Game Simulation Debriefing Presentation v1

8/10/2019 Game Simulation Debriefing Presentation v1

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Strategy used in GameSimulationService challenge an exploration of business

Group 2 Members:

Apurba Mukherjee (14P189)Bharat C.V. (14P193)

Raghuveer Santosh (14P217)

Samiran Mathur (14P222)

Supreet S (14P232)

Sushma Talla (14P234)

Simulation Team: Alpha D02


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Service Segmentation Positioning

Service offered Hotel services

Segmentation

Five Star hotel rooms (High end )

Three Star hotel rooms (Medium end) Economic/Budget hotel rooms (Lower end)

Positioning

High quality hotel service provider (High quality acting asPoint of Differentiation)


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Decision making algorithm

Analyseresults of theprevious year

No. of existingclients

No. of new clients Capacity utilization Demand/client

and Sales/client Sales income and

Net Profit

Key decisionsfor next year

Quality spends Promotional

spends Pricing decision

keeping ourobjectives in mind

SupportingDecisions fornext year

EstimateSales/client

Estimateadditionalresources required

Financial analysis

to estimate cashavailable Estimate loan

requirements, ifany

Pern

Reassess in caseof mismatch

The above decision making algorithm was followed with the help of a financial mod


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Snapshot of performance Marketing Perspec

-1.6%

28.1%

31.9%

27.8%

24.8%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

0

200000

400000

600000

800000

1000000

1200000

1400000

Year 1 Year 2 Year 3 Year 4 Year 5

%

Accoun

tingUnits

Sales income and Sales growth

Total Sales Income Sales Growth

212 202 268331

48 116177

235

0

200

400

600

800

Year 1 Year 2 Year 3 Year 4

Client Base - Level 1

173 206329

521110 167

284

452

0

200

400

600800

1000

1200



259 225 202 180

00 0 0

0

100

200

300




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Snapshot of performance Operations Perspec

2535

4969

813032

35

41

51

0

20

40

60

80

100

120

140

Year 1 Year 2 Year 3 Year 4 Year 5

Building Resources

Resource A Resource B

120

103 10610

94 91105

12

0

20

40

60

80

100

120

140

Year 1 Year 2 Year 3 Yea

%

Capacity Utilization

Resource A Resourc


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Year 1 decisions and rationale

Year 1

Criteria Decision Reason

Price

Level 1 60 Kept the same decisions as the previous

years to see how the market behavesLevel 2 45

Level 3 30

Promotion

Level 1 20000 We wanted to test how the market respondsto increase in promotional spends. Hence,we increased promotional spends on level 2by 1000 AU.

Level 2 16000

Level 3 15000

NewResources

A 0 Being uncertain of the market we did not

acquire new resourcesB 0

QualityImprovement

A 25000 We kept the quality spends same as

previous years.B 15000

Loans Taken 0 We did not take loans as we did not acquire

new resources.

Underst

Despite spon promonew clientThis indica declini

No. of exi1 and 2 de

spending improvemthat our qcomparicompetit

Capacity uwas 120%shortage


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Year 2


Price

Level 1 60 By observing prices of competitor and theirmarket shares, we understood level 1 andlevel 3 were not majorly price sensitive

However, level 2 seemed to be pricesensitive. To test this we decreased price by1 AU

Level 2 44

Level 3 30

Promotion

Level 1 25000 Increased promotional spends in level 1 and

2 to attract new clientsLevel 2 18000

Level 3 0

NewResources

A 10 Acquired resources to meet estimatedmarket demandB 2

QualityImprovement

A 30000 Improved quality spend to increase the levelof quality of our service and retain existingclients

B12500

Loans Taken 80000

Since, new resources are being acquired we

decided to borrow 80000 AU as per our

calculations

Underst

Sales gr28% dueof level 1

Declininglevel 3 comarket in

Market in level is price s

Decline ilevel 1 anour qualthe bestcompeti


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Year 4


Price

Level 1 63 We increased price in level 1 by 1 AU as we felt higher price

was justified due to higher quality Price in level 2 was reduced further by 1 AU to attract new

clients

Level 2 41

Level 3 28

Promotion

Level 1 35000 We made significant increase in level 1 and 2 promotionalspends to attract new clients

We assumed that in level 1 and 2 clients would be attracteddue to higher quality and reasonable price

Since level 2 is highly price sensitive we wanted toincrease client base by decreasing prices slightly and thenretain them by providing quality of service

Level 2 40000

Level 3 0

NewResources

A 20 Acquired new resources to meet the expected increase indemand from clientsB 6

QualityImprovem

ent

A 60000 Improved quality spends further to increase the level of

quality of our service and retain existing clientsB 30000

Loans

Taken

50000 Based on our financial model we estimated that we need a

further loan of 50000 to acquire new resources

Understand

Sales growdue to incrand level 2

Market shlevel 2 to attracted bincreased phigh qualit

Retained existing c

Capacity utestimates a%. We werehigh demcapacity uresource


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Year 5


Price

Level 1 63 Level 2 and 3 prices were increased by 1 unit. Since client base was large in level 2 and quality spends

were high we felt we could retain clients even if we raisedprices slightly

Since level 3 was a declining market with no new clients inlevel 3 also we estimated that we can raise price by 1 AUwithout losing many clients

Level 2 42

Level 3 29

Promotion

Level 1 30000 Promotional spends in level 1 were slightly reduced and

level 2 kept as it is as we wanted to keep demand in checkso that clients do not complain of shortages

Level 2 30000

Level 3 0

NewResources

A 12 Acquired new resources to meet the expected increase indemand from clientsB 10

QualityImprovem

ent

A 75000 Improved quality spends further to increase the level of

quality of our service and retain existing clientsB 60000

Loans

Taken

50000 Based on our financial model we estimated that we need a

further loan of 75000 to acquire new resources

Underst

Sales gro25% due of level 1 asales incr

by 34.7% Market s

level 2 to

were attraspends anservice

Capacity uestimatesand B weutilized

Demandto sales/


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Key learnings from simulation game

Taking decisions in a declining market

Taking decisions in a price sensitive market

Attracting and retaining customers in a service industry

Importance of trust and quality in a premium segment


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Thank you

Game Simulation Debriefing Presentation v1

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Transcript of Game Simulation Debriefing Presentation v1