Mkg 631 - Strategic Plan for Team Malibu

Strategic Plan for Team Malibu

MKG631

Dr. Paul Richardson

Spring 2016

Team Members:

Marc Zaborowski

Aderlin Familia

DD Khuu

Dat Pham

Omer Aljuwaiber

Nuha Alazmi

Section 1. Customer Analysis

• What are the major current customer segments?

Malibu is a major corporation in the Markstrat world as a leading company growing electronic brand names using SONITES technology - MOVE and MOST. With our excellent products, we strive to create maximum values for our customers in Savers and Shoppers segments (Segmentation Strategy). The followings three reasons why:

1. Savers and Shoppers account for largest total market size.

Based on the Market Forecast, we see that those two market segments are predicted to have highest growth rate in short term (next period) as well as in long term (in five periods). In addition, based on our perceptual map, there has not been any brand that has successfully won Savers and Shoppers. Moreover, since customers in both segments are quite sensitive to price and performance, targeting these two customers will help Malibu focus all of his resources to leverage its strategy.

2. Savers and Shoppers will bring grow revenue and bring higher profit to Malibu.

These segments are profitable due to the growth of the market: 28.8% growth rate in next period for Shoppers segment and 18.4% growth rate in next period for Savers segment (Consumer Segment Growth Rate). The forecast for the next period is showing demands of 70,000 units in Shoppers segment and 63,000 units in Savers segment. Over the next five periods there is a projection of 798,000 units of demand for Shoppers and 618,000 units of demand for the Savers. Shoppers and Savers segments are the leading forecasted markets for generating revenue, growth, and stabilizing Malibu’s bottom line. If we keep the price of MOVE and MOST as well as other fixed costs the same as in period 2, we just need to sell 38860 units of MOVE and 25290 units of MOST to Shoppers and Savers market to reach break event in future periods. We can achieve this market as we just need to reach a 5.96% market share for Savers segment (target market of MOST) and a 5.5% market share for both Shoppers and Savers segment (target market of MOVE). Based on the Purchase Intention by Consumer Segment, there is 43.4% Savers who are willing to purchase MOST and there is 21.1% Shoppers and 4.8% Saves who are willing to purchase MOVE. Comparing with our target units for break even, we can reach break-even in next period (See, Fig. 1).

3. These segments are accessible

Savers and Shoppers are accessible via Malibu marketing and distributing channels.

• What are the potential customer segments?

We still have modest investment in Explorers from and Malibu is still considering future investments due to the opportunities to reach a segment forecasting 122,000 units with very little competition. Based on our Perceptual Map, persuading Explorers to buy our products will open access to other market segments with demand for high performance product such as High Earners and Professionals. However, there is the advantage of producing low cost products; as Malibu can R&D new products to meet the demand of Explorer, Professional and High Earners (those with high level demand for performance and high expense for electronic products).