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Goodys - Competitive Marketing Strategy Presentation

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Erica Santiago
Erica Santiago

The document outlines a company's strategy over 7 years to expand its Glace brand of products from 2 countries and segments to additional markets. Key aspects included increasing profits, market share, and brand awareness through new formulations, limiting the number of brands and countries to allocate resources effectively, and maintaining high margins. The company analyzed its resource allocation, market share gains, and competitive positioning yearly. It predicted a lower but still profitable Year 8 based on expected unit sales and slightly lower communication expenses in one country.

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Goodys - Competitive Marketing Strategy Presentation
What was our overall strategy? Where were we Day 1? Where did we want to go tomorrow? How did we get there? Started with budget of $9,466 One brand [Glace] in two countries [1 & 2] Increase profits, market share & brand awareness Expand into different markets Create formulations to increase market share and profit Focus formulations on attainable segments Limit number of brands/countries to allocate the appropriate amount of resources Maintain high margins
What was our year-to-year decision making process? Step 1 Step 2 Step 3 Step 4 R&D C C C Sustainable Advantage 3 C’s
What was our net marketing profit year-to-year?
What was our market share year-to-year?
Country 2 / Segment 1: Glace 98.5% market share 241mm units sold Country 4 / Segment 2: Glace 60.8% market share 296mm units sold Country 4 / Segment 1: GoodVibes 78.2% market share 77mm units sold Country 1 / Segment 1: Glace 75.7% market share 337mm units sold Portfolio Analysis (as of Year 7)MARKETGROWTH(LOW-HIGH) MARKET SHARE (HIGH - LOW)
goodys THE GRATEFUL FRED i scream! BLAST Total PRODUCT RESOURCE (.6) 1 1 1 1 4 % share 25% 25% 25% 25% DISTRIBUTION COST (.2) 7.2 7.4 8.2 7.7 30.5 (in millions) % share 24% 24% 27% 25% COMMUNICATION RESOURCE (.2) 29 18.2 25 19 91.2 (in millions) % share 32% 20% 27% 21% EXPECTED MARKET SHARE 27% 23% 26% 24% ACTUAL 36% 10% 32% 22% WEIGHTED 26% 24% 26% 24% Competitive Resource Analysis (Country 2)
goodys i scream! BLAST Total PRODUCT RESOURCE (.6) 2 1 1 4 % share 50% 25% 25% DISTRIBUTION COST (.2) 10.6 3.3 6.1 20 (in millions) % share 53% 17% 30% COMMUNICATION RESOURCE (.2) 64 13 26 103 (in millions) % share 62% 13% 25% EXPECTED MARKET SHARE 55% 18% 27% ACTUAL 64% 4% 32% WEIGHTED 53% 21% 26% Competitive Resource Analysis (Country 4)
Think long term, but don’t go overboard investing too early or when you don’t have the capital yet. Stay committed to current countries and segments, despite struggles or staggering country growth rates. Be more aggressive when deciding how many units to produce, especially when planning on using the same formula over multiple years. What did we learn from all of this?
Assumes we sell all of our inventory (20% down) Slightly lower communications expense for Country 2 Expect to be down from $1.36B last period What do we predict for Year 8? ($ in thousands) Glace GoodVibes Units Sold 760,000 81,694 Units Produced 760,000 81,694 Inventory 0 0 Revenues 1,565,600 156,852 Cost of Goods Sold 342,000 36,762 Communications Expense 107,806 35,000 Freight Expense 13,556 4,085 Inventory Expense 0 0 Gross Marketing Contribution 1,102,238 81,005 Total Gross Marketing Contribution 1,183,243 Marketing Research Expense 793 R&D Expense 0 Salesforce Expense 27,578 Total Marketing Expense 28,371 Exceptional Profit (Loss) 0 Net Marketing Profit 1,154,872

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Goodys - Competitive Marketing Strategy Presentation

  • 2. What was our overall strategy? Where were we Day 1? Where did we want to go tomorrow? How did we get there? Started with budget of $9,466 One brand [Glace] in two countries [1 & 2] Increase profits, market share & brand awareness Expand into different markets Create formulations to increase market share and profit Focus formulations on attainable segments Limit number of brands/countries to allocate the appropriate amount of resources Maintain high margins
  • 3. What was our year-to-year decision making process? Step 1 Step 2 Step 3 Step 4 R&D C C C Sustainable Advantage 3 C’s
  • 4. What was our net marketing profit year-to-year?
  • 5. What was our market share year-to-year?
  • 6. Country 2 / Segment 1: Glace 98.5% market share 241mm units sold Country 4 / Segment 2: Glace 60.8% market share 296mm units sold Country 4 / Segment 1: GoodVibes 78.2% market share 77mm units sold Country 1 / Segment 1: Glace 75.7% market share 337mm units sold Portfolio Analysis (as of Year 7)MARKETGROWTH(LOW-HIGH) MARKET SHARE (HIGH - LOW)
  • 7. goodys THE GRATEFUL FRED i scream! BLAST Total PRODUCT RESOURCE (.6) 1 1 1 1 4 % share 25% 25% 25% 25% DISTRIBUTION COST (.2) 7.2 7.4 8.2 7.7 30.5 (in millions) % share 24% 24% 27% 25% COMMUNICATION RESOURCE (.2) 29 18.2 25 19 91.2 (in millions) % share 32% 20% 27% 21% EXPECTED MARKET SHARE 27% 23% 26% 24% ACTUAL 36% 10% 32% 22% WEIGHTED 26% 24% 26% 24% Competitive Resource Analysis (Country 2)
  • 8. goodys i scream! BLAST Total PRODUCT RESOURCE (.6) 2 1 1 4 % share 50% 25% 25% DISTRIBUTION COST (.2) 10.6 3.3 6.1 20 (in millions) % share 53% 17% 30% COMMUNICATION RESOURCE (.2) 64 13 26 103 (in millions) % share 62% 13% 25% EXPECTED MARKET SHARE 55% 18% 27% ACTUAL 64% 4% 32% WEIGHTED 53% 21% 26% Competitive Resource Analysis (Country 4)
  • 9. Think long term, but don’t go overboard investing too early or when you don’t have the capital yet. Stay committed to current countries and segments, despite struggles or staggering country growth rates. Be more aggressive when deciding how many units to produce, especially when planning on using the same formula over multiple years. What did we learn from all of this?
  • 10. Assumes we sell all of our inventory (20% down) Slightly lower communications expense for Country 2 Expect to be down from $1.36B last period What do we predict for Year 8? ($ in thousands) Glace GoodVibes Units Sold 760,000 81,694 Units Produced 760,000 81,694 Inventory 0 0 Revenues 1,565,600 156,852 Cost of Goods Sold 342,000 36,762 Communications Expense 107,806 35,000 Freight Expense 13,556 4,085 Inventory Expense 0 0 Gross Marketing Contribution 1,102,238 81,005 Total Gross Marketing Contribution 1,183,243 Marketing Research Expense 793 R&D Expense 0 Salesforce Expense 27,578 Total Marketing Expense 28,371 Exceptional Profit (Loss) 0 Net Marketing Profit 1,154,872