Markstrat- Presentation And Evaluation_group 6_section A 4c26y

Markstrat- Presentation and Evaluation

NaReal Overview • • • •

Market leader (both by value and volumes) in Sonite and Vodite Market SPI of 8167 – More than 4 times of the nearest competitor s for 63% of the total revenue of Bach market (Sonite + Vodite) 6 products – 4 Sonites and 2 Vodites with a total sales volume of 2,091,000 units

Revenue Share 8% 6% 1% 8% 63%

14%

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NaReal Overview NaReal operates on OPOS strategy – One Product One Segment • • • • • •

Nova – High Earners Noon – Shoppers NoPro – Professionals Nosave – Savers Negrow – Early Adopters Nemblr – Followers ( Repositioned as earlier it targeted innovators) All products are either cash cows or Stars

NaReal Overview

Performance Snapshot

Past Performance

Market share of greater than 60% and sales on an increasing trajectory

Past Performance

Revenue growth driven by increasing volumes as well as presence in segments such as High Earners, Professionals and Vodites

Past Performance

Highest Share Price Index and Net Contribution in the industry

Past Performance

Cumulative Return on Investments is highest for NaReal even with highest investment base

Strategy and Learning One product, one segment Period 1

Period 2

Period 8

Learning: • Identifying and focusing on the correct TG is most important • It’s better to have a perfect product for one segment than an imperfect product for multiple segments • ‘One size fit many’ product is a myth

Strategy and Learning

Strategy and Learning

Strategy and Learning Focusing on the right brand attributes for marketing communication and product development Period 2

Period 8

Learning: • It’s important to identify the brand attributes that are most relevant to the Target Group • The focus of marketing as well as product development team should be on these “Key Attributes”

Strategy and Learning

Strategy and Learning

Strategy and Learning Continuous R&D to improve products – R&D budget was never zero for us

Learning: • Consumer’s need evolve over time and hence it’s important to reinvent the products so that they don’t become obsolete • Market views R&D positively

Strategy and Learning Ensuring Quality of Communication – 15% of advertising budget spent on advertising research Learning: • Our message quality was ranked ‘Poor’ in period 2 results resulting in less than optimum returns on marketing investments • Period 3 onwards we ensured message quality remains consistently excellent

Strategy and Learning Early Movers into Vodite – We started buying market potential report for Vodites since period 2 . Also launched query for Vodite in period 2 to get an idea of how much investment is required

Effect of Launch

Strategy and Learning

Learning: • An early launch generates Brand Awareness even with limited advertising spend • Gives you an opportunity for price skimming as consumers don’t have any other option • Nemblr for example was launched at 1500 in period 5 and it’s price was reduced to 960 by period 9 Risks: • Difficult to estimate product attributes, commercial team size, price point and advertising budget as first mover

Recommendations 1. Used regression analysis and excel modelling for predicting expected value of attributes for next period 2. Continue to invest in R&D in order to upgrade products as per changing customer requirements

Recommendations 3. Advertising spend for a product should be comparable or greater than the competitors in that segment

Recommendations 4. Commercial team for a product should be in line with the buying preference of customers for that segment and should be comparable or greater than the competitors in that segment

Recommendations 5. Modify NOVA and NOSAVE for which R&D has been completed. Further, start R&D for modifying Noon, NeGrow and Nemblr in order for them to remain relevant to the consumers

6. Update product prices every period so that they are perfectly in line with the expected ideal value for next period for the segment

Thank You!