Title: ELITE ilet, alet
1- ELITE (i-let?, a-let?)
- Function noun
- pl. elite or elites
- Etymology French élite, from Old French eslite,
from feminine of eslit, past participle of eslire
to choose, from Latin eligereDate 1823 - The part cream of the crop b. The
of a group or class, enjoying
status c. The best or members of a
group
choice
best
superior
most skilled
2Ying Huang
Jeffrey Kao
Lisa Kimura
Yong Chae Song
Derek Taketa
Linda Wong
3Overview
- Company Mission
- Justification
- Company Performance
- Errors Made and Lessons Learned
- Regression Analysis
- Strategic Analysis
- Positioning Strategy
- Product Portfolio Analysis
- Tactical Marketing Plan
- Evaluation and Control Mechanisms
- Conclusion
4Company Mission
- We provide high quality, high technology, and
customer-oriented products in the electronic
entertainment industry at a competitive price. We
strive to be the leader of quality products in
the industry while maximizing the return on
investment of stockholders.
5Justification
Company Mission Justification Company
Performance Errors Made and Lessons Learned
Regression Analysis Strategic Analysis
6Company Performance
- Profitability
- Market Share
- Sales Volume
- Quality
- Cost of Production
7Profitability
- New competitor Panasony in CVE industry
- 280 increase in storage costs
- Poor forecasting for SSL1
8Market Share
- Decreased advertising budget by 30,000
- Lowest in quality but high end pricing
- Reactive mode
- Time allocation
- RD budget
9Sales Volume
- Lowest advertising
- Little time allocated
- Least no. of sales people
10Quality
11Cost of Production
- Cost of Production effect (Yo-yo)
- Economies of scale
- Experience curve
12Errors Made and Lessons Learned
- Not aggressive in RD
- Should have been aggressive from the start
- Took competition lightly
- Should have been more proactive
- Changed content in SSL2, confusing customers and
lowering awareness - Should maintain consistency with strategies
Justification Company Performance Errors Made
and Lessons Learned Regression Analysis
Strategic Analysis
13Regression Analysis
- Background on selection
- Goodness of Fit Tests
- Partial Explanatory Power of Predictor Variables
- Residual Analysis
- Sales Forecast
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
14Data Matrix-CVE 1
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
15Correlation Matrix
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
16Selection of Predictor Variables
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
17Goodness of Fit
Degrees of Freedom observations
parameters 9 12 - 3
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
18F- Statistic
- F-statistic right skewed
- Reject- Ho ?1?20
- 1-? confidence level
- Independent variables influences sales
? 0
F 30.61
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
19Standard Error
- Smaller the standard error the better
- Not the norm but a reasonable fit
SER lt 10 of Mean of Sales ? of sales
12574 1744 13.8
SER lt 33.33 of Standard Deviation Standard
Deviation 4408 1744 39.5
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
20Expected Signs
-
Sales ?o ?1 (AC) ?2 (SI) e
- Expect AC to be negative
- Expect SI to be positive
- Expect Negatives
- Competitor Price
- Competitor Sales Force
- Competitor Quality
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
21T-statistic
- Indicates SI is sufficient
- Reject the Null- Ho ?2 ? 0
- Accept H1 ?2 ? 0
- ? 0, 100 confident
? 0
?2 57307
?0
t 7.38
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
22Coefficient Interpretation
Sales ?o ?1 (AC) ?2 (SI)
e Coefficient
14,900 -104,137 57,307
SEC
55,393
7,760 t- statistic
-1.88 7.38
p- value (?)
.09 0
- AC increase 1 million, decrease in sales by
104,137. - Ceteris Paribus
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
23Residual Analysis
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
24Sales Forecast Pd.13 CVE1
Sales ?o ?1 (AC) ?2 (SI)
e
14,900 (- 104,137) (.16)
57,307(.23) e 11,418.69
sales
Errors Made and Lessons Learned Regression
Analysis Strategic Analysis Positioning
Strategy
25External Analysis
- Customer Analysis
- Competitor Analysis
- Market Analysis
- Environmental Analysis
- Social Cultural Trends
- Technological Trends
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
26Customer AnalysisTST E-Vision
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
27Customer AnalysisCVE E-Graphics
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
28Customer AnalysisSSL E-Tag
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
29Competitor Analysis (I)
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
30Competitor Analysis (II)
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
31Competitor Analysis (III)
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
32Competitor Analysis --Summary
- Innova spent the least on Advertising
- Global has the highest quality for CVE
- Athena has the highest quality for TST. Athena
is our strongest competitor based on the overall
performance.
