Posted at 12.29.2018
Panther U developed many short and long-term objectives during the course of the 11 intervals of 'Markstrat' simulation. These aims were formulated was a result of in-class learning, opportunities in the market and competitor actions. However there were several objectives we stuck to right through the 11 durations of running our company. These were: A. ) Make an effort to improve our profits on return every period and B. ) Maintain a steady move of income and liquidity. At no point, have we take any un-necessary dangers, an attitude that eventually became both beneficial and in any other case. We aimed to keep up steady growth through systematic adjustments to creation, marketing, sales force and R&D.
We focussed less on becoming overall market market leaders and much more on protecting our turf in the competitive environment. Thus, our aims were straightforward and on many events, less ambitious. During the course of the overall game, we required some corrective steps and needed a few strong decisions. Some of them proved right and some backfired due to the fact we have to have executed those earlier on in the game.
Broadly our targets were A. ) Maintain an most effective level of inventory, coordinating demand with creation adequately every time B. ) Concentrate on improving return on investment in each period C. ) Improve stock price continuously without sudden peaks or falls
Broadly, our company performance across 11 periods can be divided into the pursuing three phases predicated on the type of strategies hired.
When we primarily started out with 2 products SURF and SUNY in the Sonite market, our main focus was on understanding existing demand for these products and monitoring production levels to complement demand, keeping cost of positioning goods in the inventory to a minimum. Within one period we managed to bring down inventory retaining costs by the good measure thereby contributing to a healthy contribution per brand. Right through the subsequent times, we constantly managed costs of keeping inventory except on several occasions when competition grabbed an enormous market share in the SONITE industry traveling down demand for our products. Even for the reason that situation, we were always quick to respond and stabilized inventory within one period. Hence, this is one aspect of Markstrat where team 'Panther U' almost never failed to perform according to expectations.
Our company found a steady upsurge in retail sales for both products Browse and SUNY. Search in fact had the largest market share in the Singles portion. This market show remained constant upto period 3.
We didn't spend aggressively on advertising. While, we captured the Singles market for Search correctly by positioning the merchandise right, we didn't use the available cash surplus to create better recognition for our products in the intro phase of the industry lifecycle. We known the importance of spending correctly on advertising only towards period 4. By then, the SONITE industry got entered development and opponents were already ahead of us. Hence, though we had an initial edge for Search which extended to work in our favour till the finish, SUNY lost out to increasing competition.
Due to manipulated inventory costs and traditional method of advertising, our net contribution better greatly and remained steady till the finish of period 4. We logged steady growth and guaranteed healthy cash inflow. This surplus should have been committed to R&D or marketing SUNY to the right concentrate on group. However, we didn't dare to associated risk gains in R&D at this stage of the overall game. Towards the finish of period 3, having realised the necessity to send SUNY back to R&D, we invested in modifying the merchandise to target Positives market. This should have been done either a period earlier.
In this stage, our company hired only competitive pricing or going rate costs. In heading rate costs, the organization bases its price essentially based on challengers' prices, charging the same, more or less that major competition. Having captured Singles market for SURF with adequate creation control and competitive prices, we never experienced the necessity to segment market plainly based on price. SUNY extended to struggle due to incorrect placement and insufficient method in costs the merchandise. Though in stage 3, we logged the best return on investment, we weren't in a position to sustain the growth in subsequent cycles.
In the SONITE industry, Browse lost its stronghold amongst Singles market. The reason for this is simply that competition placed rival products for Singles which were superior in quality and more economical. Demand for Search simply shifted from Singles to 'Others' in the Sonite industry. Hence SURF continued to do well in conditions of online contribution. The 'Singles' which were potentially a very big goal group in the process were not being tapped by our company.
We tried out to thrust the modified version of SUNY to Benefits and High Earners. A considerable amount of money was invested in advertising and offers to target the professionals and High Earners for most successive periods on the basis of product design and features. However, Benefits and High Earners being very challenging when it came up to performance, our product couldn't match their needs. Thus we had one product SURF that only 'Others' appeared to decide for and another SUNY that despite being aggressively pressed towards Positives and High Earners simply didn't click. Both products weren't very much apart in price, further increasing the lack of differentiation. We therefore had to re-strategize at this stage on our product collection in the Sonite industry.
