Post on 07-Apr-2018
transcript
8/4/2019 Teamy Pres Rev6
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TEAM YChristina Crawford
Mike Meserole
Ron King
Pete Stupak
Jim Bruno
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Agenda
Brief History
SWOT Analysis Main Strategies
SONITE - What went right and wrong
VODITE What went right and wrong Lessons learned, recommendations
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Product Characteristics
PRODUCT R&D WEIGHT
(Kg)
DESIGN
(INDEX)
VOLUME
(Dm3)
MAX FREQ
(KHZ)
POWER
(W)
SEGMENT
SYGU* PSYGU 18 3 75 25 12 ----
SYCA PSYCA 13 8 40 40 75 Buffs
SYGX PSGU1 18 7 75 18 37 Others
SYCX PSCA1 13 8 40 30 60 Singles
SYCP** PSYCP 13 8 50 41 84 Prof
SYCH PSYCH 16 9 68 28 57 HiEarners
PRODUCT R&D AUTONOMY
(M)
MAX
FREQ
(KHz)
DIAMETER
(Mm)
DESIGN
(INDEX)
WEIGHT
(G)
SEGMENT
VY02 PV004 52 12 55 6 55 Adopters
VY03 PV005 60 13 56 7 60 Followers
*Dropped in Period 3
**Dropped in Period 9
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Team Y - Timeline
Period 0 - Introduced SYCA, SYGU
Period 1 - Increased advertising and
advertising research budget
Period 3 - Introduced SYGX, dropped
SYGU , requested Loan
Period 4 - Introduced SYCX, did not
purchase marketing reports
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Team Y Timeline Cont.
Period 5 - Introduced VY02, interest paid,loan received
Period 6 - Base cost reduction SYCX,VY02
Period 8 - Introduced SYCH, SYCP, basecost reduction VY02
Period 9 - Introduced VY03
Period 10 - Dropped SYCP
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Team Y - Budget
Budget (k)
7,150
10,550
14,050
9,150
11,450
8,250
11,600
22,900
25,350 25,85026,350
0
5,000
10,000
15,000
20,000
25,000
30,000
0 1 2 3 4 5 6 7 8 9 10
Period
Budget(
Loan in Period 4
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Sales Force
TEAM - A ES FORCE
60 65 7180 80
100 110128
171
216 226
0
50
100
150
200
250
0 1 2 3 4 5 6 7 8 9 10
Period
Numberof
S
alespeople
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Sonite - Segment Growth
SEGMEN GROW H
0
500
1,000
1,500
1 2 3 4 5 6 7 8 9 10
PER OD
SEGM
EN
SIZE(K
U)
Buffs Singles Pr s HiEarners Others
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Vodite Segment Growth
VODITE - SEGMENT GROWTH
0
500
1000
1500
2000
1 2 3 4 5 6 7 8 9 10
Period
Size(
KU)
Innovators Adopters Followers
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Sonite Life Cycle
LIFE LE LYSIS
E Y V LUME S LD PE P DUCT
0
50,000
100,000
150,000
200,000
250,000
300,000
1 2 3 4 5 6 7 8 9 1 0 11
PE I D
V
LUMES
LD
SYGU SYCA SYGX SYCX SYCP SYCH
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Sonite Competitors
Market ShareMARKET SEGMENT - OTHERS
17.0%
25.9%
26.0%
7.9%
22.0%1.1%
SAME SEXY SIOT SUMS SYGX MISC.
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Sonite Competitors
Market ShareMARKET EGMENT PROFESSIONALS
34.0%
32.9%
12.6%
17.4%3.1%
NK L I I N MI .
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Sonite Competitors
Market ShareMARKE SEGMENT - IEARNERS
44.6
10.217.9
11.0
14.3 2.1
ALT ILO OHE UHE CH MI .
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Sonite Competitors
Market ShareMARK T HAR I LES
45.5%
10.5%13. %
25.0%
5.3%
SI SOSY SUDS SYCX MISC.
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Sonite Competitors
Market ShareMARKE SE MEN - BUFF
5.1%17.8%
10.2%
12.8%37.7%
16.5%
SA T SA E SE S N SY A S .
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Vodite Competitors
Market ShareMARKE SE MEN - INN A RS
3 58 3
69 9
3 7
4 1 8 5
2 0
A N VANE VANQ VERJ V D V 2 V 3
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Vodite Competitors
Market ShareMARKET EGMENT EARLYADOPTERS
6%
24%
23%4%
24%
9%
10%
VAIN VANE VANQ VERJ VO I VY VY 3
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Vodite Competitors
Market Share
MARKET EGMENT - FOLLO ERS
41.1
39.7
0.2
5.5
0.7
0.512.3
O 2 Y03
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Strengths of Competitors
Team A-Market capitalization, high market share, 4
Sonites and 3 Vodites, 198 salespeople
Team E-High Sonite market share(
P
,O), 2 Sonitesand 1 Vodite, 135 salespeople
Team I-High Sonite market share (S,O), 4 Sonites,
high ROI
Team O-Large HiEarners market share, 3 Sonitesand 1 Vodite, high Innovs market share
Team U-High singles market share, 3 Sonites
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Weaknesses of Competitors
Team A-No product aimed at Singles, Highmarketing expenses
Team E-Small Vodite market share, 2 Sonites
Team I-No Vodite, one product(SIGN) producesmost of sales
Team O-80 Salespeople, low Sonite market share,1 Vodite aimed at Innovs
Team U-No Vodite, low Sonite market share, noproduct aimed at Pros
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Opportunities for Competitors
Team A-Singles product, buy out another team,continue to cut costs and increase margins
Team E-Singles, HiEarners product, increaseVodite market share, increase advertising
Team I-Buffs product, produce a Vodite product,hire more salespeople to increase brand awareness
Team O-Others product, make Vodite forFollowers segment, increase advertising for Vodite
Team U-Pros product, produce a Vodite product,hire more salespeople to increase brand awareness
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Threats for Competitors
Team A-Two companys merging, new anti-trustlaws
Team E-Buy out from another company, changein consumer preferences
Team I-SIGN product no longer popular withSingles, Vodite segment continues to grow
Team O- Buy out from another company, changein consumer preferences
Team U- Buy out from another company, Voditesegment continues to grow
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Sonites
Strategy: Tailor a single product to each customer
segment type and market it as long as it has a positive
effect on net contribution.
