Case Study Suli And Susi Marketing Essay

MarkStrat presented a fake universe where the market place represented by six houses competed for endurance. The selling scheme undertaken by these houses was seen in determinations taken sing variables such as the cleavage of the market, designation of the mark market, positioning, portfolio direction, selling mix elements and R & A ; D expenditures. The tiger universe saw two companies take a strong lead and maintain it throughout while the other four tried their best to maintain up. It seemed that no affair what the market leaders did they could ne’er travel incorrect. Here ‘s a survey of Tiger U ‘s public presentation, its schemes and what could ‘ve been done better to better its opportunities.

The two trade names that Tiger U started out with were SULI and SUSI. Of the two SULI was executing better and was strong in Professionals section. It was priced at $ 500 and had a 24 % market portion in the Professionals section. SUSI was focused on the Singles and Others sections. It was priced at $ 250 and had a market portion of 10 % in Others. Due to over-production in the period 2, SUSI became disused when R & A ; D was undertaken. With some alteration to the trade name, the 4th twelvemonth saw SULI become market leader in the Pros section and SUSI being withdrawn to be replaced by SUSU targeted at Others. In the 6th period, wrong computation of ideal values for the R & A ; D of SULI led to drastic bead in its market portion to 11 % . It took 3 old ages for SULI to recover its market portion of 24 % in the Pros section in twelvemonth 10, with changeless alterations to accommodate consumers ‘ altering penchants. But due to late enterprises in R & A ; D and several errors in gross revenues calculating including over-estimation of demand, SUSU ne’er truly took off, with merely 4 % of the Others section. Severe losingss were incurred on stock list retention costs and disposal loss throughout the 11 old ages.

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The Vodite market was penetrated by A and E in the 5th twelvemonth itself. Hence we lost the first mover ‘s advantage when we entered the market in the twelvemonth 7. The trade name VUDO was launched for the pioneers. It was priced at $ 1400 and catered to 12 % of the pioneers section. With subsequent betterments, VUDO saw a enormous growing in market portion for the pioneers making an all clip high of 48 % in the tenth twelvemonth. VUDO tried to provide to the demands of both the pioneers and adoptive parents. Targeting of pioneers while the market had shifted to the adoptive parents proved to be a dearly-won error in the long tally. Year 11 proverb VUTI introduced for followings, priced at $ 785. It was able to capture 6.4 % of the section. Budget restraints led to the late targeting of followings, who constituted a major portion of the market.

The Stock Price Index of Tiger U which is the primary index of a company ‘s wellness shows the company taking off reasonably good in the first period, so immersing to a depression of 667 points in the 3rd period. The fourth period saw a recovery with the index hitting a high of 857 which was to be the highest reached in the simulation thenceforth, when SULI became market leader in the Professionals section of the Sonite market. From period 6 begins a diminution, which saw Tiger U making an all clip low of 500 points in twelvemonth 7. The index rallied after the 7th twelvemonth chiefly due to the entry into the Vodite market. The 11th twelvemonth saw the revival of Vodite market lucks end, due to losingss incurred from wrong gross revenues calculating for VUTI.

To understand the selling scheme, foremost there is an analysis of the STP scheme followed.


The consumers in the Markstrat universe for Sonite merchandises were segmented into five distinguishable groups on a psychographic footing. This made aiming a peculiar section really easy since the section was clearly defined and Numberss were provided as to how much each section constituted of the whole population and by how much it was estimated to turn in the close hereafter. The placement of trade names between these sections was based on the consumer section ‘s penchant for a peculiar characteristic or public-service corporation. The different sections were:

Buffs – they are the tech-savvy people who want high acting merchandises but are besides price-sensitive. The section size reduced from 23 % at the debut to 2.8 % by the terminal of the simulation.

Singles – the 1s who live entirely and want merchandises with medium public presentation and convenience but low monetary value. This section is the 2nd largest and grew from 13 % to 26 % in twelvemonth 11.

Professionals – the on the job professionals who want high acting merchandises for which they are willing to pay a high monetary value. They constitute the top-end of the market. The section reduced from 20 % in the beginning to 5.7 % in the terminal.

High Earners – the high income group which does n’t mind paying high monetary values for upmarket merchandises which provide good public presentation. The section size went down to 12 % from 17 % at the starting of the simulation.

Others – this section constituted all the other people who wanted low priced merchandises which was reasonably convenient. They constituted the largest ball of the market and shot up from 26 % to more than 50 % of the market by the terminal of the 11th twelvemonth.


The sections targeted by Tiger U in the Sonite market were the Professionals and the Others. This ensured that the company had two trade names providing to both the top terminal every bit good as the lower terminal of the market. SULI was the trade name which was positioned as the ideal merchandise for a professional. This trade name ensured that there were high borders, which despite low volume of gross revenues made it a profitable section. SUSI catered to the demands of Others and was positioned as a low cost, convenient merchandise. The high volumes of gross revenues made up for the low borders in this section.

In the Vodite market, the cleavage was done on a different footing. The consumers were divided on the footing of use forms into:

Pioneers –

Adoptive parents


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Diffusion of Invention

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File: Cycle of Research and Development.gif


Competitive pricing ( Reference pricing Effect )

Price-Quality Consequence


It is all the information that is used to measure market public presentation, understand current market state of affairs and do a selling determination.





SWOT Analysis


GE Matrix

GE McKinsey matrix portfolio analysis

Ansoff Matrix

File: AnsoffMatrix.jpg


BCG Matrix


Budget allotment

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