Tone and Tops Case Study

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In terms of behavioral reasons, company may suffer “Herd instinct” which means acting in the same way as the majority of others around them. According to the case, The U.S convertible market has a huge potential for the future growth. Demand was strong, stock price volatility was high and the bond market was thriving. Majority of companies of the S&P 500 had convertible outstanding. As a result, companies see the trend of the market and issue the convertible bonds. In addition, companies may see the growth of the convertible bond market and make assumption that they would be also benefit from issuing the bonds.

Marketing Mix - TOPS (Vera)

Our new R&D project, PONEWTOPS has completed in this round, therefore we launched our new TOPS. In order to promote the new TOPS, We increased our budgets on advertising. More specifically, we spent $2000 in Media and $200 in Research. In addition, our target customers is Savers which has the most potential of growth in the future based on the Market Research Report. As a result, we allocate half of our budget (50%) on Savers. The market research shows that our old TOPS has the highest awareness among Explorers (55%). Thus, we allocate the second largest amount of our budgets (20%) on Explorers, 15% on Shoppers, 10% on Professionals, and 5% on High Earners. Besides, to highlight the features Saver value most, we set perceptual objectives for Display and Features. For Display, we use 3.2 which is a little higher than the Saver’s ideal value 2.9. And then we have the value 2.9 for Features, which is the same Saver’s ideal value. We believe emphasizing those features would help us better target on Savers and make marketing more effective. In order to better compete with other brands, we decreased our price from $300 to $250. In terms of Production, we increased our production units from 84000 to 100000 since we believe our new product would incur more sales.