ESSEC Executive Master in Strategy and Management of International Business: a presentation for MarkStrat, a strategic marketing simulation game in several round.

1. R2D2 METHOD:
A NEW HOPE.
One Segment. One Product. One Channel.
ESSEC Strategy & Management of International Business
MarkStrat Module
February 2013
Alexandre DERVELOY
François GEY
Audrey KIST-GASPARD
Antony ZOUZOUT

2. NOT SO LONG AGO, IN MARKSTRAT GALAXY…
1. THIS IS A COMPETITION WAR ERA.
HALF OF R2D2 PRODUCTS ARE NOT WELL POSITIONED.
2. TO CREATE A NEW HOPE FOR THEIR SHAREHOLDERS,
A SMALL TEAM OF PASSIONATE MANAGERS
HAVE A VISION: ONE SEGMENT. ONE PRODUCT. ONE CHANNEL.
3. THEY INVOKE PORTER’S FIVE FORCES OF STRATEGIC MARKETING:
R&D TAILORED WITH A LIGHTSABER, ,
CLONE ARMY PRODUCTION PLAN,
AND A DS-1 MASSIVE ADVERTISING POLICY
4. NOW THEY GET AWAY FREE AT LIGHTSPEED THROUGH THE HYPERSPACE
PROPELLED BY AN EXPLOSIVE PRODUCTS PORTFOLIO
AND SKYROCKETING MARKET SHARES
2 I R2D2 I A New Hope I February 2013

3. THIS IS A COMPETITION WAR ERA.
3 I R2D2 I A New Hope I February 2013

4. HALF OF R2D2 PRODUCTS ARE WRONG.
Star product : ROCK, targeted at Professionals
Other product: ROLL, wrong positioning, losing market shares
4 I R2D2 I A New Hope I February 2013

5. To bring a New Hope for the
Shareholders…
5 I R2D2 I A New Hope I February 2013

6. A SMALL TEAM OF PASSIONATE MANAGERS
6 I R2D2 I A New Hope I February 2013
•Audrey: R&D development
•François: Strategy
•Alex: Finance
•Antony: Marketing mix
Decision process:
•Share tasks and trust the person in charge.
•Collegial decision.
•When we don’t have the time, vote/medium.
One team. One voice.
One vision.

7. HAVE A VISION:
One segment. One product. One channel.
First round Strategy: Consolidate ROCK and kill ROLL
Then:
•Gain market shares with ROCK
•Launch new product for profitable segments with strong growth:
 High earners ROMI
 Savers ROBOT
•Prepare for the Future with RELOAD – 13m R&D budget
7 I R2D2 I A New Hope I February 2013

8. They invoke Porter’s Five Forces.
And come up with…
3 I R2D2 I lorem ipsum I juin 2012

9. R&D TAILORED WITH A LIGHTSABER
9 I R2D2 I A New Hope I February 2013
How to develop the perfect product?
1. Interpolate the characteristics of
known, appreciated products
2. Anticipate the evolution of
customers' expectations
3. Allocate all necessary resources
to realize the product as specified
(use of enquiries)
Do the best at the lowest
price
Prepare the customer with
action on perceptual
objectives

10. CLONE ARMY PRODUCTION PLAN
10 I R2D2 I A New Hope I February 2013
The biggest mistake we ever made was not to produce enough!
To avoid doing that mistake again:
• What is the size of our target?
• What is the aim of our market share?
• Then add at least 20%

11. DEATH STAR MASSIVE ADVERTISING POLICY
AKA DS-1 BATTLE STATION
11 I R2D2 I A New Hope I February 2013
 DS-1 Battle Station is a superweapon
appearing in the R2D2 corporate
universe in Year 1.
 It is capable of destroying competing
products with a single destructive energy
beam by concentrating all advertising
budget and resources on a single
channel, for a given product/segment.

12. Now they get away free at lightspeed
through the hyperspace
12 I R2D2 I A New Hope I February 2013

13. 17% Rock
Targeting: Professionals
Value market share: 12%
30% Romi
Targeting: Professionals
Market share: 12%
29% Robot
Targeting: Savers
Market share: 10%
24% Reload
Targeting: Followers
Market share (Vodite): 30%
PROPELLED BY AN EXPLOSIVE PRODUCTS
PORTFOLIO
13 I R2D2 I A New Hope I February 2013
Market growth + Reload (followers) Robot (savers)
Market growth - Rock (pros)
Romi (HE)
Market share - Market share +

14. AND SKYROCKETING MARKET SHARES.
14 I R2D2 I A New Hope I February 2013
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
0,00
50 000,00
100 000,00
150 000,00
200 000,00
250 000,00
300 000,00
Period0 Period1 Period2 Period3 Period4 Period5 Period6
Forecast
Revenues EBIT Sonite
Valuemarket Shares (%)
Vodite
Volumemarket share (%)
Sonite
Volumemarket Share (%)

15. BUY US
and never regret it, you will.