OVERVIEW

Industry: Germany
Firm Name: Moonlite
Brand Portfolio: MOST, MORE,
MOVE, MEME (Vodite)
Position: 4
Star Product: MEME & MOST
Total Market share: 17%
Share Price Index: 1650
Total Revenues: 8,43,428
Competitiors: TMasters, SNIDERX,
RENEGADE, Lumos
KEY DECISIONS MADE....

PERIODS 0-3 PERIODS 4-6 PERIODS 7-10

Market Research Investments- Significant investments

in market research during Periods 1-3 to gain valuable Launch of Vodite Product: Successfully launched MEME Success of Product MEME: MEME emerged as our star
consumer and market insights. (Vodite) in Period 6 to tap into a new market segment. product, capturing approximately 22% market share.
Product Launch- Introduced MORE in Period 3 to Withdrawal of Product MORE: Discontinued MORE in Price Adjustment for MOST: Increased MOST's price from 205
address market opportunities and expand our product Period 6 due to low consumer acceptance, even after to 215 after periods of stagnation, aligning with market trends.
portfolio. modifications which results in loss of market share. Segmentation Shift for MEME:
Pricing & Production Strategy- Reduced prices and Price Adjustment for MOVE: Reduced MOVE's price Reduced focus on Followers from 80% to 28%.
increased production in Period 2 for Most to capitalize on from 495 to 465 in Period 4 to address overpricing, Increased focus on Adopters from 20% to 70% for
rising demand, resulting in an improved market position resulting in increased sales volume. better market alignment.
(Rank 3). Financial Strategy: Took a loan of 3,500 in Period 4 to Increased Sales of MOST: Sales of MOST rose significantly,
Commercial Team Budget Growth- Increased budget fund the Vodite launch. Due to losses from MORE, an from 215 units to 268 units (+25%).
from 1,224 in Period 0 to 2,476 in Period 3 (+100%) to additional loan of 8,499 was taken in Period 5 before
strengthen sales capabilities. launching MEME in Period 6.
Advertisement Budget Expansion-Enhanced advertising Resource Reallocation: Reallocated resources from
spend from 4,000 in Period 0 to 5,230 in Period 3 (+30%) Sonite products to focus on Vodite. Budget for Sonite
to boost brand visibility and consumer engagement. decreased from 12,479 in Period 4 to 6,905 in Period 6
More didn’t show up as expected which increased our (-44%).
inventory holding cost and our position dropped from 3
to 4 (period 3), with the market share of only 0.8% in
volume and 0.5% in value.
CHALLENGES
Market Share
Difficulty in Determining STP (Segmentation, Targeting, and
Positioning) Of Products:
One of the primary challenges was identifying the appropriate
positioning strategies for our three products. The market dynamics,
consumer preferences, and competitive landscape made it difficult to

Growth Rate
clearly define the ideal customer segments and tailor our products to
meet their needs effectively. This led to suboptimal marketing
strategies and hindered our ability to capture a significant market
share.

Underperformance of a Sonite Product (MORE) Leading to

Withdrawal:
Our Sonite product faced consistent underperformance, delivering
lower-than-expected returns. Despite efforts to revitalize its market MORE’s declining market share and profitability
presence, it struggled to compete effectively against rivals and failed positioned it as a "Dog" in the BCG Matrix. It consumed
to generate adequate profitability. This compelled us to make the resources without significant returns, contributing to

strategic decision to withdraw the product to reallocate resources to inefficiency and became a cost burden on our portfolio.

more promising opportunities. Hence, withdrawn from the Product Portfolio.

SEGMENTATION & TARGETING
MOST- SONITE PRODUCT (For Savers and Shoppers)
Initially, the product targeted Shoppers and Savers equally. However, after observing an increase in purchase
intentions and a rise in the Saver segment, the target shifted primarily to Savers by Period 7.
Strategic Rationale: Savers, being a value-conscious segment, were more responsive to the product’s
affordability after a cost-reduction R&D project in Period 4. This made MOST an attractive choice for customers
seeking budget-friendly solutions.

MOVE- SONITE PRODUCT (For High Earners, Professionals and Explorers)

Initially targeted High Earners and Professionals equally, but pivoted towards Professionals in Period 8 and
High Earners in Period 9.
Strategic Rationale: MOVE capitalized on the Professional segment’s need for reliable, high-quality products
and later adjusted to High Earners, a smaller but more premium customer base. The product's pricing was
deliberately positioned higher, ensuring it matched customer perceptions of quality and exclusivity.

