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MBA Presentation

BU5553 Strategic
Marketing
Course Co-ordinator: Mr Russell Williams

ECOUTE
Submitted by
GROUP 5: Firm 3

Kumar Shermeen
Konduru Madhusudhan
MankarAarati
Prajwal Mithun
Warrier Aravind

Batch : Jan 2010-11


Introduction

 Product : Voice Recognition Data Software.


 Competitors:
 1. Interpreto
 2. Voice-Tech
 3. Crystal.

 Market Segments
1. Modern Students : (20)
2. Home Producer : (15)
3. Harried Assistants : (25)
4. Commercial Artists : (10 )
5. High-Tech Managers : (22)
6. Concerned Parents : (8)

Present scenario
Dependencies between different variables

Targeted Market
Product market Share
Pricing Features segment

Spl Commands 8
Error Pr 3
Ease of Learning 3
Market Segments and Market share in last 3 years.

Market share of all customer segments


§ Market segmentation is
demographic .
§
§ Current Market Segments:
1. Modern Students
2. Home Producer
3. Harried Assistants
4. Commercial Artists
5. High-Tech Managers
6. Concerned Parents

 Common key elements of
targeted market


Period 1 : Decisions

 R & D Investment
 Calculation of wholesale price

 Product features :
 Special Commands : 8 - 12
 Error Protection :3–4
 Ease of Learning :3–3

 Focus on Channels.

Results of Period 1
2nd in Market share. Profit: $ 720, 903
Period 2 : Decisions

 Analysis of competitor’s strategy.


 Investment in R&D
 Significant investment in Advertising.
 Focus on Channel 1.


Period 2 : Highest Market Share in sales
Profit : $ 1, 587, 725
Period 3: Decisions

 Increased focus on channel 1.


(65%)

 Sales Reps distribution.



 Focus on more customer service.
Key learning from Period 3

 Unequal concentration on product features.



 Lack of focus on Advertising.

 Marketing mix : Price & quality

Period 4 : Decisions

 Focus on different features of product.



 Investment in Advertising which was cut as budget was exceeded.

 Indirect Advertising.

 Differential Price.

 Focus on customer service.





Results of Period 4
Period 5 : Decisions

 Reduced Price to capture maximum market.



 High investment in R&D

 High investment in Indirect Advertising. (why indirect)

 Focus on customer service.




Period 5 Results in comparison with previous periods
Comparison of market share (%) of all firms in
terms of units over 5 periods
Comparison of market share (%) of all firms in
terms of $ sales over 5 periods
Positioning Map : Special
commands vs Price
Positioning Map – Market Share (Sales
vs Units)
Effect of Advertising on Product sales
Channel Distribution Intensity

Over all the periods :



Should have been well studied.

 Exclusive
 Selective
 Intensive

% Increase in sales from P 2 to 5 Net profit over 5 periods
Marketing Memo : Ecoute
Marketing High Medium Low

1.Company Reputation   *  

2.Market Share *    

3. Customer Satisfaction *    

4. Customer Retention   *  

5.Product Quality *    

6.Service Quality *    

8.Distribution Effectiveness     *

Manufacturing      

1.Facilities *    

2.Economies of Scale   *  

Organization      

1.Visionary, capable leadership *    

2.Entrepreneurial orientation   *  

3.Flexible or responsive *    
Statistics of all variables over 5 periods

Period P -1 P-2 P-3 P-4 P-5

Estimated units sold 28871 29688 39900 39000 62000

Actual Units Sold 27388 34029 34827 56160 88799

Wholesale Price 135 135 160 160 160 160 190 170 190 170

Sales (ch1) 17,31,240 2899360 3484160 5333680 2,64,78,155

(ch2) 19,66,140 2545280 2088160 4774960 2,96,68,669

Total Sales 36,97,380 5444640 5572320 10108640 16185130

Percentage Increase in Sales N/A 47.2567061 2.345058626 81.40810291 60.11184492

Total Expenses 1168869 1236682 1305616 2155864 2271549

Percentage Increase in expenses N/A 5.801591111 5.574108785 65.1223637 5.366062052

Net profit 720903 1587725 1191380 2280616 -2271549

% increase or decrease in Net profit N/A 120.241142 -24.9630761 91.42641307 73.99215826

Features ( Sum Total ) 12, 4, 3 14, 5, 3 16, 5, 4 16, 7, 8 18, 8, 8

Market share 23, 25 24 . 9, 32.2 19 . 9, 25.1 27 . 3, 35.3 35 . 1, 32.1


SWOT Analysis


 Strengths :
 1. Profit in terms of $
 2. Target Market
 3. Market share in P5
 4. Customer service

 Weakness:
 1. Inappropriate channel distribution
 2. Lack of uniqueness.
 4. Lack of market research.

 Opportunities:
 1. Shifting to new market segments.
 2. Business and Product development.

 Threats:
 1. Voice-Tech and their marketing mix
 2. Dependency on Channel 1.
 3. Price wars with competitors
Conclusion

 It was crucial to overcome inefficient planning of advertising


expense and inappropriate distribution intensity. In spite of that,
Ecoute tops the market share in units in final results and
throughout holds a good position in the market.

 The strategy of focusing top of the pyramid was right


eventually. Ecoute's marketing mix of Product, Price and
Positioning was balanced. 
 Ultimately it was a good endeavour by all team members to
stand out as an organization.



Thank You !!!
Questions.. ?