QM-E046-1208-1210-3000-Reflective Report [kk]

Individual Reflective Report 1 MECTRLA Sonite Product: MOST Students Name Institutional Affiliation Course Due Date Word Count

Individual Reflective Report 2 Table of Contents 1.0 Introduction .......................................................................................................................... 3 2.0 Background of the Company and Product Portfolio ............................................................ 3 3.0 Critical Evaluation of Marketing Strategy ........................................................................... 3 3.1 Company Inception and Portfolio Development .............................................................. 3 3.2 Strategic Decision-Making Made from Period 1 to Period 10 ......................................... 4 3.2.1 Period 1 to 2 .............................................................................................................. 4 3.2.2 Period 3 to 5 .............................................................................................................. 7 3.2.3 Period 6 to 8 ............................................................................................................ 11 3.2.4 Period 9 to 10 .......................................................................................................... 13 4.0 Challenges of adapting and managing creative strategy in multidisciplinary teams ......... 15 5.0 Lessons Learned from a Competitive Scenario ................................................................. 16 6.0 Conclusion .......................................................................................................................... 16 7.0 Reference List .................................................................................................................... 17 8.0 Appendices ......................................................................................................................... 18 8.1 Appendix 1: Brand Portfolio .......................................................................................... 18 8.2 Appendix 2: Company Profit & Loss Statement ............................................................ 18 8.3 Appendix 3: Brand Perceptions ...................................................................................... 19

Individual Reflective Report 4 Appendix 1). These products were then maintained in period 4 but in period 5, we developed a new product MOPDD to increase our product portfolio (See Appendix 1). We maintained these four products with no brand or product portfolio operation done between period 6 to period 8 (See Appendix 1). However, in period 9, we withdrew the MOPDD product and we developed a new product MOMO to replace the withdrawn product (See Appendix 1). In period 10, the four products, MOALT, MOMO, MOST, MOVE were maintained (See Appendix 1). The MOST product was selected as the product for analysis in this reflection. This is because it is a product we developed since the inception of the company and has impacted the share price, market share and revenue of our company significantly. Therefore, by selecting this product, we will be able to evaluate how it has impacted profitability, revenue, share price and market share all through the product development cycle from period 1 to period 10 allowing for a critical evaluation of the implications of the product on our company. 3.2 Strategic Decision-Making Made from Period 1 to Period 10 3.2.1 Period 1 to 2 In the early stages of our development of the MOST product during period 1 and 2, our performance has been good so far where the marketing strategies we employed resulted in our company demonstrated a growth in its share price from period 1 where it was ranked number 6 with a share price of 1037 to a share price of 1052 in period 2, with a ranking of number 5. Additionally, the volume market share of our company also grew from position 2 in period 1 to position 1 in period 2 (10.5%). The value market share of our product did not change in value. Revenues increased for our company also increased by 8.1% even though our earning reduced by -6.4% while we decided to increase our advertising and commercial costs in period 2. In period 1 the revenue contributed by our MOST product was 22309 while in period 2 it reduced to 21,222 because of the increased costs of advertising and commercial costs that we increased in period 2 . A reason associated to the growth of the share price and the volume share as well as increase in revenue was because we employed the market segmentation strategy where we divided the “market into well-defined slices” (Kotler & Keller 2016; Kotler et al. 2020). We employed the demographic, behaviour and psychographic segmentation approaches. By employing the market targeting approach, we were able to target the savers segment as the main target for our product in period 1 and 2. In our target segments, savers lead with a market share of 30.3% in period 1 and 30.0% market share in period 2 wit this segment being attractive for future growth. The contribution after marketing for MOST is average for these two periods. However, I acknowledge that MOST is not perceived by the savers along the product dimensions and the physical characteristics which not meet the needs or expectations of this segment underscoring the need for R&D projects on MOST to improve characteristics like Proc. Power, Design, and Features as suggested by the semantic scales. Additionally, brand awareness is also high for the savers segment and this allows for the understanding of the increased market share and share price index where 64% are aware of the MOST product in period 1 while 66% are aware in period 2. The purchase intention of average 10% for the MOST product was also high and specifically high the savers towards our MOST product is also high with a 29.2% in period 2 and 30% in period 1. These are aspects that have contributed to the increased market share of the product. Furthermore, considering the 4Ps of marketing, the product attributes, the recommended retail price of $270 for period 1 and $225 for period 2 as well as the

