NOV 1, 2020

GROUP 3

(TEAM SOMETHING)
DISCUSSION FLOW
GENERAL STRATEGY
RESOURCE ALLOCATION MATRIX
DUMMY LAUNCH
NICHE MARKETING
CRUCIAL
MULTI-BRAND APPROACH
THROWING MONEY
CONTRIBUTION OVER REVENUE TALKING POINTS
OUTCOME
KEY LEARNINGS
ADOPT SECOND MOVER
APPROACH WHEN IT CAME GENERAL
TO NUTRITES
Await concrete market data before entering
new market STRATEGY
Helps to reduce cost and minimizes risk

FOCUS ON CLINITES MARKET

WHILE WAITING FOR MARKET
DATA

Increase market growth before entry into

Nutrites market
STRATEGIES USED IN

CLINITES MARKET
 RESOURCE

ALLOCATION

MATRIX
DUMMY LAUNCH Launched the new brand name ahead of
R&D completion
Utilizes the best alternative base product
available
Minimal quantity produced to reduce
negative perception due to misaligned
attributes
Marketing allocation required per year
was minimized as it was spread over
time
Increased market presence while
product is in R&D
Strategy implemented successfully
multiple times
Due to all brands selling in the Affluent
Families segment adopting a multi-
segment approach, product attributes
were misaligned with segment
requirements.
Repositioned legacy brand Sing to mainly
target High Earners
NICHE
Introduced new brand Sift in Affluent
Families segment in the same round
While the strategy did not show much MARKETING
success in High Earners segment, Sift was
able to capture 31% segment market share
Sift was successful primarily because it
was closest to their attribute requirements
 MULTI-BRAND APPROACH

Thorough analysis showed High Earner Segment already targeted by existing

segment most lucrative market for new brand brand Sing
launch

Strategy was a success: Sign captured a

segment market share of 22% for a total
New brand Sign was launched in Round 5 of 34% for Somthing. It was harder to
with the same product attributes as Sing change perception of existing product
than to create required perception for a
new brand.
 Initially found advertising and channel
expenditure to be low for some brands
Increased advertising and channel
MAXIMUM
expenditure in round 4 due to cash influx
from loan
MARKETING Higher expenditure led to increase in
revenue by 31% but saw a 9.8% decrease in
net contribution margin
SPEND Abandoned strategy due to low
contribution margin
The marketing efforts probably went over
the ideal point and diminishing marginal
returns took effect.
 CONTRIBUTION OVER REVENUE

Adopted conservative approach to curb overspending on advertising and channel

expenditure after round 4

Correctly estimated the required budget allocation for advertising and channel
expenditure

Reduced budget to trade higher growth in revenue for a higher growth in

contribution margin

After successful implementation in Round 5, implemented even stricter

approach to budget allocation and avoided taking loan

Second attempt unsuccessful due to underestimation of marketing budget

required to sustain growth in the market
 OUTCOME

Successful in expanding presence in Due to the late availability of market data for
the Clinites market as evidenced by the Nutrites market, entry was found to be
a 19% market share and 5 brands unfeasible due to lack of time left for a second
across segments mover to be successful

Real world strategy we tried to replicate: Apple’s entry into mobile phone market

Awaited concrete market data before launching iPhone in 2007

Focused and improved on existing brands like Mac and iPod
Entered as late entrant and dominated the market
 KEY LEARNINGS

Alter and even abandon strategies based It is easy to overlook market conditions while
on market reaction riding on the successful implementation of a
strategy

While deciding on whether to terminate Make decisions by utilizing market research

a project, do not consider sunk costs, and data to its fullest.
only consider variable cost.

Take appropriate assumptions and Always have contingency backup plans

estimates wherever accurate data is not
available.
THANK YOU