...What were the implications of Rachael overpricing the backpacks? Practice Marketing Simulation Rachael Stephens – N8852413 Word Count: 1,069 Th ink sw ap Do cu me nt An examination of the six decisions made in the practice marketing simulation shows that overpricing the backpacks had the most significant influence on consumer buying behaviour. Pricing is one of the most important marketing mix decisions, as it is the only variable that generates revenue (Ennew, 2007). Pricing is not a single concept, but a multidimensional one as it incorporates the manufacturer, the distributor and the customer (Jobber, 2012, p. 331). The objective of pricing is to optimise the company’s economic value by establishing how the customer values the product and what they are willing to pay (Cram, 2008, p. 281). Therefore, it is essential that the right price is set, as not only will this increase profit but is mutually beneficial for the organisation and the customer, as the needs and goals will be achieved. However, it is evident in the results of the simulation that the main focus was directed towards the needs of the seller rather than the buyer. The starting cost of Rachael’s backpack was $60, which saw a 36% increase in the gross margin. However, by the fourth quarter the price of Rachael’s backpack increased to $115, which was not only more expensive than all the competitors, but was also extremely high compared to what the target segment (Urban Commuters)...
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...Marketing 1120 2014 Marketing Simulation Report LuxPak: Team 6 Michaela Sumpter & Harry Singh Table of Contents Introduction: Summary 3 Overall Result 3 Research and Applied Marketing Knowledge 4 Competition 4 Play by Play 5 Original Strategy 6 Target Market 7 Marketing Mix 7 Overall Performance Evaluation / Changes Made 8 Lessons Learned 9 Conclusion: Summary 9 Introduction: Summary During the Marketing Simulation Game, our team experienced many obstacles and had to work through them from beginning to end. Our turns appeared to be very scattered due to an communication obstacle, but we agreed we had to make a change in our entire strategy when we hit $3,970 in debt. Cohesively, we decided to change our target market, which led to promotional, pricing, product and placement changes as well. These alterations benefitted our team, since we began to bring in profit. Throughout this entire process, we learned many lessons and if we were to do this simulation over, both of us would approach our strategy differently. In this report, our overall result will be evaluated, the lessons we learnt along the way and how we applied marketing knowledge to our turns will be discussed, along with other factors that influenced our team along the way. Overall Result According to the leader board metric, we sold 310 units throughout the game, and earned a total of $15,220.06. Our changes benefitted our overall result, because in the end we ended...
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...Marketing Simulation Paper Courtney R. Denson MKT 421 March 24, 2014 Kevin Lister Doing the market simulation helps get a better understanding of how individuals may run their business, company or organization. The market simulation was a good activity for individuals who also want to begin running a business because it showed the steps that need to be taken when doing so. Understanding the steps that need to be taken when going into the business field will allow ones business to be successful. Discussing the right parameters, deciding the right market plan and research plans will determine what kind of business will be ran and how it will be ran. Parameters determine what fundamentals will help the business be successful, rather they are gaining a profit or not. The situation in deciding the parameters of general marketing when it comes to the CruiserThorr (motorcycle). The right fundamentals are needed for the CruiserThorr because it will determine what the owner’s budget will be and how much research is needed. Picking the correct four fundamentals for the CruiserThorr will determine what needs to be done when it comes to the market plan and research plan. The recommended solutions that were suggested were Service offerings, price, quality engineering and engine capacity. The reason that these solutions were recommended because with service offerings an individual with a CruiserThorr will have the ability to get any service that he or she needs done on their motorcycle...
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...Minnesota Motors - Marketing Simulation Group members 1. Anurag Gupta 2. CP Vyas 3. Abhijit Desai 4. Chandrakant Mahane Executive summary The goal is to increase the overall market share and profits of MM’s Motors in the current market environment by targeting appropriate customer segments and proper allocation of marketing resources. Initial Strategy: Our initial strategy was to concentrate on segment A because of the following reasons * MM possesses a competitive position in this segment in terms of quality product offering and close customer relationships through high level of customer support. * Also, the competitors’ new product was highly competitive in thermal resistance parameter which would make it difficult for MM to compete in segments B and C * The net price of MM motors for segment D is $119 as compared to industry net price of $111 (refer the exhibits). Since this segment is highly price sensitive, to increase market share in this segment would require MM to reduce its list price. The current market share of MM in segment A is 19% and our initial strategy was to increase this market share by allocating maximum resources ($200,000) to market research and 50 % sales force time to segment A. The rest of the sales force time would be equally divided between the segments B, C and D. Change in Strategy: During simulation, we studied the effects of percentage increase of sales force time for each market segment individually along...
