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PGP-14

PGP-14

PGP-14

PGP-14

PGP-14

VUCA VU

B

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THE BEGINNING..

11.9

19.6

12.2

21.3

16.4

18.5

Market share in %

A

E

IO

U

Y

150000

200000

250000

300000

350000

A E I

Market Capitaliza

Third highest market capitalization and

net contribution.

Intense competition with E and U

companies.

Presence only in the Sonite market.

Stock Price

1000

Parameters SUSI SULI

Volume sold

%

3.9 11.5

Retail sales % 2.4 14.1

Segment Professionals Others

Perceptual Map

Brand Map

Industry Benchmarking Report

Brand Awareness

Brand Purchase intentions

Distribution Coverage

Decisions taken on Basis of

Brand purchase inten

highest. Lower SUSIsprice

R&D SUSI to make it a b

Best product in

professionals.

Reduce SULIs price , to

professionals at a lower p

New produc

SU

SU

VUCA for innovators.

SUIT for singles based o

Sonite Products

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ANALYSIS OF PAST PERFORMANCE

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

SUSI SULI SUIT SUHI VUCA VUAD

R1 R2 R3 R4 R5

MARKET SHARESUMMA

R1

SUSI (Ot) Y

SULI (Pr) N

SUIT (Si) -

SUHI (Hi) -

VUCA (Fo) Y

VUAD (Ad) -

1.Major losses in market share in SUSI & SULI

due to stock-out.

2.Decline in market share of SUIT in R4 as no

R&D was carried out in R3.

3.SUHI has a strong competition in terms of

positioning from SAHI SEPP SYCA and hence was

withdrawn in R5

Stock Price constantly increasing YoY.

Cumulative ROI is 1.24, which is second

highest.

0

200

400

600

800

1000

1200

1400

1600

1800

2000

P 0 P 1 P 2 P 3 P 4 P 5

A

E

I

O

U

Y

Stock Price vs Period

Round 1

Cumulative Total Net Contribution

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Segment Brand Market

Share

Price Remarks

Singles

SYGU 29.2% 330 Both of these

are quite far

from ideal pointSIBI 27.7% 321

Price Sensitive, Avg. level of Convenience &

Performance demandedSegment Brand Market

Share

Price Remarks

Hi Earners

SYCA 39.3% 550 Both of these

are quite far

from ideal pointSOLD 26.5% 510

Demand performance & convenience, have

high affordability

Segment Brand MarketShare

Price Remarks

Prof

SULI 40.4% 400 SULI is closest

to ideal point

on

performance,

however price

can be

increased

SOLD 20.9% 510

SEMI 17.9% 560

Demand Performance, Convenience &Quality which is indicated by high price

Segment Brand Market

Share

Price Remarks

Others

SAMA 28.1% 260 Both of these a

SIRO 21.9% 240

Demand Economy & Avg Convenience with Low

Segment Brand Market

Share

Price Remarks

Buffs

SULI 25.8% 400 Both SULI and S

ideal point

SONO 18% 370

Demand High Performance & Economy. Less con

-50.00%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

0

50

100

150

200

250

300

350

Buffs Singles Pros HiEarners Others

Size of Segment vs Total 5 yr Growth

Actual Size

this Peiod

Total Growth

in 5 years

Segment

Buffs

Singles

Prof

HiEar

Others

Total

COMPETITIVE ANALYSIS AFTER ROUND - 1

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KEY STRATEGIES PURSUED

Focus differentiation:

Each brand focuses 100% on one segment

Eliminate the Buffs, just focus on Singles, Hi-earners, Pros,

Others and Vodite market

Continuous R&D to position the products at the ideal points

of respective segments Perceptual advertising objectives to fine tune the

positioning

Introduce VUCA to target Innovators. As innovators growth rate is

slowest, move to early adopters after few periods. Early adopters

are opinion leaders and helpful in advertising the new product to

followers. In the subsequent rounds VUCA was repositioned to

followers.

VUAD was introduced in Period 3 to target early adopters and not

innovators as its market size has decreased considerably vis--vis

early adopters and followers

Pricing strategy: Perceived value

analysis and compare it with comp

Advertising media budget based

awareness level, advertising ex

competitor analysis.

