Markstrat Paper

1866 Words Aug 22nd, 2013 8 Pages
MarkStrat Simulation Report Analysis for Firm A Market: SONITE Brand Names: SAKE and SAFE

Presented by:

Jessie Bawak Emmanuel Nkabyo Phillips Morkeith

George Kirk
Applied Marketing Instructor

Southern University Baton Rouge
May, 2013

MarkStrat Simulation Report Analysis
When our team assumed the control, we here given two products SAFE and SAKE in the SONITE market. The physical characteristics of the two products were already fixed. We were given the task of managing the two products in the SONITE market and come up with a marketing strategy that would lead to better performance by the products.
In period 1 the two products were different from each other in terms of Weight, Design, Volume,
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2. On the other hand revenues for SAFE were low with only 5500 units sold yielding inventory cost. The aim of this period is to rearrange our product portfolio to take advantage of the high demand for products with the characteristics of SAKE and remove the inventory cost associated with SAFE. 3. The aim was that rearranging our portfolio based on SAKE’s characteristics will increase sales and give us market share advantage over company I who dominated shares in this category. Actions taken: * We introduced a new Brand SAVE into the market which had similar and slightly better characteristics than SAKE but sold it at a slightly lower price (at $400) in other to exploit the perceived high demand for products with the characteristics of SAKE. * For advertisement, we spent $12000, the bulk of which was spent on SAKE and SAVE, 5500 and 5000 respectively to maximize on the demand for these brands. * We increased production for SAKE to 303,600 units and produced 120,000 units of SAVE but we reduced the production of SAFE as well as its advertising budget. * We positioned SAVE as a cheaper alternative of SAKE but with same characteristics since market forecast predicted a growth in “singles”, and “others” segment sizes that are attentive to characteristics but also watching out for prices. * We increased sales people for SAKE in specialty and departmental stores based on the

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