Aristocrats - Markstrat Story

Team Organization . 1

Line of Attack . 2

Product Life Cycle. 3

Strength n Weakness. 4

Consumer Satisfaction Criteria. 5

Four P’s Implementation. 6

Mistakes n Lesson’s learnt. 7

Future of the firm. 8

Agenda

Team Organization

Final Decision

Prod

uctio

nR&D , A

dvertisi

ng Perc

eption, Price

Advertising Budget, Sales

Targeting Specific Segments

Early Entry to Vodite market

Line Of Attack

Massacre of Low Performers

Shift of Focus from R&D to Marketing and Sales

Line Of Attack

Period =1

SAKE SAFE

-Hiearners-Pros-Buffs

-Buffs

Product Lifecycle

Period =3

SAKE

-Hiearners-Pros-Buffs

Product Lifecycle

Period =4

SAKE

-Hiearners-Buffs

VAVA

-Innovators-Adopters

SAGE

-Singles

Product Lifecycle

Period =7

SAKE

-Hiearners-Buffs

VAVA

-Innovators-Adopters

SAGE

-Singles

VAFT

-Followers

Product Lifecycle

Strengths

Product Engineers

- Ideal Products

SAGE - Singles SAKE - HiEarners

VAFT - Followers

Strengths

Sales Team

-Maximum Sales

Valu

e in

M$

Strengths

Media Team

- Right Perceptions

Performance

Performance

Con

veni

ence

Con

veni

ence

Weakness

Pricing Strategy Product Price

VAFT $580

VOOM $610

VUDU $661

VUYU $700

Eco

nom

y

Economy

Competitor - Strengths

‘E’ and ‘O’ - access to High Budgets

‘O’ teamFirst Mover Advantage

Competitor - Strengths

‘E’ playing Twister in Sonites

‘U’ robbing from Vodite consumers

VUDU = $661 - 30% Market Share in 8thVUYU = $700 - LaunchedRevenue = $107,419Costs of Goods Sold = $40,494

Competitor - Weakness

0

37.5

75

112.5

150

A E I O U Y

Contributiuon After Marketing Across Markets

Sonite Vodite

Valu

e in

M$

Lack Of BalanceAcross Markets

Competitor - Weakness

Aggressive Production Planning

0

3500

7000

10500

14000

A E I O U Y

Inventory Holding Cost + Disposal Cost

Competitor - Weakness

Weaker Sales Force

Competitor - Weakness

Media Team - Missed Consumer’s Ideal Perceptions

Sonites

Vodites

Consumer’s Satisfaction Criteria - All 4Ps

Hiearners SinglesInnovators Followers

- Brand Awareness- Product Performance- Product convenience- Distribution Coverage- Price

- Cheap Product- Higher Power- Distribution Coverage

- Price- Higher Frequency- Distribution Coverage

- Cheap Price- Distribution Coverage

Comprehensive Distribution Coverage Excellent Adspend + Precise Positioning

Left Money on TableRight Product met Consumer’s Needs

4Ps- Implementation

(emphasis )

Tradeoff :conservative production Vs Inventory Costs

Accidental Mistakes

Huge bets on Product Development

(VAVA + Upgrade)(Missed MDS report)

Slippage of Perceptual Objective Values

Few Stock Outs

Late in Reducing base cost of VAFT

Lessons Learnt

“He did not marry her because he loved her”

“A good plan today is better than a perfect plan tomorrow”

Art Vs Science

Engineer Marketeer

Future of the Firm - Don’t Mess Up!!!

• Strengths

• Balanced Focus - Sonites / Vodites

• Flexibility to change strategy as market demands

• Strong Sales Force / Apt Advertising

• Weakness

• Emphasis on Pricing Strategies

Questions???