MORE- SONITE PRODUCT (For Savers and Shoppers)

Launched in Period 3 for Savers and Shoppers but repositioned for Savers in Period 4. Despite this focus, it was
withdrawn in Period 6 due to underperformance.
Strategic Rationale: The product struggled due to overlapping features with MOST and intense competition,
making it difficult to justify its presence in the portfolio. This decision reflects a strategic consolidation to
prioritize higher-performing products.

MEME- VODITE PRODUCT (For Innovators and Adopters)

MEME targeted Innovators and Early Adopters, entering the Vodite category in Period 6 after initiating R&D in
Period 5.
Strategic Rationale: The Vodite market was less saturated, allowing MEME to establish itself as an innovative
leader for tech-savvy customers willing to pay a premium. This approach differentiated MEME from competitors
entrenched in Sonite markets.
 STRATEGIC LEARNINGS
PRICING STRATEGIES Marketing Strategies and Competitive Analysis
Sonite Products (MOST, MOVE, MORE): Pricing followed a value-based approach, with
SONITES
adjustments aligning with customer affordability and market competition. For example:
MOST reduced costs to attract Savers (value-sensitive customers). For Sonite Products, we tried to gain a competitive advantage through Price Penetration
MOVE was priced higher to reflect premium quality for Professionals and High Earners. Strategy, lowering our price and positioning the Products- Most and Move in the minds of
Vodite Product (MEME): Price Sensitive Consumers.
Leveraged a premium pricing strategy, justified by the advanced features and its Since the market acted as a Perfect Competition somewhere and we were unable to invest
appeal to the Innovator and Adopter segments. This strategy enhanced profitability huge amounts in advertising, we lost our competitive edge there.
while establishing MEME as a cutting-edge offering. Things started to become worse when we invested twice in the Research and Development
of More but the product could not get correctly positioned as we were new in the market
and had less experience.
ADVERTISING AND In the sonites market we had minimum Inventory costs due to correct Production Planning.
COMMUNICATION
Budget Allocation: Advertising spending varied across products, with a higher focus on
Sonite products initially to build awareness, particularly for MOST and MOVE. VODITES
Message Focus:
Our competitive advantage emerged in Vodite (MEME), which faced less direct
MOST highlighted affordability and practicality, resonating with Savers.
competition compared to the saturated Sonite market.
MOVE emphasized professional utility and exclusivity for High Earners.
In Vodite, MEME’s success was partly due to competitors’ late entry, allowing us to claim
MEME communicated innovation and sophistication, aligning with the expectations
a first-mover advantage.
of early tech adopters.
While R&D investments for MEME (Vodite) was effective, Sonite investments lagged
behind competitors, contributing to the underperformance of MORE.

R&D INVESTMENTS MEME capitalized on Innovators and Adopters’ demand for futuristic products, gaining
significant traction in Vodite and partially offsetting revenue losses from Sonite.
The decision to reinvest in cost-reduction (MOST) and new category innovation (MEME)
reflects a strategy to balance short-term profitability and long-term growth potential.
COMPETITIVE ANALYSIS
RESULTS ACHIEVED
Market Share
Vodite Market:
Market share grew from 13% in Period 6 to 21% in Period 10, demonstrating strong adoption of MEME among Early Adopters.
Sonite Market:
Market share remained stable but saw slight improvement, rising to 16% in units and 14% in revenue by Period 10.

Revenue Growth
Total revenue grew significantly from $80.4 million in Period 5 to $139 million in Period 10, a 72.8% increase.
Sonite Products: Revenue increased from $58 million in Period 7 to $75 million in Period 10, maintaining steady growth.
Vodite Product (MEME): Revenue rose sharply from $16 million in Period 7 to $64 million in Period 10, reflecting MEME's growing
dominance in the Vodite market.

Retail Sales
MEME (Vodite): Retail sales surged from 30,000 units in Period 6 to 196,000 units by Period 10, driven by effective segmentation,
innovative features, and targeted marketing.

Customer Satisfaction
MEME: Gained high satisfaction from Adopters due to its premium features and cutting-edge technology.
MOST and MOVE: Continued to meet customer needs effectively, ensuring steady growth and retention in their respective
segments.

