MBA FT (2023-25)

Market Simulation

MBA Programme
(2023-25)

Market Simulation

Group Assignment I

Marketing Strategy Report

Submitted On:

06/02/2025
Submitted to:

Prof. Ashwini Awasthi

Submitted by:

Team L

Name Roll Number

Nirbhay
Pihu Nimdia 23MBA539
Poorvanshi Gupta 23MBA540
Aman Jaiswal 23MBA608
Ashima Arora 23MBA611
Table of Content

Table of Contents

Executive Summary.............................................................................................................................3
Acknowledgement................................................................................................................................4
Undertaking..........................................................................................................................................5
Environment Analysis- Internal and External......................................................................................6
About The Company..........................................................................................................................15
End Goal............................................................................................................................................20
Marketing Mix...................................................................................................................................21
Monitoring and evaluation.................................................................................................................24
Conclusion.........................................................................................................................................25
Executive Summary

With a significant market share of 18% in units and 17% in values, Luminor has shown to be
a successful performer (Period 2). Strategic planning, creative product development, and a
thorough comprehension of market dynamics are the main factors behind this achievement.
Data-driven decision-making, financial restraint, focused market expansion, and ongoing
innovation are given top priority in the company's long-term strategy. Strict budget control,
the use of big data analytics, and the implementation of targeted marketing campaigns for the
introduction of new products are important projects.

The ultimate goals of Luminor are to develop its new Vodite product, lead in innovation,
penetrate important markets, retain market leadership, guarantee financial stability, cultivate
a data-driven culture, and propel long-term growth. In order to accomplish these objectives,
Luminor employs a thorough strategic framework that includes a well-organized R&D and
manufacturing strategy, the 4Ps of marketing (Product, Price, Place, Promotion), and STP
(Segmentation, Targeting, Positioning). These initiatives depend on proactively responding to
changes in the industry, streamlining distribution methods, and matching items to consumer
needs.

By putting these tactics into practice, Luminor hopes to overcome market obstacles and
solidify its position as a leader in the sector.
Acknowledgement

This gives us great pleasure in releasing this report. We are grateful to Prof. Ashwini
Awasthi for providing us with this fantastic opportunity to improve our performance and
approach as Team Luminor in the Markstrat world. We are grateful to our friends who
supported us during this effort and provided us the necessary assistance. Without the
assistance, direction, and suggestions of everyone participating in this project, it would not
have been possible to finish it within the allotted time. For this reason, we are incredibly
grateful to everyone involved.
Undertaking

We, hereby declare that this submission is our own work and that, to the best of our
knowledge and belief, it contains no material previously published or written by another
person. We also declare that the intellectual content of this report is the product of our own
work. Also, we have given due credit for any content used from any other source. Other than
this, any similarities or overlapping of phrases or sentences with another source’s content is
mere coincidence and we do not intend to copy or misuse it
Environment Analysis- Internal and External

Sonite Goods:

Market Overview:
The Sonite market is well-established and experiencing continuous growth. Multiple brands
actively compete in this segment, offering a diverse range of products catering to different
budgets and consumer needs. Industry experts anticipate steady expansion in the Sonite
market over the next five years.

Key Product Attributes:

Sonite products are highly advanced and differentiated based on five critical physical
attributes:

 Processing Power: Determines the speed and efficiency of internal processing,

impacting performance and multitasking capabilities.
 Display Size: Affects the screen dimensions, influencing visual presentation and
overall image quality.
 Design Index: Represents the overall design quality, including the integration of key
components and aesthetic features.
 Battery Life: Indicates the duration a device can operate without requiring a
recharge.
 Features: The comprehensive range of hardware and software functionalities
included in the product.


Product Innovation & Development:

Companies can introduce new Sonite products or enhance existing ones through extensive
research and development (R&D). Initially, each company launches with two Sonite brands,
which may differ in features, market penetration, and profitability.
Consumer Preferences:
Consumers often make trade-offs when selecting a Sonite product, balancing factors such as
processing power versus weight or display size versus battery life. The base cost of a product,
determined through R&D and marketing efforts, plays a significant role in influencing
purchasing decisions.

