Consumer action strategies used in Markstrat

Markstrat simulates the true dynamic world, motivated by customers and market decisions which shape our product progress hence high earnings generation. In the beginning of simulation, our company "U" is rivalling in the F2M6A0 industry. Company has two products SUSI and SULI, targeting different customers. The customers which the industry caters to are segmented into 5 portions

Buffs: Powered by quality and are technologically experienced.

Singles: Oriented towards performance, singles are targeted by basic and augmented Sonite products.

The Pros: It really is an attitude influenced segment. Top quality with peak performance satisfies this portion. Position quo is also one of the major factors of influence for this section.

High Earners: This is relatively a small segment which consists of consumers with high income but lower knowledge. Their purchasing is determined by influencers plus they seek performance in the merchandise they buy.

Others: This group is the most evolving segment for the Sonite industry, specially low end products. The factors shaping purchase for this segment also keep varying.

AIM and Purpose of the company

The company aims at generating high value and brand acknowledgement amongst its recognized customers directly enhancing their sales and recording high market talk about.

Company Overview

Our company "U" competes on the market through its two brands, SUSI and SULI. SUSI started out with least expensive market show in the prevailing scenario targeting Others, highly prone target portion. SULI targeted Pros and has the highest market show in the existing market for Pros.

Analysis: In the consumer's point of view electric power and price will be the two most driving a motor vehicle factors for just about any purchase of products in the forex market. In the prevailing industry, which is highly saturated, the decisions and strategies we used concentrated upon the following

1. High Brand understanding.

2. Building a brand personality for the merchandise.

3. Narrowing the difference between perceived value and the actual price of the products.

Product-wise Strategy implementation addressing Behavioral areas of Consumers

1. SUSI

Market dimensions of the merchandise are as follows

Production: SUSI has high inventory, so there was no point in increasing development.

Segment: A use-related segmentation was done due to the shopping patterns of the customers.

Target: Others and Singles, as their contribution I the marketplace was best.

Positioning: Our intended placement for SUSI was, a higher performing cost-effective mass product offered by generic touch details of the clients like mass products stores etc.

Strategies Carried out in timeline

Period 1 and 2:

1. Enhancing Brand Personality: SUSI demanded brand Personification regarding to their customers. High advertising spend was necessary to build a concrete personality of the brand among the clients.

2. Tapping Consumer Conception: It was seen that the targeted group "others" lowered their purchase intention of SULI. It had been required to map the notion of the customers and hence, influence the next targeted group i. e. Singles.

The basic variables of purchase of SUSI by others are Performance through Electric power and monetary value through pricing.

Perceptual selection was done and current economic climate scales were assorted with a repositioning of the brand.

3. Brand Awareness: As the product is a question make in BCG market, Perceptual mapping was done to revamp the merchandise over time which leads change in customers brain. It was designed to focus on the Singles, to control high inventory. Change in attitude was required. To attain this, certain attitude components of the customers were targeted that happen to be

a. Cognitive aspect: To tap into the cognitions of the customers which drive the sales, an enlargement in product experience and knowledge was directed. Because of this, high distribution with upsurge in Sales team was the decision taken which would mean more presence hence, more probability towards atleast trying the product, if not buying.

b. The affective Part: As it was seen, SUSI had not been doing well primarily, an enhanced participation of customers with the merchandise in conditions of emotions and thoughts would lead to raised brand perception in the semantic scaling of products. For this, affective part was activated by implementing lower price strategy but, bringing out the merchandise as a type of specialty product offered by high end stores which would get certain eyeball balls of High Earners, who will be the aspirational group for others and Singles.

c. The conative component: Semantic scaling provided a fair idea of the current motives of customers. The conative aspect demanded better intent of shopping for by matching the perceptions and enhancing attributes of the product.

Period 3:

As SUSI's market talk about was very less and the contribution to arrive from it was low, we thought of launching a better product for the 'others' market. We received the ideal sizes from the ideal values.

Wt-18 /design-7/ vol-82/ maximum fre-23 /ability-35

After a great deal of thought, we finally decided to reincarnate our brand. SUSI had not been able to fulfill customers. There was a need space which was determined. The customers identified SUSI as a brand which was much like its rivals but lacked brand recognition when compared with them.

Decisions Taken

1. Manage inventory by improving distribution. This will likely lead to higher brand visibility

And impact the brand recall in customer's mind.

2. Lowering the prices. This decision was mainly taken because of competitive pressure and the marketplace dynamincs. Research and Development on design and other R&D expenses were done to create a fresh imagery among customers.

3. Higher advertisement spent. As obvious, SUSI had not been an established brand, nothing but spending in terms of communication with the client was required. We also reposioned the brand as "highly convenient performer".

