Introduction

Handed over the control of the Firm producing VRD. Market for VRD was in the Growth Stage at the time of Handover from Previous Management. Customer Segments for VRD were Students, Parents, Home Users, Manager, Assistants, Creators. Target was to take VRD from Growth Stage to Maturity Stage.

Strategy, Understanding & Improvements

The original strategy had been to target and achieve dominance in Price Sensitive customers starting with Students. Target Strategy was to gain dominance in all sectors and targeting on High End Customers.

From the second year onwards to Widen scope to Students, Home Users, Parents and over the years gain position in all sectors and be the market Leaders.

Initial Market & Competition Assessment

Initially we targeted the student segment as it was showing highest growth in terms of users.

Students required Less Customer Service, Low specification therefore Low R&D Cost and it contributed to Market Share of 40.5%. We expected majority of our competitors to subsequently move towards high end segment of the market.

Subsequent Market & Competition Assessment

From 2nd year onwards, we expanded to reach Students, Home Users and Parents and gained dominance in each sector. In 3rd year, we focused on Competitive Prices. In 4th year, we focused on Brand Building consolidating our market share in Product 1 across segments- Students, Creators and Assistants. In the 5th year we consolidated our position in product 1 and were the leaders for the product across all segments.

Response To Results (Yr. 1)

MEASURE RESULT STRATEGY/LEARN INGS

MARKET SHARE (Units) (Sales)

MARKET SHARE (Students) (Home Users) (Parents) BRAND AWARENESS PRICING (Channel 1) (Channel 2) NET PROFITS

29.0% (Third) 27.4% (Third) 40.5% (First) 27.6%(Second) 26.6% (Second) 0.664 (Second)

$103 $103 $256,488

What Went Right? Earned highest dealer satisfaction through Channel -2. Gained dominance in Students segments. Positioned our self well in Channel-2 market share. What Went Wrong? Channel 2 sales representative were high on workload which resulted in Inventory reserves. Customer group rating was

Response To Results (Yr. 2)

MEASURE MARKET SHARE (Units) (Sales) MARKET SHARE (Students) (Home Users) (Parents) ADVERTISING BRAND AWARENESS PRICING (Channel 1) (Channel 2) NET PROFITS RESULT STRATEGY/LEARN INGS What Went Right ? Moved from 1 segment to other segments and gained dominance. Highest Brand Awareness What Went Wrong? Pricing was low which led to substantial losses. Left with inventory. Sales Representatives were overloaded. 29.6% (Third) 26% (Third) 39.9% (First) 30.3%(Second) 29.4% (Second) $250,000(First) 0.668 (First) $105 $105 -($38,724)

Response To Results (Yr. 3)

MEASURE MARKET SHARE (Units) (Sales) MARKET SHARE (Students) (Home Users) (Creators) (Managers) (Creators) RESULT STRATEGY/ LEARNINGS Strategy: Focus on pricing of the product to compensate losses of the previous year. What went wrong: Prices were not competitive. Spent less on advertisement resulting to reduced brand awareness.

18.0% (Fourth) 16.2% (Fourth)

26.1%(Second) 19.7% (Fourth) 14.5% (Fourth) 12.9%(Fourth) 14.5%(Fourth) $150,000 (Third) 0.569 (Third)

ADVERTISING BRAND AWARENESS

PRICING (Channel 1) (Channel 2)

$128 $110

NET PROFITS

-$260424

RESPONSE TO RESULTS (YR. 4)

MEASURE MARKET SHARE (Units) (Sales) MARKET SHARE (Students) (Creators) (Assistants) ADVERTISING BRAND AWARENESS PRICING (Channel 1) (Channel 2) NET PROFITS RESULT STRATEGY/LEARN INGS What went right? Increase and recovered the lost market share. As expected increased advertising lead to increased market share and sales. What went wrong? Unable to launch the DVC as we had to consolidate ourselves in the existing market.

33.7% (First) 32.4% (First)

36.4% (First) 36.9% (First) 32.2% (First) $200,000 (First) 0.850 (First)

$269.25 $183.39
$263,123

RESPONSE TO RESULTS (YR. 5)

MEASURE MARKET SHARE (Units) (Sales) RESULT 43.2% (First) 43.3% (First) STRATEGY/LEAR NINGS What went right? Dominance in product 1 market Got dominance in all 6 segments What went wrong? Lost on Market due to Low production.

MARKET SHARE (Managers) (Assistants) (Creators) (Home Users) (Students) (Parents)

ADVERTISING PRICING (Channel 1) (Channel 2) NET PROFITS

51.2% (First) 45.0% (First) 44.2%(First) 40.2%(First) 37.1%(First) 36.1%(First) $250,000 (First)

$269.26 $190.80
$330,982

Market Share by segments

Students
50 S h a r e 40 30 20 10 0 1 2 3 Year 4 5 40.5 39.9 26.1 36.4 37.1 50 40 S h 30 a r 20 e 10 0 1 2 26 26.1

Creators
44.2 36.9

14.5

Series1

Series1

3 Year

Home Users
45 40 35 30 25 20 15 10 5 0 1 2 3 Year 4 5

Managers
60 51.2 50 S 40 h a 30 r e 20 Series1 10 0 1 2 Year 3 4 5 33.1 25.5 24.3 12.9 Series1

S h a r e

Market Share by segments (contd..)

Assistants
50 S h a r e 40 30 20 10 24.5 26.1 15.2 Series1 1 2 3 Year 4 5 32.2 45

Parents
40 35 S h a r e 30 26.6 29.4 31.4 36.1

25
20 15 10 5 0 1 2 3 Year 4 5 18.3 Series1

Profit/Loss
400000 P 300000 R O 200000 F I 100000 T 0 / L O-100000 S -200000 S -300000

Series1 1 2 3 4 5

YEAR

Market Share ( Sales)

M A R K S E A T L E S S H A R E 50.00 45.00 40.00 35.00 30.00 27.40 25.00 20.00 15.00 10.00 5.00 0.00 1 43.3 32.4 26 16.2 Series1 M a r k e t 50 45 40 35 30 25 20 15 10 s 5 h 0 a r e

Market share (units)

43.2 29 29.6 18 33.7

( )

3 YEAR

3 YEAR

Learning
To analyze each market segment according to their needs. Focus on right distribution channel based on customer preference. Innovating the product based on customers preference. Deciding on the 4Ps based on companies vision and market condition.
Price: Optimum and Competitive. Promotion: Sufficient advertisement,commisions,promotions. Place: Appropriate channel and density. Product: Features as per target segment.

Importance of Brand Awareness and reinforcing the brand image in customers & Dealers mind. Managing human resource by providing appropriate remuneration.

Thank You
Thought: Markets change and evolve so should you.