Vodite Goods

Market Outlook:
Industry speculation suggests the potential introduction of Vodite products, which will differ
from Sonite offerings and address distinct consumer needs. Forecasts indicate that demand
for Sonite and Vodite products will remain independent of each other.

Key Vodite Features:

 Resolution: Determines image clarity and sharpness of visual processing.

 Energy Efficiency: Reflects the product’s ability to optimize energy consumption.
 Carbon Footprint: Measures the environmental impact of the product throughout its
lifecycle.
 Connectivity Index: Evaluates the product’s compatibility and connectivity with
other devices.
 Number of Apps: Represents the total number of applications supported by the
product.

Investment in Research & Development:

Developing a Vodite product requires significant financial commitment, ranging between five
to ten million dollars in R&D expenditures. While Vodite technology shares similarities with
Sonite products, additional investment is necessary for its advancement.

Environmental Considerations:
A government-imposed greenhouse gas emission tax may be applicable if a product exceeds
the predefined emission threshold, making the Carbon Footprint feature a critical factor for
compliance.
Overall Business Environment
The Markstrat business landscape is stable, characterized by consistent inflation and steady
Gross National Product (GNP) growth. No significant political, social, or economic
disruptions are expected. All competing companies begin on an equal footing, ensuring a
level playing field. However, each company’s initial market position and product portfolio
are unique.

Competitive Landscape:
Several companies, identified by letters (L, M, N, R, S, or T), actively compete within the
market. To succeed, businesses must craft marketing strategies tailored to their specific
market conditions.

Initial Market Positioning:

While all companies start with the same foundational setup, their initial market positions may
differ. Each company begins operations with a portfolio consisting of two Sonite brands,
providing a foundation for future market expansion and innovation.
 SWOT Analysis:

A SWOT analysis evaluates a company's internal strengths and weaknesses alongside

external opportunities and threats. Within the Markstrat simulation framework, we focus
primarily on the internal aspects of our business while considering external factors that
influence our strategic direction.

Strengths

 Diverse Brand Portfolio: With two well-established Sonite brands at the start, our
company holds a significant presence in the market. These brands contribute to
industry growth and provide a solid foundation for expansion.
 Robust R&D Capabilities: Our dedicated R&D team enables the development of
innovative projects. Since all companies start with similar R&D capabilities,
maintaining a focus on innovation ensures a sustainable competitive advantage.
 Skilled Commercial Teams: Our highly qualified commercial teams efficiently
manage distributor relationships, a critical element for market success. Equal
expertise across the industry ensures a level playing field in sales and marketing
execution.
 Stable Economic Environment: The Markstrat world is characterized by steady
GNP growth and controlled inflation, reducing economic uncertainty and fostering a
favorable business climate.
 Strategic Market Positioning: With a strong initial presence, our company can
capitalize on brand equity and customer trust to drive future growth.

Weaknesses

 Limited Initial Competitive Edge: All companies begin with similar resources and
market conditions, making differentiation a challenge. Our business must implement
well-structured strategies to create a unique market presence.
 Restricted Product Portfolio: Initially, our company only offers two Sonite
products, which may limit market penetration compared to competitors with a more
diverse range of offerings. Expanding the portfolio through R&D will be critical.
  Cost Management Challenges: Determining the right balance between R&D
investment, marketing expenses, and unit pricing is crucial. Any miscalculations can
lead to inefficiencies and negatively impact profitability.
 Dependence on Market Trends: Consumer behavior and preferences shift over time,
requiring constant adjustments in marketing and product positioning strategies.

