SUIT

VUCA VUAD

SULI

VUFO

SUSI

SUHI
SAHI

Board Of Directors

PGP-14-175 Arpan Goyal

PGP-14-010 Aseem Rohatgi
PGP-14-239 Zimi Surana
PGP-14-064 Shrey Datta
PGP-14-217 Sharel Fernandes

THE BEGINNING..
350000

Market share in %
18.5

11.9

19.6
16.4

12.2
21.3

SUSI

Third highest market capitalization and

net contribution.
Intense competition with E and U
companies.
Presence only in the Sonite market.
Decisions taken on Basis of

Sonite Products
Parameters

300000
250000

Stock Price
1000

16000
14000
12000
10000
8000
6000
4000

SULI

Volume sold
%

3.9

11.5

Retail sales %

2.4

14.1

Segment

Professionals

Others

Brand Purchase intentions

Brand Awareness
Perceptual Map
Brand Map
Industry Benchmarking Report
Distribution Coverage

200000
150000

Market Capitalization

Y
Net Profit

SUSI
Brand purchase intentions of Others is the
highest. Lower SUSIs price to compete with SIRO.
R&D SUSI to make it a better product
SULI

Best product in market preferred by

professionals.
Reduce SULIs price , to offer better product to
professionals at a lower price
New products launched
VUCA for innovators.
SUIT for singles based on our practice round

ANALYSIS OF PAST PERFORMANCE

25.00%

SUMMARY OF R&D PROJECTS

MARKET SHARE

20.00%

1.Major losses in market share in SUSI & SULI

due to stock-out.
2.Decline in market share of SUIT in R4 as no
R&D was carried out in R3.
3.SUHI has a strong competition in terms of
positioning from SAHI SEPP SYCA and hence was
withdrawn in R5

15.00%

10.00%

5.00%

0.00%
SUSI

SULI

R1

SUIT
R2 R3

SUHI
R4 R5

VUCA

R1

R2

R3

R4

R5

SUSI (Ot)

SULI (Pr)

SUIT (Si)

SUHI (Hi)

Kill

VUCA (Fo)

VUAD (Ad)

Round 1

VUAD

Round 5

2000

Stock Price vs Period

1800
1600
1400

1200

1000

800

600

400

200
0
P0

P1

P2

P3

P4

P5

Stock Price constantly increasing YoY.

Cumulative ROI is 1.24, which is second
highest.

Cumulative Total Net Contribution

COMPETITIVE ANALYSIS AFTER ROUND - 1

Segment

Brand

SYGU
Singles

SIBI

Market
Share

Price

29.2%

330

27.7%

Remarks

Hi Earners

Brand

Market
Share

321

Both of these
are quite far
from ideal point

Prof

Dept.
Stores

Mass
Merc

Buffs

70%

25%

5%

Singles

40%

40%

20%

Prof

50%

30%

20%

0.00%

HiEar

20%

50%

30%

Price

Remarks

-50.00%

Others

20%

40%

40%

Total

39.2%

36.8%

24%

350

250.00%

300

200.00%

250

150.00%

200

100.00%

150

50.00%

100
50
0
Buffs

SYCA

39.3%

550

SOLD

26.5%

510

Both of these
are quite far
from ideal point

Singles

Brand

Market
Share

Price

Remarks

SULI

40.4%

400

SOLD

20.9%

510

SEMI

17.9%

560

SULI is closest
to ideal point
on
performance,
however price
can be
increased

Demand Performance, Convenience &

Quality which is indicated by high price

Pros

Actual Size
this Peiod

Segment

Demand performance & convenience, have

high affordability
Segment

Specialty
Stores

Size of Segment vs Total 5 yr Growth

Price Sensitive, Avg. level of Convenience &

Performance demanded
Segment

Segment

Buffs

HiEarners

Others

Total Growth
in 5 years

Brand

Market
Share

Price

Remarks

SULI

25.8%

400

SONO

18%

370

Both SULI and SONO are quite far away from

ideal point

Demand High Performance & Economy. Less concerned about Convenience

Segment

Others

Brand

Market
Share

Price

Remarks

SAMA

28.1%

260

Both of these are quite far from ideal point

SIRO

21.9%

240

Demand Economy & Avg Convenience with Low Performance.