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
33Market Analysis
- The Big Picture
- By 2002, consumer electronics ranked as the 6th
industry (World Trade Magazine, 2002) - The home networking industry will grow
significantly in the next few years - Cross the billion dollar revenue mark (Home Toys,
1999) - TST Market
- Home theater is todays hot application (Zalud,
2002) - HDTV sales in US hit 1.4 million units (Hein
2002) - CVE Market
- Household ownership of camcorders increased by
50 - Sales had gone up approximately 1.4 million
(Thibodeaux, 2001) - SSL Market
- Gaming centers are rising in popularity (Enders,
2002) - The video game business is poised for record
growth (Enders, 2002)
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
34Market Analysis
- Social/Cultural Trends
- Cocooning
- Stay closer to home following September 11th
- Increased home entertainment (Hein, 2002)
- 24-tainment
- Entertainment as a drug"
- Needing constant entertainment from every device
- (Gig news, 2002)
- Cyclical Trends
- Shift to more home entertainment in the coming
years - ( Aguirre, 2001)
- Violence Video Games
- The issue of rampant violence depicted in video
games (Hogster, 2002)
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
35Market Analysis
- Technological Trends
- Improved image processing technology (Levy, 2000)
- High performance networking of digital device
(Liebmann, 2001) - Increasing trend in the various smart device
technologies (Gines, 2002) - Personal video recorders, brings PC technology to
TV (Prior, 2000) -
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
36Internal Analysis
- Performance Analysis
- EPS, ROTA, ROE, NPM, SATO, RE
- Market Share
- Quality Index
- Cost of Production
- Expense Ratio
- Portfolio Analysis
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
37Performance at a Glance
Pay more attention to our competitors
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
38Performance Analysis
- EPS, ROTA, ROE and RE rank high consistently
- NPM Dropped in Period 3, rebounded in Period 12
(increase product price) - SATO Decreased since Period 2, indicating
inefficiency in using our assets
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
39Market Share
SSL captured the largest markets share since
Period 2.
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
40Quality
Q-TST In Period 7, quality dropped to the
lowest. Q-CVE Quality tends to decrease over
time. Q-SSL Highest quality throughout the 12
periods --- Effective R D and clear ad message
(stress on more feature with quality)
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
41Cost of Production
TST Highest cost of production from Period 2 to
5, Improve in Period 8 CVE Maintain
consistently since period 4. SSL In Period 9, 10
and 11, cost of production decreased due to
better quality.
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
42Expense Ratios
Sales/Adv Period 3, 10, 11 and 12, less sales
generated per dollar of adv. expense Sales/SF
Increased in Period 10 (commission rate from 1.8
to 1.9) Sales/Prom In Period 8, the most
effective use of adv. SF as a whole
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
43Market Analysis
5 Leaders1 H SSL22 VS CVE1,SSL32 S CVE2
,TST3
4 Followers2 VH? CVE3,TST22 VHx SSL1,
TST1
5 Gainers
4 Losers
- Market Size and Growth
- The home networking industry will grow
significantly in the next few years to cross the
billion dollar revenue mark.
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
44Closing the Strategic Gap
- Take advantage of our strengths
- Continue to apply the premium strategy on each
product - Maintain high quality of SSL
- Harvest SSL, providing cash and resource
- Capitalize on specific opportunities
- Build share TST and CVE to expand market share
- Invest in R D to improve the quality of TST and
CVE - Improve EPS through effective monitoring of
advertising and sales forces size
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
45Positioning Strategy
Analysis Strategic Analysis Positioning
Strategy Product Portfolio Analysis Tactical
Marketing Plan
46TST
- Period 1
- Started price too high
- No Quality differentiation
- Period 4
- Price Leader and Improving Quality (100
to101) - Constant quality with all except Global Technology
- Period 8
- Raised price and no increase in quality (101)
- Lowest industry quality
- All Competitor (102)
- Period 12
- Raised quality to be constant quality
(103) with all - Except Athena (Quality Leader 105)
Analysis Strategic Analysis Positioning
Strategy Product Portfolio Analysis Tactical
Marketing Plan
47TST
- Achievers
- Abundant Resources
- Upscale Taste
- Move to Premium
- Improve Quality
- By Increasing R D
Analysis Strategic Analysis Positioning
Strategy Product Portfolio Analysis Tactical
Marketing Plan
48CVE
- Period 1
- Started price too high
- No Quality differentiation
- Period 4
- Price Leader and no increase in Quality (100)
- Lowest Quality w/ Athena.