Opportunities

 Expanding Market Demand: Analysts predict sustained growth in the Sonite market
over the next five years. This presents a strong opportunity to capture greater market
share and increase revenue.
 Innovation through R&D: Continuous investment in research and product
innovation can enhance consumer appeal and strengthen our competitive edge.
Advanced Sonite models with improved features can attract a broader audience.
 Vodite Market Expansion: The emergence of the Vodite market offers new avenues
for growth. Entering this sector allows us to tap into a distinct consumer base with
unique demands, diversifying revenue streams.
 Digital Transformation: Leveraging data analytics, AI-driven consumer insights,
and advanced marketing automation can enhance decision-making and operational
efficiency.
 Sustainability Initiatives: Incorporating eco-friendly practices and energy-efficient
designs can provide a competitive advantage, aligning with evolving consumer
preferences and regulatory standards.

Threats

 Intense Market Competition: With multiple companies competing, the challenge

lies in maintaining and expanding market share. Strategic pricing, innovation, and
marketing differentiation are key to success.
 Evolving Consumer Preferences: Shifts in consumer demands require agile product
development and targeted marketing strategies to remain relevant.
 Regulatory and Environmental Risks: The potential imposition of a greenhouse gas
emission tax on Vodite products could increase costs. Compliance with emission
standards is crucial to avoid financial penalties.
  Economic Volatility: Although the Markstrat economy is stable, unforeseen global or
regional factors could impact supply chains, pricing, and overall market conditions.
 Technological Disruptions: Rapid advancements in technology can render existing
products obsolete, making continuous innovation essential to stay ahead.

By addressing these internal and external factors, our company can strategically navigate
market challenges and capitalize on opportunities for long-term success.
 PESTEL Analysis:

A PESTEL analysis evaluates the external factors affecting a business, including Political,
Economic, Social, Technological, Environmental, and Legal aspects. Understanding these
elements enables companies to develop strategic plans that align with the market
environment.

Political Factors
 Market Stability: The Markstrat world is politically stable, ensuring a predictable
operating environment that minimizes disruptions for businesses.
 Regulatory Framework: The potential introduction of a greenhouse gas emission tax
suggests that environmental policies are in place. Companies must comply with these
regulations to avoid financial penalties and maintain sustainability.
 Economic Growth & Inflation: Markstrat experiences steady GNP growth and
inflation, creating a favourable economic climate for business investments and long-
term planning.
 Consumer Spending Trends: The increasing demand in the Sonite market indicates
a growing consumer base for durable electronic goods. Businesses that understand
these spending behaviours can gain a competitive advantage.

Social Factors
 Demographics & Population: The Markstrat world has a population of 80 million.
Effective marketing strategies require a deep understanding of consumer preferences,
lifestyles, and demographic trends.
 Technological Adoption: The market includes high-tech consumer electronics like
mobile phones, GPS units, and digital cameras. Companies must assess technological
adoption rates to position products effectively and meet evolving consumer demands.
 Changing Consumer Preferences: Shifts in social behaviours and product
expectations influence purchasing decisions, requiring businesses to stay adaptable.

Technological Factors
 R&D Investment: All companies have equal opportunities in R&D, ensuring a level
 playing field. However, continuous investment in innovation is essential for
sustaining a competitive edge.
 Synergies Between Vodite & Sonite Technologies: Since both product lines share
similar technological foundations, companies can leverage cost efficiencies and
streamline R&D efforts for enhanced productivity.
 Emerging Technologies: Rapid advancements in AI, data analytics, and automation
can be leveraged for improved product development, market analysis, and customer
engagement.

Environmental Factors
 Sustainability Regulations: The potential introduction of a greenhouse gas emission
tax highlights the importance of sustainable business practices. Companies must
assess their carbon footprint and adopt eco-friendly strategies.
 Consumer Awareness & Green Preferences: A growing emphasis on
environmental responsibility influences consumer choices, making sustainability
initiatives a competitive advantage.
 Resource Efficiency: Companies must optimize energy consumption, minimize
waste, and integrate sustainable materials in product development to align with
environmental standards.

