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8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 1/21
B2B Marketing
Marketing Game:
Team-5 Orange: The Underdog
Athens, June 2010
Professor: S. Gounaris
Team: Katakis Thomas,
Mourouti Ioanna,Papakonstantinou Sotiris,
Spyridakis Markos,
Vagiokas Nikolaos
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 2/21
Marketing Mix
Product
Innovative: launch new products with new technology
Price
Use of products with high market share and same technology as benchmarks
-> Parity pricing or lower compared to them due to our
a) Penetration strategy (as our products had weak market share)
b) Products characteristics were considered average vs benchmarks
Promotion
Defend market share with same levels of promotional intensity and depthIncrease of promotion and advertisement only when product news became available
Place
Keep our firm set on a geographical critirion via consulting a market research
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 3/21
Products
Products Tech Resistance SuspensionConductiv.
Density BaseCost
List Price
KUST 1 4000 30 750 388 630
KUZZ 1 3500 40 550 362 550
KUTE 3 3000 75 600 323 400
KURE 3 3000 50 650 375 500
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 4/21
Period 1 Decisions
Production
Same Prices (no inflation readjustment)
Same Production
Macro-Segmentation
Focus on Central (40%) and West (35%), due to better market shares in these regions
Focus on Large (60%) and Medium (25%) Clients, as per the 80/20 Pareto logic
Focus on Communication (40%) & Consumer Goods (35%), as per the Industrat tool depiction
DMU Sales Force
Eng. 40%, Prod. 20% Purch. 20% Gen. 10
DMU Technical Force
50% Prod., 50% Purch.
Other:
Hiring of 2 Salesmen
Lack of hard facts for mostparameters due to purchase of
1-2 researches each year
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 5/21
Period-1 Results
Stock Price
26$ -> 15$. Huge drop and last player on the block
Net Mktg Contribution
8,338$
Inventory Holding Costs
1,622$. Huge inventories
3 Products with high Inventory -> minor production quantities forecasted
KUTE sold out
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 6/21
Period-2 Decisions
Production
Increased KUTE production (40->45)
Inventory depleted to the rest. Small reduction forecasted
Decrease Promotion for: KUZZ(200->80), KURE(150->110)
Pricing
Adjustment of prices according to competitive product characteristics
KUST (630->545), KUTE(400->425)
Macro-Segmentation
Improvement of focus in terms of size due to market research
Large (60->50%) and Medium (25->30%) ClientsDMU Sales Force
Absence of research. Fine-tuning in the dark as the MS in testing and primary source were very low
Eng. (40->35%), Prod. (20->25%) Purch. (20->30%) Gen. 10
Lack of hard facts for
most parameters due
to purchase of 1-2
researches each year
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 7/21
Period-2 Results
Stock Price
15 $ ->10 $
Net Mktg Contribtion
8,338m->846
Inventory Holding Costs
1,622m->3,138m
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 8/21
Period-3 Decisions
Production
Increase KUTE production (45->50)
Big reduction to the rest products (due to promotion?)
R&D
Decided to invest in Technology-4 KOREX (no competition)
Investment - 2700000
Prices
KUST (545->500), KUZZ(550->550), KUTE(425->450), KURE(500->500)
Macro-Segmentation
Focus on Large (36%) and Small (38%) Clients
DMU Sales Force
Eng. (40%), Prod. (25%) Purch. (30->25%) Gen. (10->15%)
Market Research
Demand Analysis - Geographic Segmentation
Lack of hard facts for
most parameters due
to purchase of 1-2
researches each year
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 9/21
Period-3 Results
Stock Price
10->5$
Net Mktg Contribtion
846-> -2,435m
Inventory Holding Costs
3,138m->1,411m
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 10/21
Period-4 Decisions
Production
Increase KUTE production (45->50)
Big reduction to the rest products
R&D
Investment in Technology-4 > 5,500,000!
