Diana Da Silva

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Diana Da Silva Ronie Foronda Justin
Lum Sheri Miyashiro Nana Shiroma
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Agenda
AgendaOrganizational ChartCompany
MissionJustificationCompany
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Agenda
Nana (2min)
AgendaCompany MissionJustificationCompany
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Justification

• Company Name

• Slogan

• Logo

Innovative Solutions for the Future
JustificationCompany MissionCompany
PerformanceErrors Made
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Justification
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JustificationCompany MissionCompany
PerformanceErrors Made Le
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Justification
JustificationCompany MissionCompany
PerformanceErrors Made
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Justification
Suit the action to the word, the word to the
action. William Shakespeare
JustificationCompany MissionCompany
PerformanceErrors Made
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Mission Statement

• To provide consumers with the highest quality of
  electronic products, while maintaining innovation
  through a strong commitment to research and
  development. To create value for consumers and
  shareholders by maintaining a strong diversified
  portfolio through a unified strategic focus.
  Prism is dedicated to continuous growth by
  offering Innovative Solutions for the Future.

Company MissionCompany PerformanceErrors
Made Lessons Learn
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Profitability
Company PerformanceErrors Made Lessons
Multiple Regression Analysis
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Sales Volume

• Higher relative price
• Decrease sales

Company PerformanceErrors Made Lessons
Multiple Regression Analysis
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Sales Volume

• Low advertising expenditures
• Decrease sales

Company PerformanceErrors Made Lessons
Multiple Regression Analysis
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Sales Volume

• Higher relative price
• Decrease sales

Company PerformanceErrors Made Lessons
Multiple Regression Analysis
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Quality
Company PerformanceErrors Made Lessons
Multiple Regression Analysis
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Quality

• Closest Competitor is Park Bros

• Due to low investment in RD

Competitors Spent Approximately 84 more in RD!
Company PerformanceErrors Made Lessons
Multiple Regression Analysis
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Cost of Production TST
Company PerformanceErrors Made Lessons
Multiple Regression
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Cost of Production CVE
Company PerformanceErrors Made Lessons
Multiple Regression
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Cost of Production SSL
Company PerformanceErrors Made Lessons
Multiple Regression
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Errors Made Lessons Learned
Error 1 Overexpenditure in RD
Corrective Action Cut Costs Increase Prices
Errors Made Lessons LearnedMultiple
Regression AnalysisSales For
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Errors Made Lessons Learned
Error 2 Failure to Capitalize on Quality
Corrective Action Increase consumer awareness
through aggressive advertising
Errors Made Lessons LearnedMultiple
Regression AnalysisSales For
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Errors Made Lessons Learned
Error 3 Inconsistent Sales Forecasting
Corrective Action Regression to forecast sales
Errors Made Lessons LearnedMultiple
Regression AnalysisSales For
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Multiple Regression Analysis

• Data Matrix
• Correlation Matrix
• Selection of Predictor Variables
• Regression Results

Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Method Purpose of Regression

• Overestimation
• -Storage fees, inventory carrying costs,
  clearance sales
• Underestimation
• - Overtime, loss of customers, loss of sales,
  stockout

PURPOSE
Accurate forecasting

• METHOD
• Linear unrestricted single-equation multiple
  regression model

Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Data Matrix
TST Region 2
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Regression Assumptions

• e is normally distributed with mean 0 and
  constant variance
• If the variance is not constant
  heteroskedasticity exists
• Xis are independent
• If the Xis are not independent multicollinearity
  exists and

leads to unreliable estimates
leads to unreliable estimates
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Correlation Analysis
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Regression Results
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Standardized Format for Multiple Regression
Partial Explanatory Power of Predictor Variables
Goodness of Fit Measures
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Goodness of Fit
F Statistic
SL a 0
CL 1-a 1-0 100
F 523.68
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Goodness of Fit
Standard Error of Regression
SER 52.96 3.78 Actual Mean of Sales SER
52.96 9.73 Actual Standard Deviation
B1
SER
B2
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Partial Power of Predicted Variables
T-test
B2 3.28
Quality
B2 28
µ B2 0
t 8
µ t 0
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Residual Analysis
Check for Heteroskedasticity
Data is random
Variance is not constant
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Sales Forecast for Period 12



