CAPTURING THE GLOBAL MARKET A unique product manufactured in Europe... The Motorcycle!!
Three Markets 1. the European market, where your company is already a leader 2. the North American market, where a dealer network has just been set up 3. the rest of the world, which will be accessible after three periods of prospecting
Winning Market Shares by being the most aggressive in terms of prices and advertising by exploring new markets in the Rest of the World by developing one’s brand image due to sponsoring
Finding New Customers ◦P◦P rices (short-term): action at N ◦A◦A dvertising budget (mid-term): action at N, N+1,N+2 ◦S◦S ponsoring (long-term): action at N+4... N+10 One decision = One year
Finding New Customers by entering in the global zone after a minimum of three years of exploring new market or prospecting (at least 6% of the sales budget allocated ) In period 4, the prospecting budget must be more than the competitors’ average. The prospecting effort must be continued even after achieving the opening of this market.
Finding New Customers by making bids if your company is already known This is an order to satisfy the next period if your offer has been selected. It is valid only for one period. Conditions to partaking: be able to prospect in the global market and have allocated a budget equal to at least 5% of the sales. The Police
Finding New Customers Sign agreements with local partners. = COMMERCIAL INVESTMENT using the local know-how creating local jobs decreasing the customs fees Only the most efficient and the fastest companies can do it; the purchasing cost is not proportional to the obtained result.
Life Cycle of a Product Life cycle of a product Launching and growth Phase 1 Phase 2Phase 3 Maturity Declining
All the plants are located in the European Union. Invest in new plants to satisfy the demand. Adapting Your Offer to the Demand Do not produce useless stocks, and close plants if necessary.
additional information about market trend, competitors’ strategies, cost prices of the products, etc. Get information about environment trend due to: Adapting Your Offer to the Demand
From period 4, do not hesitate to resort to subcontractors. Adapting Your Offer to the Demand You have stocks: On the contrary; your production and stocks are not sufficient: Be a SELLER. Be a BUYER. Subcontracting requires an agreement between two partners about volumes and pricing.
Control Your Costs ◦ by producing at full capacity ◦ by improving the design with research and development ◦ by maintaining the production tool
Adapting Your Production Capacity by proposing flexible working contracts (overtime hours, limited period contracts) by developing investment or closing existing production lines by subcontracting to other companies (from period 4)
Preparing your decisions 1)Update the data of the scenario (in orange on the sheet). Download the Excel file. These values must be checked on the main page of www.visual-strat.com.www.visual-strat.com www.visual-srat.comwww.visual-srat.com or Acces decsions.
Preparing Your Decisions 2) Update the Excel sheet with your results (in green). Motorcycle stock inventory Results : production Accumulated productivity = number of motor lost or won. Production capacity = production tool + Investment of the period. Or directly
Preparing Your Decisions Loan more than one-year term and less than one year. Valid only before making decision. 2328+582=2910 2) Update the Excel sheet with your results (in green). OR directly Results : Balance sheet
Preparing Your Decisions The financial costs must be the same. 15170 3) Update the Excel sheet with your decisions (in red).
Determine your cost price and selling price. Preparing Your Decisions