Legal Factors
 Regulatory Compliance: Companies must adhere to legal requirements, particularly
those related to environmental policies. Compliance ensures smooth operations and
protects against potential financial penalties.
 Intellectual Property Protection: Protecting patents, trademarks, and proprietary
technologies is essential in a competitive market. Companies must safeguard
innovations to prevent infringement and maintain a strategic advantage.
 Product Liability & Consumer Safety: Legal obligations related to product quality,
safety standards, and consumer rights must be met to maintain brand reputation and
customer trust.
Conclusion
The Markstrat world presents a stable and potentially profitable market for consumer
electronic products. Companies that invest in technological advancements, understand
consumer behaviour, navigate regulatory requirements, and adopt sustainable practices will
be better positioned for success. Additionally, businesses must factor in the potential impact
of a greenhouse gas emission tax when shaping long-term strategic plans to ensure
compliance and sustainability.
About The Company
Luminor has consistently demonstrated strong performance in the competitive Markstrat
landscape, steadily building its presence and influence over the past two rounds. With its
brands, LOOP and LOCK, the company has strategically navigated market dynamics to
secure a strong position among industry players.

LOCK, in particular, has emerged as a standout success, consistently holding the highest
market share at 10.2% and then 10.9% respectively across both rounds. As the top-selling
brand by volume, LOCK’s performance underscores Luminor’s keen market understanding
and ability to meet consumer demand effectively. Overall, Luminor has captured an
impressive 17% market share, further solidifying its position as a key contender in the
industry.

While Luminor finished in the upper half of the rankings in both the rounds, its upward
trajectory signals a formidable presence in the industry. The company’s accomplishments
reflect its commitment, expertise, and strategic foresight, setting a benchmark for competitors
in the dynamic Markstrat world. With a solid foundation and a clear vision for growth,
Luminor is well-positioned to further strengthen its market leadership in the coming rounds.
Long-Term Strategy for Luminor (Round 3 to Round 10)
ROUND 3: Strengthening Market Position and Optimization

1. Product Portfolio Management

 Focus on maintaining accessibility and affordability for LOCK and LOOP while investing in
R&D to enhance their features.
 Optimize pricing strategy to improve market penetration for LOOP, as it has a higher selling
price (₹321) and unit margin.
 Improve distribution coverage to increase the market share of both products, particularly
LOOP, which has strong revenue potential (₹32,571 in Period 2).

2. Marketing Strategy
 Increase media spending and optimize the allocation for better brand visibility. Advertising
media costs were ₹4,607 in Period 2, ensuring efficient allocation.
 Purchase Perceptual Map reports to understand consumer preferences and improve brand
positioning.
 Invest in market research (₹356 in Period 2) to identify new customer segments.

3. Production and Operations

 Balance production planning to avoid overproduction and stock-outs. Actual production was
156 units for LOCK and 93 units for LOOP.
  Utilize demand forecasting to optimize planned production, ensuring that inventory levels
remain at zero at the end of each period.

4. Research & Development

 Invest in R&D to enhance product features for LOCK and LOOP, improving competitiveness.
The cumulative allocated budget for R&D was ₹200 in Period 2.
 Allocate budget towards reducing base cost for future profitability.

ROUND 4: Expansion into Vodites Market

1. Product Portfolio Management

 Initiate investment in a new Vodite product with an initial allocation of ₹400K.
 Focus on the completion of existing Sonite R&D projects for market competitiveness.
 2. Marketing Strategy
 Conduct detailed marketing plan analysis to estimate segment size and market share potential.
 Improve media allocation efficiency to maximize ROI on advertising spend.
3. Production and Operations
 Optimize unit cost and reduce distribution margin. The unit cost of LOCK was ₹53, while
LOOP's was ₹134.
 Implement cost reduction strategies for Sonite production.
4. Research & Development
 Prioritize Vodite R&D to ensure timely market entry.
 Fine-tune Sonite product features based on market research.

ROUND 5: Launching Vodites and Scaling Sonites

1. Marketing Strategy
 Launch the new Vodite product at a premium price targeting Innovators.
 Increase ad spending to build brand awareness and gain initial traction. The advertising
budget for Sonites was ₹4,607 in Period 2.
2. Production and Operations
 Scale production for LOOP and LOCK to meet increasing demand. LOOP had a volume sold
of 101, while LOCK sold 156 in Period 2.
 Expand distribution channels to increase volume sales. Distribution coverage was 46% for
specialty stores and 42% for online stores.
3. Research & Development
 Invest in cost reduction projects to maintain profitability.
 Leverage market research to refine Vodite features.

