goal

Maximize SPI

Sonite characteristics

Processing power, display size, Design index, Battery life, features

Base Cost

the cost at which each unit will be produced based on an initial production batch of 100,000 units

Do vodites take over the demand from sonite products?

no, demand is independent.

Vodite characteristics

Resolution, energy efficiency, carbon footprint, connectivity, apps.

Explorers (S)

knowledgeable, among the first to use sonite products, looking for high performance, less for
convenience, are price-sensitive.

Shoppers (S)

good knowledge of marketed brands and do extensive product comparison. High quality to price
ratio. Av. levels of performance and convenience.

Professionals (S)

High quality, high performance, and easy to use products. can afford expensive products and often
view price as an indication of quality

High earners (S)

high incomes, purchase partially motivated by social status. demand performance and convenience.

Savers (S)

cheap, low performance products with average convenience.

Innovators (V)

willing to try things with risk, high desire for an interest in vodites. higher than average income

Early adopters (V)

influence on other consumers is high, average income level

Followers (V)

see more risk in buying new products. income level is below average.

Average inflation rate

2%

economy growth

4%

physical characteristics and base unit production cost are defined by a project's

base R&D project

transfer cost should be reduced by __% each time the cumulative production of a product is doubled

15%

Channel discounts for mass merchandisers

10%

Channel discounts for online stores

5%

Share of voice

(own advertising budget)/(industry total advertising budget)

what is a high share of voice required for

successful new brand launch or repositioning

If objective is to increase or maintain awareness, should:

spend bulk of budget in media space purchase and only a small amount in research (4-8%)

If objective is to reposition a brand:

should spend significant park of budget in advertising research (10-15%)

on average, __% of total advertising expenditures are to advertising research

4%

Benchmarking study

to anticipate whether competition will launch new brands

Unit cost will increase if you try to _______________ of your products

reduce the carbon footprint

Feasibility studies

information: minimum base cost at which the product can realistically be manufactured, and the
budget required to guarantee its completion at the currently requested base cost

Online queries

information: estimate of the budget required to complete a project.

Usually over estimate as much as 15%

Due to the _______, manufacturing costs tend to decrease over time

experience effect

marketing budget is equal to

40% of the net contribution generated in the previous period

Varaiation between the production plan and the actual production is due to the automatic
adjustment of ___% depending on market demand

+- 20%

Industry Benchmarking study

General information from the annual reports about each of the markstrat competitors. Allows
comparison of competitive performance.

Sales, production costs, marketing expenditures and other expenses including R&D

Consumer survey

brand awareness, purchase intentions, shopping habit data for each consumer segment in the
market.

Consumer panel

500 consumers whose buying behaviour is believed to be representative of the entire market.
market share by consumer segment as well as industry sales in the product category.

Distribution panel

continuous tracking of product sales to consumers based on information gathered at the retail point-
of-sale.

Semantic scales

data based on semantic differential questionnaire. semantic scales corresponding to physical

attributes of products, show brand perceptions, ideal value and its evolution, brand maps and ship
between brand attributes and brand perceptions. for R&D study design

Multidimensional scaling

joint space configuration. gives perceptual maps, ideal position on the map. To decide on your
strategy

Competitive advertising

competitive advertising budgets of firms broken down by brand and consumer segment
Competitive commercial team

estimates the size of competitive commercial teams by firm, brand and channel.

Advertising experiment

increasing advertising budgets in a selected regional market - projecting the level of awareness and
market share that would be achieved nationwide by each brand with the same increase in
advertising and if competitive landscape remained unchanged. impact on brand contribution

Commercial team experiment

increasing the size of the commercial team in each channel in a selected regional market. project the
additional number of distributors and market share that would be achieved nationwide by each
brand with the same increase in commercial budget and if competitive actions have remained
unchanged.

Market forecast

estimates of expected market size in one period and 5 periods. whole market and individual
consumer segments.

Conjoint analysis

calculated the value attached by customers to varying levels of physical characteristics or price. to
validate findings in semantic scales and MDS, see if maximizing value/uility