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...Market Simulation Report #2 Group – 05: Byung-Joo Cho Tyler Standing Huicun Ning Kai Yuan Zheng Introduction The introduction of B&B Health’s new product, Besthelp Cough and Cold, poses many threats to the sales of Allround’s Cold Liquid product. Up until now, Allround has had strong sales in the cold segment, controlling 21.4% of the segment before the Besthelp release. Upon the release of the new Besthelp product, the marketers of Allround projects that Allround’s market share in the cold segment will drop if nothing is done in response. The marketing team at Allround suggest they respond by releasing a new product, however, it is also noted that if Allround does release a new product, they can experience 5-15% of cannibalization from their current customers. In order for Allround’s marketing team to make the correct decision, we must analyze the cost of cannibalization and the net income that will be gained from the new cough syrup product. Projected: Not introducing new product after Besthelp C&C It is projected that if Allround does nothing in response to the Besthelp C&C release, their market share of the cold segment will drop from 21.40% to 18.4%. The following is the projected sales and income numbers for this drop. | Before Besthelp | After Besthelp | % change | Sales | 214.3 | 184.0 | -14.14% | Net Income | 50.7 | 32.0 | -36.88% | Profit Margin | 23.66% | 17.37% | -26.59% | With no response to the Besthelp C&C release, the...
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...Using Perceptual Maps In Marketing Simulation Using Perceptual Maps in Marketing Simulation Thorr Motorcycles manufactures a range of motorcycles. It also carries a wide variety of accessories and products from shoes to toys. The image Thorr Motorcycles perceive is that of freedom, masculinity, and mobility. Thorr Motorcycles offers various services, for example, dealer training, dealer software packages, rentals of bikes, and rider training. Thorr Motorcycles believes in having a high brand image in the market. However, sales have declined and therefore, a new strategy must be implemented. The situation The situation for Thorr Motorcycles is the number of the CruiserThorr motorcycles decreasing. The older target customers are growing older and losing interest in riding motorcycles. The younger target customers simply cannot afford the high lifestyle motorcycles. Decisions on the marketing strategy must be made to see what can be implemented to increase sales. Thorr Motorcycles must change the position of this product rather than opting to introduce a new designed motorcycle. Perceptual maps are used to compare attributes of products and services with the competitors to mark their position in the market and this is what Thorr motorcycles will use to find the attributes needed to reach customers again. Recommended Solutions To position a strategy, steps must be taken to choose the proper fundamental parameters. First, lifestyle image is recommended...
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...Perceptual Maps Simulation I found this simulation to be very interesting. First of all, it was about motorcycles, and what guy doesn't find that to be an interesting topic? Regarding the lessons it contained for marketing though, it was also interesting while still being entertaining as well. The situations it presented were realistic, while not being so overcomplicated that the material it was trying to present got lost. In the following paper I will discuss the situations from the simulation, the relationship between differentiation and positioning especially with regards to the product in the simulation, and the effect of the product life cycle on marketing again focusing on its relationship to the simulation product. Situations The first situation the simulation provided me with was a successful brand that is facing declining sales. My recommendation was to focus on Lifestyle, Quality Engineering, Coolness and Price. My results from this were good, but could have been better if instead of focusing on coolness, I'd chosen to focus on service instead. This would have allowed me to optimally position the product. The second situation was to decide on a marketing plan moving forward for Thorr motorcycles. I chose to launch a new motorcycle, the RRoth, rather that reposition CruiserThorr. I chose this because CruiserThorr is already well positioned, and to change its price or other attributes would more likely confuse customers than help to grow the brand. Furthermore...
