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MarkStrat Simulation Article Analysis

When our team assumed the control, we here given two products Soda pop and Single in the SONITE market. The physical characteristics of both products were already set. We received the task of managing both products in the SONITE market and come up with a marketing strategy that would lead to raised performance by the products.

The two products were different from one another in terms of Weight, Design, Volume, Frequency and Electric power. The Base cost for producing Single was almost three times that of SODA and in-turn the retail price of Single is double the retail price of Soda pop.

The market show of our team O was about 16. 6% in the SONITE market. Brand Soda pop was quite vulnerable among almost all of the customer segments using its highest customer section being 'others' with a market show of around 10. 7%. Brand SOLO was evenly sent out among all the client segments with key focus on HiEarners.

It looked that the merchandise features of Brand SODA were poorly matched with any of the customer segments whereas Brand Single matched interested most customer segments.

Seeing the level of involvement in Brand Single, the retail price for the brand was increased by 6%. Since Brand Soda pop wasn't appealing to the consumers, the client identified value was increased by lowering the retail price of the brand by 8%. Big money was put into R&D projects of the brands to comprehend the needs of the consumers and use the buyer insights in bettering the quality of the brands. A lot of money was allocated to the advertising mass media as well to be able to boost the awareness of the brand one of the users.

Owning to the initiatives taken for enhancing the grade of the merchandise and awareness about the brands, the marketplace share of Team O in Sonite Market increased by 16. 0%. The retail sales also increased by 44. 4%. The company was among the very best 2 in terms of Stock Index price. The cumulative net contribution also increased by 193. 2%.

During the 2nd period, we analysed that the brand SODA wasn't successful and there was little scope for the brand to regenerate. Therefore, we figured the brand must be sold and a fresh brand be launched. A fresh brand SOUP was launched in this era and the firm focused on two brands SOUP and Single. A whole lot of advertising was done for the brand SOUP specifically for concentrating on the buffs. Considering the target section for the newly launched brand, the merchandise was distributed closely at Speciality stores and Departmental stores. As brand Single increased its recognition among the target audience, the advertising expenditures on a single were reduced and relocated in to the advertising budgets of brand SOUP. The company looked after its 2nd position in conditions of the Stock price index even through the 2nd period. But the other firms slowly and gradually started finding and catching up with this firm using their Stock price index closing in.

During the 3rd period, a new product was launched by our company which was known as 'Track'. The brand new product was listed in-between SOLO and SOUP. But the product possessed a whole lot of basic cost with a relatively lower retail price. A lot of advertising was done for the recently launched brand 'Songs' especially for Singles. Departmental stores were targeted with majority of sales being focussed upon them. Some of the selling drive was changed from SOUP to Music. The period helped bring a lot of reduction for the company with the stock index price falling and other companies such as Team I and team A capturing the market with their competitive strategies.

Having lost a great deal of market show and insufficient consumer interests among the brands, brands SOUP and SONG were bought from period 4. This decision haunted us as we were left with only 1 brand to contend with the other companies in the market. SOLO shifted even closer to the HiEarners consumer portion and was sold majorly at Speciality stores and Departmental stores.

During period 5, three new products were launched particularly SOSI, SOHE and SOPR. SOSI was targeted at Singles and SOHE targeted HiEarners. SOPR got no focussed setting. The old brand Single was sold in this period owning to its decreasing market show. The unveiling of the new product and selling of the old products didn't make a difference to the stock price index during this period as the brands were new. Big money was spent to increase the consciousness about the new products by the method of advertising. The advertising budget was evenly distributed for all the three recently launched brands.

The three newly launched brands gave a positive impact on the stock price index and the gamble of introducing three services was apparently paying off in the period 6. The advertising expenses was increased even further for SOSI especially concentrating on the Singles. SOPR targeted Pros while SOHE targeted HiEarners. The sales force was evenly distributed for all your newly launched products and all were successful. There was a blunder at this stage of not releasing any new products in the Vodite market. The rival brands got already taken early mover's gain by introducing their brands in the new market. The market had been dominated by the other businesses plus they were starting to set up themselves well in the new market.

