Table of Contents

Executive Summary...........................................................2
1.0 Introduction................................................................3
2.0 Summary of market environment..................................4
3.0 Evaluation and analysis of the outcomes of your
strategic objectives set in the marketing plan.....................6
4.0 Conclusion................................................................10
5.0 Reflection..................................................................11

Executive Summary
The purpose of this report is to evaluate the performance of TOPClass in the
Madrid Industry and examine the objectives pre determined in the
early planning report. A comprehensive analysis of the current
market situation of dynamic Madrid industry is significant to identify
close competitors and reveal the utilised marketing strategies
specifically from period 4 to period 7. Findings in this report further
indicate the detail current market environment and competitors,
segmentation

strategies

used

by

TOPClass

to

reach

target

consumers segment step by step to achieve established objectives

in making marketing decisions each round. In sum, due to
unforeseen barriers and obstacle, team members of TOPClass did
not manage to reach set objectives as a market leader yet manage
to be a good market follower for Sonites brands and market
challenger in Vodites brand up to period 7.

1.0 Introduction
This report has been compiled to evaluate TOPClasss performance outcomes
in the Madrid Industry that set earlier in the marketing plan. In the earlier rounds,
TOPClass had utilised benchmarking method to evaluate brand performance from
time to time to solidified TOPClasss position as a market leader. For this reason, it is
outlined that the firm had to achieve and maintain over 30% market share
meanwhile revenue and sales had to gradually increase over 10% for
each period to reach market dominance. In order to evaluate the objectives,
a detailed analysis of the latest market situation is identified to
reveal the strategies TOPClass had utilised from decision period 4 to
7.
Operating in mature Madrid industry that is characterised by intense
competition, it is essential for TOPClass to consistently review
market conditions and the performance of competitors. At the first
place, TOPClass had utilised a psychographic segmentation strategy through
developing and releasing three Sonites brands namely Tone, Tops and Total.
Immediately in period 4, TOPClass decided to expand into Vodites product
range with TENDER brand to benefit from first mover advantages as well as create a
higher entry barrier to future brands to secure its competitive advantages without
delayed. After all, TOPClass major focused on Sonites product that holds 90% of net
contribution compare to 10% contribution of Vodites product.

2.0 Summary of market environment

The final market environment for Madrid industry is mature and declining as
consumers have a second choice after Vodites product range had been introduced. The
market environment had gradually evolved as more and more firm extended their
brand to target the five different consumer segment. Over the 7 period, TOPClass
stick closely with its original plans for its three brands under Sonites by introducing
three different brand offering different product value and prices for different
consumer range whereas competitors becomes more intense over the decision period
4 as every team fully understand the long term benefits over first or second mover
advantages due to strong brand awareness created among consumers image
specifically towards innovators and early adopters segment who are willing to pay
more to change to new replacement products.
Brand contribution table are used to compare contribution of each brand
before and after marketing. Since period 4, Vodites brand, TENDER was launched
with a moderate price selling at $420 with a 65% of mark up cost. Fortunately,
TENDER retail sales constantly increase and end up posses value share of 28.4% in
period 7 as shown in table below. As the demand of Vodites products is completely
opposite from Sonite product, thus TOPClass foreseen higher prices in the near future
as consumer interested in Vodites products such as early adopters and innovators who
are willing to pay and are still at the front of product life cycle.

Immediately in period 4, TOPCLASS decided to expand to Vodites brand in a

hope to benefit from competitive advantages. As a result, revenues increase as well as
inventory costs due to mass production but low sales. In period 5 and 6, inventory
costs is still high that affect brands profit. After discussion, production is critically
revised to fit the forecast sales for forthcoming decision period. In the last period, the
production plan for TONE is dramatically reduced to 150000 units, as there are 28062
units of holding inventory result from the previous period. Moreover, as brand
TENDER had excess production as well, team member decided to stop produce on the
last period in order to used up holding stock at the same time slightly reduce its price
from $480 to $470 hoping to clear out the stocks.
Over the four decisions period, TOPClass team perform moderately as a
market follower and ranked third after Radtron and Lotus with revenues gradually
increase up to $119622 and managed to reduce high inventory costs from nearly
$5000 thousands in period 6 to $1930 thousands on the last period as show in the
company profit and loss statement below.
Unfortunately, due to no perceptual objectives are chosen for these four brands
over the period, therefore, market research studies did not bring any positive effect on
fund ordering or help in forecasting. Similarly, research and development had also
been stopped after period 3 and focus on advertising expenditure and commercial

costs. Consequently, TOPClass had overspent its budget limit by $3,335000 focusing
on advertising and promoting expenditure on Sonites products without making good
use in market research studies as shown below.

