THE RACCOONS - INDUSTRY 2

MARKSTRAT
Chloe Salmon - Lina Lemrabet - Ariane Phan - Nathan Puthon
 SUMMARY
1 Marketing objectives

2 Analysis (SWOT / BCG Matrices)

3 Marketing strategies for Vodites and Sonites

4 Evaluation and control

MARKETING OBJECTIVES
SMART METHOD (SPECIFIC, MEASURABLE, AMBITIOUS,
REALISTIC, TIMED)

We want to :
Stand out in a well-established market, with several strong brands :
Sonites
And develop in an emerging market: Vodites
Achieve the highest Share Price Index (SPI) in the industry 2
Obtain at least 40% of the market share
 SWOT ANALYSIS IN ROUND 9

STRENGHTS WEAKNESSES
Leader in Sonites and Vodites markets Lots of production with Roots and Romba but not much
Highest Share Price Index (SPI) income.
2 brands in the 5 top selling brands in retail sales (Reign + Failure to keep REX and ROCK on the segments we targeted
Rex) at first (innovators and profs/high earners).
3 brands in the 5 top selling brands in volume (Roots, Reign, Only one Sonite brand targeting high incomes.
Romba)

OPPORTUNITIES THREATS
Market forecasts putting Saver and Shopper categories as Team S' SPI is growing very fast
the fastest rising categories. More Vodite brands in the market, taking up market shares.
Competitors failed to properly target their goal categories in
Vodite industry.
 BCG MATRIX SONITES
P0 P0
RELATIVE MARKET SHARE

