Post on 09-May-2015
transcript
Firm: Sunflower
Industry: Flower
It blooms & withers… but passes a It blooms & withers… but passes a legacylegacy
Firm: Sunflower
Industry: Flower
It blooms & withers… but passes a It blooms & withers… but passes a legacylegacy
Ashish Aparup Chandra Sivaram
Where did we start? Portfolio
Brand Base cost ($)
Tech Mkt share ($ terms)
Actual Cost ($)
Gross Contributi
on
KENT 297 1 4.80% 322 5787
KEPI 356 1 6.40% 367 3779
KEEP 380 1 7.50% 407 4131
KELY 273 3 5.40% 315 5999
The First Step… plan for future Initiated Research for Lomex
Technology
One of the pioneers in the Lomex market
Increased sales force
Aligned sales and technical forces to the stages of adoption process
Targeted the lucrative market segments
Controlled Korex production to avoid excessive inventory
Products were priced in tune to the inflation
New Korex Product launch based on perception map
Korex products contributed less to the profits
No development was done to the Korex products to bring down base costs
Lomex compensated for our losses made by the Korex products
Where did it take us? Stock prices plunged before
Lomex product launch
Highly burdened with debt
Unit cost of Korex products increased
Korex products had negative contribution
Period of Research in Lomex technologyPeriod of Research
in Lomex technology
Collaboration with Firm 1 for Technology-2
Collaboration with Firm 1 for Technology-2
Downturn in KorexLaunch the Lomex
technology Products
Downturn in KorexLaunch the Lomex
technology Products
Rejuvenate KorexLomex made us market
Leaders again!!!
Rejuvenate KorexLomex made us market
Leaders again!!!
What will our successors takeover?
Product Base Cost Price
KENT 350 580
KEPI 308 580
KELY 292 620
KEPP 216 480
KESG 308 500
KEAS 467 700
LEAP 153 600
LECM 142 550
LESG 128 400
NMC (Estimated) 18000
Stock Price (Estimated) 34
Budget (Estimated) 7800
Sales Force 56
Technical Force 25
Portfolio
Strategically positioned products in East & Centre and consumer productsStrategically positioned products in East & Centre and consumer products
How we functioned as an organization…
Innovation for new products in Lomex technologies
Clear distribution of roles and responsibilities
Collaboration for Technology-2 product
Stood united even during testing times
Innovation for new products in Lomex technologies
Clear distribution of roles and responsibilities
Collaboration for Technology-2 product
Stood united even during testing times
What we would do differently?
Consolidate our position in the Korex market using the existing technologies (1 & 3)
Exercise caution when making decisions using incomplete information
What we would do differently?
Consolidate our position in the Korex market using the existing technologies (1 & 3)
Exercise caution when making decisions using incomplete information
Learning from decisions
Learning by doing
Theoretical Terms / Concepts
Net Marketing Contribution
Four stages of adoption process
Perceptual map of products
See the reality of differences between base cost and unit cost
Lowering prices doesn’t always increase the market share
Identify the trend in the ideal points and predict the future ideal points of
the product
New product in existing market (Korex) takes time to settle down
Divide sales & technical force according to the adoptions stages of your
products and market segments
Continuous R&D keeps the base cost of your products down
Constantly keep an eye on market (via researches/surveys) and adapt to
the changing environment
Know your market share, total demand and future forecast
Theoretical Terms / Concepts
Net Marketing Contribution
Four stages of adoption process
Perceptual map of products
See the reality of differences between base cost and unit cost
Lowering prices doesn’t always increase the market share
Identify the trend in the ideal points and predict the future ideal points of
the product
New product in existing market (Korex) takes time to settle down
Divide sales & technical force according to the adoptions stages of your
products and market segments
Continuous R&D keeps the base cost of your products down
Constantly keep an eye on market (via researches/surveys) and adapt to
the changing environment
Know your market share, total demand and future forecast
Which Market Research Report did we find most useful and why?
1. Market Share• Depending on Region/stages
of adoption process, our product position information was important
2. Perceptual Map• Guide for developing specs of
new products3. Market Forecast
• To produce according to demand and avoid inventory
4. Competitive Information• Indicated the market mood &
Competitor Plans
1. Market Share• Depending on Region/stages
of adoption process, our product position information was important
2. Perceptual Map• Guide for developing specs of
new products3. Market Forecast
• To produce according to demand and avoid inventory
4. Competitive Information• Indicated the market mood &
Competitor Plans
Every market research information has a typical usage and none of them can be discarded. However our firm used less information from the following in comparison to other types of market research
1.Supplier Survey2.Semantic Scales
Every market research information has a typical usage and none of them can be discarded. However our firm used less information from the following in comparison to other types of market research
1.Supplier Survey2.Semantic Scales