calgolia case gamar overview (1)
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7/31/2019 Calgolia Case GAMAR Overview (1)
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CALGOLIA, Inc.
Written by Dr. William C. Johnson for the Wayne Huizenga Graduate School of Business and Entrepreneurship
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2 CALGOLIA
A fictitious European company
3 product categories Ovadols
Squazols
Trizols 5 countries
United Kingdom
Poland
France
Germany
Italy
15 Operational Marketing Unitsaka OMUsaka SBUs
We will have only 8!
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3SITUATION
Ms Sylvia Retchi, European Marketing Manager New to the job
What was the old way of doing business?
What issues are confronting her?
Answer:
Global allocation of marketing resources
Global standardization vs local adaptation of Product, Price,Promotion
Organization and application of peoples time
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4 CALGOLIASelected Marketing Strategy Issues
Allocation of Marketing resourcesManagement Time
Consumer Marketing
Trade Marketing
Global standardization vs local adaptation ofPricing
Product Specifications
Consumer Marketing
Trade Marketing
Organization & PeopleManagement Team
2 product categories4 countries
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5SITUATION
Greater international co-ordination wanted
10 year planning horizon
Goal:Maximize shareholder value (Share Price Index)
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6 CALGOLIALevels of Strategy Employed
Top level objectiveMaximize shareholder value (Share Price Index)
Portfolio Strategy Allocation of resources between
Products
Markets
Product Marketing StrategyMarket Segmentation
Product Positioning
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7 CALGOLIAMarketing Analysis & Strategy
MarketAnalysis
CompetitiveAnalysis
CompanyAnalysis
COUNTRIES
PRODUCTS
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8 CALGOLIAMarket Analysis
PRODUCTS
409Maturing6%
ModerateModerateLowModerate
5Stable17%
Strong13.9%No. 2
233High Growth14%
LowHighHighHigh
3Unstable15%
Strong18.9%No. 1
Ovadols Squazols
Current SizeStage in Life CycleLong Term Growth
In Product PurposeIn Consumer ProlfieIn Price LevelsIn Trace Demand
Number of Intl FirmsEvolutionMkt Share of Largest
ReputationMkt Share ($)Wwide Position
291Growth/Maturing10%
ModerateModerateModerateLow
4Consolidating13%
Weak7.5%No. 4
Trigols
CATEGORY SITUATION
DIFFERENCE BETWEENCOUNTRIES
COMPETITION
CALGOLIASITUATION
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9 CALGOLIAMarket Analysis
COUNTRIES
57MMediumHigh
2656%LowHigh
3615%High
LongEstablished12.3%No. 2
38MLowLow
11515%ModerateLow
12210%Low
EarlyEntry15.6%No. 1
UK POLAND
PopulationIncome LevelTrade Concentration
Current Size (M$)Long Term GrowthPrice SensitivitySophistication
Qty of Local FirmsQty of Intl FirmsMS of LargestPrice Pressure
History
Mkt Share ($)Overall Strength
57MMediumMedium
15210%LowHigh
7415%High
LongEstablished10.4%No. 4
FRANCE
ECONOMICSITUATION
RELEVANTCATEGORIES
COMPETITION
CALGOLIASITUATION
81MHighMedium
21413%ModerateMedium
6317%Medium
LongEstablished14.6%No. 2
GERMANY
58MMediumLow
18711%ModerateLow
9216%Low
RecentEntry13.5%No. 3
ITALY
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10 CALGOLIACompany Analysis-Marketing
PRODUCTS
13.9%46%46%
40%64%33%
9060
9012%
18.9%36%41%
35%62%33%
1540
3023%
Ovadols Squazols
Mkt Share (% of $)Revenue (%)CAM %
Marketing Resources (%)CM/Total Marketing (%)Management Priority (%)
Local Adaptation of:ProductConsumer Marketing
Trade MarketingPrice Variation (%)
7.5%18%13%
26%67%33%
4020
3019%
Trigols
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11 CALGOLIACompany Analysis-Marketing
COUNTRIES
12.3%27%23%
30%65%
15.6%15%14%
14%64%
UK POLAND
Mkt Share (% of $)Revenues (%)CAM (%)
Marketing Resources (%)CM/Total Marketing (%)
10.4%13%11%
16%65%
FRANCE
14.6%25%29%
22%64%
GERMANY
13.5%21%23%
19%65%
ITALY
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12 CALGOLIACompany Analysis-Profitability
PRODUCTS
100%
60.4%
14.6%
8.1%
37.7%
100%
68.0%
15.9%
9.5%
42.6%
Ovadols Squazols
Revenues
Contrib Before Mktg (CBM)
Cosnumer Marketing
Trade Marketing
Contrib After Mktg (CAM)
100%
66.6%
25.6%
12.4%
28.6%
Trigols
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13 CALGOLIACompany Analysis-Profitability
COUNTRIES
100%
62.6%
19.1%
10.4%
33.1%
100%
60.9%
15.6%
8.9%
36.4%
UK POLAND
Revenues
Contrib Before Mktg (CBM)
Cosnumer Marketing
Trade Marketing
Contrib After Mktg (CAM)
100%
64.7%
21.7%
11.5%
31.6%
FRANCE
100%
65.6%
14.7%
8.3%
42.6%
GERMANY
100%
66.8%
15.4%
8.3%
43.1%
ITALY
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14 CALGOLIASummary of Analysis
Ovadols Nearly half of Revenues and CAM
Lowest growth opportunity
Highest level of local adaptation
Except for Price
Lowest Marketing intensity as % of revenue
Squazols Highest growth opportunity
Strongest market share position
Highest product standardization Highest consumer price satisfaction
Trigols (Not Applicable)Middle size and growth
Weakest market share position
Highest marketing intensity as % of revenue
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15 CALGOLIASummary of Analysis
Countries UK & Germany have largest size
Poland & Germany have largest growth opportunities
Price Pressures
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16 CALGOLIAGAMAR3 Simulation
SOME NUMBERS Budget
Between $45 MM and $150 MM
Consumer and Trade marketing
Management Time
360 Man-Months Fixed cost - not out of CAM
Unit Variable Costs (UVC)
$100 for Ovadols
$40 for Squazols
$60 for Trigols UVC Increase for Max Local Product Adaptation
30%
Max Price Differential
30% (between lowest & highest of same product)
Max Consumer or Trade Budget
$15 MM for a given product in a given country
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18 CALGOLIAGAMAR3 Simulation-Assignment
Marketing Plan (3-5 pages) addressing: SITUATION
Brief overview:
Each product
Each country
PLAN In each area
What do you recommend (conceptually)
What is your rationale
Areas to address
Split between Consumer & Trade Marketing Pricing
Application of Management Time
Standardization vs Local Adaptation
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19 CALGOLIAGAMAR3 Simulation-Assignment
SIMULATION SCORES 5000+ = Excellent
4000 - 5000 = Very Good
3000 - 4000 = Good
2000 - 3000 = Satisfactory
Under 2000 = Unsatisfactory
GRADING Based on score (40%)
Based on plan (60%)