For round 2 when market res

available, use cost plus pricing for Order all market research report

conditions properly for coming per

Brand production level: Three ca

case, and best case. Worst case =

1-2 %; Base case = Existing mar

Existing market share + mar

positioning, brand awareness and

is better than last year then u

decide on base case and worst cas

Invest in advertising researchto improve effectiveness of marketing effort approx. 7% of total communicatio

when a new brand is introduced or existing one is repositioned allocate 15-20% of marketing budget

Allocation of Sales force and Distribution: Ratio from Consumer survey report (Shopping habits) and actual n

analysis and available budget

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MAIN ADJUSTMENTS MADE TO THE CHANGES IN THE ENVIRONMENT

Change in Environment Adjustments made

1. No product catering to Singles segment. Introduced new brand SUIT

2. Potential of earning a higher profit marginfrom high earners.

Launched brand SUHI

3. Low on marketing budget. Withdrew brand SUHI as it earned m

profits

4. Vodite product VUCA made less profits from

Innovators segment.

Reposition VUCA as a product for fol

5. Increase in competition and consumersdemand for better product.

Continuous R&D year on year for SUSI

6. Loss of market share of professionals to

competitors

Increase in spend on advertising and sa

of SULI in period 5 and 6.

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RECOMMENDATIONS FOR THE FUTURE - SONITE

SUSI- Others

R5

Purchase intention-

42%

Awareness- 55.1%

Well placed

Recommendations-

-Others growing at 17%

and 5 year growth is

expected to be 85%, so

dont lose grip on this

segment.

-This segment can be

used as cash cow- high

cash and high volumes

with low margin.

-Continuous R&D

SUIT- Singles

R5

Purchase intention- 19.8%, Awareness- 61.6%, Well placed

Recommendations-

-Maintain position- cut throat competitive segment, 4 players with

20% market share

-Continuous R&D, close watch on competitors

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RECOMMENDATIONS FOR THE FUTURE - VODITE

VUCA- Followers

R5

Purchase intention-

36.2%

Awareness- 47.5%

Better placed thancompetitor

Recommendations-

-Continuous R&D

towards ideal spots

-Adequate production

as it stocked out in last

2 years-Keep on targeting

followers as followers

have 485% growth in

next 5 years and VUCA

has advantage over

new brands

Common Recommendations- VODITE + SONITE

-Keep products on ideal spots

-Follow one product one segment

-Can follow one segment more than one product

-Spend more on advertising, good product without advertising will

not sell

-Use competitive pricing

LEARNINGS

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LEARNINGS

Be careful with the budget .

Dont throw products on customer face, instead identify their needs and design product

accordingly.

Customer is the KING. Always keep the customer in mind before making any decisionscustomers requirements change in time and so should your product.

Number of advertisement does not matters, quality of advertising matters.

Good product positioning is required due to intense competition in the market.

Instead of targeting multiple segments , select few segments and focus on them.

Play one product segment one segment AND one segment more than one product.

Stay away from price war. Cheaper products need not necessarily mean that they will be

preferred by customers.

Take decisions according to the life cycle of product.

Use market penetration technique during initial stages of life cycle of product.

Learning from Markstrat Lear

Products improve

overtime have redu

customers.

Simulation is a very

Learnin

R&D needs money

not guaranteed.

More the R&D mo

more the finance cost

How to take decisio

Learning

Always coordinate

forecasting and capac

Keep marketing d

production.

How harmful canstocking.

EXPECTED STOCK PRICE AND NET CONTRIBUTION

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EXPECTED STOCK PRICE AND NET CONTRIBUTION

Regression-

Dependent variable- Stock price

Independent variables-

Contribution, market share &

R&D expenses

*As p-value of R&D expenses came out 0.18 so onlyconsidering contribution & market share.

Both values less than the

Taking two cases- best case and worst case scenario. Mainly it will depend on competitor decision that w

actually turn out. In best case, Stock price will be 2309 while in worst case it will not go below 1802.

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