S B0 B1 (SV) B2 (Quality) e
S -2804 28.41 (0.41) 5109.66 (1.13)
S 2,982
Multiple Regression AnalysisSales Forecast for
Period 12Strategic Analysis
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Proposed Marketing Plan

• Strategic Analysis
• Positioning Strategy
• Product Portfolio Analysis
• Tactical Marketing Plan Components
• Evaluation and Control Mechanisms

Proposed Marketing PlanStrategic
AnalysisExternal AnalysisInternal Analysis
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Customer Analysis Hologram 3000(TST)
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Customer AnalysisStudio 1 (CVE)
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Customer AnalysisSharp Shot (SSL)
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Competitor Analysis

• Major Competitor
• Quest Entertainment (C1)
• Minor Competitor
• Park Bros (C2)

Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Quest Entertainment
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Park Bros
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Market Analysis
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Social/Cultural

• Cocooning (Fetto,1999)
• Echo Boom Gen Y
• Dual-income households (Bill, 1996)
• Rise in affluent minority (Edry, 2001)

Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Technology

• Internet
• Portability
• Digital Television
• HDTV (Hein, 2003)

Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Economy

• Recession after 9-11
• Consumer confidence has increased (CNN/Money)
• Credit card debt (Wyss, 2002)
• Affluent continue to spend (Francese, 2003)

Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Government

• Violence in video games
• Lawsuits and legislations
• Ratings (Teinowitz)
• Digitalized Televisions
• 85 penetration of digital programming
  (Bagner/Sonu, 2003)

Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Internal Analysis

• Performance Analysis
• Portfolio Analysis

Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Performance Analysis Weaknesses
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Performance Analysis Weaknesses
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Performance Analysis Strengths
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Performance Analysis Strengths
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Performance Analysis
With the use of MINISIM
Allocated 29,970,000 in RD!
Strategic AnalysisPositioning
StrategyProduct Portfolio Analysis Tactical
Marketi
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Portfolio Analysis
Strategic AnalysisPositioning
StrategyProduct Portfolio AnalysisTactical
Ma
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Closing the Strategic Gap
Strategic AnalysisPositioning
StrategyProduct Portfolio AnalysisTactical
Mar
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Positioning Strategy
Target Market Achievers
Current Position Low Priced, Very High Value
Positioning Strategy Premium Product, Maintain
Highest Quality
Positioning StrategyProduct Portfolio
AnalysisTactical Marketing Plan
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Positioning Strategy
Target Market Actualizers
Current Position Lowest Priced, Very High Value
Positioning Strategy Maintain Low Prices,
Maintain Highest Quality
Positioning StrategyProduct Portfolio
AnalysisTactical Marketing Plan
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Positioning Strategy
Target Market Experiencers
SSL WHICH REGION??
Current Position Lowest Priced, Very High Value
Positioning Strategy Premium product, Maintain
Highest Quality
Positioning StrategyProduct Portfolio
AnalysisTactical Marketing Plan
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Product Portfolio Analysis

• Check Internal Balance
• Look for Trends
• Evaluate Competitors
• Consider Other Factors
• Develop Alternative Target Portfolios
• Check Financial Balance

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Internal Balance Strength of Diversified
Portfolio

• Weak Diversified Portfolio
• Consists of
• 1 sick star
• 2 healthy problem children
• 6 healthy dogs
• Lack of cash cows
• Majority of brands are not leaders

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Internal Balance WAGR vs. MSGR
MSGR (36.60) gt WAGR (1.02)
36.60
1.02
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Internal Balance Normative Position of Brands

• Consistent Brands
• Only SBUs that are in their ideal position
  (gainers) on the GGM
• CVE region 2 ? Sick Star ? Gainer
• SSL region 2 ? Healthy Dog ? Gainer