The reluctance in introducing a fresh product in the Vodite market haunted we dearly in period 7. The stock price index fell to the all time low with the company being among underneath performers. The net contribution of the organization lowered by 87% and the stock price index fell by 32%. The inventory started out increasing by an intolerable amount and the inventory holding cost especially for SOPR acquired surged to unendurable number. The advertising expenditures had to be reduced for all your brands as it was becoming intolerable to support the firm's gains.

As a final resort, we finally purchased a fresh product in the Vodite market in period 8. SOPR in Sonite market lost its complete market share and was destroyed of the market as the two other brands in Sonite market also lost out big time during this period. The brand new product VOFO was among the cheapest costed products in the Vodite market and was among the cheapest cost incurring products as well. The net contribution in this era also became negative and the stock price index was the cheapest in this period.

For the period 9, advertising spends were increased for SOHH concentrating on HiEarners, SOPP focusing on Pros and SOSS targeting Singles. The sales team expenses was increased. Vodite for the enthusiasts was launched as there was no person else on the market to focus on this portion. The Vodite market show along with the Online contribution increased. However the stock index price was still at a very low and depressing level.

The profit margins for the brands in both Sonite and Vodite marketplaces decreased drastically during period 10. The development also decreased dramatically as there was a lot of inventory. The web contribution experienced a positive progress, however, stock price index still decreased at even lower level. There was no option of any cash for the research jobs or for conditioning the R&D jobs. The stock price index acquired fallen for an unrecoverable level and the market capitalization was at its minimum.

Lastly, during the period 11, all the markets were saturated and our organization had no hold anywhere in the marketplace. The firm acquired to stop the production of all goods from Brands that possessed any inventory left. All the assets and money were pulled out of the Sonite market brands. The cash were used in increasing the advertising expenses and in increasing the sales force expenditures for the Vodite Market. The sales for all the products increased, however the world wide web contribution, Stock Price Index and production of units needed to be decreased.

Company's Performance Indications across all periods

Period 1

Period 2

Period 3

Period 4

Period 5

Period 6

Period 7

Period 8

Period 9

Period 10

Period 11

Net contribution over earlier period

+93. 2%

+15. 3%



+75 %






+1. 4%


1, 381

1, 539

1, 187









The Stock Price Index retained a positive development Period 1 and 2. The index was at a competitive level till Period 3 after which the Stock Price Index started falling considerably and was among underneath performing firms. The web contribution got a topsy-turvy quest throughout the simulation with Online contribution increasing and decreasing in a hap-hazard way.

Flaws in the Strategy

Allocation of Advertising budget

A great deal of research was done during the different periods while there is not emphasis and give attention to actual advertising for the brands.

Use of R&D a lot

A lot of money was placed into R&D projects, thus there wasn't much money kept for the projects

High reliance on Semantic scales and not concentrating on Multidimensional

The perceptual understanding was not examined as much as it will have been examined and therefore, concentrate on Multidimensional was lacking and there is a high reliance on Semantic scales

Bad Comprehension of Rival Strategy, not understanding the strategy of Panther I till period 8!

Another key miscalculation was not being able to anticipate the challengers' next movements. Actually the strategy of Panther I wasn't understood at all till period 8, by which it was too later to make a direct effect and a comeback to recapture the market share.

Did not save for Vodite development from the start

Since, Vodite market brand was released very late into the market, sufficient funds were not open to enter the market and also make an impact

Did not take loan till we commissioned a vodite research in Period 8. Did not take loan to reinforce our advertising and sales team.

We forgot to check on the field for minimum platform cost and therefore negative margins

Our team forgotten that it was better to over-produce by a specific amount than run out of inventory completely. We lost from sales in the very few good-doing products

Instead of attempting to grab market from the 2nd or the 3rd market share possessing company, we tried to out-do the marketplace head on price

We funded the Puppies too much to make them Actors, didn't have any Cash Cows for the most part times therefore low cash flows

In the vodite market, although our stepping into the follower market was the right step, we couldn't maintain beyond one period as we had very low funds to promote our product as well as for further R&D on it.

