4. Stock ~20000
in P9
We always lead the market
throughout 9 periods
Right strategy at the
beginning helped us
move forward
2 special periods, we will discuss in next part
4
7. General Strategy
o Focus differentiation:
Each brand focuses 100% on one segment
Eliminate the Buffs, just focus on Singles, Hiearners, Pros, Others
and Vodie market
Conduct R&D at the right time to improve the products
o Have to be the first mover to Vodie market
o Ready to change
o Spend all the money in beginning to advertising get brand
awareness
The more specific Objective and Strategy will be discussed in next part
– Decision Making –
7
9. Period 1
1. Analysis
o Cash is very important
o Use all of the budget to gain competitive advantages
o SYGU & SYCA already met the needs of Singles & High
earners – Focus on them
One Brand focuses 100% on one Segment
o Prepare to the R&D project in P2 in order to be the first team
enters the Vodite market
9
10. Period 1
2. Decision Making
o No R&D in P1
o Marketing mix
– Production: based on market forecast, purchase intention &
market share
– Pricing: Based on conjoint analysis
– Advertising: One brand for one segment
– Advertising research: 10% of ads
10
18. o Have enough cash to R&D vodite
o R&D for Vodite costly reduce budget for R&D for
Sonite
o Decide to go to Pros & Others in future
o Gain more market share
o Gain more cash
o Increase stock
18
19. Period 2
2. Decision Making
o R&D projects
PSYG1 to improve SYGU and reduce cost
PSYOT to introduce new product for others
PVY11: new Vodite products
o Continously increase
Production
Ads budget & ads research
Sales forces
o Perceptual objective: Power and Price (numbers based on
Semantic Analysis)
o Price: based on Semantic Analysis 19
21. Period 2
3. Results
o More market share!
o PVY11 completed!
o R&D projects for Sonite hadn’t been completed (not
enough needed budget)
o Stock increased!
o More cash than others
21
25. oStrategy
– Release product for Pros to restrain budget of other teams
– Use money to boost sales and market shares.
25
26. Period 3
2. Decision Making
o R&D
– PSYG1: for singles, improve and reduce cost
– PSYTO: new products for others
– PSYPO: new product for Pros
26
27. Period 3
2. Decision Making
o Brand Portfolio
– SYGU: Singles
– SYCA: High-earner
– SYPO: new products for Pros ( based on same project
with SYCA )
– VYTO: first mover in Vodite market
27
28. Period 3
2. Decision Making
o Realize that we don’t need all the research studies
Buy just what we need
o Continuously increase
– Production
– Advertising and advertising research
– Sales forces
28
30. Period 3
3. Results
o Gain more market share: SYGU,SYCA
o Dominate Vodie market: VYTO
o Cannibalization: SYPO and SYCA (based on the same
project)
o But SYPO gain brand awareness
o Completed all R&D projects
o Stock increased! 3825
30
33. o War against team E in segment Pros to keep them busy
o VYTO targeted to Early Adapters and Followers (high
potential growth)
o Need money to maintain growth take loan
o More market share
o Keep competitors busy in Pros and Others
o Dominate Singles, Hieaners, Vodite
33
34. Period 4
2. Decision Making
o R&D
– PSYC1 to improve SYCA for High-earners
– PVY22 to reduce base-cost
34
35. Period 4
2. Decision Making
Brand portfolio
SYGU: Singles SYCA: High Earners
SYPO: Pros SYOO: Others
VYTO: Followers
VYAD: Adapters
35
36. Period 4
2. Decision Making
o Increase
– Production
– Ads & Ads research
– Sales
36
39. o Good products 4873
o Strategy go well
o More market share
o Stock increased (well it always increased!!)
o Technical problems-we couldn’t take loan
– 1 vodite R&D project incompledted
– Lower brand awareness
39
40. Period 5
o Game will be play until Period 9
o Period 7 has the special event
o Growth too fast ???
