- What was your market share and SPI in period 1?
- Which consumer segments are likely to become the largest segments (units) on the Sonite market over the next five periods? (refer to Market Forecast)
Pick one of your own brandsto discuss the following:
3.1)Which brand did you pick?
3.2)Given your brand’s physical characteristics and price in period 1, what are the Brand Perception values? (refer to Semantic Scales to fill the table below)
Brand Perceptions
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#Features
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Design
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Battery
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Display
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Proc. Power
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Price
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3.3)Which segment(s) does your firm aim to target for this brand?
3.4)What are the Ideal Values on the product characteristics for yourtarget segment(s)?(refer to Semantic Scales to fill the table below; you may add rows if you have multiple target segments)
Ideal Values of your target segment
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#Features
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Design
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Battery
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Display
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Proc. Power
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Price
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3.5)Are there any gaps between the ideal values and your brand’s perceptions? If yes, what R&D projects are you considering launching? Would you launch it in the current period or a later period? Why?
1 COMPANY DASHBOARD – FIRM T - ALBATROSS – PERIOD 1 2 FINANCIAL REPORT – FIRM T - ALBATROSS – PERIOD 1 The financial statements of firm T published for Period 1 have been prepared on December 31st, Period 1 in accordance with International Financial Reporting Standards (IFRS), as adopted in the Markstrat world. Company Profit & Loss Statement The table below shows the evolution of firm T financial results in thousands of dollars, as well as the cumulative results since Period 0. Period 1 Period 0 Cumulative Revenues 44,770 38,339 83,108 Cost of goods sold -19,731 -19,539 -39,270 Inventory costs 0 -63 -63 Contribution before marketing 25,039 18,737 43,776 Advertising expenditures -4,000 -4,000 -8,000 Commercial costs -1,248 -1,224 -2,472 Contribution after marketing 19,790 13,513 33,303 Market research studies -505 -245 -750 Research and development 0 0 0 Loan capital reimbursed 0 0 0 Loan capital received 0 0 0 Loan interest paid 0 0 0 Exceptional cost or profit 0 0 0 Earnings before taxes 19,285 13,268 32,553 Brand contribution The table below shows a comparison of the net contribution generated by the brands marketed by firm T in Period 1. TONE TOPS Sonites Sonites Revenues 16,534 28,236 Cost of goods sold -6,391 -13,340 Inventory holding cost 0 0 Inventory disposal loss 0 0 Contribution before marketing 10,143 14,896 Advertising media -1,440 -2,400 Advertising research -60 -100 Commercial costs -624 -624 Contribution after marketing 8,019 11,772 3 Marketing results The section below provides key marketing results for each of your marketed brands Market Shares TONE TOPS Sonites Sonites Volume Market Share 8.7 % 7.5 % Value Market Share 5.9 % 10.3 % Market Shares TONE TOPS Sonites Sonites Volume Market Share 8.7 % 7.5 % Value Market Share 5.9 % 10.3 % Distribution Coverage The distribution coverage figures in the chart and table below represent the proportion of distributors who carry a given product. The report gives the information for each brand currently on the market. The number of distributors in each distribution channel is provided as well. TONE TOPS Sonites Sonites Specialty Stores 38 % 40 % Mass Merch. 39 % 39 % Online Stores 38 % 40 % Specialty Stores Mass Merch. Online Stores Number of distributors 10,000 6,000 1,000 Brand prices The table below shows the prices in $ of your marketed brands. The Recommended Retail Price is the price that you specified in your marketing mix decisions. The Average Retail Price is the average end-user price, taking into account the discount offered by distributors. Finally, the Average Selling Price is equal to the Average Retail Price minus the distribution margins. TONE TOPS Sonites Sonites Recommended Retail Price $250 $500 Average Retail Price $236 $485 Average Selling Price $156 $309 Loans and Budget Changes The left table below summarizes the loans and/or budget changes that were granted to your company by the instructor. The other table provides the past and future payments made by your company to reimburse the loans. The first column shows the reimbursement of the capital borrowed; the second columns shows the interests paid in the period; the third column indicates how much capital remains to be reimbursed at the end of the period. Budget increase (K$) Budget decrease (K$) Loan capital borrowed (K$) Loan Duration Interest rate (%) Period 0 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 4 Capital reimbursed (K$) Interest paid (K$) Capital remaining (K$) Period 0 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 5 PRODUCTION REPORT – FIRM T - ALBATROSS – PERIOD 1 The report below provides with information on production levels and production costs for each of the brands marketed in Period 1. Sales, Production and Inventory The chart below shows the units sold , the production level and inventory level for each of your brands at the end of Period 1. All numbers are given in thousands of units. The table below provides you with additional details such as planned production versus the actual one, and the inventory levels at the beginning and at the end of Period 1. All numbers are given in thousands of units. TONE TOPS Sonites Sonites Units sold 106 91 Production Plan (your decision) 110 100 Production 106 87 Inventory at beginning of period 0 5 Inventory at end of period 0 0 Unit Cost, COGS and Inventory Holding Cost The table below shows the unit transfer cost for each of your marketed brands. The “current“ unit cost