For the 3rd period in the row, we are incurring a loss on our SONY product. After looking at our brand results report, the decision has been made to drop SONY; it is still in the middle of nowhere on the perceptual map even after modifying it with huge advertising research efforts post-launch. Still, something seems array and we can’t place our finger on it? Since period 4 our management team has wondered if the change in price and perceptual objectives to SONY are considered a modification. The answer is unclear – we inquired with a few of our competitors and as expected, we got consistent replies of “we’re not sure.” It seems that we will not find out the answer until our scheduled meeting with the ‘markstrat experts’ next period.
In the Vodite market, VEXX undercut us in price despite their base cost and characteristics are a little better than our VOTI. We might have been too greedy on our margin, and we will have to get rid of the huge inventory left next period as inventory holding cost for Vodites are considerable. Seeing how Team A is progressively doing better with their Vodites (note: a 139% increase in volume sold), we realized that the Vodite market (especially the followers segment with expected growth of 3000% in next 5 years) has infinite potential for expansion. That is why we are ordering more Vodite research studies next period – we must get to know more about the market before we can excel in it.
Looking now to our long term perspective, we are planning to scale back our total number of products offered because we realize that we do not have enough budget to do extremely well with all five products in market at the same time. However, we must actively participate in R&D to ensure we capture sufficient market share to boost our sluggish stock price.
5 comments:
I have to say, even though this wasn’t your best period, my contribution wasn’t too shabby! Since I am the second highest money making product y’all have, I hope you have realized that I am important enough to sacrifice more money in the marketing area…hint hint. Is there any way that y’all can figure out a way to improve the way my fans perceive me? They aren’t noticing the greatness that I have to offer, and I kinda have a feeling that you guys might be the blame for that. Come on guys, let’s give ‘em the goods (aka me).
Toodles,
SOLD
Once again I’ve done well – a complete sell out of me! Also, I’m coming really close in on the Singles and have once again increased my volume sold. I haven’t really realized how less of an impact I make on net contribution after marketing – they definitely don’t know my worth! Regardless, people like me – but once again, who wouldn’t?
Ok so I guess they’re still keeping me around, but I never fail to disappoint myself, and disappoint my team. Once again, another huge drop in my volume sold – and this time 37.4% lower. They’re trying to target me towards the Singles and to increase my price to “pretend” I’m worth it – what good that will do eh? I promise you, it won’t be long before I’m gone.
Why hello all Sonites – Its VOTI Vodite here introducing myself. I know I’m a bit different than you all, many may find me a bit risky and may feel uneasy with me, but I assure you I’ll have you up and dancing with profits in no time! I’m planning to target myself with Innovators at a competitive price of $795 – they’ll buy anything new and exciting and I’m sure to be that! I’m kind of a bit inexperienced here but I’m definitely looking forward to working with all of you and hope to be well accepted! Too bad VEXX just undercut me in price this period – this is a dirty game we’re playing here and I don’t know if I like it.
A little improvement is better than none I suppose. My sales went up MINISCULEY by 2.4%. Clearly this is NOT enough to recover from last period’s ego decimation. Ugh but everyone else is STILL beating me. Until my modificiation is complete, all I can do is decrease my price to $451 to undercut all those other (insert numerous profanities) high-end Sonites, as well as adjust my MDS to target the Hi Earners. Why are they getting so bored of me all of a sudden? I really am a lot of fun!
A very depressed SONO
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