When Markstrat simulation began Team “O” (i.e. – our team) was the second largest player in the market with over 17% market share in the Sonite market. The only team that was a little ahead of us was Team “I” garnering a market share of a little more than 18%. We had two products in the Sonite market initially, namely – SOLD and SONO targeted at HiEarners and Buffs respectively. Since SOLD was customized for and targeted to HiEarners, we were able to command a premium price over other similar products and still maintain the highest market share. Also when we checked the market research reports, it showed that this particular segment will be growing at a considerable pace, so it makes complete sense to continue targeting this segment and try to capture more market.
This made a lot of sense in the initial 2 periods but there was pressing need to develop products for others and singles category as this segment was growing at a rather fast pace and therefore we went ahead and started R & D for a product in Sonite market specifically for others and singles. This led to the diversification of our portfolio and our brand presence was available in various segments of market. This product was named SOMO and was launched in period 2 specially customized for singles and others, this was one of our very successful launches capturing 6.4% market share in Sonite market in just one period. Our main aim was to maintain a stronghold in the segments where we are already doing well along with entering new market segments and exploit newer markets and get the First Mover Advantage, and to an extent we were successful in doing so.
At the same time we were continuously working to deploying a proper and rational sales force across our distribution channels based on various research reports and from where our target segment buys our product. We were also increasing the budget for advertising research so that whatever is the advertising done should have a proper impact, with adding 10 percent to the advertising cost, we reaped benefits worth a lot more because initially our advertising was not properly targeted so the impact was lost due to some reason or the other. We realized that it is very important for us to reach customers through advertising in the same way as they are comfortable with. We also noticed that there is a lot of inventory of Sono, so we reduced its production in the second period. Meanwhile we were continuously spending on R&D and it paid of well.