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Team 3 EastWestPractice Marketing SimulationResults.docx
- 1. Team 3: EastWest Practice Marketing Simulation Results Target Audience #1: Outdoor Enthusiasts #2: Urban Commuters #3: Luxury Trendfollowers #4: University Students #5: School Children Most Profitable Segments Consideration of Other Markets After our initial target (outdoor enthusiast) we sought to get our products in the hands of Urban Commuter, Luxury Trend Followers and University Students. We were most interested in the Luxury Trend Followers market but we could not get the returns that we anticipated.
- 2. Product Characteristics Rationale? Fit with audience? Changes? Features Experimented with different features to appeal to our audience Water bottle, water proofing, Experimented with a solar device to make it more eco friendly Added a designer tag to appeal to the Luxury Trend Followers during the practice rounds Pricing Strategy Undercut our main competitor Keep high enough to make a substantial profit 8 Distribution Strategy Primary channel = High End Outdoor Goal = distribute through as many channels as possible Challenges = making a profit in all of the channels
- 3. 9 Promotional Strategy Positioning message Tough Peak Performance Spending MDF Discounts Advertising TV: Wilderness Network Radio: Top 40 Print: Newspaper Internet: Online News Effectiveness? MDF and Discounts Goal = increase the number of units sold in each channel Strategy = invest as much MDF as possible Challenges = maintaining a reasonable profit margin
- 4. Key Changes Made Key = Consistency Slow and steady investment in MDF Price - Goal = increase net profit Make up for increased spending in MDF Key Learnings Production costs High production costs Make competing on a price platform more difficult Market appeal Customer satisfaction score: 20 Helpful to broaden backpack for larger appeal Key Learnings Continued Marketing Pain point for our team We did not seem to be reaching our target market Competitors Important to monitor competitors Stay confident in our own marketing decisions
- 5. Conclusion Finished in 2nd place Overall our strategy was consistent ROM and net profit is where we struggled Costs offset our profits Practice Marketing Simulation Team 1: Ohio Dominican University Target Audience Overview Initial Target Audience: School Children Largest population with room for growth Tested audience response in practice simulation Final simulation competition was steep Final Target Audience: Luxury Trend Followers Switched target audience and product Existing Team had strong market share of customer base Population small but competition limited Product Design & Characteristics Backpack for School Children
- 6. Followed customer insights closely Focused on style preferences, function and production price Backpack for Luxury Trend Followers Design based on customer insights and knowledge of competition’s product Product appeared to be direct competition to existing market products but undercut the price Pricing Strategy School Children Price: $39.00 Simulation Practice Luxury Trend Followers Price: $89.00 Cost Leadership Strategy
- 7. Distribution Channels School Children Direct Distribution Discount Retail Chain University Store Online Discount Retailer Department Store Distribution Channels Luxury Trend Followers
- 8. Direct Distribution High End Outdoor Fashion Boutique Online Discount Retailer Department Store Promotional Strategy Positioning message to school children: Initially used “fun” to target schoolchildren, and “lightweight” and “great value” to target their parents Removed “great value” for turn 4 Positioning message to luxury trend followers: Initially used “luxurious” and “classic” Streamlined to “luxurious” for turn 9
- 9. Promotional Strategy Spending on promotion Entering into promotional agreements during practice rounds was of little benefit, money seemed better spent on advertising No promotional agreements were employed when targeting school children During turn 9, and in an effort to promote sales, promotional agreements were utilized with all distribution channels except for the fashion boutique Promotional Strategy Utilizing promotion activities was of no value increased number of sales through some channels by 1-2%, but overall sales did not increase Market share dropped from 14% in turn 7 to 12% in turn 8 Market share rank dropped from 3 to 4 Promotional Strategy Current/final advertising strategy No advertising was done during turn 10 in an effort to reduce loss, improve our profit margin, and ultimately increase our score
- 10. Key Changes Rationale for key changes made from initial to final decisions Initially targeted school children because it was successful in individual and group practice rounds Changed to luxury trend followers in an effort to undercut the leading team and take their market share Key Learnings: Timing Timing of making changes is important Made change from schoolchildren to luxury trend followers too late in the game Timing of advertising Increased advertising at wrong turns when marketing to school children Key Learnings: Consistent Message Marketing message needs to be clear and consistent Making changes to message leaves you vulnerable to confused consumers Increase spend/frequency to spread message Focus message to target market and do not try to reach all markets Key Learnings: Overall Timing and Consistency are important
- 11. Right decision to change strategy, just too late Practice Marketing Simulation Team 1: Ohio Dominican University Target Audience Overview Initial Target Audience: School Children Largest population with room for growth Tested audience response in practice simulation Final simulation competition was steep Final Target Audience: Luxury Trend Followers Switched target audience and product Existing Team had strong market share of customer base Population small but competition limited Product Design & Characteristics Backpack for School Children Followed customer insights closely Focused on style preferences, function and production price Backpack for Luxury Trend Followers Design based on customer insights and knowledge of competition’s product Product appeared to be direct competition to existing market products but undercut the price
- 12. Pricing Strategy School Children Price: $39.00 Simulation Practice Luxury Trend Followers Price: $89.00 Cost Leadership Strategy Distribution Channels School Children Direct Distribution
