Penelope Santos

1
TEAM I

• Penelope Santos
• Nick Selvaggi
• Alan Stutman
• Mike Villarose

2
Goals

• Primary goals
• To gain high market share
• High shareholder value
• High retail sales
• Secondary goals
• Competitive products
• Target certain markets

3
Strategies

• Market segmentation
• Increase brand characteristics
• Industry benchmarking
• Competitive pricing
• Advertise, Advertise, Advertise

4
Brand Portfolio

• Sonite
• SIBI (dropped) others, singles
• SIRO - (current) others, singles
• SICK (current) high earners, buffs
• Vodite
• VIRT (current) adapters, followers

5
Product Specs

• SIBI
• Weight-19
• Design-5
• Volume-75
• Max. Freq.-30
• Power-30

6
Product Specs

• SIRO (original)
• Weight-20
• Design-3
• Volume-90
• Max. Freq.-5
• Power-12

7
Product Specs

• SIRO (Modified)
• Weight-13
• Design-6
• Volume-45
• Max. Freq.-50
• Power-90

8
Product Specs

• VIRT
• Autonomy-10
• Max. Freq.-10
• Diameter-90
• Design-9
• Weight-95

9
Pricing
10
Advertising

• Marketing Research budget
• 5 of sales
• Advertising
• 1 of sales
• Sonite market
• Years 1-3 all segments
• Years 4-7 individual segmentation
• Vodite market
• Years 4-7 adapters, followers

11
Sales Force

• Distribution Channels
• Specialty Stores - primary
• Department Stores - secondary
• Mass Merchandisers minimal allocation
• Increase sales force by 12 per year

12
Research and Development

• Modified SIRO
• PSIPS
• More competitive product
• Created SICK
• Target high earners, buffs
• Replace SIBI
• Created VIRT
• Try to capture Vodite market
• Created VIRV
• Did not hit market

13
Budget

• NO SALES NO BUDGET
• NO BUDGET NO ALLOCATION
• NO ALLOCATION NO RD
• NO RD NO PRODUCTS
• NO PRODUCTS NO MARKET SHARE
• NO MARKET SHARE NO SALES
• NO SALES NO PROFIT
• NO PROFIT LOW STOCK PRICE
• Budget increased aprx 2 million in 7 years

14
Stock Price
Hi 1077, Low 860, Ending - 906
15
Mistakes Made

• Allocation of Advertising budget
• Too much research
• Not enough actual advertising
• Use of RD
• Not enough money for projects
• Inventory holding costs - production
• Use of multi-dimensional scaling
• Perceptual objectives
• Comprehension of Game

16
KKSrinicard

• Advertising Budget 7,000,000
• Holding Cost 3,000
• Advise from KK Priceless
• For everything else theres Srini

17
Questions?