Markstrat quiz

how many brands can be marketed in each category at a given time?

5 brands

merchandizing budget

aimed at enhancing the physical presentation of your products to stimulate consumer interest

how are attributes rated?

all except base costs are rated on a scale from 10 (poor) to 100 (excellent)

deviation from budget should always

be positive or equal to zero

high earners

buy expensive products, motivated by social status, heavy users, price insensitive

6 main nutrite attributes

clinical benefits, nutrition, packaging, flavor, variety, base cost

Which brand is already marketed?

clinite

two independent product categories

clinites and nutrites

sales can be lost to

competitors, "order-book" and industry

6 main clinite attributes

efficacy, safety, packaging, pleasure, usability, base cost

segmentation scheme for nutrites

elderly (biggest), families, health conscious (smallest)

specialized mass retailers

geographically close to their customers, provide a high level of customer service, carry a broad product line for each category, including the most expensive and/or high-performance products

affluent families

high income, frequent buyers and users of clinites, can afford expensive products and often view price as indication of quality

beauty specialist portals

includes web-only merchants and retailers' websites, low but significant percentage of sales are done on the web, high convenience as consumers shop from home, almost unlimited choice and easy comparison, likely to become more important in the next 5 to 10 years

impact of commercial team and merchandizing budget

increase and/or maintain distribution coverage and to gain/protect share of shelf space

segmentation strategy

indicate which consumers should be targeted and normalize to 100% to save

singles

live alone and are between 18 and 35, students or employees, relatively heavy users, tend to be rather price-sensitive

medium income families

lower income than affluent families, somewhat price sensitive, looking for relatively inexpensive products with average attributes

your objective

maximize your share price index

mass merchandisers and e-grocers

operate on a low-price, high-volume basis, depth of product lines usually restricted to a few units, distribute the cheaper and low-performance products

production plan adjustment

plus or minus 20%

estimating lost sales

purchase intentions - market shares

commercial team

responsible for obtaining and entering orders and for supporting distributors

low income families

similar family situation and age range as affluent families, strained budget, less frequent buyers and users of cosmetics, highly price sensitive

to decide on a price, you should take into account

the margin of the distributors, the discounts made by some channels, consumers' expectations, competitive prices

a production plan must be submitted each period for each brand, taking into account

the potential sales for the brand, the existing inventory at the beginning of the period, the flexibility of the production department

research budget

to improve the quality / persuasive power of your message

media budget

to purchase media space and time

department stores

wide product assortment, specific counter dedicated to each manufacturer, provide extensive customer service