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Firm ‘E’. Lauren Angstadt Liza Okie Gerry Marekova Atif Zafar. Introduction. 3 Products: SEMI SELF VEMI (period 5) Performance 2 nd (period 1) 1 st (periods 2-4) 3 rd (periods 5-7). Pricing. 2% Inflation. Production. Market research studies & previous years’ numbers.
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Firm ‘E’ Lauren Angstadt Liza Okie Gerry Marekova Atif Zafar
Introduction • 3 Products: • SEMI • SELF • VEMI (period 5) • Performance • 2nd (period 1) • 1st (periods 2-4) • 3rd (periods 5-7)
Pricing • 2% Inflation
Production • Market research studies & previous years’ numbers.
Target Markets • SEMI • Professional, Buffs, Singles and High earners, and Others • Professionals - Design, Max Frequency, and Power – 7,45, 75 - Performance • Buffs - Max Frequency and Power • All – Price and Power • SELF -Buffs, Professionals, High earners, Singles, and Other Buffs - Max Frequency and Power – 45, 90 - Performance
Target Markets • VEMI • Adopters and Innovators, Followers • Adopters – The Highest % purchase intention • Adopters – Flexibility; Innovators – Efficacy • Followers growing rate increase for five periods – ignored
Advertising • Used 6% Strategy
Sales Force & Distribution • Increased each Distribution Channel by same percentage each period. • More sales force allocation for SEMI.
Overall • Pros • Inflation rates: provided a basis for decisions. • Good brand awareness (almost 50% for each segment). • Usually sold the majority of what we produced. • Success with target markets.
Overall • Cons • Produced too much of VEMI in Period 5. • As a result, sold ( 40,000/119, 387) to trading company. • Inventory disposal loss of $2,794,000. • Spent too much on advertising in the last 3 periods. • Ignored Followers, focused on Adopters & Innovators.