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VRDC2
STRATEGIC MARKETING PLAN
Presented to
Dr. Bruce Lammers
Department of Marketing
California State University, Northridge
Team C2
Alim Kamat
Industry: C
November 24, 2004
I. Executive Summary
VRDC2's aim is to offer the best quality VRD(Voice Recognition Device) products at a reasonable and affordable price. There were high expectations for VRDC2 throughout all ten periods but unfortunately, VRDC2 failed to meet any of the expectations. VRDC2 came out with a net contribution of (-2.985,147.50), the lowest in Industry C. VRDC2 came out with a loss in every of the ten decision periods. However despite the negative net contribution, the future looks bright for VRDC2.
One major reason why VRDC2 failed to meet expectations is because it did not set one consistent market throughout all ten periods. In Period 1, VRD targeted the Modern Students and came out with a reasonably high market share at 34.1%. However, it was seen that the market share in the home users was even higher at 39.8%, highest of all firms in that segment. As a result, VRDC2 decided to target the home users during Period 2 and Period 3. That move backfired as its major competition, firm BCBG also started targeting that segment and by period 3, VRDC2's overall market share plummeted from 26.1% in period 1 to 7.7% in period 3 and only had a market share of 12.9% in the home users segment. VRDC2 hit an all time low in Period 6 when its total market share was only 4.3%. The situation for VRDC2 could only get better and could not get any worse.
Since Period 9, VRDC2 has finally found itself a consistent target, known as the Modern Students. As a result in Period 10, VRDC2 has the best product ...