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Markstrat- Presentation and

Evaluation

NaReal Overview

Market leader (both by value and volumes) in Sonite and Vodite Market
SPI of 8167 More than 4 times of the nearest competitor
Accounts for 63% of the total revenue of Bach market (Sonite + Vodite)
6 products 4 Sonites and 2 Vodites with a total sales volume of 2,091,000 units

Revenue Share
8% 6% 1%
8%
63%

14%

Particulars

NaReal Overview
NaReal operates on OPOS
strategy One Product One
Segment

Nova High Earners


Noon Shoppers
NoPro Professionals
Nosave Savers
Negrow Early Adopters
Nemblr Followers
( Repositioned as earlier it
targeted innovators)
All products are either
cash cows or Stars

NaReal Overview

Performance Snapshot

Past Performance

Market share of greater than 60% and sales on an increasing trajectory

Past Performance

Revenue growth driven by increasing volumes as well as


presence in premium segments such as High Earners,
Professionals and Vodites

Past Performance

Highest Share Price Index and Net Contribution in the industry

Past Performance

Cumulative Return on
Investments is highest
for NaReal even with
highest investment
base

Strategy and Learning


One product, one segment
Period 1

Period 2

Period 8

Learning:
Identifying and
focusing on the
correct TG is most
important
Its better to have a
perfect product for
one segment than an
imperfect product for
multiple segments
One size fit many
product is a myth

Strategy and Learning

Strategy and Learning

Strategy and Learning


Focusing on the right brand attributes for marketing communication and product
development
Period 2

Period 8

Learning:
Its important to
identify the brand
attributes that are
most relevant to the
Target Group
The focus of
marketing as well as
product development
team should be on
these Key
Attributes

Strategy and Learning

Strategy and Learning

Strategy and Learning


Continuous R&D to improve products R&D budget was never zero for us

Learning:
Consumers need evolve over
time and hence its important
to reinvent the products so
that they dont become
obsolete
Market views R&D positively

Strategy and Learning


Ensuring Quality of Communication 15% of advertising budget spent on advertising
research
Learning:
Our message quality
was ranked Poor in
period 2 results
resulting in less than
optimum returns on
marketing
investments
Period 3 onwards we
ensured message
quality remains
consistently
excellent

Strategy and Learning


Early Movers into Vodite We started buying market potential report for Vodites since period 2 .
Also launched query for Vodite in period 2 to get an idea of how much investment is required

Effect of Launch

Strategy and Learning

Learning:
An early launch generates Brand Awareness even with limited advertising spend
Gives you an opportunity for price skimming as consumers dont have any other
option
Nemblr for example was launched at 1500 in period 5 and its price was reduced to
960 by period 9
Risks:
Difficult to estimate product attributes, commercial team size, price point and
advertising budget as first mover

Recommendations
1. Used regression analysis and excel modelling for predicting expected value of attributes for next
period
2. Continue to invest in R&D in order to upgrade products as per changing customer requirements

Recommendations
3.
Advertising spend for a product should be comparable or greater than the competitors in that
segment

Recommendations
4.
Commercial team for a product should be in line with the buying preference of
customers for that segment and should be comparable or greater than the competitors in
that segment

Recommendations
5.
Modify NOVA and NOSAVE for which R&D has been completed. Further, start R&D for
modifying Noon, NeGrow and Nemblr in order for them to remain relevant to the consumers

6.
Update product prices every period so that they are perfectly in line with the expected ideal
value for next period for the segment

Thank
You!

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