ROUND 6: Market Penetration and Brand Differentiation

1. Marketing Strategy
 Allocate more resources toward media expenditure for brand equity.
 Implement targeted marketing campaigns for each product category.
2. Production and Operations
 Modify existing brands based on evolving market demand.
 Expand facility presence to sustain operational efficiency.
3. Research & Development
 Finalize the Vodite R&D project for commercial launch.
 Develop Sonite product modifications for market competitiveness.

ROUND 7: Expanding Reach and Differentiation

 1. Product Portfolio Management
 Introduce new Sonite variants to attract niche, high-income customers.
 Improve MOVE and MOST features based on demand trends.
2. Marketing Strategy
 Launch personalized campaigns highlighting the unique strengths of each brand.
 Invest in digital marketing to capture younger customer segments.
3. Research & Development
 Initiate cost reduction projects for new Vodites to improve margins.

ROUND 8: Strengthening Market Position

1. Product Portfolio Management

 Focus on high-performing products and phase out weaker ones.
 Continue enhancing Vodite offerings.
2. Marketing Strategy
 Leverage data-driven marketing strategies to personalize outreach.
 Optimize media spending based on consumer behavior insights.

ROUND 9: Achieving Market Leadership

1. Product Portfolio Management

 Position MOST or MOVE as a market leader.
 Introduce add-on services to enhance customer loyalty.
2. Research & Development
 Invest in advanced technologies and patentable innovations.
 Continuously align R&D goals with market trends.

ROUND 10: Sustaining Competitive Advantage

1. Strategic Budget Allocation

 If market position is strong, maintain the current strategy.
 If lagging, increase marketing investment to strengthen the brand.
By following this structured approach, Luminor can maximize long-term profitability and maintain a
dominant position in both Sonite and Vodite markets

End Goal
➢Market Expansion & Leadership: Luminor’s key objective is to strengthen its presence
and expand its influence in the Markstrat space. With a solid 17% market share and strong
brand performance, the company aims to build on its success and further establish itself as a
dominant force in the industry.

➢ Financial Stability: By closely following a budget and minimizing the accumulation of

debt, the corporation hopes to attain and maintain its financial health. One of the most
important end goals for making sure that funds are allocated sustainably and effectively is
becoming debt-free.
➢ Data-Driven Decision Making: Luminor is dedicated to creating a culture where choices
are made after careful consideration and analysis of available data. The ultimate objective is
to use big data to make informed decisions on a variety of business-related issues, such as
economic conditions, manufacturing costs, and consumer behavior.
➢ Targeted Market Penetration: The business uses STP studies for segmentation,
targeting, and positioning in an effort to successfully enter particular markets. The ultimate
objective is to accurately identify and serve the demands of particular client segments,
guaranteeing an organized approach to market growth.
➢ Optimized Production & Supply Chain: Luminor is focused on enhancing
manufacturing efficiency, targeting a production increase that aligns with growing market
demand. By minimizing stock shortages and preventing overproduction, the company aims to
streamline operations while maximizing profitability.

➢ Innovation & Product Development: Luminor’s continued leadership in technological

innovation is one of its core objectives. In order to accomplish this, the firm intends to make
significant investments in extensive R&D and effectively introduce a new Vodite product,
demonstrating a dedication to being an innovator.
➢ Brand Strength & Recognition: Luminor is determined to further establish LOOP and
LOCK as leading brands in the market. By investing in impactful marketing campaigns,
advertising, and brand positioning, the company aims to enhance brand recognition and
customer loyalty.