Individual Reflective Report 5 availability of the product on places such as online stores, specialty stores and the promotion of the product through media advertising worth $1,510,000 in period 1 and 2 allowed us to achieve these results by investing in advertising of our product.

Individual Reflective Report 7 3.2.2 Period 3 to 5 The performance of our company is still good in period 5 where it is ranked number 3 in the hare price index with a share price value of 1,992.413 which is an increase from 1773 of period 3 and 1379 of period 2. Also, our company ranked number 1 in the volume share market taking 25% of the market and number 2 in the value share market, taking 24% of the market. In order to increase our market, share we developed the new brand MOALT in period 3 and the MOPDD new product in period 5. Our revenues also increased significantly to 131375 from the 106,536 of period four and has been increasing all through from period 1. Our MOST product has played a role in this increasing revenue contributing 18.3% of the revenue to our brand. The savers still stand as the major targeted consumer segment contributing 18.8% of the total market share of the company. This is in part because of the increased advertising expenditures our company undertook as a marketing strategy to ensure that our products are well marketed to increase brand awareness and market our products. We increased our advertising expenditures to 12,505 in period 5 from the 8,655 value in period 4 and 4,843 in period. This was a strategic management move to ensure our products get promoted in the market. Our MOST product contributed a revenue of 12,809 after marketing.

Individual Reflective Report 8 Our market share, share price and revenue increased because of our significant increase in research and development expenditure to 10280 in period 5 from 870 in period 4. This allowed for the improvement of our product characteristics and further understanding of our products and the market. By using perpetual mapping to understand the perception of our consumers regarding our MOST product, we were able to understand that our MOST product is not well perceived by our target consumer segments. This is because our MOST product fails in meeting the ideal values expected by our consumers. Our brand is still perceived low in performance dimension with a score of -16.2 and convenience -9.7 showing that our target consumers find the performance and convenience aspects of our product not meeting their needs and expectations. This negative perception affects purchasing intention. Therefore, by employing the theory of planned behaviour, we should be able to influence the behaviour of our target consumers towards our product while evaluating the subjective norms so as to influence and control the behaviour of our target consumers to better influence their purchasing intentions by ensuring we meet their ideal expectations and values (Ajzen 1991). Additionally, by incorporating the marketing orientation concept (Deng & Market 1994) we can generate appropriate market intelligence relating to our future and current market needs so as to satisfy the needs of our target consumers increasing their brand perception. Lastly, by incorporating the expectancy value model (Ajzen 2018) we can influence the attitudes and perceptions of our target consumers when it comes to or products.

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Individual Reflective Report 11 3.2.3 Period 6 to 8 This is a period where the overall performance of our company has seen a significantly reduced revenues and market share. Our company is not doing well in period 8 especially because of the -21.8% reduction in our revenues. Our share price has also significantly reduced from the increasing trajectory from period 5 where in period 8 our share price has reduced from 2283 in period 7 to 1939 in period 8. This shows a reduction in the value of our company. Additionally, our earnings before taxes have also significantly reduced from 94 in period 7 ad 81 in period 6 to 70 in period 8. Furthermore, our market share percentage has also significantly reduced to 12% in period 8 from the 21% in period 7 and the consistent 22% seen from period 4 to period 6. One of the reasons for this is the reduction of lack of incorporation of research and development in period 6 and 7 and the low research and development allocated costs or budget in period 8 of 3320. This is a weakness that has inhibited us from conducting sufficient market research allowing use to identify the changing preferences of the consumers especially considering the fact that our MOST product was and is still failing in meeting the ideal values of the consumers. Through the use of the perpetual mapping strategy of target positioning, it is clear that there is a low or poor perception of the

