The Clipboard Tablet Co
Contents
TOC o “1-3” h z u Product review PAGEREF _Toc381182676 h 1Financial review PAGEREF _Toc381182677 h 2Market review PAGEREF _Toc381182678 h 3Proposed alternate strategy PAGEREF _Toc381182679 h 5
There are three different tablets currently being produced by clipboard Tablet Company these are X5, X6 and X7.My main goal as the VP of marketing at Clipboard tablet company is to review these three products in the past four to six years and critically examine them in terms of the way the products have been developed, their sales ,their pricing and how they have performed against their competition. After this review I should come up with a new strategy for the products.
Product reviewX5 is a product that has a plastic case; it costs $250 and has been in the market for about three years now. It has remained stagnant at a stage of maturity and shakeup in the three years it has been in the market. Market research done on X5 shows that customers are not quite worried about the performance of this rather old tablet when compared to X6 and X7.X6 is a product that has a flat metal case costing $400 and has been in has existed in the market for about two years. Its market research indicates that customers have concerns on its performance and not exactly the price of the product. This means that customers decisions on whether or not to purchase the product are based on their considerations of its quality.X7 is a product with a case that is colored costing $ 200 and it quite new since it has been in the market for close to a year. Market research on X7 shows that the customers have concerns on both the price as well as its performance (Catherine, 2011).
Financial reviewThese three different products are different when their financial analysis is done. The former VP had set prices as well as research and development budgets which were meant to be constant between 2012 and 2015.These financial projections are indicated below
X5 FINANCIALS
year revenue Total cost Total profitability
2012 492,861,819 348,939,108 29%
2013 378,331,427 286,271,536 24%
2014 186,025,046 181,047,289 3% 24%
2015 137,927,070 154,729,529 -12%
X6 Financials
year revenue Total costs Total profitability
2011 786,851,911 347,514,430 33%
2012 809,316,039 544,485,167 33%
2013 343,283,703 255,988,959 25%
2014 237,731,058 190,646,845 20%
X7 financials
Year Revenue Total costs Total profitability
2012 43,411,367 56,617,344 30%
2013 61,833,138 56,617,344 -1%
2014 87,444,976 70,166,147 20%
2015 122,312,118 80,894,498 34%
The former VP’s projected financials indicate that the revenue as well as the total costs of X5 is expected to decrease as the years go by. It also shows that that profits to the company from X5 are equally expected to go down between 2012 and 2015.The same is expected from X6, the revenues and costs are going down between 2012 and 2015.The profitability of X6 is also expected to decrease but not as much as that of X5.X7 on the other hand is expected to have an increase in costs and revenues. The profits from X7 are also expected to go up (Catherine, 2011).
Market reviewThere was also a market review that he conducted which entails the market saturation of the particular product, the new sales that are made from the product as well as repeated sales from the products. The tables show the market reviews for the three products of the years 2011 to 2015.
X5
Year Market saturation New sales Repeat sales
2011 31% 94% 64%
2012 54% 21% 72%
2013 80% 48% 23%
2014 9% 20% 51%
2015 100% 3% 26%
X6
Year Market saturation New sales Repeat sales
2011 16% 147% 126%
2012 37% 104% 60%
2013 67% 78% 3%
2014 95% 40% -58%
2015 100% 4% -31%
X7
year Market saturation New sales Repeat sales
2011 2% – –
2012 3% 45% 43%
2013 4% 44% 42%
2014 6% 4% 44% 41%
2015 8% 44% 39%
The market review indicate that all the products will be fluctuating when it comes to their saturation in the market, the number of new sales as well as the number of repeat sales. Since X5 and X6 are already known by customers due to their longer existence in the market it is expected that by 2015 they would have completely saturated the market as opposed to X7 which is a new product and the customers are still getting to know it.
Proposed alternate strategyAn alternative strategy is therefore needed so as to ensure that the company reaps maximum benefits from the three products independently.X5 has been in the market for three years which means that it already has an established niche. However, so as to achieve the company’s goal the niche has to be increased through the use of various promotional strategies. It will also require that X5 is tested so as to ensure that the customers raise no concern on its performance.X6 has been in the market for two years (peters, 2009).The new model X7, raises issues of both performance and price and therefore there should be comprehensive strategies in place which will ensure that the sales will be increased and at the same time acquire a large market share. In the year 2012, X7 showed a decline in its profits and the trend is seen to continue due to the application of poor strategies. Despite the fact that there is an increase in revenue there is still for a change in strategy since X7 is fairly new in the market. There should also be an increase in saturation of all the three models. This is because if all the products are well saturated in the market there will be more sales made from new as well as repeat customers’ .This will eventually bring the profits from the three products up considerably (Brainmass, 2011).
Therefore different results can be achieved depending on the operation strategies as well as the decisions that will be made. First if the company’s performance when it comes to the three products has to be improved there should be changes made with the prices of the commodities as well as changing their R&D .From the market information it is indicated that the levels of sales of X5 are the highest followed by X6 and X7.Therefore in order to get maximum profits more resources will need to be allocated to X5 and less to X6 and X7.If the price stimulations are done appropriately then there would be an increase in profits from the three products between 2012 and 2015.More funds should therefore be allocated to research and development so that the market saturation of all the three products can be achieved. This strategy of stimulation can stimulate the products into their growth phase.X7 has a very high potential when it comes to customers and hence there should be strategies in place which will ensure that the sales levels of the product are increased (Brainmass, 2011).
At the end of 2012 X6 has a market saturation of 16% this is an indication that it is a the growth stage of its life cycle, this means that the product should still get allocations of R&D as well as get appropriate pricing. The pricing strategy that should be used is penetration meaning that its price should be brought down to ensure that it is made more competitive.X6 has been marketed as the leader when it comes to its technology. This means that there is need to invest highly on R&D to ensure that it stays as the market leader. since X7 is at the stage where it is being introduced in its lie cycle, it should be marketed as a price leader.
References
Brainmass.(2011). Tablet Development Company – Joe Schmoe Report.retrieved April 11,2013 from http://brainmass.com/business/other/449962Catherine,W.(2011).Buisness strategy.retrieved April 11,2013 from http://www.articlesalley.com/article.detail.php/136241/208/Article_Writing/Writing/29/Business_StrategyJohnson,W. (2002). Harvard business review on advances in strategy. Boston: Harvard Business School Press.
Peters.S (2009). Harvard business review on corporate strategy. Boston, Mass.: Harvard Business School Press.
