Market share potential market share

DIGBYCOMPANY

TEAM: FANTASTIC FOUR
CEO & RESEARCH & DEVELOPMENT ------ MARKETING ------
TQM & PRODUCTION ------
FINANCE & HUMAN RESOURCES ------

RESEARCH &
DEVELOPMENT

Functional Role:
• Invent new sensors
• Change specifications on existing sensors
• Adjust Size, Performance, and MTBF (reliability)

• Not investing early in R&D

• Occurred initially in Practice Rounds 1 through 4

• 1 new sensor was invented throughout 8 competition rounds

• Other sensor markets could have been explored for higher market share

• Adjustment costs were lower as a result

• Higher adjustment costs were seen when lagging behind preferences

Strengths
• Sets the tone for how the company will perform• Ability to create more market share
• Ability to move products into different segments

Weaknesses
• Deadline completion dates
• If not accounted for properly, products become mis- aligned within segment quickly

functional departments
• Marketing:
• Better positioning of sensors inside Perceptual Map
• Production:
• Help to reduce material costs
• Communicate alignment of new equipment & automation levels for new sensors

Better management of competition • Knowledge that early product development is successful • Seek to capture more market segments with new sensors • Anticipate competitive threats of product re-design
• Review which segments competitors are leaving/entering • Review segments with most growth & new products

Low End Market
• Maintain minimal annual revisions

PRODUCTION

• High investment costs due to significantly increasing automation2

• Capacity increased as a second resort to utilizing second shift/overtime as the demand required

• Identifying a better forecasting strategy

earlier

•	*With automation Digby was able to decrease labor costs, and have the lowest costs across industry in all**

segments

•

Threats

Forecasting
• Analyze Marketing data, market share vs potential market share, customer survey SOM, etc. and forecast 2-3 years out.

Future Investing Opportunities
• Consider creating a new product line to maximize profits

Decisions that would change: • Earlier aggressively lower pricing on Dell • Allocate more funds on Promotions and Sales Budgets

MARKETING POSITIVE IMPACT

	Market Share Sales

Weakness

	One of two competitors with a product in every segment Andrews, Baldwin and Erie have left the Performance and Size segments.

Threat

Pricing
• Our cost leadership pricing strategy has positioned our products as market leaders.

• We almost doubled all of our competition in sales and SOM.

MARKETING FUTURE DECISIONS

Pricing

• Spend between $1.4-$1.45 million for each product to maintain 100% customer awareness.

Sales Budget