Individual Reflective Report 13 3.2.4 Period 9 to 10 Even though the overall performance of our brand is considered fair. There are various issues that must be addressed first. Our share price has increased to 2582 from 2209 and from the lowest rate of 1939 during period 8. Our revenues have also increased to 217 in period 10 from 186 in period 9 and 137 from period 8. Our earnings before takes have also increased to 114 in period 10 from 91 in period 9. Furthermore, our total market share percentage is still low at 14% which is a reduction from the 22% we held during periods 1 to period 6. Furthermore, the brand contribution of our MOST product to the overall company at 6 is very low as compared to the contributions made by other products or brands such MOALT and MOMO each contributing 32 and MEWUDI which contributes 25. Additionally, MOST generates a very low revenue of 14 to our company as compared to other brands or products such as MOMO which generates a revenue of 65, MEWUDI 50, MOALT 47 and MOVE 42. As has been identified from the past period, one of the main reasons explaining this occurrence is the lack of investment in research and development which has resulted in the failure of understanding the evolving needs of our target consumers. We have failed to conduct sufficient or any research and development for more than 3 years and above and this has prevented us from understanding the evolving needs of our consumers. Moreover, this lack of research and development has resulted in a poor perception of our MOST product by our consumers, mainly because it fails in meeting their ideal values. Through the use of the perpetual mapping strategy of target positioning, it is clear that there is a low or poor perception of the target consumers towards our MOST product. It is clear that the economy dimension of our product rates low at 8.5 from the initial rising trajectory of 9.4 in period 5. It is also clear that in the performance dimension, it rates at -14.5 showing the consumers perceive our product as poor in performance and not meeting their performance needs. Also, at a score of -8.1 on the convenience dimension, it is clear that our MOST product is not convenient in meeting the needs of our consumers. Therefore, this has created a negative perception by the consumers towards our MOST product resulted in low purchasing intention and consequently, low revenues and contribution from our MOST product. Using the BCG matrix in evaluating our strategic position (Catana et al. 2022), it is clear than our brand lies within the question markets dimension where our brand and our MOST product requires a

Individual Reflective Report 14 closer considering because of the low contribution, revenue and market share in the growing markets.

Individual Reflective Report 16 4.0 Challenges of adapting and managing creative strategy in multidisciplinary teams One of the challenges in adapting and managing creative strategy in multidisciplinary teams is research and development. From my experience, I have learned the importance of collaborating as a team in conducting sufficient research and development so as to ensure we meet the evolving needs of the consumers. The poor performance in period 8 and the low brand contributions in revenue by the MOST product underscores the importance of conducting sufficient research and development so as to meet the changing needs and preferences of the consumers. Furthermore, this relates to market analysis and forecasting, where I have seen the other major challenge is market analysis and forecasting based on the market orientation concept. We did not do well in analysing the evolving needs of our consumers and forecasting future trends. This is a challenge that inhibited our team from having a clear understanding of the market. Therefore, collaboratively valuing teamwork, we must recognize this challenge and ensure future collaboration to conduct market analysis and forecasting for the better understanding of the evolving needs of consumers. 5.0 Lessons Learned from a Competitive Scenario One of the most important lessons learned from this simulation experience is the importance of having a good team work in ensuring smooth cooperation. I have understood that it is important for the team members to develop team goals to be achieved and how these are vital in ensuring we meet the set objectives. Furthermore, I have learned the crucial role played by research and development in successful product development. From our mistakes, I have learned that in order to meet the needs of the consumers, we must understand the changing nature of the market and therefore, we must be able to conduct research and development. Time management is another important element I have learned from this experience. This is because if you don’t manage time. It is difficult for you to complete tasks well such as this task. Additionally, the expectancy value theory or model has resonated with me in a big way. I have understood the importance of understanding the expectations of the customers and the role it plays in creating value for them which improves their perceptions towards your brand and improves their purchase intention. This also applies to a team environment where I have learned the importance of understanding the expectations of team members and creating value in communication and shared goals and responsibilities in attaining a positive outcome. These are lessons that will influence my future professional and personal development goals and endeavors. 6.0 Conclusion In conclusion, this reflective report on our company, MECTRLA, and its flagship product, MOST, within the Markstrat simulated business environment, has provided valuable insights into the complexities of strategic marketing. The analysis spanned the inception of the company through periods of product portfolio evolution, critically evaluating the marketing strategy employed for MOST from period 1 to period 10. Our early success in periods 1 and 2 was attributed to effective segmentation strategies, targeting the savers segment, and investing in advertising. However, periods 6 to 8 marked a downturn, emphasizing the pivotal role of research and development in understanding consumer needs. The report acknowledges shortcomings in adapting creative strategy, particularly in market analysis and forecasting,

