Course: A56418Industry: AlbatrossTeam: LouieINC

BU642 – Marketing StrategyWilfrid Laurier University – Toronto MBAVito DeFillippis | Aaron Lee | Louis Morin | Derek SuenProfessor: Professor: Dr. David L. Blenkhorn

markstrat

December 4, 2015

Marketing Strategy OverviewTACTIC MARKETING STRATEGY

•Focus on core products that generate both revenue/ profit over 5 periods

Segmenting, Targeting, and Positioning

•Balance marketing mix of advertising and distribution in proportion to market•R&D every other period

Internal Marketing Environment / (COGS Management)

•Budget commercial/ merchandising and benchmark to competitors External Marketing Environment

(Competitor Intelligence) •Invest 100% in market research studies to forecast and manage inventory•Operate in both Clinite and Nutrite market to balance portfolio Strategically Creating and Managing

Products, Services, and Brands •Expand product assortment to capture all consumers along the consumer perceptual map

Results

Marketing Strategy

Segmenting, Targeting & Positioning• Clinite Market – All products target each consumer segment, and positioned to

their key purchase decision factor – price and efficacy

• Nutrite Market – Two products target three consumer segments, and positioned to their key purchase decision factor – price and clinical

Segmenting, Targeting & Positioning

Internal Marketing Environment• Balanced product assortment to manage COGS, marketing expenses, and

inventory holding costs to ensure each brand contributed to the bottom line

Internal Marketing Environment

Internal Marketing Environment• Cost evolution – Gross Margin rate held consistently over time averaging

between 36% to 41%• Advertising expenditure in proportion to revenue• Other Expenses (Research and R&D) controlled period over period

External Marketing Environment• Competitive Intelligence –

benchmark against competitors marketing expenses by competing product

• LIKE – top advertising investment ahead of MINT, NICE, SILK, SILK 2.0

• LIME – in line with MISS, SING and ahead of RISE

External Marketing Environment• Market Research Studies gave us insight and data on who was profitable, expenditures, and R&D

projects• RockStar – highest profit in Nutrite in P6 benchmark to their standards for next round• NESS/ Sabre – developing new product to enter market ensure our product position to prevent new entrants

and maintain share

Strategically Creating and Managing Products, Services, and Brands • Balanced products in both markets contributed strong revenue and margin to allow

up to $25M budget to invest into new opportunities

Strategically Creating and Managing Products, Services, and Brands • Bubble Chart shows representation of each consumer segment – targeting each

consumer captures additional customers – GOOD/ BETTER/ BEST

Period by Period Analysis

Rounds 1-2• Focus on core products LIKE/ LIME (existing assortment) and target to

SINGLES and HIGH EARNERS

• Increase advertising expenditures to increase brand awareness and influence consumer purchase intentions

• Developed a Nutrite Product (LU-ELD) to enter into the market to create brand awareness – first mover advantage

• Launch secondary products to target Low Income and Affluent to capture unserved markets

Rounds 3-4

• Benchmark and cost manage Nutrite against leader. Developed two products to target Elders and Families/Health Conscious segments.

• Develop Clinite product to target Medium customers to steal market share

Round 5-6

• Refine (R&D) all products to consumer’s preferences

• Invest heavily in Elders market to capture large spike and take loan out to advertise

Round 7-8

• Have a Marketing Driven mindset towards this business challenge

• Strategically create (R&D), manage products (Clinite/Nutrite) and services (merchandising/ commercial/distribution) and brands (advertising).

• Evaluate your internal marketing and external marketing environment• Cost management, advertising in proportion to product line and competitors • Understand consumer market, trends, and preferences

• Always evaluate your business to be competitive and adapt to the market

Conclusion

BU642 – Marketing StrategyWilfrid Laurier University – Toronto MBAVito DeFillippis | Aaron Lee | Louis Morin | Derek SuenProfessor: Professor: Dr. David L. Blenkhorn

thank you

December 4, 2015