SLP Time Warp 3 Essay Example | Topics and Well Written Essays - 1000 words

SLP Time Warp 3 - Essay ExampleThis paper thus attempts an implementation of the suggested theories, and in this way attempts at discovering the most effective strategy that can be used with the three overlaps (Abbing & caravan Gessel, 2008). Pricing is largely regarded as a viable marketing strategy that the comp both can pursue. In this regard, the cost at which product X5 is sold needs an increment since the simulation results proved that the product was lock in in its growth phase and thus has a greater potential for growth before it attains maturity. On the contrary, the product X7, out of the simulation results, shows that it lies in the pre-growth phase. An ontogeny in its product, though a risky of course to take, seems to be the most logical path at the moment in a bid to specialise the market reception, as well as acting as a means by which to mental test its market limits. The third product, the product X6, revealed to be in the maturity phase from the simulation r esults. Given its relatively impressive market run, it is a wise choice to further push its marginal profit through with(predicate) a slight price increment. The reason for stressing on slight is to avoid a scenario where it is too exceedingly priced making the cost an issue that makes customers opt for competing brands (Beverland, Napoli & Farrelly, 2010). As a marketing procedure, this final strategy takes the feature strategy approach in achieving optimum product performance in terms of sales generation and profits accrued from these sales. In this regard, an implementation of the simulation results taking into account the initial R & D allocation increment (Bivainiene, 2010). Increasing the expenditure allocation of the R & D is done through an increase of that of the product X5, a product in its growth phase, as well as in the preliminary phase of the product X7. The projected results out of these changes are as shown below Year 2012 Product monetary value $ R&D Allocati on % Profits X5 265 33 121, 288, 230 X6 420 34 264, 830, 873 X7 230 33 -22, 254, 435 Total 363,864,668 In the come through year, the pricing marketing strategy will prove the most logical strategy to be applied. In this strategy, the prices of products X5 and product X7 are reduced in relative margins. The price of the product X6, is however, left constant without any changes made to it. The rationale behind this direction is because the two products, X5 and X7 are relatively weakly established the strategy to be applied needs to be focused upon two main issues, the increase in sales volumes, and the quick and efficient penetration of the market to establish its niche amongst the more established products in the comparable category as them (Slotegraaf & Pauwels, 2008). The strategies that call for an increase in the expenditure of the R & D are, however, left to continue. The expect profits changes on the application of the price changes and allocation of the R & D are as reflecte d below Year 2013 Product Price $ R&D Allocation % Profits X5 240 35 79, 643, 368 X6 420 28 264, 830, 950 X7 clxxx 36 0 Total 344, 474, 318 A thorough application of the strategy is reflective of the continued product success in terms of gaining market ground and penetration. The price reductions were necessary since it is the variable that can be modified as far as the marketing mix is