We also continued to invest our budget on advertisement in Sonnies, by not ignoring our penetration tragedy with heavily advertisement and sales force for the new market Votive. In our initial management report as our Votive market strategy, we stated that our main objective was to be the market leader by being Pioneer comparing our R&D budgets with our competitors.
But firm with the highest budget and targeting lowest product features entered market in the 13th period. Because of our budget constraint and better product improvement target we were late but we did not give up. With other two firms we decided to use the advantages of being ? such as rather than being replacement or substitute or the pioneer, we choose to position ourselves as variety enhancers with different product features. Based on market researches, we defined the needs of the targeted customer segment and we tried to improve our product according to defined segment requirements.
In our initial management report, we stated our strategies according to be the Pioneer in Votive market. Our stated objective was to become the market leader in the Votive market and benefit from higher margins. Committing our above stated objective, we adapted some of our strategies being an ? Follower?C,-1?0 as firm became Pioneer in the Votive market. Making a leapfrog action with our positioning strategy, we mostly targeted optimal cost and relatively high product features instead of imitating pioneer? VODKA.
We determined positioning of our brands with and earning from our competitor mistakes. As market researches shown ? and had the highest relative importance for most of the customer segments, we tried to focus on those attributes with the right consumer segments; AVIVA for Adaptors?C,-1?0 and ? and VAST for and By the end of period 6, the leader of the Votive market which is Firm E is overcome by drowsiness therefore we went up to second place with our increasing net contribution, we had seen that our implementation of our strategies succeeded.
Continuing to analyze the steps of our competitors what they can do, incorrectly analyzing our company opportunities how we can increase our sales, to increase our net contribution we tried to increase our market penetration. Based on our past experiences we were aware that to increase sales our competitors would decrease the retail prices. We were ready for these scenarios; we invested on cost reduction in period 7 in order to be able to decrease our retail prices and not to decrease our profit margin.
Competing in overcrowded market, prospects for profits and growth reduced. As a result of this decrease at period 4, increased competition of price turn the water bloody (? Ocean?C,-1?0 as Chain Kim and Renee Unbroken); with all of our competitors we had the same budget (at that period we were in 4th range). It was an excellent opportunity for us. With the same budget capabilities we got the chance to use same amount of R&D, Sales and Advertisement opportunities in total.
We focused on R&D for Votive while it was our chance to get into a ocean?C,-1?0 of uncontested market to untainted competition. The most unexpected situation was to lose the chance of being Pioneer in Votive market. But this unexpected situation which seems negative at the beginning, turned out a positive taxation with the mistakes of firm They did not allocate enough budget for R&D to enter first in the Votive market; they missed the importance of advertisement to create brand awareness and the product features in long term.
With their low product features they did not believe in their product so they gave a rower II price exclusive AT null ease cost. Other unexpected case is related with the entering strategy of other early followers. Firm E entered the Votive market with a low cost low price strategy with a better product than O. Although we were expecting this move we did not think that such low price. Firm I is also entered Votive at the same with us but with a huge price that a market cannot ignore. This was the positive competitor move for us.
With the higher profit margins comparing to Sonnies market, there were ample opportunity for growth in Votive market. With our strategy of simultaneous pursuit of differentiate our products and reduce our base costs with R&D projects we decided to change our product features. But we failed to predict the production volumes precisely for some brands, SALE, AVIVA etc. Especially in the last periods; we missed the opportunity to sell more and the increase in our market share and margins.