Therefore, being the first to initiate Vodite product development is the key to success in being a winner at Markstrat. However, the huge budget for the product launch, lack of information and untested market posed challenges for the company before entering Vodite. When the R and T teams launched Vodite products in periods three and four, 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 price was slightly different during these periods. In order 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 very high quality. Given our position in the competitive market, we have decided to set the price exactly the same as the competitor in a similar position within our company. Overall, it was a good decision, as evidenced by SEARS' positive net contribution to our business (85%). However, our team considered that it was too late to launch Vodite, as the market was well established at that time. Additionally, using 90% of the budget to do R&D at Vodite was a consequence, but we probably should not execute this plan if it would negatively impact Sonite's existing products in the market. Regarding competition, our