Techsonic Case Study

This strategy will lead you to a next platform and increase the growth. It is

Given the number of products available, the bargaining power of customers in this industry is very high. The two main drivers for customer’s preferences are quality and price, there is no service involved.

1. In case, Rapid increases print volumes by 25% - end of year software charge is calculated at $2,000/month, or $24,000 for the year (Scott’s original price for this version of the software solution)

The majority of our available resources, approximately 60%, will be allocated to High End and Performance sensors, as at the end of six years our goal is to control 35% market share in these two categories to become industry leaders. As mentioned above this will be done by increasing the amount of spending in research and development, production, and the marketing and sales budgets to match the projected sales forecast. The remaining resources, around 40% total, will then be distributed among the other three products as we would like to maintain a market share between 20-30% in each of the remaining categories. Being active in the secondary markets allows us to offset the

Evaluating the risks, calculating the probability of success, and factoring in the projected profit from sales will provide a clearer NPV to be compared with other projects in the

The company would invest $100 million in the technology enhancements and $155 million in marketing during 1998-99 (up from $14 million in 1997). To increase the trade

Given Sony’s superior 8” tube technology and its worldwide network of dealers, especially its 500 dealers in the U.S. market versus BPS’s 100, Sony’s primary goal should be capturing market share in the graphics projector segment.

Results: The two product numbers with the largest unit selling prices were 726, and 988. The unit selling price*units is $7,133.98 higher than the total selling price. We need to do further investigation.

Since the transaction fee revenue stream is based on 2% of sales dollars capped at $200 we can see that sales over $10,000 would not produce any value added for TechMall ($200/2% = $10,000). Because of this condition, and since we were not provided with specific amounts for each transaction conducted, we have to simply assume that customers would not spend in excess of $10,000 on an online tech store such as TechMall.com. This assumption is strengthened when we calculate that the year 4 average transaction amount is just $58.53, which was calculated by dividing the total transaction dollars, $87,470,566 by total number of transactions, 1,494,547 ($87,470,566 / 1,494,547 = $58.526). By taking the position that every sale was less than $10,000 we

The Andrews management team has opted to pursue the strategy of differentiator with a product life cycle focus. This strategy involves the creation of products with excellent design in terms of size and performance (on the perceptual map), and MTBF. Significant investment in awareness and accessibility, and development of proficiency in the research and development sector is also central to this business strategy. In order to compensate for these high initial investments, our product prices will be relatively high; however it is believed that our customers will be drawn to our product due to high awareness and due to the superior quality of our sensors. Our released products will need to be manipulated according to the changes in expectations of the marketplace by producing smaller and faster products, according to the expected ideal size and performance of the sensors in future years. In addition, our company must invest in other important activities such as; total quality management (TQM), marketing, and human resources (HR) in order to

That is originality, improving quality of life, environmentally friendly, marketing strategy, profitable, and did they use the stunning technology. Therefore, those items must be censored carefully and be sufficient these features. The five items are, music keyboard with lighted keys, password memory file, key finder, business-card scanner and watch alarm for children.

The CLV’s for this alternative are shown in Exhibit 2. We assume the Architectural Series will be a leading product in the market and will earn a high retention rate among ultra high-end dealers of 90%. Sonance would also be able to initially attract 50% of these niche dealers they had in 1999 (75 vs. 150 previously). Sonance would have the choice in this scenario to price the Architectural Series at either $875 per pair, based on the advice of their focus group, or $305, based on the internal marketing group’s recommendation. Our assumptions regarding customer mix for this scenario is that Sonance would drop the mass retail market customer to signal they are focused only on the custom and semi-custom installation markets. In addition, Sonance would consider reducing the price of their Original Series Speakers to the Dealers to $90 from $140. This would improve the Dealers’ gross margin to 75%, equal to SpeakerCraft’s, although the margin net of installation costs would still be lower (see Exhibit 2). These assumptions would lead to an increased Retention Rate through the Dealers sales of Original Series Speakers of 85% and a higher growth rate of 10% vs. 5%. Sonance would also increase their Retention Rate with Dealers for the existing iPort product to 85% in this scenario.

SYGU’s initial product characteristics aligned with the estimated ideal characteristics of the Singles according to Period 1’s Semantic Scales Research. By focusing advertising towards Singles, cutting price, and emphasizing their desired traits, SYGU was able to increase its market share against stiff competition. Beginning in Period 3, a re-design of SYGU will be introduced. This re-design focuses on two characteristics: increased power to match Singles’ desired features and a reduced production cost which will allow us to increase our margins. R&D projects to improve SYGU will be conducted every two periods, meeting the changing demands of Singles and improving margins by retaining a static suggested retail price of $315 while decreasing production costs.

Considering that our only competitor in the field of navigation systems is VectorCal, it was important for us to carefully determine pricing that was, not only competitive enough to beat the competition, but affordable enough to increase customer demand. Our Analysts have worked diligently in reviewing the cost to manufacture our product from all different angles and scenarios in order to create a price that meets the terms of the contract and allow us to

-The market research concluded that the 901 was a clear winner because it scored high on the dimensions of uniqueness and purchase likelihood. The results compared very favorably with those of past new products from Techsonic. It earned the highest intention-to-buy score since the original LCR in 1984.