Overall Performance
Strategic focus on Vodite innovation and Sonite repositioning resulted in increased market share, revenue, and profitability. By
Period 10, Vodites contributed nearly 46% of total revenue, solidifying the company’s presence in a high-growth category.
 ABOUT THE COMPANY
Apple Inc., founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, is a global leader in consumer electronics,
software, and services. Based in Cupertino, California, Apple is synonymous with innovation and premium technology
products.

Industry: Consumer electronics, software, and digital services sectors. It is a pioneer in designing and manufacturing smartphones,
computers, wearables, and other digital gadgets, complemented by a strong ecosystem of software and services.

TARGET MARKET CORE PRODUCTS/SERVICES

Apple’s market strategy targets multiple segments: Hardware: iPhone, Mac, iPad, Apple Watch, and
Premium Consumers: The iPhone Pro and MacBook AirPods.
lines target high-income individuals seeking advanced
Software and Ecosystem: macOS, iOS, iCloud,
features and sleek designs.
and App Store.
Professionals: Products like MacBook Pro and iPad
Digital Services: Apple Music, Apple TV+,
Pro cater to those requiring powerful, reliable
technology for work.
Fitness+, and iCloud.
Tech Enthusiasts and Innovators: Early adopters of
new technology are drawn to Apple’s focus on
innovation and groundbreaking features.
Service Subscribers: Apple TV+, iCloud, and Apple
Music target users seeking seamless digital
experiences.
 MARKETING STRATEGIES ADOPTED
SEGMENTATION AND BRANDING AND DIGITAL MARKETING AND
PRODUCT POSITIONING EMOTIONAL STORYTELLING OMNI-CHANNEL EXCELLENCE

Target Segments:
High Earners and Professionals: The MacBook Pro and Taglines and Campaigns: Digital Platforms:
iPhone Pro cater to professionals and creatives requiring "Think Different" (1997) positioned Apple as an Social Media Marketing: Product launches like the iPhone
advanced technology. innovative disruptor. 15 generated over 10 million views on YouTube within
Tech Enthusiasts and Early Adopters: Products like the Recent campaigns, like “Shot on iPhone,” highlight hours.
Vision Pro and iPhone Pro Max target consumers who user-generated content to demonstrate quality and App Store as a Sales Channel: Online stores include AR
value cutting-edge innovation. build trust. tools for product previews, enhancing the digital
General Consumers (Shoppers/Savers): The iPhone SE Success: shopping journey.
and earlier-generation devices offer affordability without Apple ranked 2nd in Interbrand’s 2023 Best Global Retail Excellence:
compromising quality. Brands with a valuation of $482 billion. Apple Stores combine functionality and design, offering
Positioning Strategy: The “Shot on iPhone” campaign garnered over 20 personalized service and exclusive experiences.
"Premium quality" and "status symbol" through design, million views on YouTube and received widespread Success:
innovation, and exclusivity. acclaim. Apple’s e-commerce channels contributed significantly
Ecosystem integration encourages brand loyalty, with to its $394 billion revenue in 2022, especially during the
Focus on Values:
seamless connections between iPhones, Apple Watches, COVID-19 pandemic.
Accessibility: Apple promotes inclusivity through
and MacBooks. The brand has consistently ranked in the top 5 for
features like VoiceOver and Hearing Assistance.
Success: In 2022, iPhones contributed $205 billion to Apple’s customer satisfaction globally.
revenue, underscoring the success of its diversified portfolio.
 PRICING STRATEGIES
IMPACT OF IPOD WITHDRAWAL ON REVENUE (2006-2013)
Implementation:
Premium Pricing for New Products: New releases, like the iPhone 15 Pro,
start at $999, targeting tech-savvy professionals.
Affordable Alternatives: Products like the iPhone SE target price-
sensitive consumers, similar to your cost-reduction initiatives in
MARKSTRAT.
Success
High-margin products like the iPhone Pro series contributed to a gross
margin of 43.5% in 2023.