We never changed any products. If something didn't produce results, we withdrew it and commissioned a fresh research in its place because of its designed market. Hence, at times, we had only one product in the market and put in a lot on research somewhat than advertising and saving a preexisting product from declining.

Key Learning

Our goals and strategy should have been permanent rather than too thin and short

When growing more than 1 product, we ought to have designated product professionals to monitor individual results, changing trends, and be your choice manufacturer behind any R&D modifications

We must have considered R&D and planed two/three periods in advance

Prioritization is key success factor

Contribution from all associates is important, division of role inevitable

Every general market trends study provides you something, counting on one study can't help you sustain

Aims and Objectives

The goal and aims of the group were to implement the marketing strategy to raise the profit of your division. The objective was to control the firm by developing correct product profile strategy, segmentation and setting strategy, and put into action robust online marketing strategy.

The target was to boost the stock price index by improving the net contribution generated, increase firms' earnings, advertising, quality of R&D tasks, etc.

While running our company, our goal was to boost the output of the company through product stock portfolio management, segmentation and positioning and marketing combine strategy.

The output of the company was to be increased insurance firms a well formed product profile which would cater to the needs of consumers and would assist in increasing the volumes and the margins of the merchandise. Different products would concentrate on different consumers such as Buffs, Singles, Advantages, HiEarners yet others.

The segmentation and positioning of varied products of the company would be in such a means that the segmentation of the consumers would be founded after the characteristics of the merchandise. For example: - product's weight, design, level, power, etc.

The syndication was one of the main areas of our strategy and key stores were targeted to position our brands depending on where in fact the consumers are more likely to choose the products they need. The intent here was to make the product open to all the people that are audience of your products.

The customers were to be realized and their needs be catered to by doing proper market research and buying R&D projects.

Another target was to overcome the competition from other brands and try to anticipate the steps that would be taken by the rival brands. By anticipating and reacting to the changes on the market environment, it would be easy for our brands to make it through on the market and beat your competition.

For short-term, the program was to enhance the contribution margin

Description of the Marketing Strategy to attain these Objectives

Market Portion strategy: Both markets that were given Sonite and Vodite desired different strategies. Our plan was to concentrate on the Sonite market till we don't possess a strong occurrence in the portion. We were averse to enter the Vodite market till we'd a strong platform in the Sonite section. The brands in the Sonite market have well but we lost from the early mover's benefits in the Vodite segment. We moved into the Vodite market very later by which, the marketplace were already captured by the competitive brands. The scope for succeeding contrary to the competition brands with lessened cash was dim. Owning to the diminishing cash and resources, we could actually launch only 1 brand in the Vodite market 'VOFO'. The brand couldn't grab much and was eating away by the rival brands that curently have got a good market talk about when 'VOFO' moved into the market. Within the Sonite market, brands SOHE, SOSI and SOPR performed well as they had clear setting of targeting HiEarners, Singles and Advantages, respectively.

R&D jobs and Cost Decrease: Cost lowering strategy was very essential for us since we had to remain competitive on very less margins especially at the later part of the simulation. Since we launched a whole lot of services, especially in the Sonite Market, it was necessary to invest a lot in the R&D assignments to increase the quality of the new products by gaining the consumer insights and in doing so applying the insights to influence the consumer behavior to take our brands. A whole lot of R&D jobs were conducted specifically for brands like Single and SONG. Because the tasks were done at start of release of the jobs, they yielded success for brands such as SOLO, SOHH, SOPP and SOSS. These jobs helped us improve the market share of these brands. Similarly, we had a single project in the Vodite market, so we spent a whole lot in the R&D assignments for brand VOFO as well in the Vodite market.

Advertising and Placement: Advertising was one of the key functions in sustaining our brands in the market. We invested a great deal in the advertising especially at the start of the services. The idea here was to improve the level of understanding among the target consumers also to allure them into using the new products. For any given brand, a great deal of advertising costs were allocated originally. The quantity of advertising was slowly but surely reduced for the brands as the brands gained awareness among their goal consumers. Original Brands such as Single were heavily advertised and lots of assets were pumped to their competitive advertising. Likewise, other brands such as SOUP and Melody were also publicized heavily in the beginning and the spending was little by little reduced as the brands gained understanding among the consumers.

