Data Analytics Simulation

Strategic Decision Making

Karthika Asha Warrier

PGPBL0147
 Snapshot of 2 distinctly different rounds

Round 1: Focus Strategy

Segmentation based strategy followed.

Market Share increased from 11% (2018) to 22% (2022)
Cumulative Operating Profit: $253.1M
Increased total demand from 3.2M in 2018 to 7.6M in 2022

Round 4: Cost Leader Strategy

Price based strategy followed.

Market Share increased from 11% (2018) to 36% (2022)
Cumulative Operating Profit: $280.3M
Increased total demand from 3.2M in 2018 to 10.7M in 2022
 Round 1 – Focus Strategy
In this round, focussed on a specific target customer segment where Blue was doing well and focussed on
being the market leader here:

● Income: Under $20,000

● Household size: 4+ members
● Region: Southeast, Central, West (regions where demand was growing)
● Age: Under 44
● Focussed on increasing the brand demand in these regions of this specific segment
● More than doubled the brand demand From 5.9M in 2018 to 12.6M in 2022 in the target segment
● For this segment, formulation: pods was preferred. So focussed on pods for all 4 years
● Media consumed by this younger segment was highest through Digital Ads followed by Radio and TV,
so distributed 45% on digital Ads; 25% each on Radio & TV; Rest on Print.
● Odour elimination was most in demand brand attribute so focussed on it for 2020-2022 years. Social
media reactions also supported this data insight.
● Convenience was identified as the top trade channel followed by club so distributed accordingly.
● Price point demand was less than $5. However to keep good operating margins, kept the price at $6 in
years 2019-2021. Since store was further reducing the price, in year 2022, reduced the price to $5 and
increased production more than 30% of forecasted demand anticipating taking over market share from
Store which worked well.
● Main competitor identified: Store
Captured more than 60% market share in 2022 in the focused
target segment from less than 40% in 2018
Produced higher than
forecasted predicting higher
demand by capturing Store
Market Share and to gain
better operating margins

Focused on Convenience as
per data explorer insights for
the target customer.

45% of media spend on

highest media consumed by
the target segment.
 2019
01 Good year for Blue.
Good growth in a year
02
when the revenue of all
competitors declined.
2021
03 Bad year for Blue.
Revenues were not high as
04
expected. Inventory left
over. Demand prediction
went wrong.
2020
Excellent year for Blue.
Revenues shot up and
captured significant
market share.
2022
Mediocre year for Blue.
Slight increase in
revenues and demand
prediction paid off. Was
able to sell off the excess
inventory.
 - Main focus was to capture a specific market. By putting
all media and trade channel spending into a specific
SUMMARY target segment was able to capture the market
sentiment of the targeted segment tailored to their
needs.

- Past data was an important driver in decision making as

it gave a picture of what worked with what audience and
what did not. Past data helped shortlist 2 specific
strategies of focus and cost leadership.

- Demand was forecasted using the forecast tool.

However predicting the market we intend to capture by
taking decisions, demand was increased based on
intuition rather than data.

- Social media helped give a picture of the decisions we

make, and how it affects the public sentiments.
Although this data did not factor into future decision
making, it was used to validate already taken decisions.
 Round 4 – Cost Leader Strategy
In this round, did not do a target segmentation. Entire market was considered for sale of Blue. Strategy
followed was to be the ow cost provider in the mass market, by bulk producing so that margins are maintained.

● Focussed on providing low cost pods to mass market.

● More than tripled the brand demand From 3.2M in 2018 to 10.7M in 2022
● Entered into a price war with Store for market share.
● Media consumed by mass market was highest through Print followed by TV and Digital Ads, so
formulated media spends accordingly.
● Odour elimination was most in demand brand attribute so focussed on it for 2019-2022 years. Social
media reactions also supported this data insight.
● Convenience & Club was identified as the top trade channels almost equally.
● Price point demand was less than $5. However to keep good operating margins, kept the price at $6 in
years 2019. Since store was further reducing the price, entered into a price war with store and kept
reducing price of $0.50 every year. This cut into operating margins, but was able to capture market
share and higher revenues.
● Main competitor identified: Store
Captured market share of 35.5%. Almost equivalent to
Turbo in the entire market.
Produced higher than
forecasted predicting
higher demand by
capturing Store Market
Share and to gain better
operating margins

Focused on Convenience
& Club as per data
explorer insights for the
target customer.

45% of media spend on

print and TV:
2 of the highest media
consumption by the
mass market.
 2019 2020
01 Excellent year for Blue.
Revenues shot up and
02 Good year for Blue.
Revenues remained
captured significant high and captured
market share. good market share.

2021 2022
03 Bad year for Blue.
Revenues fell so did op
04 Mediocre year for Blue.
Increase in revenues not
margins. Inventory left as expected & demand
over. Demand prediction prediction paid off. Was
went wrong. able to sell off some
excess inventory.
 - Main focus was to steal market share from Turbo and
become market leaders in the detergent market. By
SUMMARY focusing on price sensitive market, Blue was made the
go to detergent for the mass market.

- Past data was an important driver in decision making as

it gave a picture of what worked with what audience and
what did not. Past data helped shortlist 2 specific
strategies of focus and cost leadership.

- Demand was forecasted using the forecast tool.

However predicting the market we intend to capture by
taking decisions, demand was increased based on
intuition rather than data.

- Social media helped give a picture of the decisions we

make, and how it affects the public sentiments.
Although this data did not factor into future decision
making, it was used to validate already taken decisions.
— THANK YOU