INVESTMENT IN R&D AND

INNOVATION

Technological Prowess:
Marketing campaigns for Apple’s M1/M2 chips highlight speed and efficiency,
directly addressing professional and creative user needs.
The Vision Pro’s launch campaign focused on “spatial computing,” educating
consumers on the value of a new product category.
Consumer Feedback Loop: R&D investments are driven by user insights, ensuring
market relevance.
Success:
Apple’s R&D spending reached $26.2 billion in 2022, driving innovations like
custom silicon and AR/VR technologies.
The M1 chip contributed to a 70% growth in Mac revenue in 2021.
CUSTOMER SATISFACTION AND IPHONE REVENUE
R&D SPENDING GROWTH (2015-2022)
SHARE (2019-2023)
 MARKSTRAT TAKEAWAYS
Leveraging Market
Withdrawal of Heavy Investment in R&D to
Segmentation and Commercial
Underperforming Products Capture Emerging Markets
Execution
The iPhone SE caters to price-sensitive
The discontinuation of the iPod product line in 2014, Apple's Strategy:
consumers, while the Pro and Pro Max models
despite its iconic status. Apple’s long-term growth is fueled by consistent
target high earners and tech enthusiasts.
Apple recognized that the iPod’s appeal was R&D investment aimed at breakthrough innovations.
Apple also utilizes multiple distribution channels,
diminishing with the rise of multifunctional devices The development of the M1 chip, launched in
including online platforms, retail stores, and
like the iPhone. 2020, was a result of years of R&D and marked
partnerships with telecom providers, to maximize
iPod sales peaked in 2008 at $9.2 billion but fell Apple’s shift away from Intel processors. This
reach.
to under $2 billion by 2013. innovation provided significant performance
success:
By discontinuing the iPod, Apple shifted improvements and cost savings.
In Q2 2023, the iPhone accounted for 47% of
resources to the iPhone, which contributed to R&D spending increased from $6 billion in 2014
global smartphone revenue, showcasing its
71.6% of Apple’s revenue in 2021, emphasizing its to $26.2 billion in 2022.
strong hold on both premium and mid-tier
dominance in the market. The M1 chip contributed to a 70% year-over-year
markets.
growth in MacBook sales in 2021.
Online sales grew by 39% in 2021, driven by e-
commerce strategies during the pandemic.

In our MARKSTRAT journey, we faced a similar challenge. Despite Like Apple, we prioritized R&D to differentiate your Vodite In MARKSTRAT, we applied segmentation by focusing on savers and
heavy R&D investment and cost-reduction efforts, your new Sonite product, ensuring high-performance features that captured 70% shoppers for sonite products at low pricing since they were price
product targeting savers and shoppers underperformed. Like of adopters and over 50% of innovators by Round 10. This sensitive customer, but pivoting to adopters and innovators from

Apple, we made the tough decision to withdraw the product and approach mirrors Apple's strategy of entering markets with followers in the Vodite market. Similarly, we adapted our commercial
team allocations, prioritizing different channels for different segments
reallocate resources, which later enabled you to strengthen your superior products, even if it meant launching later than
from the very start where relevant.
position in the Vodite market. competitors.
 KEY TAKEAWAYS
Investment in R&D for Innovation
MARKSTRAT Learning:
Consistent R&D investments enabled us to develop MEME, a Vodite product that captured 70% of Adopters and over 50% of Innovators by Period 10.
Apple’s
Apple’s R&D spending grew from $6 billion in 2014 to $26.2 billion in 2022, enabling innovations like the M1 chip, which fueled 70% YoY growth in MacBook sales in
2021. This focus on breakthrough technologies mirrors the differentiation strategy we adopted for MEME.

Market Segmentation and Targeting

MARKSTRAT Learning:
We adopted a segmented approach, targeting Savers and Shoppers with low-priced Sonite products and pivoting to Adopters and Innovators for Vodite products.
Tailored marketing and channel strategies were crucial to capturing market share.
Apple
Apple segments its market effectively: the iPhone SE caters to price-sensitive consumers, while Pro models appeal to high earners and tech enthusiasts. This
segmentation drives Apple’s success across premium and mid-tier markets.

Withdrawal of Underperforming Products

MARKSTRAT Learning:
We discontinued an underperforming Sonite product targeting Savers and Shoppers after evaluating its limited appeal and high costs, reallocating resources to
the Vodite market for better returns.
Apple’s
Apple discontinued the iPod in 2014, recognizing its declining appeal with the rise of multifunctional devices like the iPhone. This allowed Apple to shift focus and
resources to the iPhone, which contributed to 71.6% of Apple’s revenue in 2021.
Thank you
Introduction

