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TuChainzM510 MarketStrat Presentation
3/2 MBA Class of 2015
Agenda
▪ Our Mission, Initial Strategy, and Market Position
▪ Business Opportunities – Vodite & Sonite Brand
▪ Our Action: How we plan to take advantage
▪ Objectives: metrics – how we measure our success
▪ Forecast – what do we expect
▪ Risk & Mitigation
Product Leadership: Become the #1 in Sonites and Vodites market
We enjoy the kind of success that rewards our shareholders by becoming the top market leader.
Our Mission is to tailor our products towards high end market to position our brand as premium goods
– Portfolio Diversification: Bring to the world a portfolio of quality brands that anticipate and satisfy people's desires and needs.
– Every period, we are insatiably curious about our cus-tomers reaction to our goods and how we can further set the marketing mix, research, and commercial strategies. Our focus is to tailor towards specialty stores.
Our Initial Strategy was to R&D and launch TEEBO to serve customers with various needs
WE PRODUCE EXCEPTIONAL RESULTS
• Profit Maximization: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
Our Position maintained #2 in the SPI of 1762 with the highest cumulative net contribution of 108 millions
Our company products 3 out of top 6 best selling products in the market.
The Vodite sector provides TuChainz with an Opportunity to increase value through its First Mover Advantage
VODITE MARKETGrowthSegments
Product R’s dominance of the Professional segment allows for an Opportunity to re-gain Sonite market share
SONITE MARKETTeam Racks SpecsIdeal Professional Specs
PriceDesignIndex
DisplaySize
ProcessingPower
To take advantage of the opportunities presented, TuChainz will re-tailor TOPS towards Professionals and introduce a new Vodite product focused on Followers
Introducing PEONSTailoring TOPS
• Contribution Margin
Period 3 Average: $22.4M TuChainz: $45M
90th percentile Yes• Share Price Index
Period 3 Average: 1,380.80 TuChainz: 1,762
90th percentile Yes• Ending Inventory
Ending inventory levels below 5% of actual production
Profit
ProductCustomer
Objectives—Metrics: How do we measure our success?
• Customer Base
Does our actual customer base match our intended customer base?
Are our advertising efforts targeting our intended audience(s)?
Has our customer base increased from the previous year?
• Customer Satisfaction
Do Actual Purchase percentages for each product and customer base exceed Purchase Intention percentages? Yes.
Profit
ProductCustomer
Objectives—Metrics: How do we measure our success?
Objectives—Metrics: How do we measure our success?
Ending Inventory as a Percentage of Available Inventory*
*Available Inventory = Beginning Inventory + Actual Production
Distribution of TONE Customers
Advertising Expenditures Distributions
Explorers 9.44% 15%
Shoppers 8.97% 5%
Professionals 24.12% 35%
High Earners 55.78% 40%
Savers 1.69% 5%
Advertising Expenditures vs. Customer Distribution
Forecasts for Sonites to remain Stable, with high optimism for TEEBO to Dominate the Vodite Market• Sonites:
– Products TONE and TOPS revenues continue to increase, and sales figures will lead Sonite market within the next five periods
– Revenue Projections (000s):
– Contribution margin will also improve as COGS and marketing costs will decrease relative to competition
• Vodites:– First Mover Advantage
• Market share expectations/goals should be high moving forward (75% - 80%)
Risk Assessment/Potential BarriersRisk Threat Impact Mitigation Strategy
Achieve limited success in Sonite market as a result of placing too much emphasis on Vodite market entrance
Low High Continue to invest capital towards Sonite market through advertising, R&D, etc. Also, maintain brand image of delivering high quality to target market (professionals and high earners)
Prices in Vodite market will be undercut when others enter market, resulting in decreased market share
High Medium Place high emphasis on maintaining purchase intentions of customers. Ensure that enough output is produced to meet consumer demand so not to leave potential revenue market share on the table for others to capture
POWOW R&D efforts may prove unsuccessful/cannibalize TONE sales
Medium Medium Ensure to target professionals in marketing efforts as well as set a lower price to differentiate product from TONE