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