Teamy Pres Rev6

8/4/2019 Teamy Pres Rev6

1/40

TEAM YChristina Crawford

Mike Meserole

Ron King

Pete Stupak

Jim Bruno


2/40

Agenda

Brief History

SWOT Analysis Main Strategies

SONITE - What went right and wrong

VODITE What went right and wrong Lessons learned, recommendations


3/40

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


4/40

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


5/40

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


6/40

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


7/40

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


8/40

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


9/40

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 .


14/40

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


17/40

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


20/40

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


21/40

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


22/40

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


23/40

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


24/40

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!


25/40

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


26/40

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


34/40

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


35/40

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


36/40

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%


37/40

Performance-Market Shares

0

5

10

15

20

25

30

1 3 5 7 9Period

TeamY

's

Segment

arketShare(

Innovators

Adopters

Followers


38/40

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


39/40

What Went Wrong

Lost first-to-market advantage

Some underestimation of production

Waited too long for VY03


40/40

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

Date post:	07-Apr-2018
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