Results

Inspite of all our work of building up the brand, the inventory was unmanangable with SUSI viewing a decrease in it's market talk about.

These factors resulted in withdrawal of the merchandise from the market.

Reasons

AS "others" is an extremely vulnerable group mainly focusing on performance and market, a perfect balance had to achieved between the two. High occurrence and channelised distribution was an attempt towards it, but, this is more a issue of consumer attitude. Multi-attribute concentrate on group required technology of drive towards fulfilling their needs through SUSI might have been achieved if the differential strategy in accordance with the vulnerability of the mark group was required.

2. SULI

SULI was our second product in the SONITE market which was launched with SUSI. With the highest overall market show of 39. 1 % and it being the marketplace leader between its goal consumers, the marketplace variables of this product are the following

Production: As inventory of the product was almost zilch, making resulted in strategy building.

Segment: Based on shopping practices and the segment's purchase motive, sales force & marketing combine was chosen. Higher sales through area of expertise and Departmental stores was intended

Target: Experts were seen as the influencers of the market section. It directly led to buying of SULI by High Earners who consider Specialists as their aspiration.

Positioning: An excellent product with powerful over time was the positioning of the brand. Something which assists higher technical requirements and power based procedures was the central of our own communication with the customers.

Strategies Executed in timeline

Period 1:

1. Identification of psychogenic needs: It had been seen that Experts and High Earners needed something which satisfies and displays ambition, power, fulfillment and praise. Thus, this group is not a price delicate but performance very sensitive group which seeks perfection.

2. Consumer Affect and diffusion of Improvements: Experts were the opinion leaders in this market, so, gratifying them was the basis of our growth. Once we tapped the minds of influencers our target was to focus on high earners. High earners were basically view receivers who don't risk their purchase and wait for conformation form the opinion leaders. AS, High earners were not technologically savvy they didn't invest enough time in buying a product.

3. Profiling the customers: As SULI tackled two different group of needs for just two different kinds of customers i. e. Specialists and High earners, we profiled the customers in order to arranged different touch items for both.

a. Specialists: Specialists are 'pondering problem solvers', so, we had a cognitive view of these. These folks are actively looking for new products and innovations and also to satisfy them, the product needed a timely development in accordance with the change in needs and desires of this view leader group

b. High Earners: High Earners were approached with a unaggressive view, as, they don't show a big change in their habit in spite of the frame of mind change unless and until they get a conformation of quality and performers. More than usage of the product, acknowledgement of the brand and its perceived value one of the group forms their buying patterns.

Period 2 and 3:

1. Brand Identification: As high influencers were a growing group, we decided to increase the awareness of our own product.

2. On going R&D: Pros were regarded as people with changing needs. With old needs being satisfied, these folks erg for newer and better means to satisfy them. This is our goal for the existing period.

Period 4 and 5:

1. Repositioning: The marketplace share was regular till period 3, so, we made a decision to reposition our brand. We added the attribute of pricing as our inventory was high and attempted to enter an alternative TG.

2. Attribution: A big change in understanding was supposed by presenting the factor of convenience in our product communication. This might excite the professionals to try our new product.

Period 6 and 7:

We lost our market show immensely regardless of looking to keep our customers dedicated. The strategies of competition and with launch of newer and newer products, it was difficult to re-engineer the brand everytime a fresh competitor brand came into. Eventually, we tried out to cut out loss by minimizing prices and removing inventory.

From consumer's point of view we targeted singles and tried to make a market for the group just to clear our long lasting stocks.

Decisions Taken in timeline

Our strategy execution was performed by the following actions considered

1. Limited Advertising: A collective decision of not increasing the ad spent was taken by the team keeping into consideration the type of customers we were catering to. Bombarding opinion leaders with advertising was regarded as a risk which can dilute the brand and have a negative effect on professionals.

2. High Manufacturing spent for period 2 and 3: It was quite noticeable that quality could not have been compromised for the product. We invested seriously in making quality products because for professionals a product itself is sort of communication as these folks are on the hunt for new and better products. This might immediately lead to an improved word-of-mouth which works best in this situation.

3. Higher sales team throughout life time: this decision of ours was basically driven by challengers. We divided our sales force in departmental and specialty stores. Area of expertise stores entice a great deal of experts and one to one marketing was viewed as the best communication tool to convert pros into our consumers. Departmental stores were generally used to keep the brand visibility of the merchandise and strike high earners so as to create some information about the merchandise in their brain.

