Team Mavericks Inc.
Product and Brand Management
Targeting: 1. As per the trend in the previous years we moved MOJO more and more towards the ‘Savvy’ category as is manifested by an increase in the marketing budget 2. For MOON, positioning across two different segments wasn’t working out and hence we decided to position and target this towards PROS. As is evident, we increased marketing spending for PROS and decreased the spend in TRENDY. Our marketing budget is utilized in full and is given as follows, PROS
TRENDY
SAVVY
TOTAL
MOJO
0
0
2900
2900
MOON
2600
500
0
3100
TOTAL
2600
500
2900
6000
Product Development: As was the case last year, we did not do any product development. We are going to focus mostly on targeting, pricing and communication. This year our product development is complete and we looked to market the new and improved product from this year. Pricing: 1. Following the trend from last year, we decreased Mojo’s price by 10 since ROCX was also looking to emulate the same. Also considering the less margin that MOJO realizes, we looked to decrease the price only by 10 (to gain a slight competitive advantage). The results were as expected and we almost gained double as compared to last year, eating into TOIZ’s market share.
2. For MOON, our decision to market it towards PROS paid off. Besides, we also decided to cut the price to 425 (retail) since we perceived ROSE being a threat to us on the price front. Our high margin on MOON also helped to lessen the load of the Volume-Margin tradeoff on Net Earnings.
Team Mavericks Inc.
Product and Brand Management
This was manifested with an increase in market share to 18.3% (from 10.%) and net sales gain of $ 38.1 mn
We reduced our price from 570 to 540, as you can see above. The features comparison of both brands MOJO and MOON with respect to its competitors is as given below stating that MOJO and MOON though priced competitively provide at par features with respect to its competitors. Communications
1. MOJO is positioned very close towards the SAVVY customers, compared to its competitors, a marked improvement from year 2- This augurs well for the coming years since the difference between its offerings and perceptions is decreasing. 2. Economy X Performance parameter is chosen to communicate to our customers as that mattered most to the Savvy Segment.
This year, we decided to focus totally towards PROS (with minor spend on TRENDY). Consequently, we communicated the same to the PROS customers on parameters of Economy × Performance as is evident from the weightages given below for PROS .
Team Mavericks Inc.
Product and Brand Management
As is shown in the perceptual map above (Economy X Performance), it seems that our decision to communicate to PROS on the basis of Economy and Performance has paid off. It is quite close to desired perceptions though it still lacks relative to ROSE.
Forecasting We forecasted increasing market share for MOON product of 25 % in PROS, reduced to 1-2% in TRENDY. For Mojo, we forecasted increasing market share of 35-40% in SAVVY.
Conclusion After the simulation, the end results for the two products are as such: Retail Price %Retail price
MOJO 260 46.9%
MOON 425 48.2%
Also, with regards the market share, the following is the standing of the three brands (brand retail sales):
Team Mavericks Inc.
Product and Brand Management
This shows that MOJO and MOON have become market leaders in their respective segments, leading to overall high brand sales. This is also marked by its steady increase in EBT and precipitous rise in Revenues as shown by figures below
The above results have thus catapulted Brand M’s SPI to 215 at the end of year 3 Reflections for MOJO: Our strategy has worked wonders for MOJO. Its current market position has been characterized by the increase in the sheer numbers of SAVVY segment, MOJO’s highly competitive prices & above average features. For Mojo as seen below, In the Sales & Market shares, the Volume increased from 280 to 453 and the segment share from 57% to a staggering 70%. The sales increased from $76 Mn to $118 Mn and the segment share (in %$) increased from 56% to 68%. Also purchase intention for MOJO is a staggering 45% above its next best competitor, along with adequate supply at the stores.
Team Mavericks Inc.
Product and Brand Management
Reflections for MOON: 1. By repositioning MOON towards PROS, we have been able to see an instant response towards it (Market share by volume increased to 18% from 10%).
2. This was because of the repositioning that was done towards PROS customers, the marketing effort that went in and the reduction in prices of MOON relative to its competitors. Consequently, above average features with lowest price in the segment helped the rise of market share. For Moon in the Pros Segment, The market share by segment share (%U) increased from 22% to 58% and that of segment share by %$ increased from 25% to 55%. This states that by decreasing prices we increased the number og units sold but the contribution to %$ increase was lesser. Produce ‘Awareness’ rose to 80% and purchase intentions to 52%, meaning there was adequate supply of goods at stores.
The figure above says that our positioning of MOON was spot on and it ate into the market share of ROSE, TOGA and TOIZ. For Moon in the Trendy Segment, Despite having targeted marketing spend towards the PROS segment, the TRENDY sector has also fared well w.r.t MOON.
Team Mavericks Inc.
Product and Brand Management
Purchase intentions went up (29% from 18%) though there was a drop in awareness (77% to 73%). This we presume will reflect in the 4 th year with reduced sales in this segment.
For MOON, as seen above the market share by volume (in %U) increased from 16% to 34% and the market share by sales (in %S) increased from 17%% to 30% %. The sales increased from $23 Mn to $16 Mn and the segment share (in %$) increased from 30% to 17%. It has in short, eaten into the shares of TOIZ. However, we perceive this trend as temporary since our marketing effort will be streamlined mainly towards PROS.
