Markstrat Period 6 PDF

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PERIOD 6 Market – Sonites Products – NOON, NOVA, NORA Units produced –NOON – 3, 00, 000; NOVA – 60, 000; NORA – 80, 000 Price – NOON – 245; NOVA – 325; NORA – 480 As expected the SPI of the company reduced and we remained at the same position in the market, but the SPI reduced further from 1341 to 991 in this period. This was only because the competitors did research and development expenditure and developed products according to the needs of their target market and as a consequence of that we lost our customers and market share.

As we can see in the above graph we can observe that the SPI of all other companies has mostly increased but for Novatech it decreased drastically because the competitors are doing something we aren’t and that had landed us second last on the position table. The reason for the fall of SPI is overproduction. We produced more than what the demand was and therefore our products remained in the inventory as it is. To further elaborate the impact of competitors new products, let’s examine the graph of market share below:-

We can clearly observe in the above graph that there are three brands of Novatech in the market- NOON, NOVA and NORA. This was the first year of introducing the third brandNORA. Whereas the leading competitor already has four brands present in the market out of which brand SOFT has the maximum market share of 16% of the total market share to itself. As we had invested 18% of the resources in research and development in the previous year and also around 60% in advertising during the previous year, therefore we didn’t have enough funds to allocate in other activities this year. Spending more towards the advertisement expenditure helped us in creating the maximum brand awareness of NOON (67%) which is the highest amongst all the other competitor’s brands.

The above graph shows that all the advertisement expenditure made by the company last year has really paid off and the company is able to generate the most brand awareness among other customers. Now the task of the company would be to build upon this brand awareness and create purchase intentions for the company. For doing this we started a R&D project called “NOOR” which was mainly focused on SAVERS. The focus points of that research project is as shown below: -

We can see that the new product development is been targeted at Savers and the research is being conducted which will help the company build a better product in the future....