Team Gameplan

Strategy Paper 1
By
Germany L (LEGOLAS)

Current Status & Market POSITION

$1,000

SPI
Revenue

Total Market Share

$45 Million

Volume

Value

20%

22%

Volume Market
Share
Value Market
Share

Lock

Loop
It positioned on high price product with high
quality and features which attracts
professionals and high earners

LOOP
Sonites

6.80%

13.50%

3.90%

18.20%

For period 0 company has 2 brand Lock

and Loop

Current Positioning of Brand

It positioned itself on low performance
product and economy which is ideal to
shoppers and savers

Market Shares
LOCK
Sonites

LOCK

LOOP

Sonites

Sonites

Recommended Retail
Price

$225

$520

Average Retail Price

$213

$505

Average Selling Price

$140

$322

SWOT Analysis for Loop

Strengths
1.Major brand revenue and
contribution
2.Zero inventory holdings and disposal
3.Segmented to professionals and high
earners
4.2nd top retail seller
5.Good brand awareness

Opportunity
1. Increase budget for research

advertisement

Weakness
1.

Less awareness in Explorer,

Shopper and Saver

Threat
1.Rock and Tone

SWOT Analysis for Lock

Strengths
1.Shoppers and Savers
2. Economy product

Weakness
1. Lowest awareness of all
Sonite brands

Opportunity
1. Increase of awareness in
other segments

Threat
1.Most and Solo

Marketing Objective
Short Term
Increasing sales and brand awareness of Lock
Increasing sales of Loop
Meeting the demand with least deviation(Reduce inventory
cost)

Long Term
Investing in Online distribution
Become leader in Loop brand for high earning and professional
segment
Become leader in Lock brand for shoppers and savers
segment
Investing in Research for Loop as well as Lock and improving

FINANCIAL Objective
Short Term
To increase SPI value by 20% by period 1
To increase EBIT by 15%

Long Term
To make LOOP as leading brand in market by optimizing
investment in feature advancement and research
advertisement and increase Retail sales revenue for product
loop up to $70 Million
To make LOCK among the top leading brand in market by
increasing the sales volume to its target customer and
increase retail sale revenue up to $25 Million

Period 1 Game plan and Intended Strategy

Initially from the data available we found out the percentage breakup of our
customer segment.

Then from market forecast data we calculated the forecasted growth for each
segment for next period.

Period 1 Game plan and Intended Strategy

Then we calculated the forecasted production based on growth percentage.

Therefore based on forecasted production plan we keep the LOOP production at

137000 (as there is no inventory) and LOCK production at 50000 (as we
currently have 23000 inventory) to optimize our inventory holding cost.
We did not change any pricing policy for both of the products as currently the
products are priced competitively in the market and depending on results of
Period 1 we will take decision on product pricing in the next round.

Marketing spending in various customer segments

Depending on the market share(unit-wise) of lock and
loop sales in different customer segments we assigned
the marketing spending to invest only for target
audience

Commercial team allocation for different channels

We analyzed from reports about share of different
channels for different customer segments and in
accordance to that we allocated members to different
channels in the commercial team
For Loop we decreased online staff to 8 as currently we
are not generating sales from there, we invested 12
staff members in mass merchandising as it presents
huge potential
For Lock we decreased online staff and increased
specialty stores and mass merchandising staff
members.

Contingency plan
Launch a new product with similar features of existing
leading product in other category
Adopt Value based pricing strategy

Thank you