total sales sonite market total market profit
TRANSCRIPT
Industry 2 Firm EIndustry 2 Firm ESimulation PresentationSimulation Presentation
• Yunus PehlivanYunus Pehlivan• Fatih Furkan KAYAFatih Furkan KAYA• Mert OnayMert Onay
BRANDSBRANDS
• SEMISEMI
• SELFSELF
• SESSSESS
Total SalesTotal Sales
80231 81886 91364122287
155195192017
225881
319880
0
50000
100000
150000
200000
250000
300000
350000
$K
0 1 2 3 4 5 6 7
Period
Total Sales
Total Sales
Sonite MarketSonite MarketSonite Market
A; 35,0%
E; 45,6%
I; 1,8%
O; 9,0%
U; 8,6%
A
E
I
O
U
Total MarketTotal MarketTotal Market
A, 40,7%
E, 37,9%
I, 5,1%
O, 8,4%
U, 7,9%
A
E
I
O
U
ProfitProfit
14427171562031128809
454074934156925
76718
010000200003000040000
50000600007000080000
K$
0 1 2 3 4 5 6 7
Period
Net Contribution
Net Contribution
Overview of performance
- Increase in revenue by approx. 150 %
- contribution margin rose by 217 %
- growth in marketshare among target customers from 34.3% (P0) to 59.80% (P6) --> increase by approx. 75%
Marketshare among professionals in P6
Strategy
• Segmentation
o focusing on 2 segments Professionals and High Earnerso better understanding of customer needso fine-tune product offeringso more effective marketing
• Value vs. price decrease
o Target customer are not price sensitiveo Expect high-quality, high performance, easy to use products
offer value and no price decrease
Porter’s generic strategy
o SEMI focuses on Professionals and High Earner’so advertisement targets to 75% Pros and to 25% HiEarners
o Differentiation by fine-tuned products, good service
Focus
Salesforce
• Number of salespeople employed was always above average
• Periodical adjustment in accordance with growth of firm
• Concentration on specialty and dept. stores
• good service high revenue
Segmenting,Targeting,Positioning• Initially, targeting and the price strategy was
contradictory
• Allocating percentages largely over Buffs, Singles and Professionals.
• Ambiguous borders among the segments whose needs noticeably differ from each
sales price
550
480450 450
400 400 400
0
100
200
300
400
500
600
1 2 3 4 5 6 7
sales price
Segmenting,Targeting,Positioning
• Trying to be all things to all market • Current inventory rises• Frankly, we were not sure whether to divest the
brand or not. Maybe being profitable survivor? Why not exit?
• Though, considerable amount of the revenue was coming from our brand Self due to high price($550).
revenue
0
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revenue
Segmenting,Targeting,Positioning
• SWOT analysis
• Competitors: SIBA($350/$171) of I and Sono($300/$226) of O
• SELF($234/$400)
• Value positions? Performance, price and relational?
• Differentiation focus strategy
• Flanking Attack Strategy
Differentiation Focus• Following is the strategy, we have followed over
the course of the simulation
• Targeting solely concentrated over the Buffs who were shrinking in size (focusing on niches)
• Repositioned the brand with respect to their ideal points (attributes,MDS) .
sales in volume
4213555860 63150 57789
78260
103418120082
0
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40000
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1 2 3 4 5 6 7
period
volu
me
sales in volume
Market Share of SELF
12,4016,7
20,215,4
31,4
49,5
4,5 5,2 4,8 3,8 4,7 5,5 5,5
0,00
10,00
20,00
30,00
40,00
50,00
60,00
1 2 3 4 5 6 7
period
mar
ket
shar
e
Buffs
total
Contribution by brand Self
contribution margin
19272440
-662
1805 1957
4640
6026
-1000
0
1000
2000
3000
4000
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6000
7000
1 2 3 4 5 6 7
period
co
ntr
ibu
tio
n m
arg
in
contribution margin
What is SESS?
• SESS is the new brand of our firm.• It is a product which is targeted for the Singles segment.
• It had only one serious competitor.
• It was in the market for 3 periods.
Overview of performance
Strategy
Why Singles segment?
• Singles segment was fastly growing.• Only one brand to compete with.
Value vs. Price
• Not the cheapest but the optimal product.
• Creation of value through advertising.
• Distribution and sales force focused on mass merchandisers where Singles do their shopping.