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...distributors will be carefully selected most likely near the border in Texas. This cuts down on shipping and makes more financial sense to choose a distributor that is nearest the product. It is then the job of the distributor to get the product to a retailer and then to the customer. geographical location affects the links ,if not properly strategies, do to traffic gleam, untired road, place of production not closer to inventory and off target market place without though market analysis environment. 2. What are similarities and differences between promotional push strategies and promotional pull strategies? 1. Push strategy takes an already existing product and pushes it onto the consumer through many different advertising and marketing approaches. An example of this is perfume samples (scented blots on cardboard) that are shoved in magazines. This is pushing an existing product directly onto the consumer. This occurs when production...
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...Minnesota Micromotors, Inc. Marketing Simulation 2015 Q2 Kaplan University Marketing Management MT450-01 Minnesota Micromotors, Inc. Marketing Simulation 2015 Q2 As I get further and further along in this simulation, I have noticed that I am beginning to understand what it takes as a marketing manager in order to be successful. Careful considerations must be made to be sure that the right decisions benefit both Minnesota Micromotors, Inc., and our customers. Our success comes from our customers’ success and loyalty that they have with this company. In finding ways to incorporate the important factors that matter most to our customers is what will bring in new customers and keep our existing ones around for the long hall. My strategy for Minnesota Micromotors, Inc. that I have entered into the simulation game for 2015 Q2 were based on similar factors that I had used in the previous quarters. Like in prior quarters, I tend to base my decision strategy on the customers satisfaction of the overall product and pricing. I also find that it is important to base my decisions on the income statement from prior quarters as well to see where I could adjust things to work in my favor. I am still having issues discovering what needs to change in order to increase the weak areas and to find what is lacking to get this issue resolved. In 2015 Q2, I chose to change my sales force from 26% on Segments A and B down to 25% and increase Segments C and D from 24% to 25%. I think...
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...developed, operated and maintained the Concept Simulator since 1998. The Concept Simulator models the functional operation and inter-operation of key components of train control system architecture and the external systems to which the system interfaces. The simulator is valuable in the development and analysis of operational principles, and in assessing design trade-offs. The SEA-designed facility simulates operation at ERTMS Levels 1, 2, and 3. Components include a Communications Network, a Network Management Centre, a generic Interlocking, a Radio Block Centre, a Track Simulator including both conventional and TCS equipment, a Driver Desk, a European Vital Computer and a Driver MMI. The components are modelled using software-based simulations hosted on networked PCs. The simulator has been valuable in the engineering evaluation and validation of emergent system architectures, and enables system constraints to be explored and defined. ERTMS operational modes and the transitions between them are simulated and ERTMS principles and procedures are followed. Innovative Customer Information System (ICIS) SEA's Innovative Customer Information System (ICIS) is capable of managing and displaying customer information, including real time information, in a visually dynamic manner. The system utilises intelligent screens and wireless technology to distribute data, thus minimising installation and commissioning efforts. The system will be suitable for any transport environment, mobile...
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...Applied mathematics in Engineering, Management and Technology 2 (2) 2014:466-475 www.amiemt-journal.com Using a combined method of hierarchical analysis and Monte Carlo simulation in order to identify and prioritize the target market selection criteria (Case study: Food distribution companies of Mashhad-Iran) Amir kariznoee Ph.D. student of Industrial Management,University of Mazandaran ,Iran (Corresponding Author's E-mail: Amir.kariznoee@yahoo.com) Monireh Bijandi Graduate of Accounting in Ferdowsi University of Mashhad,Iran Mahdi Ghayur Maddah Student of Public Management in Ferdowsi University of Mashhad,Iran Vajihe Mogharabi M.A. Student of Information Technology Management, Shahid beheshti University,Tehran,Iran Abstract The aim of this study is to identify and prioritize the key factors in selecting a target market in the food industry. In order to determine the components and subcomponents of this study, we have used previous researches in this area. In order to match these factors with the food industry situation and create a hierarchical structure, we have obtained the opinions of 323 experts about affecting factors on choosing a market in this industry with the use of questionnaire. Then, using a combination of hierarchal analysis process and Monte Carlo simulation and cooperation with 10 senior executives of distribution companies, the weight of each component and sub-component was determined. In general, four components and ten sub-components were...