0
29
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Trends Normative Position of Brands

• Inconsistent Brands
• Building Share Offensive Strategy
• Should be positioned as gainers on the GGM

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Trends Ideas for Improvement

• Gain leader brands
• TST region 2 ? Cash Cow
• SSL region 3 ? Star
• Push sick star (CVE region 2) into healthy
  position
• Increase growth to reach MSGR
• Improve normative consistency

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Positive Trends

• CVE region 2
• Gained RMS
• IGR grew

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Negative trends

• Primarily due to change in strategy
• TST region 1 ? largest loss in RMS
• SSL region 2 ? second largest loss in RMS

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Change in Normative Position of Brands
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Ideas for Improvement

• Increase RMS for all SBUs (possible because
  Prism no longer has substantial debt)
• Regain brand loyalty
• Regain leadership positions
• TST region 1? currently healthy dog? potential
  cash cow
• SSL region 3? currently healthy dog? potential
  cash cow

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Evaluate Competitors
Quest Entertainment
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Evaluate Competitors
Static Analysis

• Strong Diversified Portfolio
• Consists of
• 3 cash cows
• 3 healthy dogs
• 3 healthy problem children
• Follower brands are healthy relatively small
• Maintain 3 cash cows

Strength of Diversified Portfolio
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Static Analysis
WAGR vs. MSGR
WAGR (6.978) gt MSGR (5.16)

• Slightly overextending themselves
• Long term? negative implications

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Dynamic Analysis
Positive Trends

• Largest growth in RMS
• SSL region 3
• SSL region 1

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Dynamic Analysis
Negative Trends

• TST region 3? largest loss in RMS
• CVE region 1? second largest loss in RMS
• IGR increased for both

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Evaluate Competitors Normative Position of Brands
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Insights Derived

• Holds the strongest position
• Dominates SSL industry
• Manage growth well (WAGR vs. MSGR)
• Not managing resources well (majority of SBUs?
  normatively inconsistent)

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Ideas for Improvement

• Gain leader brands
• TST region 2 ? Cash Cow
• SSL region 3 ? Star
• Push sick star (CVE region 2) into healthy
  position
• Increase growth to reach MSGR
• Improve normative consistency

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Trends Ideas for Improvement

• Increase RMS for all SBUs (possible because
  Prism no longer has substantial debt)
• Regain leadership positions
• TST region 1? currently healthy dog? potential
  cash cow
• SSL region 3? currently healthy dog? potential
  cash cow

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Consider other factors
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Consider other factors
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Consider other factors
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Develop a Target Portfolio
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Develop a Target Portfolio
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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• Build shares for TST 2 CVE 2
• Divest CVE 1 SSL 2
• Advertising budgets
• Research and development expenditures

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Strategies
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Strategies
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Check Financial Balance

• Proforma cash flow analysis
• Adjustments

Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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CASH FLOW STATEMENT (in thousands of )
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Adjustments
Product Portfolio AnalysisTactical Marketing
PlanEvaluation and Control Mech
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Tactical Marketing Plan

• Target Market
• Product Strategy
• Pricing Strategy
• Promotion Strategy
• Distribution Strategy

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Target Market

• Demographics
• Psychographics
• Characteristics
• Needs, Wants, Purchases Motivations, Benefits
  Sought
• Media Behavior, Activities Behavior, Purchase
  Behavior, Usage Behavior

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Actualizers
Tactical Marketing PlanEvaluation and Control
Mechanisms
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Actualizers
Tactical Marketing PlanEvaluation and Control
Mechanisms
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Actualizers
Tactical Marketing PlanEvaluation and Control
Mechanisms
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Product Strategy
Tactical Marketing PlanEvaluation and Control
Mechanisms
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Levels of Product
Warranty on parts, Support Center
Prism Brand name, Quality, Easy-to-use
Potential Product
Augmented Product
Expected Product
Basic Product
Core Product
Video Editor
Convert Analog to Digital, Edit videos
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Shopping Product
Tactical Marketing PlanEvaluation and Control
Mechanisms
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Product Life Cycle
Tactical Marketing PlanEvaluation and Control
Mechanisms
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Brand Equity
Tactical Marketing PlanEvaluation and Control
Mechanisms
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Product Modifications