➢ Strategic Distribution Expansion: By carefully choosing channels based on past

performance information and conclusions from the Mark Strat guide, the organization hopes
to maximize its channels of distribution. Maximizing visibility and profit through a
comprehensive evaluation of big-box stores, specialty retailers, and online platforms is the
ultimate objective.
➢ Sustainable Growth: Ensuring constant growth in the dynamic worldwide industry is
Luminor’s main objective. The organization wants to develop and prosper by leveraging
existing accomplishments, finding new avenues for expansion, and effectively managing the
dynamics of the market.

Marketing Mix

➢ Place: The sales strategy was tailored based on consumer behavior. Lock, targeted at the
price-sensitive Saver segment, was primarily sold through Mass Merchandise stores, where
this segment typically shops. As a result, the majority of the commercial team was allocated
to Lock in these stores. Loop, being a highly technical and powerful product designed for
Professionals, required a more personalized selling approach. This made Specialty Stores the
ideal distribution channel, leading to a higher allocation of sales personnel for Loop in these
outlets.

➢ Product: From the start, Lock and Loop were strategically designed for their respective
target markets—Savers and Professionals. Lock catered to cost-conscious consumers, while
Loop was built as a high-performance product with advanced features. Looking ahead,
modifications to Lock are being explored to further strengthen its market position. As the
highest-selling product by volume, enhancements could provide an opportunity to increase
profit margins through price adjustments.

➢ Price: Initially, the market was highly competitive, with products being relatively
homogeneous. Price played a crucial role in gaining a competitive edge, along with strategic
positioning and distribution. Competitive pricing led to incremental reductions in each round,
but the resulting volume growth compensated for potential revenue declines, allowing
Luminor to maintain a strong market presence.

➢ Promotion: In the initial rounds, significant investment was made in advertising Lock and
Loop to capture market share. Early on, approximately 10% of expected revenue was
allocated to advertising efforts. For LOCK we spend heavily on shoppers and savers. For
LOOP we spend heavily on professionals and high earners.
Research & Development Strategy:

1. Cost Reduction Initiatives for LOCK & LOOP

To enhance competitiveness and improve profitability, Luminor has allocated $100,000 for
LOCK and $200,000 for LOOP toward cost reduction. This initiative aims to lower the cost
price, ensuring both products remain attractive to their respective target markets while
maintaining strong margins.

Online Query for Product Enhancements

Luminor is conducting an in-depth online query to explore potential improvements in key

product attributes:

 Features (Number): 5 to 20
 Design (Index): 3 to 10
 Battery Life (Hours): 24 to 96
 Display Size (Inches): 4 to 40
 Power (GFlops): 5 to 100

These insights will serve as a foundation for refining product specifications and aligning
them with evolving consumer preferences.

2. Upcoming Vodite Projects

Project Characteristics & Budget Estimation

Luminor is preparing for the development of its new Vodite product, with key
characteristics yet to be determined. To ensure a well-informed approach, estimated ranges
for features, design index, battery life, display size, and processing power will be analyzed.
The base cost and budget allocation will be finalized based on feasibility studies and an
extensive online query.

Strategic Approach
1. Feasibility Study

 Budget Allocation: $400,000 for a detailed feasibility study to determine the

minimum base cost and required development budget.
 Market & Technical Assessment: Engage specialized research firms to gain insights
into market dynamics and the technical feasibility of the new Vodite product.

2. Online Query for Budget Estimation

 Conduct an online query to estimate the budget required for development based on
desired product characteristics.
 Use the results as a reference point for strategic budget allocation and decision-
making.

3. Base Cost Strategy

 Minimum Cost Approach: Develop the project at the lowest possible base cost to
maximize profit margins while ensuring cost-effectiveness.
 Economic Viability Approach: Determine the highest base cost economically
sustainable by considering consumer willingness to pay, distributor margins, and
marketing costs.
 Hybrid Strategy: Balance both minimum cost and economic viability insights for a
strategic, well-rounded approach.

Additional Considerations for Sustainable Growth

1. Continuous Monitoring & Dynamic Adjustments

 Implement a real-time monitoring system to track project milestones and market

conditions.
 Maintain flexibility in adjusting product characteristics, base cost, and budget based
on market trends and technological advancements.