Our progress rate got seen a drop and the entire net contribution possessed also begun to decline little by little. The available income would have to be committed to R&D for diversifying in the Sonite industry and re-establishing our existence. This was also enough time when we were required to launch R&D jobs for the Vodite industry. The marketplace leader and our main competition by now had 3 successful Sonite brands for 3 different target segments and hence it was evident a Vodite launch to target Innovators was on the cards for the coffee lover. We therefore designed to target our first Vodite product at the first Adopters.
Therefore, this phase was an R&D extensive one for our company. We undertook one each for Sonite and Vodite, in that way straight impacting our ROI and profitability. The merchandise SUSI that was designed keeping needs of Singles at heart didn't however produce expected results. The merchandise though was fit to match needs of Singles, being truly a late entrant proved to be a disadvantage we couldn't conquer. Also, SUSI was another product from our company and we still had not distinctly differentiated the other 2 (SURF and SUNY) that savored a very higher level of brand awareness. We didn't possess the resources to promote SUSI in comparison and so SUSI failed to capture the market as desired.
Our brand in the Vodite industry 'VUVU' was ready for start in period 6. But credited to the oversight on our part, we weren't able to right up until period 7. Advertising built up the awareness, but the delay caused our reputation and stock price to have a hit.
In this period, we analysed all our decisions for the Sonite industry up to now and found out one reason behind losing market share was insufficient clear segmentation and collection management. Hence in Vodite, we decided to concentrate more on analysing consumer sections, their needs, buying relevant R&D before introduction. Our first product VUVU was designed especially keeping Early on Adopters in mind as competition possessed already captured the Innovators. The product was costed right and managed to attract Innovators combined with the designated.
Immediately after unveiling of VUVU, we launched R&D to design something for fans. While VUVU continued to enjoy significant market share amongst Innovators and Early on Adopters, the new product VUFU was meant to cater to the top market of supporters.
SURF stayed the only product in Sonite that did fairly well. Our stock price didn't recover from the loss our company experienced in Sonite. No amount of competitive setting helped in a mature industry such as Sonite. We had to lessen advertising and sales force heavily due to impending loans. There was a higher amount of brand recognition for our Sonite brands which we didn't capitalize on. However, by handling production in Sonite guaranteed we were able to stage out non doing brands such as SUNY without impacting net contribution.
To commence with team Panther U didn't plan for any research activities in the Sonite industry. With 2 products Search and SUNY, we targeted to capture 'Singles', 'High Earners', 'Benefits' and eventually others. The idea was to position existing products effectively to complement needs of these sections and price them competitively. However, marketers often need multiple brands to be able to go after multiple segments. Some reasons to add multiple brands in a category include:
1. Increasing shelf presence and shop dependence in the store
2. Getting consumers seeking variety and also require otherwise switched to some other brand
3. Increasing internal competition within the firm
4. Yielding economies of range in advertising, sales, merchandising and physical distribution
Close to period 4 we came to the realization the significance of researching consumer needs, purchase behaviour and then building a collection of products to cater to those needs. The products in this portfolio needed to be as mutually exclusive as is possible and be charged in that manner that certain product doesn't cannibalize sales of other. By period 4, whenever a particular competitor shown the power of segmentation and a diverse product profile, we made a decision to spend money on our product SUNY and re-launch it in the Sonite industry.
In order to market SUNY better to Pros and High Earners, we made a decision to modify the product and match the look needs of the 2 consumer sections. By period 5, the revised SUNY was available and we tried out hard to motivate the merchandise to the supposed target categories. We spent heavily on advertising and deals for the same. However, competition products directed at the same consumer groups were much better than SUNY in conditions of design specifications and performance. The price tag on SUNY was rather close to that of SURF and in so doing created more misunderstanding in thoughts of the consumers.
The brand contribution and market show per brand commenced to dip in the phase 'period 4-7'. The brand's performance only deteriorated further in the next times. SUNY never totally recovered the loss from customers' primary brand experience. Therefore by period 8, we made a decision to phase on SUNY. The inventory held a large variety of un-sold SUNY products. We completely reduced creation on SUNY and concentrated only on milking the brand for the rest of the periods. The price reduction measures for SUNY also included lowering the sales team allocations, advertising and special offers and advertising research expenditure. Thus by period 10, we could actually completely phase on SUNY from the industry.