- Period 8
- Slight price rise and increase in quality (101)
- Lowest industry quality w/ Athena (101)
- Period 12
- Raised quality to be constant (102) with most
competitors - Except Global
- (Quality Leader 103)
Analysis Strategic Analysis Positioning
Strategy Product Portfolio Analysis Tactical
Marketing Plan
49CVE
- Achievers
- Abundant Resources
- Upscale Taste
- Move to Premium
- Improve Quality
- By Increasing R D
Analysis Strategic Analysis Positioning
Strategy Product Portfolio Analysis Tactical
Marketing Plan
50SSL
- Period 1-8
- Started price too high
- No Quality Increase
- Consistent w/ competitors
- Period 12
- Dramatic Quality Increase
- Quality Leader (105)
- No other competitors increased quality
Analysis Strategic Analysis Positioning
Strategy Product Portfolio Analysis Tactical
Marketing Plan
51SSL
- Experiencers
- Youth
- Restricted Income
- Some High Tech
- Move to High Value
- Lower Price
- Sustain RD
Analysis Strategic Analysis Positioning
Strategy Product Portfolio Analysis Tactical
Marketing Plan
52Product Portfolio Analysis
- Check Internal Balance
- Look for Trends
- Evaluate Competitors
- Consider Other Factors
- Target Portfolio
- Check Financial Balance
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
53Moderately Strong Diversified Portfolio
Check Internal Balance
53
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
54WAGR lt MSGR
Check Internal Balance
lt MSGR 15.49
- Simplistic
- No Long Term Debt
- Dividends
- Cost of Debt
54
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
55Normative Positioning Map
Check Internal Balance
- 3 Gainers
- (TST3, CVE1, SSL3)
- 2 Gainers (SSL1, 2)
- Loser
- 2 Losers (TST1, CVE2)
- Gainer
55
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
56Ideas for Improvement
- 1st Priority
- Move all sick leaders (TST3, CVE1, 2, SSL3) to
healthy leaders - More Cows (Security)
-
- High competitive threats
- Dont want to lose Leadership
56
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
57Ideas for Improvement
Build Share
- TST3 VS to H
- Shares Leadership
- Price leader
- Above average growing Industry (14)
- Has room to gain
- Has industry Advertising Average
57
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
58Ideas for Improvement
- CVE2 VS to H
- Defense (Leader)
- Growing Market (10)
- Price leader (443)
- Highest Market Share (26)
- Above Industry Advertising Awareness
Build Share
58
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
59Ideas for Improvement
- CVE1 S to H
- High advertising awareness
- (107 vs. 103)
Build Share
- SSL3 VS to H
- Moderate leadership in maturing industry
59
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
60Ideas for Improvement
- 2nd Priority
- TST2, CVE3
- Too far from competitor
- High growing industry
- 3rd Priority
- TST1, SSL1
- Non-growing industry
- Too far from competitor
60
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
61Trends
- 4 positive trends
- SSL1,2,3
- TST3
- SSL1,2,3
- Quality index 105
- SSL2
- 29 RMS while IGR 50
- Seen as premium product
- with high price/high quality
- TST3
- Increased budget for
- sales promotions
- High price strategy
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
62Trends
- 5 Negative Trends
- CVE1,2,3
- TST1, TST2
- CVE1,2,3
- Did not compensate
- entry of Panasony into
- CVE market
- Cost of production higher
- than NAEM
- TST1
- Did not spend enough
- on broadcast advertising
- Warranty content not
- effective
- TST2
- Went for high price in per. 12
- Wrong advertising content
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
63Ideas for Improvement
- Harvest SSL2
- Build Share CVE1,2,3
- Has highest ad awareness and are current
market share leaders
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
64Ideas for Improvement
Buildshare TST1 TST2
65Evaluate Competitor- Athena
- Check Internal Balance
- WAGR lt gt MSGR
- Normative Position
- Trends
- Normative Trends
- Insight Derived
65
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
66Athena-Moderately Diversified Portfolio
Check Internal Balance
66
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
67Athena-WAGRltMSGR
Check Internal Balance
WAGR 6.85
lt MSGR 15.87
- Not Growing to MSGR
- (Athena 43
lt Elite 45)
67
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
68Athena-Normative Position
Check Internal Balance
- 3 Loser (CVE2, TST3, SSL3)
- Gainer
68
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
69Athena-Trends Years 1-2 2-3
- Lost 3 Leaders
- (SSL2, 3, TST3)
- 3 Positive Trends
- (TST1, 2, CVE2)
69
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
70Athena-Normative Trends
4 Inconsistent
70
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
71Insights Derived
Lacks Strong Portfolios
71
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
72Other Factors
- Social/Cultural Factors
- The trend of cocooning (Hein 2002)
- September 11th, increased home entertainment
- (Gain, 2002)
- Technological Factors
- TST
- Interactive entertainment (Gines, 2002)
- Integration of different devices (Gines, 2002)
- CVE
- Analog technologies to interactive digital format
- (Harmon, 2000)
- SSL
- Virtual Environment (Enders, 1999)
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
73Alternative Strategy
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
74Objective
- Maximize our product portfolio while constantly
Improving cash-in Balance.
