Sonite Case Study

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Recommended: Nature and scope of marketing strategy

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Focus on specific segment of Sonite market is very crucial in Markstrat simulation because we would able to focus on analyzing our portfolio and took immediate actions to improve and reposition our products. Our Sonite products, SOFT and SOLO were not focus on targeting Shoppers and Savers though we acknowledged that both segments are the largest one, even for the next five periods. We were split a few portion of our advertising to raise awareness and obtain the market share for other segments (Professionals, High Earners, and Explorers) throughout the first three periods. Nevertheless, we were not able to gain awareness and market share of these segments because our initial product’s attribute was far from their ideal values. …show more content…

Hence, being the first mover in the development of Vodite product is the key success to be a winner in Markstrat. However, the huge budget in in launching the product, lack of information and untested market were challenges for the company to enter Vodite. When Team R and T launched Vodite products in the third and fourth period, we did not develop Vodite yet. We developed Vodite in the fourth and fifth period based on its minimum cost, and launched it in the following period. We had targeting Innovators and Early Adopters because the price was slightly different during these period. In order to set the right price, we decided to use Market-Based Pricing that is based on competitive advantage & value and retailer’s margin. Using MDS, we recognized that our features were not at very high quality. Considering our position in the competitive market, we decided to set the price exactly the same with the competitor that has similar position with our company. Generally, it was a good decision, proven by positive net contribution from SEARS to our company (85%). However, our team considered too late to launch Vodite, since the market was well established in this period. In addition, using 90% of the budget to do R&D in Vodite was a consequences, however probably we should not execute this plan if it would give the negative impact for the existing products in Sonite market. About competition, our

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