Mark Strat Final Presentation Industry 1 Team U

Mark. Strat Final Presentation Industry 1 Team U Marilyn Ho Mario Kojima James Kong Patricia Lee Annie Liu 1

Agenda n n n Summary of results Goals and objectives Long-term strategy Notable shifts in tactics Conclusion and lessons learned 2

Starting Point n n SULI market share – 18. 4% (2 nd ) SUSI market share – 3. 7% (Last) Total Sonite market share: 22. 2% (3 rd) ROI: 2. 76 (1 st) 3

Summary of Results n n n Total Sonite market share: 24. 8% (3 rd) Total Vodite market share: 52. 3% (1 st) ROI: 11. 13 current (1 st); 6. 41 cumulative (1 st) 4

Goals and Objectives n n Achieve #1 rank in industry Maximize profits Optimize portfolio to take advantage of market growth opportunities Develop marketing expertise 5

Long-Term Strategy Segmentation: Tailored products for selected segments n n Customer-driven decision-making Strategic competitive analysis 6

Customer-Driven Decision-Making n n Paid attention to customer’s ideal attributes and their evolution Recognize trade-offs between customer wants and company profitability 7

SUSI Perception without considering price - Others Perception considering price - Others 8

SULI Perception without considering price High Earners Professionals Perception considering price High Earners Professionals Singles 9

VODITE Perception without considering price Innovators Early Adopters Followers Perception considering price Innovators Early Adopters Followers 10

Strategic Competitive Analysis n n Anticipatory competitive positioning Competitive benchmarking 11

Anticipatory Competitive Positioning Example: positioning SUSI in the Others segment 12

Competitive Benchmarking Research & Development (Period 1 -3) Example: entry into Vodite market Period 3 - complete our first Vodite - observe Teams A & O; anticipate they are developing a lower-end product Period 4 - launch our Vodite - expect Team A and/or O will launch this period as well 13

Notable Shifts in Tactics: Sonite #1 #2 1. 2. Situation: Drop in market share despite better product and lower price Decision: Increased SULI’s mass merchandise distribution sixfold Situation: Drop in market share due to introduction of new brands without enough marketing support Decision: Drop new brands. 14

Notable Shifts in Tactics: Vodite #1 1. 2. #2 Situation: Drop in market share despite introduction of new brand for Followers Decision: New brand is closer to Innovators & Early Adopters, so reposition brands. Situation: Drop in market share due to competitive pressures and underproduction Decision: Be more aggressive with production. 15

Conclusion and Lessons Learned n Company position strengthened by consistent strategy: n n n high growth markets continuous reassessment of tactical implementation decisions Developed better understanding of advertising, distribution, and production planning 16