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
75Alternative Strategy
- 5 leaders but 4 are sick
- Harvest SSL2
- Mature Market
- IGR decreasing
- Big Leadership
- Build Share
- (CVE1, 2, SSL3,TST3)
- Want to maintain Leadership
- Too close to competitor
- CVE2, TST3 in growing industry
- SSL3, TST3 Has leftward momentum
Increase RD
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
76Strategy
- 4 Followers
- Build Share (TST2, CVE3)
- In high growing industry
- 2nd Priority
- Negative trend
- Hold Share (TST1, SSL1)
- Too far from competitor
- Non-growing industry
- Negative trend
ssons Learned Regression Analysis Strategic
Analysis Positioning Strategy Prod
77Cash Flow Analysis
tegic Analysis Positioning Strategy Product
Portfolio Analysis Tactical Marketing Plan
78Tactical Marketing Plan
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
79Tactical Marketing Plan
- Target Market
- Product Strategy
- Pricing Strategy
- Promotion Strategy
- Distribution Strategy
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
80VALS Indices
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
81Target Market
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
82VALS 2 Indices
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
83Target Market
- Affluent Empty Nest Achievers
- Ages 45 and older (www.adsite.washpost.com)
- Children have gone off to college
- Subgroup of baby boomers and account for 30 of
its pop. (Raymond 2000) - Estimated spending power of 1 trillion
- Avg. household spending of 50,000 (American
Demographics 2002) - View their homes as the most important status
symbol (Grimm 2000)
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
84Affluent Empty Nest Achievers
- Needs
- Products to simplify their lives
- Purchase motivations/behavior
- Seek value for their money
- High prices not a big deterrent (Ingram 2001)
- Purchase products that convey quality, status,
and style (Grimm 2000) - Not as brand loyal as younger generations
(Francese 2002) - Media Behavior
- Heavy users of online services and radio
- Not heavy TV watchers
- Reads 3.8 magazines regularly
- 37 of market segment reads newspaper daily
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
85Product Strategy
- Luxury product
- Shopping good
- Consumer friendly
- Easy to read universal remote
- Free delivery and installation
- Extended warranty
- Customer service availability
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
86Pricing Strategy
- Skimming strategy to maintain niche market
- Top-ceiling pricing strategy
- Price adjust to industry demand
- Price Inelastic
- No discounting
- Terms of Payment
- Payment in full or monthly payments with standard
APR of 19.99 - If customer pays full amount in 180 days, finance
charges waived
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
87Promotion Strategy
- Push/pull strategy combination
- Media emphasis
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
88Promotion Strategy
- Furnish all Hilton Hotel suites with E-Visions
- Objectives
- Establish long-term partnership with Hilton
Hotels - To increase brand awareness
- Enhance brand equity through association with
Hilton
89Promotion Strategy
- Customer Appreciation Day (selected cities)
- Location Hilton Hotels
- Media Send formal invitations out to previous
Elite customers by using our database, allowing
for 1 guest - Catch
- Serving gourmet appetizers and wine.
- First 100 guests receive free EliTees.
- Prize giveaways and drawings
- Objective To increase awareness, generate word
of mouth advertising, and maintain customer
loyalty
90Promotion Strategy
91Distribution Strategy
tegy Product Portfolio Analysis Tactical
Marketing Plan Evaluation and Control Mechanisms
92The Delivery 30 Spot 12/3/02
93Click!
94The Next Day
Knock Knock!
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110The End
111Evaluation and Control Mechanisms
- Reports Sales, Quality, EPS, NAEM
- Apply Regression Analysis
- Adjust TMP
alysis Tactical Marketing Plan Evaluation
and Control Mechanisms Conclusion
112Conclusion
Thank You!
sis Tactical Marketing Plan Evaluation and
Control Mechanisms Conclusion