Therefore, being the first mover in Vodite product development is the key to success to be a winner at Markstrat. However, the huge budget for product launch, lack of information and untested market were the challenges for the company to enter Vodite. When Team R and T launched Vodite products in the third and fourth periods, we had not yet developed Vodite. We developed Vodite in the fourth and fifth periods based on its minimum cost and launched it in the next period. We had targeted innovators and early adopters because the pricing was a little different during this period. To set the right price, we decided to use market-based pricing, based on the retailer's competitive advantage, value and margin. Using MDS, we recognized that our features were not of the highest quality. Considering our position in the competitive market, we decided to set exactly the same price with the competitor who has a similar position to our company. Overall, it was a good decision, demonstrated by SEARS' net positive contribution to our business (85%). However, our team felt it was too late to launch Vodite, as the market was well established at that time. Furthermore, using 90% of the budget to carry out research and development in Vodite was a consequence, however we probably should not execute this plan if it would have a negative impact on existing products in Sonite's market. Speaking of competition, our
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