3.0 Evaluation and analysis of the outcomes

of your strategic objectives set in the
marketing plan
Main objective of TOPClass from period 4 moving towards the
last period is to ensure increases in market profitability at the same
time defends each brands position from others close competitors.
As mention earlier, the objectives previously set is to increase revenue to $200m
by the end of period 7 at the same time, maintain market leader
position in terms of number of units sold with sustainable increase
retail sales market share to 40% meanwhile gain second position in
the market by end of period 7. Consequently, setting clear
objectives lead team member to focus on competitive strategy as a
long-term issue.
Unfortunately, compared against the results achieved over the
decisions period, competitive market in Madrid industry encourages

TOPClass to recognise the importance of dynamic capabilities

changes in each period. In effect, as brands create defensible
competitive position for the long term, thus company names have
direct implication towards brands. For instance, TOPClass long-term
focus is to create a strong competitive advantage for each of its
brand hence the long-term strategy is to less rely on advertisement
if brands image has strongly built through investment on various
marketing resources.
In the first place, identified segment based on one variable are
too limited hence multiple variable a priori methods to segment
customer for each and every brand is implement for a better
understanding

in

targeting

and

advertising.

In

this

case,

segmentation study is planned with advertising agent in order to

determine or set boundaries on the results that are intended to use
as the most powerful data comes from brand result that describe
the formed segment. Furthermore, marketing opportunities is
discovered, thus, a new brand is proposed after round 4 to run
operational validity.
It is lucky that TOPCLASS able to identify and capitalise on
emerging opportunities to invest in Vodites market since period 4
and accurately target new markets to diversify companys resource
to stand out from Madrid industry intense competition. For this
reason, consumer insights are essential to understand prime target
market. In this case, decision review report, helps analyse customer
by focusing on this theory, TOPCLASS decided to invest in Vodites
products to pursue new customers and further market research to
understand way to pursue these early adopters.
As product lifecycle change, its important to update marketing
strategy each period by adapting critical issues that might affect
TOPCLASS sustainable competitive advantages. Additionally as

Sonites product range are transition to maturity, the only strategies

to stand out is with incredible marketing mix strategy with efficient
customer segmentation. In the future, as Sonites product range
decline, TOPCLASS will have to focus in Vodites product range and
extended its product line as Madrid industry evolved.
To tackle fluctuate profit margin, net contribution after
marketing is critical in encouraged efficiency focus through better
coordination of team members. In the situation of TOPCLASS,
experiment forecasting methods is practice with test marketing from
various analysis report from Markstrat each period. After all,
TOPCLASS successfully balance the business portfolio, as it owns
brands and products that generate cash now together with
opportunities in Vodites product range that generate high market
attractiveness in the near future to be a tomorrows breadwinners.
In period 5 or later, positioning strategy for each brand had
eventually fixed in order to identify the position of competitors in
the market. In the early stage, TOPClass are more into confused
positioning however, after each brands uniqueness was claimed,
team member are more clearly to combine tactical implementation
to accurately forecast customers attitudes and behaviour and
achieved best prospect.
Obviously, TOPClass act as a market challenger in Vodites
product brand and are fighting hard to increase its market share to
overcome the market leader, REAL in the industry. As an example,
TENDER

owns

27.5%

of

unit

share

with

better

product

characteristics that are ready to take advantage of leaders

weakness through attainable attacks objective. On the other hand,
TOPClasss brands are a good market competitor on Sonites product
range. For instance, TONE ranked number three after ROCK and

ROLL brand with TOTAL and TOPS being a good market follower by
gradually improving marketing strategies with less investment.
In reality, choices of target markets are evaluated to groups
marketing effort. For instance, as TONE is sell at $500 hence the
segmentation strategy is proportionally divided into 60% at
professional and 40% towards high earners whereas middle range
product like TOPS is to focus on explorer and shoppers who look for
quality product yet price sensitive and lastly low range product to be
90% targeted on savers where future growth rate can exceed
forecasts and another 10% on shoppers who do a lot of shopping
comparison as shown below.