Apple Inc., founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald
Wayne, is a global leader in consumer electronics, software, and
digital services. This industry is characterized by rapid innovation,
evolving consumer preferences, and a focus on seamless integration
across devices and services. Apple's target market includes tech-
savvy consumers, professionals, and creatives who value premium
quality, cutting-edge technology, and intuitive design.
ABOUT APPLE
Introduction to the Company
About Apple
Apple Inc., founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, is a global leader in consumer electronics, software, and
services. Based in Cupertino, California, Apple is synonymous with innovation and premium technology products.
Industry
Apple operates in the consumer electronics, software, and digital services sectors. It is a pioneer in designing and manufacturing
smartphones, computers, wearables, and other digital gadgets, complemented by a strong ecosystem of software and services.
Target Market
Apple’s market strategy targets multiple segments:
Premium Consumers: The iPhone Pro and MacBook lines target high-income individuals seeking advanced features and sleek designs.
Professionals: Products like MacBook Pro and iPad Pro cater to those requiring powerful, reliable technology for work.
Tech Enthusiasts and Innovators: Early adopters of new technology are drawn to Apple’s focus on innovation and groundbreaking features.
Service Subscribers: Apple TV+, iCloud, and Apple Music target users seeking seamless digital experiences.
Core Products/Services
Hardware: iPhone, Mac, iPad, Apple Watch, and AirPods.
Software and Ecosystem: macOS, iOS, iCloud, and App Store.
Digital Services: Apple Music, Apple TV+, Fitness+, and iCloud.
Introduction

About Apple
Apple Inc., founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald
Wayne, is a global leader in consumer electronics, software, and
services. Based in Cupertino, California, Apple is synonymous with
innovation and premium technology products.
Key Takeaways
Withdrawal of Underperforming Products
MARKSTRAT Learning:
We discontinued an underperforming Sonite product targeting Savers and Shoppers after evaluating its limited appeal
and high costs, reallocating resources to the Vodite market for better returns.
Apple’s
Apple discontinued the iPod in 2014, recognizing its declining appeal with the rise of multifunctional devices like the
iPhone. This allowed Apple to shift focus and resources to the iPhone, which contributed to 71.6% of Apple’s revenue in
2021.
Investment in R&D for Innovation
MARKSTRAT Learning:
Consistent R&D investments enabled us to develop MEME, a Vodite product that captured 70% of Adopters and over 50% of
Innovators by Period 10.
Apple’s
Apple’s R&D spending grew from $6 billion in 2014 to $26.2 billion in 2022, enabling innovations like the M1 chip, which fueled
70% YoY growth in MacBook sales in 2021. This focus on breakthrough technologies mirrors the differentiation strategy we
adopted for MEME.

Market Segmentation and Targeting

MARKSTRAT Learning:
We adopted a segmented approach, targeting Savers and Shoppers with low-priced Sonite products and pivoting to Adopters and
Innovators for Vodite products. Tailored marketing and channel strategies were crucial to capturing market share.
Apple
Apple segments its market effectively: the iPhone SE caters to price-sensitive consumers, while Pro models appeal to high earners and
tech enthusiasts. This segmentation drives Apple’s success across premium and mid-tier markets.
 Market Segmentation and Targeting
MARKSTRAT Learning:
We adopted a segmented approach, targeting Savers and Shoppers with low-priced Sonite products and
pivoting to Adopters and Innovators for Vodite products. Tailored marketing and channel strategies were crucia
to capturing market share.
Apple’s Example:
Apple segments its market effectively: the iPhone SE caters to price-sensitive consumers, while Pro models
appeal to high earners and tech enthusiasts. This segmentation drives Apple’s success across premium and mid-
tier markets.
CHALLENGES
Difficulty in Determining STP (Segmentation, Targeting, and Positioning) Of Products:
One of the primary challenges was identifying the appropriate positioning strategies for our three
products. The market dynamics, consumer preferences, and competitive landscape made it
difficult to clearly define the ideal customer segments and tailor our products to meet their needs
effectively. This led to suboptimal marketing strategies and hindered our ability to capture a
significant market share.

Underperformance of a Sonite Product (MORE) Leading to Withdrawal:

Our Sonite product faced consistent underperformance, delivering lower-than-expected returns.
Despite efforts to revitalize its market presence, it struggled to compete effectively against rivals
and failed to generate adequate profitability. This compelled us to make the strategic decision to
withdraw the product to reallocate resources to more promising opportunities.
 Problem:
MORE, our Sonite product launched in Period 3, faced significant challenges due to overlapping features with MOST and intense
competition from well-established competitors targeting similar segments (Savers and Shoppers). As a result, it failed to generate
sufficient revenue and became a cost burden on our portfolio.