Prices
KUST (500), KUZZ(550), KUTE(450), KURE(500)
Macro-Segmentation
Large (60%) Clients
DMU Sales ForceEng. (40%), Prod. (25%) Purch. (30->25%) Gen. (10->15%)
Market Research
Supplier Survey - Geographic Segmentation
Awareness Intentions - Geographic Segmentation
Lack of hard facts for
most parameters due
to purchase of 1-2
researches each year
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 11/21
Period-4 Results
Stock Price
5$->1$
Net Mktg Contribtion
-2,435m$ -> -7,633m$
Inventory Holding Costs
1,411m$ -> 247k $
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 12/21
Period-5 Decisions
Low Awareness and Preference in the GM was identified and solved -> Increased focus on General Manager (25%)Prices were increased by ~25% to reach profitability again
KUST (500->670), KUZZ (550->700), KUTE (450->570), KURE (500->635)
New product was released KUAA (technology 4) with exceptional characteristics
Top price in the portfolio was set for the new product (710) due to new technology
Bulk promotion (200) was invested in the new product
30% of the technical support was allocated to the new product
Sales force was increased (62->70)
Increase technicians 30->35 to support the new product
Sales training was increased
Focus on Consumer Goods (45%)
Market Research in several areas:
Awareness Intentions - Aggregate Information
Demand Analysis - End Use Segmentation
Market shares - Geographic Segmentation
Org. Buying Process - Size Account Segmentation
Market Forecast - Size Account Segmentation
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 13/21
Period-5 Results
Stock Price
1 $ ->9 $
Net Mktg Contribution
-7,633m->-346k (close to positive)
Inventory Holding Costs
1,446m mainly due to the new product.
Only 4,4k out of 25k KUAA were sold
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 14/21
Period-6 Decisions
Increase prices according to InflationNo Production of the KUAA in order to sell the stock
Increase Promotion of KUAA from 200->400$ (!!!)
Increase Advertisement of KUAA to 70$ (!!!)
Increase Sales training (90$)
Macro-Segmentation
Focus on Central (45%) and West (26%), due to better market shares
in these regions derived from the market research
Focus on Large (40%) and Small (35%) Clients, triggered from the
marketing research results
Focus on Instrumentation (43%) & Consumer Goods (34%) according
to the demand revealed by the market research
DMU Sales Force
Focus on Purch. Managers (22%) and Gen. Managers (20%) in order to
shift our clients from Supplementary to Primary
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 15/21
Period-6 Results
Stock Price boom
9$ ->19$ (!!!)
Net Mktg Contribution -> extremely positive results
-346k$ -> 9,407$
Very low Inventory Holding Costs (115k $) due to precise f orecast
New product KUAA sold out!!! -> sales increase f rom 4,4$->24$
Our Firm reached the 2nd place in sales
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 16/21
Period-7 Results
� Stock Price boom
19$->25$
� Net Mktg Contribution:
extremely positive results
9,407$->15,801$
� Zero Inventory Holding Costs
�All products sold out!!!
� Our Firm reached the 1st place in sales and stock price
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 17/21
Lessons Learned
Market Research is extremely important in order to take the correct decisions
Inf lation was NOT taken into account in the beginning
Up to period-4 we only f ocused on Market Share and not on the prof itability of the
company.
Investment in new Technology (4) which no other Firm possessed, boosted our sales and
stock price.
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 18/21
Over view ChartsSt
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Net
tg C
ntributi
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Big increase after correction in prices and
introduction of new technology -> Fist Place
among all Firms
High Inventory Costs in the beginning and after
the first launch of the new product (P5).
Negative Contribution in the early phases due to
wrong pricing policy and high inventories.
Corrective actions boosted the contribution
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 19/21
Over view Charts 2
Big increase in prices in
period-4. Follow inflation
in next periods
Big increase in sales after
introducing the new
innovative product KUAA
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 20/21
Over view Charts 3
Big increase in sales after
introducing the new
innovative product KUAA
Boosted contribution after
prices correction and
introduction of KUAA
8/7/2019 Marketing Game Final
http://slidepdf.com/reader/full/marketing-game-final 21/21
Team: Katakis Thomas,Mourouti Ioanna,
Papakonstantinou Sotiris,
Spyridakis Markos,
Vagiokas Nikolaos
Thank you!!!Thank you!!!