4. Upsurge in Price: Higher price is regarded as higher quality. With this intention we increased the price by about 7%.

5. Repositioning: Earlier placement was on Current economic climate and Performance with excellent note quality. But the product understanding was not perfect in conditions of Convenience, so we centered on Performance and Convenience this time around. This attribution was expected to make higher ROI.

6. Withdrawal of the merchandise: SULI kept shedding it's market share. It was becoming difficult to manage the expenses and the dynamics of the market environment. We decided to withdraw the merchandise after period 7.

Results

1. THE MERCHANDISE Life Cycle of the brand SULI eventually observed a decline coming in the 6th amount of its life. This was due mainly to tight market situations and old products exchanging the new ones.

2. Creation of the product was ceased after period 7, as we're able to not incur the expenses. Finally, the product was withdrawn after period 7.

Reasons

1. Owing to market conditions, professionals drifted from one product to some other rapidly for their intentions of exploring new and better technology in the market. Repositioning the brand againg and againg was seen unfeasible as it was already positioned for top quality users and influencers which are a basic variable of the market dynamics. We're able to not risk the name of your company by diluting the brand.

2. Ad put in and other communication activities were not given importance as the prospective audience is an organization for analysts who are on the run looking for products alternatively than products looking for these people. This decision helped us conditioning the brand in its growing phases before it was finally diminished with kick off of new products.

3. There were a great deal of subjective aspects to the action and attitude towards our product. This was due mainly to the reason why that professionals do not have an mental view towards their product. They quantify their needs in conditions of performance and most advanced technology, which a vintage brand would have never satisfied.

3. SUTI

Introduced after Period 3, SUTI was described by the next market parameters

Production: Began with low degree of production (70)

Segmentation: Mass product due to the shopping behaviors of the overall mass.

Target: Others, as these were the highest portion and the quickest growing one.

Positioning: Considering the TG needs we found out that these were looking for 'Ability' and 'Price' and so we tried to position it on these measurements.

Strategies Applied in timeline

Period 3:

1. Force Strategy: As the merchandise was launched in an existing market, we focused on creating a brand within the introduction phase of the merchandise. We made a decision to push the merchandise to the targeted customers as their sizes were economic performer.

2. Evaluating Brand for evoking consumer purchase: Due to high vulnerability of the targeted group, the brand had to be present on a regular basis within the communication sphere of the client. We establish a concentrate on of positioning our brand within the evoked group of known brands. This was designed to make the brand satisfactory among focus on group.

Period four to six 6:

1. Concentrated Marketing: Our setting was aided by perceptual mapping, where we wished to attack a balance between electric power and charges. It mainly was done to keep track of the "others" concentrate on group and we wished to concentrate our attention only on that sector.

Period 7 and 8:

1. Adoption Process: By now, we had a strong position in the market. We made a decision to convert the non-users into users. Trials and brand experience would improve the adoption rate which would increase sales.

Period 9 and further:

This period was mainly designated by competition led by a price war. We'd to diminish prices. Our adoption process led to high inventory, so, creation was over a halt and we just a bit repositioned our brand on MDS level.

Decisions used timeline

1. High ad put in: Mainly to use our force strategy, we put in highly on advertisements to increase brand recognition. We put in highly till the 8th period.

2. Decrease in sales team from area of expertise stores: We wished to have concentrated strategy, so, we just centered on others who were not regular people to area of expertise stores and second of all, it might have confused the client about the setting in our brand. After period 8 we ended the syndication in specialty stores.

Lowering prices: This is in accordance with market environment.

Result

Price battle in the later stages made us lose market talk about. Inventory was mishandled and the merchandise is still attempting to gain its position in the market. It is somewhere between a cash cow and dog in the BCG matrix.

Reasons

Mainly our prices strategy failed in the later phases. Our repositioning the brand time and again also had a negative impact on the customers as there is a poor scaling in our ad spent.

Lowering the costs always kept the clients in two minds and the brand lost its assurance among the users from a consumer analyst perspective.

4. SUNG

We released SUNG in the 9th period. The marketplace dimensions of the product are as follows

Production: Launched with about 90k products.

Segmentation: Due to shopping habbits, market mix was chosen and SUNG was launched as a higher end mass product with a much better perceived quality among customers.

Target: Singles were targeted as that they had the maximum footfalls in area of expertise and departmental stores.

Positioning: Electric power and Price again defined the needs of the mark audience but with a higher value on the semantic scale.

Strategies executed in timeline

Period 9:

Differential marketing: As the merchandise was created in the later stage of the ILC, we decided to promote our brand as an economical performer adding more value to money committed to the customers brain.

Period 10:

Manufacturing was increased as there is no inventory. But there was negative contribution from the brand, hence, it was withdrawn from the market.