Individual Reflective Report 17 highlighting the importance of collaborative teamwork. The lessons learned extend beyond the simulated competitive scenario. They encompass the significance of effective teamwork, the crucial role of research and development, and the impact of understanding consumer expectations on creating value. Time management and the expectancy value model emerge as key considerations for future endeavors, reinforcing the integral connection between strategic decisions and market success. This reflective journey provides a foundation for continuous learning and improvement in both professional and personal contexts. 7.0 Reference List Ajzen, I., 1991. The theory of planned behavior. Organizational behavior and human decision processes , 50 (2), pp.179-211. Ajzen, I., 2018. Consumer attitudes and behavior. In Handbook of consumer psychology (pp. 529-552). Routledge. Catana, S.A., Toma, S.G. and Gradinaru, C., 2022. The Product Life Cycle And The Boston Consulting Group’S Growth-Share Matrix In Marketing Simulations. Annals- Economy Series , 4 , pp.319-324. Cooper, R.G., 2011. Winning at new products: Creating value through innovation. Basic Books. Deng, S. and Market, M., 1994. and Jack Dart Orientation: A Multi. Journal of Marketing Management , 10 , pp.725-742. Kotler, P. and Keller, K.L., 2016. Marketing management (15th global ed.). England: Pearson , pp.803-829. Kotler, P., Armstrong, G., Harris, L.C. and He, H., 2020. Principles of Marketing, eighth European Edition Pearson. Larréché, J.-C., and Gatignon, H., 2018. PARTICIPANT HANDBOOK STRATEGIC MARKETING – DURABLE CONSUMER GOODS. StratX Simulations , pp.1–69.

Individual Reflective Report 19 8.2 Appendix 2: Company Profit & Loss Statement Period 10 Period 9 Period 8 Period 7 Period 6 Cumulativ e Revenues 217,043 185,904 136,601 174,636 163,784 1,339,421 Cost of goods sold -74,960 -66,758 -41,426 -57,894 -60,341 -484,029 Inventory costs -81 -619 -1,256 -727 -265 -3,866 Contribution before marketing 142,002 118,527 93,919 116,016 103,178 851,526 Advertising expenditures -18,860 -17,125 -11,470 -11,340 -11,735 -107,793 Commercial costs -6,669 -6,861 -5,853 -6,856 -6,791 -48,677 Contribution after marketing 116,473 94,541 76,596 97,820 84,652 695,056 Market research studies 0 -879 -1,039 -1,019 -1,018 -7,184 Research and development 0 0 -3,320 0 0 -15,270 Loan capital reimbursed -2,200 -2,095 -1,995 -1,900 -1,810 -10,000 Loan capital received 0 0 0 0 0 10,000 Loan interest paid -110 -215 -315 -410 -500 -2,049 Exceptional cost or profit 0 -486 0 0 0 -486 Earnings before taxes 114,163 90,867 69,928 94,492 81,324 670,067 8.3 Appendix 3: Brand Perceptions Brand Firm Economy Performance Convenience MOST MeCtrlA 8.5 -14.5 -8.1