In effect, to build a stronger position in the market place,

TOPClass had to implement competitive strategy that combined
attacked and defensive moves to build and hold its position. As
Vodites product is growing, therefore expansion is foreseen to direct
confront with major competitors in order to increase barriers of
entry for the near future. On the other hand, as Sonites product are
facing up to mature stage, all three brands of TOPClass have to
move into new markets to maintain its sales because each period
required competitor intelligence knowledge to predict sales forecast.
For the long-term focus, TOPClass aimed to create sustainable
competitive advantage. As a result, as TENDER posses second
mover advantages since period 4, thus, economies of scale can be
achieved through capacity utilisation. On the other hand, all three
Sonites

brands

uniqueness

on

product
pricing,

have
product,

to

compete

promotional

through
and

various

distribution

differentiation among the intense competitions in Madrid industry.

Correspondingly, TOPClass are getting its pricing strategy correctly
by differentiate three different class of pricing under three different
brand name to target different target segment. With different
targeting

segment,

henceforth,

the

distribution

channel

and

promotional strategy for all three brands are unique for different
customer group. For example, as TONE is targeting professionals
and high earners, hence the most online store are allocated to TONE
as its demographic segment are more wealthy and educated that
looking for convenience shopping.

4.0 Conclusion
Although TOPclass has established a dominant position in the
market in earlier periods and failed to maintain on the later rounds,
however, due to dynamic nature of the industry the firm should
consistently

review

benchmarking,

market

TOPClass

had

conditions.
ensured

Through
all

its

engaging

brands

in

remain

competitive moving forward to relevant target markets although

unforseen barriers appeared every round that disturb accuracy of
forecast. At the moment, company growth is challenged due to

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market saturation in the Sonites market. In response to this,

TOPClass could expands more brands in Vodites market in the near
future as it is foreseen to be booming stage in product life cycle to
further achieve company growth in view of generating maximum
profit for TOPClass.

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5.0 Reflection
As a team member, I had actively participate with my team since week 2 and did not
missed out any meetings as all of us fully understand the importance of decision we
had to make each round. By understanding the desired objectives since early rounds,
we had distributed clear roles for each brand among us in order to make better
individual decisions and reduce confusion and re-work.
Every week, we will first look at company result as a whole then critically look into
brand result to see what net profit each brand had made for that week. In order to
understand each segment ideal values in comparison with brand perception,
operational expenditure are analyse against market research with other brands to get
comparative result on the competition figure out from semantic scales tables for each
round of decisions. Correspondingly, we will move on to brand portfolio to make
decision for Sonites and Vodites by assigning into groups of 2. Before generating
resolution for commercial team support for Tone, Tops and Total, decisions for budget
allocation to Marketing Mix 4Ps each week is discussed in detail together.
Additionally, budget is allocated accordingly in marketing mix decisions. As an
illustration, we have to first allocate a production plan for our star products, Tone.
Pricing structure is then analysing in view of advertising expenditure for Tone brands
alone. Consequently, a perceptual advertising objective is change from round to round
for a better reassessment in forthcoming decision period.
In this case, production adjustment is the most difficult part to fulfil dynamic market
needs. In effect, inventory holding cost is the major obstacle affecting each brands
profit. Price had changes few times in our team after critical discussion, because when
comparing our price to our main competitors Rock under Market and Competitive
News Report in round 5 and 6, we decided to slightly increase hoping for a better
returns profit in sales. Together, we had decided so with the support from brand
perceptions table that customer is able to perceived a higher price for our Tones
product. Apart from purchasing consumer market reports and intelligence reports each
round, we focus on distributing the remaining budgets over advertising to reach out to
our target consumer segment. Unfortunately, as our team did not emphasize on the
effect of advertising message to focus on, in most of the periods, we had simply
selected no objectives to save on advertising expenditure but in return draw down
our sales. Eventually, all team members are fully aware about important to achieve
strategic objectives to cope with various expanded brands, thus, we have to improved
our data evaluation skills in order to manage and forecast our resources allocation and
marketing mix decisions accurately across various product.
After period 3, we further discuss and made amended of our decision mainly through
Facebook if some of our members happen to be absent. Of course, we still collaborate
in tutorial, as we understand it is imperative to the ultimate success of the decision
period. In each period, budget allocation on marketing mix and sales team are critical
as we had learn that it will affect TOPCLASS performances on both short and long
term in the future period if market share or brand awareness affected financial KPIs.
In conclusion, I had learned majorly on the importance of communication, breaking
the tasks down the work in order to find the interdependencies and ability to stay on
track much more successfully and in the future, to continuously improve to become a
better team member, I will definitely investing a little time to document the best

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practices and ideas immediately that happen to make contributions to all future
projects more valuable and efficient.

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