SYCA Buffs
SYCX Singles
SYCP Professionals
SYGX Others
SYCH High Earners
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Design and Development
Strategies
How to chose product characteristics
Conjoint analysisWhat do market segments want?
Design, Max Freq., Power, and Price
Semantic scales
Brand Perceptions and Ideal ValuesInformation source for Weight and Volume
The lower the Base Cost the better!
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Price and Production Strategies
Price
Selling price is approx. 64% of suggested retail
Mass merchandisers sell at 10% discountProduction
Level: combination of purchase intentions,market growth, market share, and strategy
adjustmentsFor ongoing products, inventory is better than
lost sales
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Advertising and Sales Force
StrategiesAdvertisingMore during product introduction
Higher values for advertising research tooUtilize advertising experiments
If you want to increase sales you better increase youradvertising
Sales ForceWhere is the targeted segment shopping?
Competitive forces
Sales force experiments
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Brand Results
Brand When
Offered
Units
Sold
(KU)
R&D
K$
Advertising
K$
Sales
Force
K$
Inventory
K$
Net
Contrib.
K$
ROI
SYCA 1-10 1,222 - 22,801 6,907 788 169,233 555%
SYGU 1-2 221 - 4,650 1,870 66 14,288 217%
SYGX 3-10 1,370 1,280 14,925 7,152 693 73,384 305%
SYCX 4-10 916 1,180 10,165 5,291 973 38,095 216%
SYCH 8-10 155 1,190 5,400 1,842 651 9,625 106%
SYCP 8-9 44 1,500 2,200 905 374 (1,939) -38.9%
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Performance-Market Shares
0
5
10
15
20
25
30
35
40
45
1 3 5 7 9Period
TeamY'
sSegmenta
rketS
Buffs
Singles
Professionals
High Earners
Others
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What Went Right
Increased market share in the followingsegments:
Buffs, Singles, and OthersHold the highest market share of the Buffs
Climbing our way back into High Earnerssegment
Positive net contribution for 4 ongoingSonite products
SYCA, SYGX, SYCX, and SYCH
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What Went Wrong
Often underestimated production
Went from first (37.4% MS) to fifth (1.4%
MS) in the professionals segment
Waited too long to tailor a product to this
segment
Once we decided to tailor a product, there wastoo much competition
Too little spent on advertising and salespeople
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What Went Wrong (cont)
Not competitive in High Earners market for
many years
Did not tailor a product to their needs until
period 8
Thought we could just adjust price of existing
product We were wrong!
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Vodite Market
Strategy: Maximize profitability by having two
products targeting the Followers segment.
VY02 Adopters and
Followers
VY03 Followers
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Design and Development
Strategies
How to chose product characteristics
Conjoint analysisWhat do Vodite market segments want?
Adopters: Max frequency and price
Followers: Max Frequency, price,and autonomy
Semantic scales
Brand perceptions and ideal valuesInformation source for weight, diameter, and design
Time-to-Market is essential
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Price and Production Strategies
Price
Selling price is approx. 64% of suggested retail
Mass merchandisers sell at 10% discountProduction
Level: combination of purchase intentions,market growth, market share, and strategy
adjustmentsFor ongoing products, inventory is better than
lost sales
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Advertising and Sales Force
StrategiesAdvertisingMore during product introduction
Higher values for advertising research tooUtilize advertising experiments
Perceptual objectives for max frequency, autonomy,and price
Sales ForceWhere is the targeted segment shopping?
Competitive forces
Sales force experiments
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Brand Results
Brand When
Offered
Units
Sold
(KU)
R&D
K$
Advertising
K$
Sales
Force
K$
Inventory
K$
Net
Contrib.
K$
ROI
VY02 5-10 809 8,160 20,442 6,171 7,697 137,423 324%
VY03 9-10 327 3,000 6,550 1,847 1 40,526 356%
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Performance-Market Shares
0
5
10
15
20
25
30
1 3 5 7 9Period
TeamY
's
Segment
arketShare(
Innovators
Adopters
Followers
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What Went Right
Profitable Vodite products
VY02 - K$137 Million
VY03 - K$40 Million in 2 periods
Second to Team A in Vodite products
VY03 well positioned for Follower segment
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What Went Wrong
Lost first-to-market advantage
Some underestimation of production
Waited too long for VY03
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Recommendations
Dont wait on new market area
Advertise aggressively at product launch
Use advertising research, perceptualobjectives
As product matures, reduce advertising,
increase sales forceKeep price in line with target market
segment