40
41. Period 5
1. Analysis
o We controlled Sonite, but did not control Vodite
o Team I was rising in Vodite
o Not enough money for WAR
o Decide to take loan - 10mil
41
42. Period 5
2. Decision Making
o R&D
– PSYG2 for Singles
– PVY12 : reduce cost of Vodie products
42
45. Period 5
3. Results
• Capture more market share in Singles and Others, Vodite
• Market share decreased in Pros and Others
• Have a big loan to payback
• However, stock increased
• Total expenditure was too high 6474
45
47. o Net contribution 119,640 --> Budget 35,450
o Net contribution 581,770 --> Budget 35,450
Whatttttt !?!?
47
48. Period 6
o We have to pay the loan of 10mil
o Manage many Brands expense too much
o Period 7 is very important – Bonus based on % stock raise
o Our Brands for Pros and Others did not work well
o Our sale forces expenditure seemed to be too high
o Vodie market grow too fast and very potential we have to
control it
48
55. Period 6
2. Decision-making
Open 3 new brands in Vodie
o Focus on Vodie Focus all Vodie Brands on Followers
Withdraw the Others
o Give up the Sonite market Reduce the volume of Singles,
Hiearners, Pros
o Win the Bonus in Period 7 Not purchase any Sonite research
Keep the Stock rise slightly in P.6
&
Have needed things to win the Bonus in P.7
55
59. Over
9500
We got the o Each Brand can produce maximum 2000K products
ADVANTAGE o The Followers size rises significantly
59
60. Period 7
1. Analysis
o The Vodie Analysis Tools have not worked well yet
Other teams would have the problems like us in R&D
o We get the advantages in Vodie market
dominate other teams
o Vodie market size would be over 12000 in Period 8 & we can run
maximum 5 brands
come back to the Sonite market
60
61. Period 7
2. Decision-making
o Come back to Sonite market
o Limited budget we could
not spend more
Buy 4 studies for the Sonite market: Consumer survey, Consumer panel, Semantic Scale
and Market forecast 61
62. For Vodie
In good situation, we 5 Brands with the total of 7500
can get90% 6000<our sales<9000
market share
62
63. Period 7
3. Results Dominated the Vodie market
Come back and gain ~1/4 Sonite
Team O earn the benefit of our scarification in Sonite market 63
64. Period 7
3. Results
o Rank second in the events, got extra money
o A lot of lost sales in Sonite, if we produced
more, maybe we will win since almost
money team O gained from Singles
o Stock rise to over 13000
64
65. Period 8
1. Analysis
O entered Vodie market, they have lots of money and the strong base in Sonite 65
66. As what we forecasted, Followers in this period would be
over 12000 we have to share the Vodie market with
other teams…
66
67. Period 8
1. Analysis
o The estimate tools for Vodie is now OK
o Other teams spent a lot in R&D
o Our Sonite products is now worse than others
We have to improve our Product
67
68. Period 8
2. Decision Making
o Take the loan of 4mil
o R&D
PVYYY: with all the ideal characteristics for Followers, but
very high base cost
PSYG3: Improve for Singles segment
PSYHH: Improve for Hiearners
o Reduce the Sale forces
o Increase production in Sonite
68
73. Period 9
The Followers size of P8 is
1. Analysis 11674, not over 14303
Good for us
We could earn 12000/~17000, which is 70%
73
74. All of them get scared of setting a low price as ideal price
BUT WE DO NOT 74
75. Our base cost is 611, the forecasted Ideal price for Follower is ~ 420,
and the price accounts to over 49% of importance
Is this a big Problem ??