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...Interpretation of Modeling and Simulation Can there be a better fit for a company out there that uses Microsoft Excel to conduct modeling to simulate their business growth other than Microsoft itself? Microsoft has made billions of dollars selling their Microsoft Office Suites and their home computer operating systems around the world. They have become one of the largest and well known companies in the world. The way that I see it, is that Microsoft’s business model, in a nutshell, is to provide goods and services in the form of software and support to paying customers. One question that may be asked in this day an age is with the advances in cloud computing and Google’s “free” gadgets, will the traditional Microsoft’s business model come to an end? What will Microsoft’s business analysts do in order to change their business model? One can only imagine that it will need to be modeled and simulated first to avoid potentially expensive mistakes. I must start off by saying that before I started my Systems Modeling Theory online class through Strayer, I thought that it may just be one of the hardest classes to understand that I’ve ever taken throughout the course of my college career. I can say now after having completed the last nine weeks of class that I was correct. What’s hard, is not understanding the concepts of why businesses would use Excel models for their business growth but rather the actual use of Excel itself. With all of the bells and whistles...
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...This report provides an in-depth analysis of the two Everest Simulations conducted by Group 10 of MGMT1001 Thursday Tutorial. This task required students to form teams consisting of five to six members whose goals were to summit Mount Everest. While it provided us with a rich experience in team dynamics and collaboration, it also enabled us to explore key managerial concepts taught in the course, consisting of: • Communication • Groups and Teams • Leadership In this report, we examine the effectiveness of Face to Face Communication (FTFC) versus Computer Mediated Communication (CMC), and the problems encountered through the utilisation of the virtual medium including efficiency of the feedback system, loss of personal focus and other emergent issues. It includes personal reflections on attitudes and perceptions, as well as group performance and strategies adopted in the second Simulation in order to create a more positive team experience. Theories which relate to interpersonal communication have also been integrated in the report to illustrate its relation to certain situations encountered during the Simulation. Additionally, we provide a multifaceted analysis on the notion of team cohesiveness and how it attributes to better performance outcomes. An overview on the different intragroup conflicts encountered in the Simulation has been included, examining the positive and negative impact that conflict had on team experience and performance, and how mutual agreements were reached...
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...is a computer necessary in conducting a realworld simulation? Answer It is important because there are many different types of outcomes that comes in with simulation. Computers are used in daily life activities and it is necessary. 14-11 What is operational gaming? What is systems simulation? Give examples of how each may be applied. Answer Operational gaming is the use of simulation in competitive situations such as military games and business or management. System simulation ls that deal with the dynamics of large organizational or governmental systems. Validation The process of comparing a model to the real system that it represents to make sure that it is accurate. 14-17 (a) Resimulate the number of stockouts incurred over a 20-week period (assuming Higgins maintains a constant supply of 8 heaters). (b) Conduct this 20-week simulation two more times and compare your answers with those in part (a). Did they change significantly? Why or why not? (c) What is the new expected number of sales per week? Answer A. The number of stockouts incurred over a 20 week period is HOT WATER NUMBER OF HEATER SALES WEEKS THIS PER WEEK NUMBER WAS SOLD 3 2 4 9 5 10 6 15 7 25 8 12 9 12 10 10 B, Two more times would give us the value of a multiplied by 2. c. 25 14-18 A. 15 days of barge uploadings and average number of barges delayed B, They both are probabilistic simulations. Chapter 5 HW 5-14 Using MAD, determine whether...
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...A SYSTEM SIMULATION STUDY ON THE THREE FAST MOVING PRODUCTS (MARLBORO, C2, VIVA) OF THE COLLEGE VARIETY SHOPPE USING THE MONTE CARLO SIMULATION IN INVENTORY MANAGEMENT EXECUTIVE SUMMARY This study shows how the selected three fast moving products (Marlboro cigarettes, C2, Viva mineral water) move from the current Inventory Management technique of the College Variety Shoppe from its distributors to its warehouse storage to the end user or customer. An excel program and a simulation model was made to observed its current performance. After the observation, the group performs an experimentation that will improve the current technique of the College Variety Shoppe. After simulating the experimentation, the group then give conclusions and recommendations on how to improve the College Variety Shoppe’s current Inventory Management. TABLE OF CONTENTS Title Page ........................................................ 1 Executive Summary ........................................................ 2 Table of Contents ........................................................ 3 Introduction ........................................................ 4 Methodology ........................................................ 6 Model Development ........................................................ 7 Model Validation ........................................................ 11 Experimentation, Results .......
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