SURF was the product we exclusively wished to target Singles with. Before competition came out with a product better suited to the Singles needs, SURF appreciated good market share. Gradually, competition pressed SURF away and captured Singles. No amount of re-positioning could bring SURF nearer to the Singles. The market was expected to increase and our company couldn't disregard the probable. Hence, we launched a product called SUSI which to specifically concentrate on Singles. However, in an adult industry like Sonite, when rival products targeted at Singles were in overdue growth, early on maturity stage with their life cycle, a fresh entrant like SUSI couldn't tremble the commitment that the competitor products demanded. We essentially should have situated SUSI differently which also wasn't the case. Hence, though we understood the need for a fresh product in Sonite, we didn't market the product keeping in mind the life circuit level that the industry was at.
VUVU was the first product in the Vodite industry for which we launched research. We expected competition to catch the attention of the Innovators early on and hence our strategy was to target the Early Adopters and eventually fans. VUVU technologically and in terms of design was very good superior to some other on the market. The cost per device of producing the product also as a consequence went up. Pursuing non-performance in Sonite industry, the vital thing we guaranteed in Vodite was to purchase superior design. Since our goal group was 'Early on Adopters', we investigated on the design specifications that they want and in the purchase price range that they can afford. Though the launch got postponed by one period, the product still do well among Innovators and Early on Adopters.
The enthusiasts were an enormous segment waiting around to be tapped by manufacturers in the Vodite industry. Our current product VUVU though might have been pushed to followers as well eventually, we analysed that the current product design and price was on the higher side for the kids. We could manage to bargain on the product's appear and feel and performance features thus decreasing the price per unit greatly. VUFU was targeted mainly at Early Adopters and Supporters. Its placement also was not the same as VUVU's thereby guaranteeing clear conception in the imagination of the consumers.
One of your main strategies has been to concentrate and give attention to the product executing well in Sonite i. e. Search and level out non-performing ones (such as SUNY). All our actions were targeted at improving our profits on return at each level. We closely checked our costs at every level regarding production costs, inventory holding costs, advertising costs and manpower expenditure. Each stage of the merchandise life cycle demands different marketing strategies. The benefits phase is proclaimed by slow expansion and minimal income. If successful, the merchandise enters a growth stage designated by rapid sales expansion and increasing gains. There practices a maturity level in which sales expansion slows and gains stabilize. Finally, the merchandise enters a drop stage. The company's task is to recognize truly fragile products; create a strategy for each and every one; and phase out the vulnerable products in a way that minimizes hardship to company gains, employees and customers.
We targeted at matching challengers' performance and little by little increasing our success. In many respects, we could illustrate ourselves as Market Fans and specifically as 'Adapters'. The adapter requires the leader's products and then adapts or increases them. An adapter often grows into another challenger, as demonstrated by many Japanese organizations.
To compete more effectively, many companies are embracing focus on marketing. Rather than scattering their marketing efforts, they are simply focussing on those customers they have got the greatest chance of satisfying. Effective target marketing requires that marketers:
1. Identify and account distinct groups of buyers who are different in needs and choices. (market segmentation)
2. Select one or more market segments to go into (market targeting)
3. For every target segment, build and connect the distinctive benefits associated with the company's offering.
Our strategies in Vodite were more often than not accurate in delivering the expected results, whether it was about which group to target, what design features to put into action or how to put. Clear segmentation and competitive advertising at the time of launch made certain high brand understanding. Despite deficits in Sonite, we were able to control costs, stay afloat and concentrate on enhancing brand contribution for our Vodite brands.
We figured our early on in the simulation that constantly monitoring potential demand and inventory levels is incredibly crucial to maintaining optimum production levels. This strategy worked in our favour through the simulation exercise. Consumer shopping behaviour, estimated market size and characteristics of the target group contributed to your analysis which product and features to motivate to which consumer portion.
Though we became popular to an excellent start, a few wrong decisions middle way resulted in us slipping to put 2/3 by the finish of the simulation.
Britannia industries Ltd. has its origins in Kolkata in 1892, being founded as a biscuit company. It's been jointly-owned by DANONE group and the Wadia group since 1997. The business is solely centered on packed food.
The growth of biscuits before year or two has been rapid. The penetration of branded biscuits has increased across both economy and the high quality segments, with less demand for unorganised biscuits across the country. Biscuits evolved from being just tea-time snack foods to snacks that can be eaten at any time of day. The introduction of biscuits in smaller pack sizes and pouch-like packages also prompted out-of-home use. Biscuits are perceived to be nourishing and better than other treat products such as chocolate confectionery, glaciers cream and great and savoury goodies, resulting in double-digit development in both quantity (1104. 6 thousand tonnes in 2008) and value terms in 2008 (70503. 5 million in 2008).
