Mkt Csu

AT&T CASE STUDY

MKT 607

DR. SREEDHAR MADHAVARAM

SPRING ‘15

CIRENA TILLIE

KARLA ORTEGA REVELO

Introduction

The AT&T Case shows us the understanding of market demand, future industry sales; market positioning against its competitors’ products, distribution of promotional and advertising budgets and profit analysis of its new product “MagicPhone”. The MagicPhone PFC (Phone-Fax- Copier) is the first fully integrated business phone system that has a built-in fax and copier, acting as a complement to its MagicPhone Plus and System 25 communication systems.

AT&T’s target market included information managers include stockbrokers, real estate brokers, employment and travel agencies, telemarketers, banks, hotels and motels. Concept testing provided a very positive response to the MagicPhone PFC product. Based on their initial tests, Convenience and Productivity were the two attributes discovered as the determinant attributes, and which will be used in performing competitive analysis. Currently, AT&T is facing direct competition from ROLM, TIE and Executone, and indirect competition from smaller companies that produce in-home fax machines with in-built phones.

The AT&T case can be analyzed with Pricing Model, Financial Model, and Assessor Model.

Solution1. Point Estimate of Industry Sales and 95% Confidence Interval.

To measure the market demand estimate for the MagicPhone, AT&T used the Delphi approach to achieve sales estimates from the industry’s leading futurists and technology experts. Who were required to calculate an optimistic and pessimistic scenario, providing estimates along with the demands of the industry sales that would be likely to apply.

With the given formula to calculate the point estimate of industry sales and interval levels, we have arrived upon the following figures:

a) Point Estimate of Industry Sales Potential is 198,196 units. This means that from the given estimates by industry experts over...