HIGH LOW

MARKET GROWTH RATE

ROCK ROLL

HIGH
LOW
 BCG MATRIX SONITES
P1 P0
RELATIVE MARKET SHARE

HIGH LOW

MARKET GROWTH RATE

ROCK ROLL

HIGH
LOW
 BCG MATRIX SONITES
P2 P0
RELATIVE MARKET SHARE

HIGH LOW

MARKET GROWTH RATE

ROCK

HIGH
LOW
 BCG MATRIX SONITES
P3 P0
RELATIVE MARKET SHARE

HIGH LOW

MARKET GROWTH RATE

HIGH
ROCK

LOW
 BCG MATRIX SONITES
P4 P0
RELATIVE MARKET SHARE

HIGH LOW

MARKET GROWTH RATE

HIGH
ROCK ROOTS

LOW
 BCG MATRIX VODITES
P5 RELATIVE MARKET SHARE

HIGH LOW
BCG MATRIX SONITES

MARKET GROWTH RATE

RELATIVE MARKET SHARE REX

HIGH
HIGH LOW
MARKET GROWTH RATE

HIGH

LOW
ROCK ROOTS
LOW
 BCG MATRIX VODITES
P6 RELATIVE MARKET SHARE

HIGH LOW
BCG MATRIX SONITES

MARKET GROWTH RATE

RELATIVE MARKET SHARE REX

HIGH
HIGH LOW
MARKET GROWTH RATE

HIGH

LOW
ROCK ROOTS ROMBA
LOW
 BCG MATRIX VODITES
P7 RELATIVE MARKET SHARE

HIGH LOW
BCG MATRIX SONITES
REX

MARKET GROWTH RATE

RELATIVE MARKET SHARE REIGN

HIGH
HIGH LOW
MARKET GROWTH RATE

HIGH

LOW
ROOTS
ROCK ROMBA
LOW
 BCG MATRIX VODITES
P8 RELATIVE MARKET SHARE

HIGH LOW
BCG MATRIX SONITES

MARKET GROWTH RATE

RELATIVE MARKET SHARE REIGN REX

HIGH
HIGH LOW
MARKET GROWTH RATE

HIGH

LOW
ROOTS
ROCK ROMBA
LOW
 BCG MATRIX VODITES
P9 RELATIVE MARKET SHARE

HIGH LOW
BCG MATRIX SONITES
REX

MARKET GROWTH RATE

RELATIVE MARKET SHARE REIGN

HIGH
HIGH LOW
MARKET GROWTH RATE

HIGH

LOW
ROOTS
ROCK ROMBA
LOW
MARKETING STRATEGY SONITES: targeting
SAVERS WITH ROOTS SHOPPERS WITH ROMBA
Towards the 3rd period, we decided to shelve our With the same strategy as ROOTS, we
brand ROLL which wasn't correctly placed in the decided to target another high growing
market and not a great source of revenue. Thus, segments: shoppers. Once again, we
based on market forecasts, we decided to launch calculated what characteristics would be
an R&D project, to specifically target Savers, that
needed thanks to semantic scales, but also
were predicted to be the highest growing
the Markstrat handbook, which indicated
segment. Thanks to semantic scales, we were able
to calculate which characteristics Savers seeked, what kind of consumers each segment was.
and copied them, so we could fulfill their needs. In this case, they were described as price
sensitive, looking for high quality-price ratio,
and average levels of convenience and
PROFESSIONALS WITH ROCK performance.
Rock was one of our two original brands. It had always been quite
popular, and targeted towards higher incomes. At first, we focused
our marketing and price setting between High Earners and Profs,
but we noticed, thanks to Perceptual Scaling that our brand was
drifting towards Profs, so we decided to focus on them.
MARKETING STRATEGY VODITES: targeting
INNOVATORS WITH REX
The Markstrat handbook stated that
Innovators are usually the first to try
Vodite products, and have above
average incomes. Thus, we decided to
target our first Vodite brand at them.
The project was expensive, but totally
worth it. As for other brands, we tried
to determine their needs and ideal
values thanks to semantic scales, and
made calculations to be exactly on
their level of expectations.
FOLLOWERS WITH REIGN
Even though this segment of consumers is
known to have a below average income,
they were expected to be the largest group
of consumers according to market
forecasts. Hence, it was essential for us to
launch a second Vodite brand directed at
them. We kept the same strategy as the
other brands, and made calculation to
match their expectations. This targeting
was also pretty successful, according to
the following semantic scales.
MARKETING STRATEGY SONITES: Positioning

ROOTS
For people who do not necessarily
need a high quality product and do not ROMBA
spend a lot of money on it Good value for money
Cheap product Average quality of both performance
Low-performance and convenience
Sold principally in mass merchandiser

ROCK
High quality and high performance products that are easy to us
For people who are looking for a high quality product and are
willing to pay whatever the price is
MARKETING STRATEGY VODITES: Positioning
REX
New brand in a brand new
emerging market
Products that are good quality
and good performance with a
high level of resolution
Suits for curious people who
wants to test new electronic
products
REIGN
In an emerging market with
some established brands
Brings newness and good
quality product with a high
energy efficiency
Not too expensive
EVALUATION AND CONTROL
COMPARISON OF RESULTS AND OBJECTIVES AND
EXPLANATION OF MAIN DECISIONS (1)
We quickly dropped the Roll product. Indeed, it was poorly positioned but still quite similar to Rock
and way too expensive. Looking back, it was a good decision.

Throughout the whole game, we kept increasing Rock's price by 10-20 $ per round and its production
by 20k-30k units. This was a real strategic advantage as we made a great profit on this product.

Furthermore, we quickly launched a Vodite R&D project because we knew that this was the way to
gain market share and profit, since having a monopoly is really beneficial. We were a bit too
ambitious as we launched a new Sonite R&D project + the Vodite being really expensive, we weren't
able to complete the R&D for the next round, thus lost one round for the launch of our Vodite product.

Once we launched our Vodite, we entered a market that was already penetrated by one product but
with a really tailored positioning on innovators, we gained a large majority of the market share, which
we kept until the final round: 43% period 9.
EVALUATION AND CONTROL
COMPARISON OF RESULTS AND OBJECTIVES AND
EXPLANATION OF MAIN DECISIONS (2)
When we launched our new Sonite product, which was intended to target Savers, we gained market
share.
Then we launched a new Sonite to target Shoppers. This was a mistake because it was done too late
(Period 6) and the Shopper segment was already intensely targeted. Moreover, the price had to be
quite low and since we weren't selling the most, we were making a very poor profit and we started
getting a little inventory.

In parallel, we launched a new Vodite to target Followers, which are influenced by Innovators and our
Innovator product was performing well. It had some trouble at first since we were too ambitious with
production, but it ended up working well.

Throughout the game, we always stayed really high in terms of marketing expenses, 3M-4M $ but we
were quite low in terms of commercial teams: average 900k per product in Sonite and Vodite.
 DECISIVE PERIODS

Period 1
Period 2
 DECISIVE PERIODS

Period 4
Period 5
 DECISIVE PERIODS

Period 6
Period 7
PERSPECTIVES FOR THE FUTURE OF THE COMPANY:
RECOMMENDATIONS TO SUCCESSOR

Care about targeting

Invest in Vodites! Keep it premium and positioning
WHAT DID WE LEARN DURING THE GAME? (CHRONOLOGICALLY)

Dropping underperforming brands

Investing big and investing early

The first mover advantage

Pricing strategy

Diversifying the portfolio

It is all about good targeting and perception