MARKETING STRATEGY

NINJAS
By

Ashish Deomore (A015)

Srishti Basu (B058)
Vijaya M (B066)
Pooja Gosher (C040)
Sakshi Saraf (C047)
• Round 1 was pretty good as we stood 2nd in terms of SPI with the difference of only 3 points lesser
than Roareal. The production was little inadequate to meet the market demand.

• Round 2 – As we had good awareness and purchase intention among our target customers, we
reduced the advertising expenditure to approx. 36% which has led to reduced awareness and less
sales.

• Round 3 - Revenues had increased by 21.5% while earnings have decreased

by -11.8% because our costs were growing more rapidly than your revenues. Below is the split up of
the costs,
SPI (Ninjas)
• COGS (46.3%);
• Inventory (17130.6%); 1757 1796

1535 1548
• Advertising (64.6%); 1318
1380 1430 1405
1479

1157
• Commercial (54.1%); 1000

Accurate production planning is required on par with market forecast

and the segment growth which could have reduced our inventory levels.
Period Period Period Period Period Period Period Period Period Period Period
0 1 2 3 4 5 6 7 8 9 10
Period 1 to 5

Period 6 to 10
• Round 4 – The product NILE was launced at the right time targeting Affluent families and was a
market leader holding 50% share. A gap was identified during this phase to serve the affluent
segment which our competitors didn’t forecast.

Eg : The production plan set for NILE was too low (330k units). 396k units were produced and 2123k
units of potential sales have been lost.

• We ignored the R&D part for the products till Round 5, as a result of this our product NINE
targeting High earners couldn’t compete with the product characteristics of our competitors and
we hardly had 1.2% unit market share.

• R&D should have been a part of every round to enhance the product attributes as per the
requirements of the target segment.
• By the time we released about doing R&D for the project (Round 5), we had budgets in negative
as a result we got loan of 5M and also introduced the product NUON – Nutrite product. This was
probably the wrong time to introduce a product as our assumptions of acquiring more market
share backfired us with huge cost for advertising expenditure, merchandising and distribution
channel allocation in the later stages though the product acquired 40% market share on the year
it was launched.

• The budgets for advertising expenditure, merchandising and distribution channel were allocated
based on the target segment, but we targeted multiple segments.

For ex. NICE – concentrated on Singles, the allocation was Singles – 60% , Low income – 30% and
Med income – 10%. Targeting multiple segments were really not helpful as the brand attributes
could not match with the other segments.

So, from Round 6 we used 80:20 principle of targeting 80% on our core customer and the
remaining 20% in other possible segments. This helped in creating more brand awareness and
purchase intention.
• 2 R&D projects were done in Round 6, but were not used in the project due to budget issue which
has incurred us sunk cost.

• The product NUON was introduced to target Elderly and Families, the highest value of attributes
are taken among both the target segments, but due to the high attributes the focus got shifted
automatically to health conscious segment which was a declining segment in the future. We
thought of positioning the product which would appeal both the segments. As a result, we have
lost our dominant market share adding to the reason of more competitors product.

• The concentration was more on introducing new products rather than reaping the benefit out of
the existing products.

• Despite knowing the fact that Low segment grows more than 50%, we were not able to introduce
the product in that segment in the initial 6 rounds. We allowed others to cannibalize our market
share rather than we doing it with our own product.

• The product NINE – targeting high earners were not profitable but still we were holding the
product which incurred a huge cost. The product should have been withdrawn little earlier knowing
that the segment was unattractive rather than withdrawing in Round 8.
 Right product attributes with continuous R&D

Right production planning as per market forecast

Right Advertising and merchandising budget allocation

To have a successful
Marketing strategy Right target segment focusing exclusively

Right distribution channel

Right pricing

Right capability along with competitor analysis