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