2. Ongoing Cost-Cutting for Existing Sonite Products

  Optimize production costs for LOCK and LOOP to sustain competitiveness and
improve resource allocation.

By adopting this comprehensive and data-driven approach, Luminor’s R&D strategy ensures
the successful development of innovative products while maintaining efficiency in existing
product lines. This proactive stance enables Luminor to adapt swiftly to market changes and
deliver cutting-edge, economically viable solutions that meet and exceed customer
expectations.

Monitoring and evaluation

Key Performance Indicators: A company's performance in a variety of areas is evaluated

using Key Performance Indicators (KPIs). KPIs are useful for evaluating overall strategic
choices and performance in a business simulation like StratX.
The KPIs listed below are relevant to our company:

Market Share:
➢ Objective: Determine the market share that the company holds.
➢ Reason: A company's market share is a crucial indicator of its competitiveness in the
hypothetical market. A larger market share shows that the company is outperforming
competitors and obtaining a larger piece of customer spending. This KPI is crucial for
evaluating the company's position in the market relative to other simulated businesses. LOOP
has a Value Share of 10.3% whereas LOCK has a Value Share of 10.9%

Profit Margin:
➢ Objective: Determine the portion of profit generated for each dollar of revenue.
➢ Explanation: A company's profit margin indicates how well it manages costs and
establishes
the costs of its products and services. A higher profit margin indicates that the company is
effectively controlling expenses and determining product prices to optimize profit per unit
sold. It is an essential financial indicator for assessing the overall profitability of the
company.

Brand Awareness:
➢ Objective: Assess the effectiveness of marketing and brand-building campaigns.
➢ Rationale: Brand awareness gauges how familiar and well-known the company's brand is
to the hypothetical target market. A strong brand presence can have a favorable impact on
consumer perceptions, market share, and customer loyalty.

Segment-Specific Ad Spend :
➢ Objective: Increase return on ad spend (ROAS) for each segment.
➢ Justification: Targeted advertising is made possible by consumer base segmentation, which
guarantees that brand goals are understood by each group and create demand. In line with
their individual brand objectives and expectations, LOOP focuses its advertising budget
mostly on professionals and high earners, then consumers and adventurers. Whereas LOCK
focuses on Shoppers and Savers.
R&D:
➢ Objective: Promote the creation and uptake of innovative goods and services that are
practical, affordable, and in line with consumer demands.
➢ Explanation: By monitoring the important components mentioned above, this KPI
evaluates the efficiency of the R&D process. While LOOP, which has a larger ad spend,
places more emphasis on quick iterations and improved user experience, LOCK places more
emphasis on viability, cost effectiveness, and upgrades to key features. When combined,
these initiatives guarantee that both goods continue to be responsive to the market and
competitive.

Conclusion
Luminor has developed a good brand in Mark Strat from combining data-based decision-
making with innovative practices alongside market versatility. The company owns a 17%
share of the market while maintaining a specific long-term plan which made it a significant
force in market.
Financial stability and long-term growth at Luminor depend on strategic resource distribution
where ₹400K supports Vodite research and development while ₹100K and ₹200K reduce
costs in LOCK and LOOP operations. The company has achieved market success through
LOOP which accounts for 10.3% value share while LOCK maintains a 10.9% value share
thus offering both cost-effective and premium product options. During Period 2 Luminor
allocated ₹4,607 to promote its products by targeting LOCK to budget-conscious customers
and LOOP to professional and high-earning groups.
The production of 156 LOCK units and 93 LOOP units operates at operational efficiency
levels under planned demand forecasting for inventory management. The ₹356 market
research investment for Vodite expansion will enable Luminor to enhance its competitive
market position.

Market shifts will be determined by three main factors including flexibility in operations
alongside information about consumer needs and technological innovation. Through ongoing
strategic improvements of its marketing and R&D and distribution approaches Luminor
maintains excellent potential to handle market obstacles and optimize profits and maintain
enduring sector dominance.