Tech Champ's performance declined from second to fifth place over the quarters due to high operating expenses, ineffective advertising, and decreased financial performance. While price competitiveness remained strong, market share fluctuated. Lessons included differentiating from competitors, thorough market analysis, and balancing advertising effectiveness with cost. Continued investment in R&D, geographic expansion, and reducing expenses were recommended to improve the current situation.

1. TECH CHAMP
FINAL PRESENTATION
Balqis Al Makhmari

2. Table of contents
Performance review
Assessment of strategy and its execution
Assessment of current situation
Lessons learnt
Summary
Questions

3. Mission Statement
To be the best in the eyes of our customers
through providing premier products,
services and solutions of the highest
quality.

4. PERFORMANCE
REVIEW

5. Cumulative balance scorecard
Rank Company Name
Total
Performance
Financial
Performance
Market
Performance
Marketing
Effectiveness
Investments in
Firm's Future
Creation of
Wealth
1 Smart-Tech 40.824 26.014 0.275 0.772 2.459 3.215
2 Tech-Com 33.542 20.020 0.304 0.770 2.323 3.084
3 Kinetic 12.227 24.211 0.159 0.769 3.174 1.304
4 Turbo-Tech 10.457 21.833 0.118 0.726 2.801 2.004
5 Tech-Champ 5.019 10.659 0.231 0.763 2.232 1.195

6. Executive summary
Good News Bad News
COGS is second lowest as we trying to
achieve economic of scales
Expenses increased specially for ads
Highest market share in innovator and
second highest share in workhorse
Competitor strategies changed
(market demand and share was
fluctuating)
Sales performance enhanced slightly Ad’s judgment was not highly effective
Quite good marketing effectiveness Lost rank 2 which was achieved in Q7
Creation of wealth improved Financial performance and market
effectiveness fluctuated throughout
Achieved good brand ratings Advertising strategy was the weakest
link
Price judgment 100 in all segments Had to stop RnD investment due to
low cash availability in Q7

7. Total performance
0
10
20
30
40
50
60
Q4 Q5 Q6 Q7 Q8
Total Performance
Smart-Tech
Tech-Com
Kinetic
Turbo-Tech
Tech-Champ
 Increase slightly after Q6
because of increase
mostly in financial
performance & marketing
effectiveness
 Tech-Com has the best
overall performance as
result of enhance market
performance

8. Market share of all
companies
TECH CHAMP’s Market
share by segment
20%
27%
15%
26%
12%
18%
27%
18%
22%
15%
Tech-champ Tech-com
Turbo-tech Smart-tech
Kinetic

9. Financial performance
 High Expenses (sales
force expenses
/Ads/R&D/sales office
lease )
 High Sales as it increase
by +7 Millions from Q7
 Cost of goods sold
increased comparative to
Q7 but lowest among
competitors as we were
trying to achieve
economies of scale
Revenues 37,790,457
- Rebates (478,597)
- Cost of Goods Sold (23,727,897)
Gross profit 13,583,963
Sales Office Leases (840,000)
+ Sales Force Expense (3,928,913)
+ Brand Promotions (36,800)
+ Special Programs (13,575)
+ Ad Creation/Revision (120,000)
+ Point of Purchase Display Expenses (21,600)
+ Advertising Expenses (2,977,800)
+ Engineering Cost for New Brands (300,000)
+ Market Research -
Operating Expenses 8,238,688
Miscellaneous Income and Expenses
+ Other Income -
- Other Expenses -
- Research and Development Costs (2558312)
- Set Up Costs for New Sales Offices -
Cumulative Net Profit for Division 1,366,987
Expenses
Gross profit
Operating profit 5,345,275
Net profit for division 2,786,963

10. Q8 Market Demand
Tech-Champ Market
Demand
15%
22%
18%
27%
18%
Kinetic Smart-Tech
Tech-Champ Tech-Com
Turbo-Tech
0
2000
4000
6000
8000
10000
12000
14000
16000
Q3 Q4 Q5 Q6 Q7 Q8

11. Our target markets initially were
innovator and traveler
By the end we focused on innovator and
workhorse as both scored well in brands,
ad’s and price judgments

12. ASSESSMENT
OF STRATEGY
AND ITS
EXECUTION

13. Strategy analysis
• Analyze customer
needs and wants
• Analyzing
customer response
competitor
offerings
Understand
customer
• Brand/ad/price
judgement
• Competitor
brands and
placements
Analyze
market • Marketing
strategy adopted
by competitors
• Tracing offerings
and rebates
Analyze
competition

14. • Defining sales strategy
based on market size of
target segments
• Deciding sales office
placements
Research
Distribution
• Defining the 4 P’s:
• Product
• Place
• Promotion
• price
Defining
marketing mix

15. • Quarterly analysis
of financial position
• Projecting division
profitability
Financial
analysis
• Regular revision of
decisions quarterly
based on customer
response and
competitor’s
strategy
Review and
revise

