Markstrat 2014

1. MANDELA
David Bador, Dor Biran, Yoni Reichel, Raphael Chicheportiche
IMAGE

2. Introduction
 Period 0-3: « Slow & Steady »
 Period 4-6: « The Decline »
 Period 7-9: « The Final Push »
Team Mandela MarkStrat
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ERAS:
 SPI: 1000$  2306$
 EBT: 15M$  86M$
 Sonite: Most and Move
 Vodite: Me
OVERVIEW:

3. Period 0-3: “Slow & Steady
Team Mandela MarkStrat
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4. Period 0-3: “Slow & Steady
Team Mandela MarkStrat
Figuring out the
Sonite Market
Early Vodite R&D
Goals
"Most" was focused on the
Savers and "Move" was focused
on the shoppers.
Create PEMedio and PEMental,
to attract the followers and early
adapters, for future penetration
into the Vodite Market while
financing feasibility studies in
increments over time.
Performance

5. Period 0-3: “Slow & Steady
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 The main focus should have been on one segment due to the
decrease of costs in the economies in learning development
for the Vodite Market
 We didn't protect the market share that we acquired and that's
why we lost a good chunk of it to LLAMA in period 4.
 We could have produced more units and sold much more to
the market in general.
 We should have avoided trying to get some of LLAMA's
Market Shares and focused more efforts on targeting the
weaker competitors.
Avoiding Pitfalls

6. Period 4-6: “The decline”
Team Mandela MarkStrat
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Overview

7. Period 4-6: “The decline”
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Expend Sonite market
Consolidate our Sonite
Portfolio
Goals
R&D Vodite
Two new Sonites:
• Money  High earners
• Mopro  Professional
• No meet Projection
• “Most”
• “Move” upgrade 
Power
• Lose Awarness
Performance
PEMEDIO  Future ME

8. Team Mandela MarkStrat
The Loan
Period 4-6: “The decline”
 Prevent monopolistic situation
 Enhance the commercial teams and increase our
advertising budgets;
 Finish developing our Vodite: PeMedio
 4 million loan to return in 3 years at 5% interest

9. Team Mandela MarkStrat
Avoiding
Pitfalls
Period 4-6: “The decline”
 Too much R&D rather than focus on existing
brands: MOST & MOVE
 We didn’t allocated enough money on our
commercial teams .
 Poor advertising decision

10. Period 7-9: “The Final Push”
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Team Mandela MarkStrat

11. Period 7-9: “The Final Push”
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Penetrate Vodite Market
Cut Excess Cost
Lower Inventory Holding
Costs
Goals
• 1st period in market = #1
• 2nd period in market = #2
• Reduced R&D spending to 0
• Consolidated Brand Portfolio
• Accurate or Underestimated
Sonite Brands
• Overproduction for ME
Performance

12. Avoiding
Pitfalls
Period 7-9: “The Final Push”
Channel share.
• Llama’s focus on commercial teams
Highest cumulative R&D expenditures.
• Average of $6M of R&D per brand (3). Llama
averaged $4M+ per brand (4).
R&D in 6 consecutive periods.
• Less budget for advertising & sales force.
• This is when Llama took over
Team Mandela MarkStrat

13. Future Periods
Most
Mov
e
Me
Other
Marketing
R&D
To Vodites
• Gain back lost MS – keeping a
growth of 2%/year.
• R&D to lower costs and enlarge
margins
• R&D to adapt the product to the
customer’s changing needs.
• Current cash cow.
• Enlarge Marketing to achieve a bigger
MS.
• Cost reduction through R&D.
• R&D to adapt the product to the
customer’s changing needs
• Adapt marketing expenses to achieve a
bigger MS.
• Cost reduction through R&D is a
must.
• R&D to adapt the product to the
customer’s changing needs
• R&D to come out with new product
to different segments
Team Mandela MarkStrat

14. Team Members
• Work under budget constraint
• Marketing research
• Team Work
Raphael ChicheporticheYoni Reichel
• To raise awareness advertising is key,
but after that let the sales force do
their job.
• Don’t spread your resources too thin
• Sunk costs are hard to justify, but
must be.
Team Mandela MarkStrat
Dor Biran
• How important Marketing Research is.
• How to manage a budget.
• The role of a marketing manager
David Bador
• When you run out of capital, backtrack
and see where to allocate yourself
properly and always look at the options
that are both existent and non-existent.
• Investing a significant amount of capital
in
any specific point won't always give back
positive results
• Never be afraid to take risks even if it
means there is a chance you might lose.