• Online capabilities
• Cellular phone capabilities
• Special effects options available
• DVD output
• Smaller dimensions
• Integrated voice technology

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Packaging

• Silver and Metallic colored box.
• Artistic Font for Studio 1 label.
• Rapid fill air-filled packaging
• Flexible handle attached to box

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Warranty Support Services

• One year warranty that covers
• Manufacturing defects
• Labor
• 1-800-799-2978
• Eastern Standard Time, Monday through Saturdays.

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Store Ambiance

• Steven Spielberg life-size poster board
• Studio 1
• Red carpet
• Hollywood sign in the background
• Spotlights

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Pricing Strategy
Tactical Marketing PlanEvaluation and Control
Mechanisms
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Pricing Strategy

• Discount pricing 409
• Demand elastic relative to price
• Terms of payment
• Consumers
• Cash OR Credit
• Wholesalers/Retailers
• Accounts payable
• Allowances
• and discounts
• 2/10 Net 30

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Pricing Strategy

• Promotions
• Bundling
• Rebates
• Discounts
• Bulk purchases
• Seasonal holiday sales

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Promotion Strategy
Tactical Marketing PlanEvaluation and Control
Mechanisms
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Push and Pull Strategy

• Push Strategy
• Sales force
• Trade promotion
• Pull Strategy
• Advertising
• Consumer promotion

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Trade Shows

• Showcase the Studio 1
• Offer coupons and discounts
• Answer any questions that consumers might have.
• Demonstrate the product features and benefits.
• Stimulate demand

Tactical Marketing PlanEvaluation and Control
Mechanisms
110
Trade Shows Contd

• ElectronicaUSA
• March 29, 2004
• San Francisco, CA
• Tech Expo
• November 18, 2004
• Las Vegas, NV

Tactical Marketing PlanEvaluation and Control
Mechanisms
111
Celebrity Endorsements

• Steven Spielberg
• Quality
• Professionalism
• Cutting-edge
• Success

Tactical Marketing PlanEvaluation and Control
Mechanisms
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Television

• Major news channels
• CNN
• Fox News
• Major network channels
• ABC
• NBC
• Cable
• Discovery Channel

Tactical Marketing PlanEvaluation and Control
Mechanisms
113
Radio

• Classical
• KCME FM 88.7 (Denver)
• WMFE (Orlando)
• Traditional Jazz
• LSR Radio Dallas (Dallas)
• KHMX 96.5 FM (Houston)

Tactical Marketing PlanEvaluation and Control
Mechanisms
114
Magazines Newspapers

• Conde Nast Traveler
• The New Yorker
• Wall Street Journal
• New York Times

Tactical Marketing PlanEvaluation and Control
Mechanisms
115
Distribution

• Medium length, selected distribution
• Best Buy, Circuit City, and Sears who account for
  50 of retail consumer electronics in US
  (Dealerscope 2000)

Prism
Wholesaler
Retailer
Consumer
Tactical Marketing PlanEvaluation and Control
Mechanisms
116
Distribution contd

• Internet
• Actulaizers are the highest internet users
  (Gorriz, 1996)
• Company website www.Prism.com
• Direct home shipping
• Pick-up option

Tactical Marketing PlanEvaluation and Control
Mechanisms
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118
Evaluation of Control Mechanisms

• Setting goals/benchmarks
• Quarterly review of goals to adjust strategies
• Periodic reports
• Sales
• Performance
• Costs
• Control procedures
• Set goals
• Monitor performance
• Compare actual with goals
• Performance monitoring procedures
• Regression analysis
• Product Portfolio Analysis

Evaluation and Control Mechanisms
119
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