75
76. o Base cost: 384 transfer cost: 96 Could earn
Base cost: 611 transfer cost ~ 150-200
o Sell at price 423 the selling price is 286 ~$100/product
However, the contribution would be reduced 76
77. • Sonite market also grows up a lot
• Completed the R&D, we got strong products
for Singles and HiEarners
77
78. Period 9
2. Decision Making
o Produce maximum for 5 Brands of Vodie, want to gain 12000 in sales
o Modify 5 Vodie Brands, using new R&D project
o Produce maximum for Hiearner and Singles, using new products
o Open the new Brand for Single and produce 1000 to take shares from
other teams (this is risky, we can get many inventories, however, it would
be 5-7 mil in bad case, in good situation, we could gain a lot)
78
79. Semantic
Scale
Based on Semantic Scale &
Conjoint Analysis
79
80. Set the Price higher than ideal price and use
Perceptual Objectives to improve it
80
81. Period 9
We WIN Team Y did
3. Results not perform
well?
Team O is
amazing??
81
87. 1. First mover into Vodie market experience
o Lower cost for R&D
o Dominate the market with large shares gain more budget
o Know the market better than others (not sure since we didn’t know whether other teams
can see the Vodie studies or not)
o Vodie market is very potential, the market size would be larger than Sonite in few
periods
o In Vodie, focus 100% on Followers, this segment will account to over 95% of the
market. So, don’t waste money on other segments
o The forecast of Vodie is not accurate at some first few periods. In our course, from P3
to P6, the actual market size always > forecast one plan your production wisely
o The estimate tool could not be used in first 2 periods and even when it began working,
the accuracy is not good if your product is worse than others: can use the Brand
map and competitor product’s characteristic to conduct R&D project.
87
88. 2. Set up objective and strategy experience
o Always try to satisfy the customers, but, do it wisely
o The objective and strategy should cover at least 2 following periods – think about
long term, not short term
o Be proactive and flexible – Foresee the trend and dare to change
o Think about the milestones of the game ( P1,2,6 and 8) to get the right strategy
o Sacrifice is needed if you want to earn more (P6)
88
89. 3. Budget experience
o The key factor of success
o It has the upper limit if you run a big business like us, your job is not easy
o In this game, we:
Spend all the money in first, second periods gain more market share, contribution and
lessen the budget of others we have enough money to R&D Vodie, etc while others can not
Spend all the money in other periods caused we have to run a very big business…
o Tips:
Ads is needed, spend more and earn more, but when you control the segment, 2500-3000 is
enough
The longer the game is, the more expensive the R&D would be R&D for 2 or 3 period in the
future. If we in P3, we would R&D for P5 or P6
Allocate sale force effectively, at the beginning, for 100K products we used 10 people, at the
end, for 100k products we used 3 people, and they still did the job well
Use the loan at right time could give you a big advantage
89
90. 4. Number setting technique experience
o For production plan, you have +/- 20% automatic adjustment use it
o Price & Perceptual Objective : use the semantic scale or MDS, but use the next period
forecasted number
o You can set the price lower than base cost as long as it larger than the transfer cost
o For the sales force, use shopping habit as a tool to allocate, but, adjust the percentage
to next period by yourself since the number you got is the current one
o R&D: use the analysis tools to get the characteristics of project, however, should take a
look at the numbers and self adjust them, don’t believe the program 100%
P7
P8 P9: 56-21-23
90
91. 6. Other experiences
o For each market, your firm can only manage 5 brands, each brand produce a maximum of
2000k products (can auto-adjust to 2400)
o For each market, the maximum you can produce is 12000
o Good product is the key factor to increase market share, not the ads
o Your can take advantage of ads in special way: open a brand based on old R&D project
with a low production (50-100K) and a high ads gain brand awareness. Then when the
project complete, you modify that brand with new characteristics
o Buy the studies effectively, at the beginning, you should buy all of them to get a broad view,
but in next periods, you can eliminate some of them.
o For us: Benchmarking, Consumer survey, Consumer panel, Market forecast and one
analysis tools (Semantic scale or MDS) are required. The conjoint analysis you just need it
one time. The others do not add much values
91
92. And more important…
o The leader has advantages, but those could not ensure a victory always try
your best and be careful
o Other teams can catch up the leader, in 2-3 last periods, many teams have the
maximum-same budget, event the leader Spend money in smart way and
make the different
92