Decisions Used timeline

1. Lower Price: We released our product at less price than market head. This price differentiation would encourage the trial of your product and brand shifters would feel respected due to lower pricing.

2. Repositioning: With small transfer in consumer habbits we also shifted our semantics towards singles.

Result

Due to later introduction, we weren't able to catch the consumers and SUNG could only earn 0. 7% market show. Later, it was withdrawn out.

Reasons

Wrong evaluation of the target group was one of the basic reasons we failed. As it was a higher end mass product, differentiation over price cannot have helped us much. Need space identification was lacking in our strategies as, it could have been a much better diffentiator and could have given our brand a USP to capitalize upon.

5. SUHI

It was launched predicated on SUNG to give attention to the High Earners market.

Segmentation: Due to shopping habbits and psychogenic needs, we unveiled it

as a high charged powerful performer.

Target: High Earners and Influencers.

Positioning: It had been predicated on the parameters most significant to the High Earners segment on MDS Sizes.

Sales Force: It had been decided predicated on Shopping habits of the TG as well as competition.

Advertising: Was concentrated mainly on High Earners with a little share on Pros and Singles.

Current status: The product is still in the launch phase.

6. VUDI

VUDI premiered in the Vodite market directed at followers. The essential competitive strategy included was price differentiation, as, the marketplace was bombarded with new products over and over.

From $772 we lowered the purchase price to $600 from period 3 to till date.

7. VUVU

It premiered predicated on VUDI focused on the Adopter Market

As VUDI's contribution was not improving we decided to relaunch the merchandise to cater to the needs of the other growing section.

Price: Was predicated on the ideal price point and also the competition price.

Positioning: Was predicated on the characteristics most significant to the TG.

Sales Drive: This is decided on the basis of available budget, shopping patterns and competitor target.

It was presented in period 11 and is in its introductory period.

Real World Situation: Strategy implementation for favorable action of consumers towards the brand

Company Name: ASAPP Press Pvt. Ltd.

Brand: Building World- A monthly mag for the development idustry

Construction World is the business's first child and its heading brand. CW suits the Engineers, Builders, Architects, Business programmers, Contractors, and Manufacturers & Traders of creating materials and Development equipment, so to state, the whole construction sector. With this B2B segment, the company has made a loyal basic of readers among the very best notch personalities in the structure sector. CW provides the most traditional, up-to-date & timely information from the world of Building.

Current Position:

Construction World (CW) is the marketplace innovator in the B2B section. Aimed at fulfilling the information difference existing within the business world of development, CW targets the professionals in the building industry and hence leverages it's brand to tap smaller companies within the industry.

Market Scenario:

Though, CW has been the marketplace leader, it has not been in a position to increase its market share and sales over 24 months. The expansion of the merchandise is stagnant and with competition going tighter, CW has seen a slight reduction in its market show.

Behavioral strategies of the business:

1. Push strategy: As it is a centered content product, it demands its readers a comprehensive knowledge about the structure industry. The visitors of the newspaper are also the influencers of the industry. To cater to such an audience, CW has began to look for marketers providing content according with their needs. An additional feature section was presented in January 2010, which features an indepth research of sub areas existing within the wide construction arena. They are really pressing their products to new customers and are constantly looking for appearing businesses to touch them at the right time.

2. Brand Consciousness and Brand Building up: As the brand is fairly old, the business decided to leverage the brand for its other PR activities. The company started Development World top 10 architects' awards in the year 2005, to appreciate the skill and technology in the construction industry 12 months on year. This has helped the business and the brand to create a strong keep among the most notable industrialists which range from GMR-the development giants to L&T- biggest manufacturers of building equipments.

B2B model applied by ASAPP Mass media driving purchase

Key Lessons

Sometimes withdrawing a brandname is a very important thing to do as you save a lot of money.

Think long lasting.

Correct estimation of production units.

Sometimes world wide web contribution is more important than market show especially when there is no need enough money.

Never keep changing your price points and placement frequently. It'll only confuse your customer.

Understand your customers well.

Understand your competition, their products and the market well

Plan R&D more regularly as this helps you in understanding the existing needs.

Future Recommendations

SUTI would do well in which to stay the market as the 'others' market is still growing. The price fluctuations need to be avoided. Also in the current situation, where our company is in no position to incur loss, the focus should not be market share but online contribution.

As Singles is the other segment which is going to increase, a good product with good positioning and price point should be launched.

Also as we never centered on the 'High earners' section, it is saturated in conditions of margin and thus can be regarded.

In the vodite market, only the enthusiasts segment has a high progress, thus VUDI and VUVU should stay static in the market and remain competitive. Only the setting must be improved.

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