calgolia case gamar overview (1)

7/31/2019 Calgolia Case GAMAR Overview (1)

1/19

CALGOLIA, Inc.

Written by Dr. William C. Johnson for the Wayne Huizenga Graduate School of Business and Entrepreneurship


2/19

2 CALGOLIA

A fictitious European company

3 product categories Ovadols

Squazols

Trizols 5 countries

United Kingdom

Poland

France

Germany

Italy

15 Operational Marketing Unitsaka OMUsaka SBUs

We will have only 8!


3/19

3SITUATION

Ms Sylvia Retchi, European Marketing Manager New to the job

What was the old way of doing business?

What issues are confronting her?

Answer:

Global allocation of marketing resources

Global standardization vs local adaptation of Product, Price,Promotion

Organization and application of peoples time


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4 CALGOLIASelected Marketing Strategy Issues

Allocation of Marketing resourcesManagement Time

Consumer Marketing

Trade Marketing

Global standardization vs local adaptation ofPricing

Product Specifications

Consumer Marketing

Trade Marketing

Organization & PeopleManagement Team

2 product categories4 countries


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5SITUATION

Greater international co-ordination wanted

10 year planning horizon

Goal:Maximize shareholder value (Share Price Index)


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6 CALGOLIALevels of Strategy Employed

Top level objectiveMaximize shareholder value (Share Price Index)

Portfolio Strategy Allocation of resources between

Products

Markets

Product Marketing StrategyMarket Segmentation

Product Positioning


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7 CALGOLIAMarketing Analysis & Strategy

MarketAnalysis

CompetitiveAnalysis

CompanyAnalysis

COUNTRIES

PRODUCTS


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8 CALGOLIAMarket Analysis

PRODUCTS

409Maturing6%

ModerateModerateLowModerate

5Stable17%

Strong13.9%No. 2

233High Growth14%

LowHighHighHigh

3Unstable15%

Strong18.9%No. 1

Ovadols Squazols

Current SizeStage in Life CycleLong Term Growth

In Product PurposeIn Consumer ProlfieIn Price LevelsIn Trace Demand

Number of Intl FirmsEvolutionMkt Share of Largest

ReputationMkt Share ($)Wwide Position

291Growth/Maturing10%

ModerateModerateModerateLow

4Consolidating13%

Weak7.5%No. 4

Trigols

CATEGORY SITUATION

DIFFERENCE BETWEENCOUNTRIES

COMPETITION

CALGOLIASITUATION


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9 CALGOLIAMarket Analysis

COUNTRIES

57MMediumHigh

2656%LowHigh

3615%High

LongEstablished12.3%No. 2

38MLowLow

11515%ModerateLow

12210%Low

EarlyEntry15.6%No. 1

UK POLAND

PopulationIncome LevelTrade Concentration

Current Size (M$)Long Term GrowthPrice SensitivitySophistication

Qty of Local FirmsQty of Intl FirmsMS of LargestPrice Pressure

History

Mkt Share ($)Overall Strength

57MMediumMedium

15210%LowHigh

7415%High


FRANCE

ECONOMICSITUATION

RELEVANTCATEGORIES

COMPETITION

CALGOLIASITUATION

81MHighMedium

21413%ModerateMedium

6317%Medium


GERMANY

58MMediumLow

18711%ModerateLow

9216%Low

RecentEntry13.5%No. 3

ITALY


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10 CALGOLIACompany Analysis-Marketing

PRODUCTS

13.9%46%46%

40%64%33%

9060

9012%

18.9%36%41%

35%62%33%

1540

3023%

Ovadols Squazols

Mkt Share (% of $)Revenue (%)CAM %

Marketing Resources (%)CM/Total Marketing (%)Management Priority (%)

Local Adaptation of:ProductConsumer Marketing

Trade MarketingPrice Variation (%)

7.5%18%13%

26%67%33%

4020

3019%

Trigols


11/19

11 CALGOLIACompany Analysis-Marketing

COUNTRIES

12.3%27%23%

30%65%

15.6%15%14%

14%64%

UK POLAND

Mkt Share (% of $)Revenues (%)CAM (%)

Marketing Resources (%)CM/Total Marketing (%)

10.4%13%11%

16%65%

FRANCE

14.6%25%29%

22%64%

GERMANY

13.5%21%23%

19%65%

ITALY


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12 CALGOLIACompany Analysis-Profitability

PRODUCTS

100%

60.4%

14.6%

8.1%

37.7%

100%

68.0%

15.9%

9.5%

42.6%

Ovadols Squazols

Revenues

Contrib Before Mktg (CBM)

Cosnumer Marketing

Trade Marketing

Contrib After Mktg (CAM)

100%

66.6%

25.6%

12.4%

28.6%

Trigols


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13 CALGOLIACompany Analysis-Profitability

COUNTRIES

100%

62.6%

19.1%

10.4%

33.1%

100%

60.9%

15.6%

8.9%

36.4%

UK POLAND

Revenues

Contrib Before Mktg (CBM)

Cosnumer Marketing

Trade Marketing

Contrib After Mktg (CAM)

100%

64.7%

21.7%

11.5%

31.6%

FRANCE

100%

65.6%

14.7%

8.3%

42.6%

GERMANY

100%

66.8%

15.4%

8.3%

43.1%

ITALY


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14 CALGOLIASummary of Analysis

Ovadols Nearly half of Revenues and CAM

Lowest growth opportunity

Highest level of local adaptation

Except for Price

Lowest Marketing intensity as % of revenue

Squazols Highest growth opportunity

Strongest market share position

Highest product standardization Highest consumer price satisfaction

Trigols (Not Applicable)Middle size and growth

Weakest market share position

Highest marketing intensity as % of revenue


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15 CALGOLIASummary of Analysis

Countries UK & Germany have largest size

Poland & Germany have largest growth opportunities

Price Pressures


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16 CALGOLIAGAMAR3 Simulation

SOME NUMBERS Budget

Between $45 MM and $150 MM

Consumer and Trade marketing

Management Time

360 Man-Months Fixed cost - not out of CAM

Unit Variable Costs (UVC)

$100 for Ovadols

$40 for Squazols

$60 for Trigols UVC Increase for Max Local Product Adaptation

30%

Max Price Differential

30% (between lowest & highest of same product)

Max Consumer or Trade Budget

$15 MM for a given product in a given country


17/19


18/19

18 CALGOLIAGAMAR3 Simulation-Assignment

Marketing Plan (3-5 pages) addressing: SITUATION

Brief overview:

Each product

Each country

PLAN In each area

What do you recommend (conceptually)

What is your rationale

Areas to address

Split between Consumer & Trade Marketing Pricing

Application of Management Time

Standardization vs Local Adaptation


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19 CALGOLIAGAMAR3 Simulation-Assignment

SIMULATION SCORES 5000+ = Excellent

4000 - 5000 = Very Good

3000 - 4000 = Good

2000 - 3000 = Satisfactory

Under 2000 = Unsatisfactory

GRADING Based on score (40%)

Based on plan (60%)

calgolia case gamar overview (1)

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