- 13. Discount Retail Chain University Store Online Discount Retailer Department Store Distribution Channels Luxury Trend Followers Direct Distribution High End Outdoor Fashion Boutique
- 14. Online Discount Retailer Department Store Promotional Strategy Positioning message to school children: Initially used “fun” to target schoolchildren, and “lightweight” and “great value” to target their parents Removed “great value” for turn 4 Positioning message to luxury trend followers: Initially used “luxurious” and “classic” Streamlined to “luxurious” for turn 9 Promotional Strategy Spending on promotion Entering into promotional agreements during practice rounds was of little benefit, money seemed better spent on advertising No promotional agreements were employed when targeting school children During turn 9, and in an effort to promote sales, promotional
- 15. agreements were utilized with all distribution channels except for the fashion boutique Promotional Strategy Utilizing promotion activities was of no value increased number of sales through some channels by 1-2%, but overall sales did not increase Market share dropped from 14% in turn 7 to 12% in turn 8 Market share rank dropped from 3 to 4 Promotional Strategy Current/final advertising strategy No advertising was done during turn 10 in an effort to reduce loss, improve our profit margin, and ultimately increase our score Key Changes Rationale for key changes made from initial to final decisions Initially targeted school children because it was successful in individual and group practice rounds Changed to luxury trend followers in an effort to undercut the
- 16. leading team and take their market share Key Learnings: Timing Timing of making changes is important Made change from schoolchildren to luxury trend followers too late in the game Timing of advertising Increased advertising at wrong turns when marketing to school children Key Learnings: Consistent Message Marketing message needs to be clear and consistent Making changes to message leaves you vulnerable to confused consumers Increase spend/frequency to spread message Focus message to target market and do not try to reach all markets Key Learnings: Overall Timing and Consistency are important Right decision to change strategy, just too late Group Course Project (100 Total Points)
- 17. Practice Marketing Simulation After the first week of class students will be assigned to a team for the remainder of the course. Teams will then work together on the parameters and decisions of the Practice Marketing simulation for the remainder of the course. Practice Marketing is a computer simulation game where teams have the opportunity to apply the concepts learned in the class, as well as analyze the business, and make marketing decisions in a real- time scenario. More importantly, students will have the ability to immediately see the impact of their decisions on the success of the business in the marketplace. Teams of 3-4 people will take on the role of the senior marketing team for a new company that makes backpacks. A total of five teams will be created from the class to compete against each other as well as a control team run by the computer simulation. Each team will have ability to see the decisions and results for each of their competitors for target market selection, product development, pricing strategy, distribution strategy, and promotional strategies and elements. Teams will input their decisions online prior to the decision deadline posted on course homepage. After decisions are input, the computer will tabulate the results of your decisions and provide a host of market data that will include sales, profits, advertising, product specs, etc. for each of the teams. After analyzing the results, teams will then make appropriate adjustments for the next round of decisions. At the end of the game, a winner will be determined based on the computer-generated results. We will discuss the results, learning, issues, etc. as part of your final presentation. During the final week of class, each team will make a formal presentation. These presentations will be as your final opportunity to convince the instructor of your approach and what you learned from the simulation experience. Presentation
- 18. should be about 15 minutes in length, and should cover the following elements at a minimum: · Target audience overview / description / rationale for selection · Product characteristics / rationale / fit with target audience · Pricing strategy / rationale · Distribution strategy / rationale · Promotional strategy / key elements · Key changes made from the initial decisions to the final approach / rationale · Key learnings from the exercise PROJECT REQUIREMENT In this course we will be using Practice Marketing, an online marketing simulation This will be used in the course project which will be done in groups. You will need the access code that came packaged with the book or you may purchase the access to the simulation online. The URL to register for the simulation is: http://www.mhpractice.com/course/38220/section/54338/join Once you have registered for the simulation, wait for further instructions. You will be assigned into a game at a later date. If you encounter problems, please contact technical support at http://www.mhhe.com/support or 1-800-331-5094. TEAM PRESENTATIONS Team presentations of the simulation experience can be
- 19. scheduled any time after the completion of the simulation. These presentations can be presented online or in a classroom on campus. This decision is up to the team. They will need to be completed prior to March 10. The presentation should represent the collaboration of all team members. Presentation format will be up to the discretion of each team. The following rubric will be used to grade this assignment: · Content / Completion of Assignment · Depth of Analysis · Support for key conclusions / implications · Quality of recommendations · Organization and Presentation · Organization and logical flow of presentation · Use of appropriate business style and verbiage · Effectiveness in the use of technology · Quality of prepared slides · Transitions from one team member to another · Professionalism · Clarity of presentation · Poise in dealing with questions from the class · Overall management of the presentation This assignment provides the students with an excellent opportunity to experience a true learning experience. You will combine the concepts from the class with critical thinking skills, team skills, and real decision-making responsibility to effectively bring the material to life.