KEY STRATEGIES PURSUED

Focus differentiation:
Each brand focuses 100% on one segment
Eliminate the Buffs, just focus on Singles, Hi-earners, Pros,
Others and Vodite market
Continuous R&D to position the products at the ideal points
of respective segments
Perceptual advertising objectives to fine tune the
positioning

Pricing strategy: Perceived value pricing from regression

analysis and compare it with competitors pricing
Advertising media budget based on desired customer
awareness level, advertising experiment report and
competitor analysis.
For round 2 when market research reports are not
available, use cost plus pricing for VODITE market
Order all market research reports to assess the market
conditions properly for coming periods

Invest in advertising research to improve effectiveness of marketing effort approx. 7% of total communication expenditure. However
when a new brand is introduced or existing one is repositioned allocate 15-20% of marketing budget
Allocation of Sales force and Distribution: Ratio from Consumer survey report (Shopping habits) and actual number from competitor
analysis and available budget

Introduce VUCA to target Innovators. As innovators growth rate is

slowest, move to early adopters after few periods. Early adopters
are opinion leaders and helpful in advertising the new product to
followers. In the subsequent rounds VUCA was repositioned to
followers.
VUAD was introduced in Period 3 to target early adopters and not
innovators as its market size has decreased considerably vis--vis
early adopters and followers

Brand production level: Three cases worst case, base

case, and best case. Worst case = existing market share
1-2 %; Base case = Existing market share; Best case =
Existing market share + market growth rate. If
positioning, brand awareness and sales force distribution
is better than last year then use best case. Similarly
decide on base case and worst case.

MAIN ADJUSTMENTS MADE TO THE CHANGES IN THE ENVIRONMENT

Change in Environment

Adjustments made

1.

No product catering to Singles segment.

Introduced new brand SUIT

2.

Potential of earning a higher profit margin

from high earners.

Launched brand SUHI

3.

Low on marketing budget.

Withdrew brand SUHI as it earned marginal

profits

4.

Vodite product VUCA made less profits from

Innovators segment.

Reposition VUCA as a product for followers.

5.

Increase in competition and consumers

demand for better product.

Continuous R&D year on year for SUSI and SULI.

6.

Loss of market share of professionals to

competitors

Increase in spend on advertising and sales force

of SULI in period 5 and 6.

RECOMMENDATIONS FOR THE FUTURE - SONITE

SUSI- Others
R5
Purchase intention42%
Awareness- 55.1%
Well placed

SULI- Profs
R5
Purchase intention40%
Awareness- 69.1%
Well placed

Recommendations-Others growing at 17%

and 5 year growth is
expected to be 85%, so
dont lose grip on this
segment.
-This segment can be
used as cash cow- high
cash and high volumes
with low margin.
-Continuous R&D

Recommendations-Maintain 65+
awareness- more the
awareness better it is.

SUIT- Singles
R5
Purchase intention- 19.8%, Awareness- 61.6%, Well placed

Recommendations-Maintain position- cut throat competitive segment, 4 players with

20% market share
-Continuous R&D, close watch on competitors

-Keep an eye on SOLD

who is the market
leader with 48% share
-Pessimistic production
as Profs market is
declining by 27%

RECOMMENDATIONS FOR THE FUTURE - VODITE

VUCA- Followers
R5
Purchase intention36.2%
Awareness- 47.5%
Better placed than
competitor
Recommendations-Continuous R&D
towards ideal spots
-Adequate production
as it stocked out in last
2 years
-Keep on targeting
followers as followers
have 485% growth in
next 5 years and VUCA
has advantage over
new brands

VUAD- Adopters
R5
Purchase intention3.4%
Awareness- 21.5%
NOT placed well

Common Recommendations- VODITE + SONITE

-Keep products on ideal spots
-Follow one product one segment
-Can follow one segment more than one product
-Spend more on advertising, good product without advertising will
not sell
-Use competitive pricing

Recommendations-Continuous R&D to
bring the product to
ideal spots
-Increase spending on
advertising, competitor
spending 950 and 1350
as compared to ours of
350
-Slowly drift the
product to followers
segment as followers
have 68% of the
market demand

LEARNINGS
Learning from Markstrat
Be careful with the budget .

Dont throw products on customer face, instead identify their needs and design product
accordingly.

Learning for IM
Products improved by new
technologies
overtime have reduced cost and preferred by
customers.
Simulation is a very good tool for learning.

Customer is the KING. Always keep the customer in mind before making any decisions
customers requirements change in time and so should your product.
Number of advertisement does not matters, quality of advertising matters.
Good product positioning is required due to intense competition in the market.
Instead of targeting multiple segments , select few segments and focus on them.
Play one product segment one segment AND one segment more than one product.

Learning for Finance

R&D needs money and return on that money is
not guaranteed.
More the R&D more the production cost and
more the finance cost of loans taken for R&D.
How to take decisions in tight budget.

Stay away from price war. Cheaper products need not necessarily mean that they will be
preferred by customers.
Take decisions according to the life cycle of product.
Use market penetration technique during initial stages of life cycle of product.

Learning for Operations

Always coordinate with the marketing dept for
forecasting and capacity utilisation.
Keep marketing dept informed about cost of
production.
How harmful can be overstocking and under
stocking.

EXPECTED STOCK PRICE AND NET CONTRIBUTION

RegressionDependent variable- Stock price

Independent variablesContribution, market share &
R&D expenses
*As p-value of R&D expenses came out 0.18 so only
considering contribution & market share.

Both values less than the prescribed limit i.e 0.10

Taking two cases- best case and worst case scenario. Mainly it will depend on competitor decision that which scenario will
actually turn out. In best case, Stock price will be 2309 while in worst case it will not go below 1802.