16. Strategy and execution
Positioning
• Extended brand
range (laptops and
desktops) for
different segments
• Premium strategy
for Mercedes and
Innovator
• Penetration
strategy for
Costcutter and
Workhorse
Target market
• Markets selected
based on:
- Customer
demand
- Small high
margin segments
- Large geographic
markets (market
size)
• Targeted all
segments in all
regions
Segmentation
• Grouped similar
needs and wants
of customers from
different market
segments:
- TC Smart II
(Mercedes &
Innovator)
- TC CC III
(Costcutter &
Workhorse)
• Focused on
primary &
secondary markets

17. MARKETING MIX
Product Promotion
Price Place

18. Product
Brands
• 9 brands (3 Mercedes, 2 Traveller,
1 Workhorse, 1 Costcutter, 2
Innovator)
• Offered highest rebates
RnD
• Battery: long life laptop
• Networking: high speed
• Hard drive: fail proof ultra cap
• Special feature: Touch screen
• Other software: Security suite
Brand
judgment
• Good brand judgment
• RnD features enhanced the
customers feedback

19. Major Decisions:
Top customer needs addressed for each segment
Naming strategy: promoting the Brand name (eg.
TC-Mission, TC-Smart, etc.)

20. Promotion
Brand promotion:
 One ad per product
 General advertisements for
target segments
 Focus of regional and local
advertisements (Q8 48%
local and 52% regional)
 Ad rating improved by Q8
 Rating is poor compare to
competitors: negative
impact of marketing
effectiveness

21. Sales force promotion:
Sales programs (training)
introduced in Q7
Cash and free gifts for
customers
Bonus for sales people
Price Rebate
Highest sales force
expense amongst
competitors
Major decisions:
 Inset ratio improvement
 Highest advertising
expense
 By Q6 advertising
expenditure was hitting
points of diminishing
returns
 Adjusted by Q8

22. Premium strategy: Penetration strategy:
Adopted for Mercedes
& Innovator
Offered high quality
products
Added RnD features
Customers have high
willingness to pay for
higher quality
Adopted for Costcutter
& Workhorse
Price sensitive
segments
Provided products that
benefits their needs
Pricing them at average
demand of customers
Price

23. Major decisions and result:
Customer satisfaction achieved
Received 100 as price judgment in all segments
Kept competitive edge in pricing by offering highest
rebates.
Kept eye on competition pricing to ensure
competitive edge while leveraging our brand
judgement

24. Geographic expansion: Major decisions:
 Focus on large, highly
competitive segments
 Focus on geographic
markets which minimize
distribution costs
 Niche Marketing
 Opened 12 offices in all
geographic locations by Q8
 Assessed and reassigned
sales representative staff
levels
 Determined average
number of sales
representative
 Budgeted number of sales
representative per office
 Enhanced support staff to
meet the customer need
Place

25. ASSESSMENT
OF CURRENT
SITUATION
(if simulation
was to continue)

27. - Creative leadership &Teamwork
- Collaborative process
- R&D investment
- price judgment is strong in all 5
markets
- Geographic Advantage – all are
fully operating
- Good brand management for
target segments
- High Operating Cost ( Low
Financial Performance)
- Bad Ads Design (low rating)
- Market awareness
- Lack of competitive strengths
(gaps in capabilities & weak brand
name)
- Financial (Cash flow
& High cost structure)
- More R&D Investment
- Increasing Demands of Segments
- More Geographical Expansion
- potential to add 1 or more markets
and expand overall market share
- New product development
- Further growth in target markets to
capture more market share
- Reduce cost
- Increased product offering
-
- Increasing Competition
- Changing Customers Preference
- Facing intensive price competition
- Competitors new products and
innovation
- Time delays increase cost
- Limited funding
W
InternalExternal
ControllableNonControllable
S
O
T
Assessment of CURRENT SITUATION

28. LESSONS
LEARNT

29. General lessons:
Differntiate amongst competitors
Take first movers advantage
Thorough market analysis enhances understanding
of customer needs and wants
Develop good marketing mix
Risky and aggressive approach initially assists in
grabbing opportunities
Even if leading, competitors should not be
underestimated since market is dynamic

30. Brand management lessons:
More of something leads to diminishing returns.
Provide brand features that fulfill needs of market
segments, otherwise customers finds products very
complicated.
Advertisement should not clutter all information.
Relevant amount of information and creativeness should
be added to provide effective ads.
Sales force in offices should be relevant to office needs.
In long term RnD investments boosts success and
satisfies customer needs.
Competitive position is gained based on customers’
willingness and overcoming competitor strategies.

31. Simulation lessons:
Simulations allowed us to apply marketing concepts
learnt in the course.
It provides a prospect to perform evaluation on future
improvements that enhances the opportunity to excel in
future.
Encourages critical thinking in evaluating current
positions.
Allows to develop map for future success and adapt
recommendations.
Encouraged team work.
Markets are dynamic, getting ahead is easier, staying
ahead is difficult.