Markstrat PDF

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Summary

Markstrat Decision 1 Notes...

Description

Sonite - Start with 2 brands Vodites - come into play later Our Goal Maximize Share Price Index 1. Market share 2. Sales growth 3. Net contribution 4. Cumulative net contribution 5. R & D investments Method 1. Managing a portfolio of brands 2. Setting market segmentation and positioning strategies 3. Implementing a marketing mix 4. Watching out for the competition Our tasks per round: 1. Team Identity – In Period 1, your company name is initially equal to your initial letter: M, R, S, T, L or N.

2. R&D – All projects that have been partially developed in the previous period will be

3.

4.

5. 6.

completed. This means that the budget required for completion is automatically allocated. If you wish to stop the development of a project, you need to shelve this project in the R&D decision page. Brand Portfolio – All brands marketed in the previous period will be marketed automatically in the new period. Brands will not be launched, withdrawn or modified automatically. Marketing Mix – The following decisions are copied from the previous period: production plan, price, advertising media, advertising research and segmentation strategy. Perceptual objectives are reset to No Objectives. Commercial Team – The size of your commercial team is not changed. Similarly, the allocation over channels and brands is the same as in the previous period. Market Research Studies – The same studies as in the previous period are ordered.

Data

Analysis

Strategy

Period 1 Tasks 1. Marketing Mix a. Production planning b. Pricing c. Advertising & segmentation strategy i. Segmentation strategy is long term and foundational ii. Changing segments/entering new segments is costly (ie. do it once)

2. Commercial Team a. Size b. Allocation across: i. Distribution channels ii. Brands 3. Market Research a. Industry-wide market studies b. Market-specific marketing studies

Marketing Mix Decisions Production plan ● ● ●

Consider expected sales and inventory +/- 20% automatic adjustment Evaluate the quality of the production plan through lost sales

Pricing ● ● ● ●

Margin of distributors Discounts based on channel Consumer expectations Competitive prices

Advertising & segmentation strategy ● ● ● ● ● ● ●

Build brand awareness Consumer familiarity with product characteristics and price Develop market demand Influence distributors to carry or not your products Create barriers to entry for the competition Media budget - to purchase media space and time Research budget - to improve quality / persuasive power of the message

Commercial Team Responsible for obtaining and entering orders, and for supporting distributors ● Visiting distribution ● Enrolling customers in trade programs ● Helping stores organize and conduct promotions ● Taking orders and handling out of stock situations ● Participating in trade shows ● Set size for each channel & brand...