The Markstrat Challenge I_pr
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Transcript of The Markstrat Challenge I_pr
The Markstrat Challenge I
PARIS BOSTON www.stratxsimulations.com
The Markstrat World Managing your firm Getting started
The Markstrat World: A large territory with a highly developed economy
The Markstrat World Population: 250 million Currency: Markstrat Dollar ($)
Each firm can compete in TWO product markets
Maximum: 5 brands/firms marketed at a time
independent not substitutes not complements
SONITES
VODITES
The Sonite market is already developed, each product has 6 product characteristics Weight(10 20)
Design(3-10)
Volume(20-100)
Kg
Index
dm3Max. Frequency(5 50)
Power(5-100)
Base Cost(min. 10)
kHz
W
Vodites will also have 6 physical characteristics, but the market is yet untapped Autonomy(5-100)
Max. Frequency(5-20)
Diameter(10-100)
m
kHz mm
Design(3-10)
Weight(10-100)
Base Cost(min. 10)
Index
Kg
It is easy to recognize the origin of the brands from their names
SProduct Type: S=Sonite V=Vodite
ICompany marketing the brand: A, E, I, ...
B
I
Freely chosen letters or numbers
Sonite customers have traditionally been classified into 5 segments
...whereas initial studies for Vodites have pointed to a different segmentation schemeTypical segment size evolution over timeSales
Time
Sonite & Vodite customers can choose to purchase through 3 distinct distribution channels
The Markstrat World Managing your firm Getting started
Your objective in managing your company is to maximize your Stock Price Index You will have to optimize: Market share Sales growth Net contribution Cumulative net contribution R & D investments
You will need to do a certain amount of analysis, before setting a strategic direction for your firm
Research studies provide market data, it is up to you to prioritize, digest & interpret them
Consumer survey Consumer panel Distribution panel Semantic scales Multi-dimensional scaling (MDS)
Industry benchmarking Market forecast Competitive advertising Competitive sales force Advertising experiment Sales force experiment Conjoint analysis
Once your strategy is clear, you should make a number of tactical decisions each year
Production planning Pricing Mass communication Sales force & distribution Market research
Pricing in Markstrat is fixed once a year
Recommended Retail Price = $100
Each firm receives a marketing budget for the coming periodThe budget amount is based on the previous periods performance
Advertisin g
Advertising expenditures Advertising research expenditures Operating cost
for for each each brand brand
Sales force
Hiring & training cost Firing cost
R&D
Development budget
for for each each project project
Market Research
Sonite and Vodite study costs
Brand results
Company performance
Organize yourselves and manage the group process
Time pressure Information overload
Conflicting opinions