Chocolate layered Biscuits
Savoury Biscuits and crackers
Plain biscuits and savoury biscuits are ever more being used by consumers in the low middle income sections, and sandwich biscuits and cookies being progressively more consumed by middle- and upper-middle-income consumers. Ordinary sweet biscuits, led by glucose and Marie variations, remain the greatest offering biscuits type. Loaded biscuits found the quickest retail value growth in 2008, as these products are growing from an extremely low foundation in the united states. Recent product launches such as Treat Fruit Rolls and Parle Golden Arcs, along with Cadbury's Bytes, have helped encourage growth in this nascent category.
From the year 1997 to 2008, the company focussed on the center placement "Eat Healthy, Think Better". For greater than a 10 years, Britannia focussed on building brands in the biscuits category as biscuits accounted for almost 90% of its sales. Despite a lull till Vinita Bali overran the helm in 2005, Britannia's success in creating brands that contain challenged existing monopolies and thrived despite socio-cultural troubles is commendable. In this period some of the brand launches that are entitled to a mention are:
Since the time it premiered, Parle G has been the major selling blood sugar biscuit in India. A 100 gm pack of Parle-G was sold for a price of Rs. 4 for 25 years till 1994 and Price became the USP of the merchandise. It captured over 75% of the Indian sugar biscuit market and lots of organizations and smaller companies attempted to counterfeit its product packaging and brand name to capitalize on the success of the biscuit.
For Britannia to achieve the biscuit business, it was vital to launch a sugar biscuit as they take into account over 44% of the biscuit volumes in the country. Since its kick off in 1997, Tiger became one of the largest brands in Britannia's stock portfolio providing it an access in to the value section for biscuits. The introduction of Britannia Tiger was seen as a large mass media spends and sampling to deal with your competition from Parle G. Additionally, distribution was strengthened to have the ability to reach the availability of Parle G. Small Retailers and Panwallas were key goals for showing and offering Tiger biscuits.
Today with a series of launches and brand extensions the Tiger profile now boasts of the next products:
1. Tiger Coconut
2. Tiger Creams
3. Chota Tiger
4. Tiger Banana
The original sweet and salted biscuit launched in 1972 was creating ripples around the country with its ground breaking product and huge media spends. Krackjack was the next greatest biscuit in the Parle collection. Britannia in its fray to garner amounts launched Britannia 50-50 in 1993 marking its entry into the crackers portion. The brand got the platform of the 50-50 that satisfies all contradictory needs. The ads made high recall and helped the brand garner the expected draw from the marketplace. Since then, there has been a constant deal with between Krackjack and 50-50 for the no. 1 position in the category. Both brands subscribe to the fun idea and both are light on the pocket. In effect there is little or no differentiation between these competition products.
In order to leap frog before Parle in the category, Britannia launched Britannia 50-50 Maska Chaska which provided it something feature Parle lacked for years. The new version was promoted intensely and that gave a natural force to the initial brand as well. Britannia's crackers segment suddenly overshadowed the Krackjack. Over time the two 2 brands experienced series of packaging and rebranding exercises but the battle is still close with Britannia presently leading the load up with on the third of the market.
One exemplory case of Britannia's aggressive position on the category was the co-branding initiative with KBC on celebrity plus which gave the brand a 20% increase in quantities in 2000-01 making the business unable to serve the demand. The Britannia 50-50 and Parle Krackjack story is all about branding, innovative promotions, tongue in cheek advertisements and below the line promotions.
The increasing health consciousness among metropolitan consumers is fuelling the expansion of light, multigrain and diet biscuits. The growing emphasis of health and fitness is apparent in the amount of new launches with the biscuit industry utilizing this as a marketing element in biscuits. The health biscuit category is about 12% of the total biscuit market (2008).
Britannia as a part of its health and fitness biscuit collection launched iron-fortified Britannia Tiger Banana biscuits - which is made up of real banana and positioned as having a higher flat iron content, Britannia Nutrichoice 5 Grain sweetened with honey and Britannia Nutrichoice Sugars Out sweetened with Sucralose, along with Low Fat Dahi. The products aimed to combine nutrition with convenience and indulgence.
In this manner, Britannia has broadened its menu to include several products in biscuits and dairy products formats. There are a number of products in the offing and the business firmly feels in moving the boundaries of development to make people's lives healthier. Britannia's dedication to consumer research is obvious in the wide-spread consumer acceptance of all its latest product launches.