Evaluation and Strategy in Segments - Thrift, Core, Nano, Elite
In this presentation, the focus is on evaluating results and strategies in different market segments such as Thrift, Core, Nano, and Elite. Strategies include pricing, product quality, and performance to meet consumer criteria. Results are analyzed based on factors like net margin, gross margin, sales, and profitability. Various strengths and issues in the business are also discussed, offering insights into areas of improvement and success.
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Presentation Transcript
PRESENTATION [Andrews]
Evaluation of results in segment Thrift or Core My main strategy for the Thrift and Core Segment was to have the low prices as my consumer wants, because Main buying criteria for the Thrift is price and is 55% important and Core Segment main criteria is also price and is 46% important. So, having low price was my main strategy . Proposed Strategy My strategy for Thrift and Core is segment was done as I wish and my prices were very competitive than my competitors. Decisions (In Rounds 1 and 2) In Round 2, I have sold 1611 units of Acre in Thrift and 1616 Units of Adam in Core segment Outcome My strategy for the Thrift and Core segment is doing very good as the both products are contributing positive net margin. But my product Adam is doing great than Acre as Adam Net margin is very high and is $10,531 as compared to Acre $650 Only Evaluation
Evaluation of results in segment Nano or Elite My strategy for Nano Segment was to produce great product in terms of performance and Size because it was 35% important and Same for Elite Segment clients were more concern about the age of the product and it was 34% important as high price was not any issue. So producing great product was my main strtaegy Proposed Strategy Decisions (In Rounds 1 and 2) To meet the buying criteria of Nano and Elite Segment, my main focus was on product quality and performance. Nano segment product Aft 1507 and Elite segment product Agape 1383 units were sold in Round 2 Outcome Aft product Contributed highest gross margin of $18098 among my all products and Second highest Gross of $17074 Evaluation
ISSUES (these are examples you can substitute them with other issues) My SG&A/sales ratio is 13.8% which is highest in the market and its not good SG &A/Sales Ratio $36,854,693, I took emergency loan because of Shortage of Cash CASH (EMERGENCY LOAN) Leverage (Assets/Equity) My leverage ratio was 3 and it was very high among all my competitors Long term Debt Andrew has huge long term debt of $55,631 As, I have introduced new product AA2 and AA3, I was short of Stocks of both products due to production capacity issue. Shortage of Stock 4
STRENGTHS (these are examples you can substitute them with other strengths) Highest contribution margin among all competitors 38.7% Hi CONTRIBUTION MARGIN Introduction of three new products AA1, AA2, AA3 NEW PRODUCTS Utilizing Assets to the fullest and having highest turnover ration o f 1.39 Asset Turnover Round2 Achieving Highest sales number among all of $241,952,758 Highest Sales in Round2 7,205,003 Highest cumulative profits among competitors Highest Cumulative Profit Until Round2 5
PROPOSED CHANGES TO STRATEGY (How to deal with issues) Try to reduce the Selling, General and Administrative Expenses SG &A/Sales Ratio Issue of the Stocks/shares or get loans to avoid emergency loan to have maximum cash needed CASH (EMERGENCY LOAN) Avoiding Interest based loan and try to shift equity based capital Leverage (Assets/Equity) Long term debt put so much pressure on the Current Interest and expenses, So, use alternate option Long term Debt Try to forecast and Predict the sales and plan the capacity accordingly Shortage of Stock 6
