STRATEGIC REFLECTION NOTE

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GROUP B21

Group B21: Mousami | Anishaa Goyal | Pradyot Pranav | Shashank Kaushik

The results of decisions taken in previous round
The decisions taken in previous round were as follows

Product LOOP: The product which was in Professional and High-earners segment has been the topmost
selling brand in terms of revenue with 106 million dollars in sales value. However, in terms of volume it
stands 6th, as it is a costly product and also the target segment is relatively smaller as compared to
savers and shoppers.

Product LOCK: As per the decisions taken in last round, we have noticed inventory leftover for LOCK this
period. The price was reduced to $205, which was intended to improve the perception of the product in
consumer’s minds.

The results were lower than our expectations resulting in inventory leftovers, it has been observed that
savers and shoppers both are buying TODDY, which was slightly better in quality as compared to LOCK
and hence we had done an R&D project to improve the quality of LOCK.

Product LORD: We had launched a new Sonite brand targeted at Shoppers to compete with TODDY.
However, we observed huge inventory leftovers of about 89% of the total production

Product LEGO: We had launched LEGO for mid-range consumers and priced it as $405 after market
correction. The brand is performing good with zero inventory leftovers

Product LEAN: We had launched another Vodite brand for Followers and its performance has relatively
improved from previous periods, however its incurring losses.

Product LEXA: Our Vodite brand LEXA is targeted at Innovators and Early Adopters and priced at $615
and is performing as per our expectations.

Key lessons learnt

We overlooked some key points due to which our products could not unlock their full potential and
reach top position in the market.

For LOOP (High-earners and Professionals category), we have noticed that performing targeted
advertising leads to better sales, hence we have tried to hold on to our strong position and focused our
marketing on Price and processing power.

For LOCK, we have observed that the consumers are shifting towards competitor brand TODDY,
although the reasons are unclear to us as of now.

For LEAN, we have again observed bottom line losses due to high transfer costs and marketing
expenditure.

For LORD, we have observed that the price was very high as compared to the competitor TODDY, hence
we decided to reduce the price in the current round

Why did you take the decisions you took in this round? What Is your strategy?
From the above analysis, we came to following conclusions which helped in our decision making:

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Product-wise strategy

LOOP: We have not done any aggressive forecast for sales this period and hence have taken only 12%
increase as per market forecast.

LOCK: We have improved our product quality and made it comparable to our competitor and also
increased our price to $210, and have taken moderately aggressive approach in terms of production
based on sales forecast.

LEAN: We have dropped from our brand portfolio, as it was incurring losses and cannibalizing sales of
our LEGO.