The positioning of your firm's brands was done remember the sort of consumer you want to target according to our brand characteristics. Within the Sonite market, Brand Single was situated for the HiEarners as they brand's traits were in a way that they would charm to such market segment. As the other brand SOUP in the beginning didn't have any focussed setting but we tried out to position it close to the Singles market section. Seeing the eye among the list of HiEarners for brand SOLO, the brand was even more personalized to appeal to such a market segment. Three new brands were launched to help expand capture the marketplace show in the Sonite market particularly SOSI, SOPR and SOHE. The three new brands experienced clear market setting with SOSI targeting Singles, SOPR targeting Pros and SOHE targeting HiEarners.

Learning put on Warmer summer months Internship Company

Carlsberg India Pvt. Ltd. is a liquor company which is mainly focussed on selling beer in India. Carlsberg has three brands under it namely Carlsberg, Tuborg Mild and Palone. Carlsberg is a premium quality mild beverage; Tuborg is a slight ale while Palone is a strong beer.

Carlsberg has positioned itself as reduced quality beer and targets people that are from the bigger SEC group and are professionals. Such consumers buy and consume their beverage generally at fine dines, discotheques and pubs.

Tuborg Mild is another slight beer but targets the young ones and young public. This beer has situated itself as a beverage for the young ones. Tuborg Mild is mostly bought at Discotheques and Wine beverage shops.

Palone is a solid beer which targets the lower income group consumers and is also available only at local wine beverages shops. This beverage hasn't been doing up to the satisfaction of the brand and the company has organized to re-launch the brand.

Also, Carlsberg packages to increase its market share and volumes by introducing a fresh strong beverage Tuborg Strong which will be situated as a brand that the Strong beer consumers aspire for.

Since Carlsberg has multiple brands that the company wants to address to, it's essential that the brands have their setting clear and focus on their individual consumers.

For the launch of new brand that is, Tuborg Strong, a lot of money must be invested in doing R&D projects to get insights from the consumers. With regards to the insights from the consumers from the R&D jobs, the product characteristics of the ale brand will be made the decision and the retail price would be set. The retail price would also be establish depending on the competitor's charges and promotions which would be known by using a great deal of industry research.

A great deal of insights would be had a need to know the consumers in a better manner and find out about different retail activities and procedures that are to be employed for launching the new strong ale brand.

Since, direct advertising are not allowed for Liquor brands in India, the brand has to produce other media to promote. Below the brand activities and deals will be the only way through which the brand can be promoted and by which communication to the target audience may take place.

Below the collection activities would need a whole lot of advertising spends, therefore big money has to be spent for advertising research and advertising media.

Also, selling of beer is mainly sales powered; therefore, a great deal of investment is necessary in increasing the sales force and in bettering the syndication of the beer industry. For a strong ale like Tuborg Strong, the shops which will be targeted are Local Wine retailers and Super market Wines shops.

For other brands such as Carlsberg and Tuborg mild, since their positioning and targeting are different, the process of orienting the sales team team and the sorts of promotional activities would are different. The promotions of such high grade and mild ale will need place at fine-dines, discotheques, etc.

Also, the prices of premium beverage would be made the decision by the willingness of the consumers to invest on a light beer. A lot of consumer behavior research and R&D assignments are required to gain insights about the pricing for such ale and also amount of advertising budget to spend on offers.

The other brand which is not doing well, that is Palone beer should be re-launched through marketing and repositioning activities. The repositioning of the brand would need a lot of marketing spends. The marketing mixture for the brand should be researched carefully and an idea must be produced to analyse how to fully capture the market share in the strong beer portion. Here again big money must be spent for doing Below the Lines activities and for consumer activations which would require an increase in the Sales force team.

Hence, MarkStrat has helped me gain insights into various marketing issues that a Brand administrator might face while setting his brands or introducing them.

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