is the cost of the most recently produced units, while the “average” unit cost takes into account the units that were in your inventory at the beginning of the period. Unit transfer costs are given in $; units sold in thousands of units. COGS (Cost of Goods Sold) are equal to “Units sold” x “Average unit transfer cost”. COGS are given in thousands of $. Finally, this table shows the costs incurred for holding your inventory (storage cost, cost of capital, …). Inventory holding cost is equal to: “Units in inventory” x “Average unit transfer cost” x 8%. It is given in thousands of $. TONE TOPS Sonites Sonites Current unit transfer cost 60 145 Average unit transfer cost 60 146 Units sold 106 91 COGS 6,391 13,340 Inventory at end of period 0 0 Inventory holding cost 0 0 6 R&D REPORT – FIRM T - ALBATROSS – SONITES MARKET – PERIOD 1 This report provides information on the activities conducted for your division by the R&D department during Period 1. Projects completed in Period 1 No projects have been completed in Period 1. Projects completed in past periods The projects listed below have been completed in past periods. The ones at the top are currently used as the production platform of one or several of your marketed brands. The ones in italic, if any, are either no longer used or have never been used to produce a brand. Available Since Features (1) Design (2) Battery (3) Display (4) Power (5) Current Minimum Cumulative Budget Platform of Brand POTONE Period 0 18 3 75 25 12 72 63 1,500 TONE POTOPS Period 0 13 8 40 40 75 166 148 2,500 TOPS (1) Features (Number of): From 5 To 20. (2) Design (Index): From 3 To 10. (3) Battery (Hour): From 24 To 96. (4) Display (Inch): From 4 To 40. (5) Power (GFlops): From 5 To 100. Projects partially developed in Period 1 You have no partially completed projects. Shelved projects You have no shelved projects. 7 R&D REPORT – FIRM T - ALBATROSS – VODITES MARKET – PERIOD 1 This report provides information on the activities conducted for your division by the R&D department during Period 1. Projects completed in Period 1 No projects have been completed in Period 1. Projects completed in past periods No projects were completed in past period. Projects partially developed in Period 1 You have no partially completed projects. Shelved projects You have no shelved projects. 8 DECISION REVIEW – FIRM T - ALBATROSS – SONITES MARKET – PERIOD 1 This report provides a review of the decisions made by firm T at the beginning of Period 1. Resource Allocation Overview The three charts below show how resources have been allocated across markets, functions and brands. All numbers are given in thousands of dollars. Brand Portfolio TONE TOPS Portfolio operation Maintained Maintained Base project past period POTONE POTOPS Base project this period POTONE POTOPS Marketing Mix TONE TOPS Production planning (in units) 110,000 100,000 Recommended retail price (in $) 250 500 Advertising media (in K$) 1,440 2,400 Advertising research (in K$) 60 100 9 Segmentation Strategy TONE TOPS Explorers 15 % 20 % Shoppers 35 % 10 % Profs 10 % 30 % High Earners 5 % 35 % Savers 35 % 5 % Perceptual Objectives TONE TOPS Dimension 1 Position 1 Dimension 2 Position 2 Commercial Team Size The table below shows the number of commercial people allocated to each brand in each channel during Period 1. TONE TOPS Specialty Stores 10 10 Mass Merch. 10 10 Online Stores 10 10 The two charts below show how your commercial team is allocated across channels and brands. All numbers are given in number of salespeople. Market Research Studies – Sonites Market The table below lists the market research studies purchased by firm T in Period 1, as well as the cost in dollars. Purchased Studies Cost in $ Industry benchmarking 31,250 Consumer Survey 62,500 Consumer Panel 104,000 Distribution Panel 62,500 Semantic Scales 10,500 Multidimensional Scaling 36,500 Market Forecast 20,750 Competitive Advertising 31,250 Competitive Commercial Team 15,500 Advertising Experiment 26,000 Commercial Team Experiment 36,500 Conjoint Analysis 36,500 10 DECISION REVIEW – FIRM T - ALBATROSS – VODITES MARKET – PERIOD 1 This report provides a review of the decisions made by firm T at the beginning of Period 1. Resource Allocation Overview The three charts below show how resources have been allocated across markets, functions and brands. All numbers are given in thousands of dollars. Market Research Studies – Vodites Market The table below lists the market research studies purchased by firm T in Period 1, as well as the cost in dollars. Purchased Studies Cost in $ Industry benchmarking 31,250 Consumer Survey 41,500 Consumer Panel 72,750 Distribution Panel 52,000 Semantic Scales 10,500 Multidimensional Scaling 36,500 Market Forecast 20,750 Competitive Advertising 31,250 Competitive Commercial Team 15,500 Advertising Experiment 26,000 Commercial Team Experiment 36,500 Conjoint Analysis 36,500 11 INDUSTRY DASHBOARD – FIRM T – PERIOD 1 - ALBATROSS Stock Market Period 1 SPI REV NC Cum. NC Roxwell 1,164 47 20 33 Lions 1,158 47 19 33 NASCOR 1,149 47 19 33 Supreme 1,130 46 19 32 TQJC 1,118 45 19 33 Mango 1,078 44 18 31 SPI: Share Price Index. Rev.: Revenues (million $). NC: Net Contribution (million $). Cum. NC: Cumulative NC (million $). 12 13 INDUSTRY INFORMATION – PERIOD 1 - ALBATROSS This report provides economic and costing data for the current period as well as estimates for the next period. Economic Variables Current Period Value Next Period Estimation GNP Growth Rate % 3 % 3 % Inflation Rate % 2 % 2 % Inventory holding cost per annum % Transfer Cost 8 % 8 % Loss incurred for inventory disposal % Transfer Cost 20 % 20 % Commercial people operating cost $ 20,808 21,224 Commercial people hiring and training cost $ 3,121 3,184 Commercial people firing cost $ 5,202 5,306 Market Research Costs All Markets Sonites Vodites Industry benchmarking 31,750 Competitive Advertising 31,750 31,750 Competitive Commercial Team 16,000 16,000 Conjoint Analysis 37,250 37,250 Consumer Panel 106,000 74,250 Consumer Survey 63,750 42,500 Distribution Panel 63,750 53,000 Advertising Experiment 26,500 26,500 Commercial Team Experiment 37,250 37,250 Market Forecast 21,250 21,250 Multidimensional Scaling 37,250 37,250 Semantic Scales 10