PARS BOSTON

www.stratxsimulations.com
1he Markstrat Cha||enge I
MarksLraL ls a slmulaLlon deslgned Lo focus
on sLraLeglc markeLlng lssues
&nderstanding customer needs
Long-term perspective
Marketing as a profit center
Competitive environment
Marketing strategy is based on segmentation,
positioning, and resource allocation... marketing mix
decisions are secondary
Getting
started
Managing
your firm
The
Markstrat
WorId
@e MarksLraL World A large LerrlLory wlL a
lgly developed economy
The Markstrat World
Population: 250 million
Currency: Markstrat Dollar ($)
@e baslc scenarlo beglns wlL flrms sLarLlng
ln dlfferenL poslLlons
ac flrm can compeLe ln @WC producL
markeLs
Maximum: 5 brands/firms marketed at a time
independent
not substitutes
not complements
$TE$ 'TE$
@e SonlLe markeL ls already developed
eac producL as 6 producL caracLerlsLlcs
Weight
(10 20)
esign
(3-10)
'oIume
(20-100)
Max. Frequency
(5 50)
Power
(5-100)
Base Cost
(min. 10)
Kg
ndex
dm
3
kHz
W
IodlLes wlll also ave 6 pyslcal caracLerlsLlcs
buL Le markeL ls yeL unLapped
utonomy
(5-100)
Max. Frequency
(5-20)
iameter
(10-100)
esign
(3-10)
Weight
(10-100)
Base Cost
(min. 10)
m kHz
mm
ndex
Kg
L ls easy Lo recognlze Le orlgln of Le
brands from Lelr names
Product
Type:
$$onite
''odite
Product
Type:
$$onite
''odite
Company
marketing
the brand:
E ...
Company
marketing
the brand:
E ...
FreeIy chosen
Ietters or numbers
FreeIy chosen
Ietters or numbers
$ B
SonlLe cusLomers ave LradlLlonally been
classlfled lnLo 3 segmenLs
$GLE$ ($i)
PRFE$$L$ (Pr)
BUFF$ (Bf)
HGH ERER$ (Hi)
THER$ (t)
wereas lnlLlal sLudles for IodlLes ave polnLed
Lo a dlfferenL segmenLaLlon sceme
ollowers
Early
Adopters
nnovators
Sales
Time
TypicaI segment size evoIution over time
SonlLe IodlLe cusLomers can coose Lo purcase
Lroug 3 dlsLlncL dlsLrlbuLlon cannels
$peciaIty
$tores
epartment
$tores
Mass
Merchandisers
Summary of Le MarksLraL World
Technology
Market
Growth
Economic
Environment
Getting
started
The
Markstrat
WorId
Managing
your firm
our ob[ecLlve ln managlng your company ls Lo
maxlmlze your SLock rlce ndex
ou will have to optimize:
Market share
Sales growth
Net contribution
Cumulative net contribution
R & D investments
..but the main objective is to LEARN!
ou wlll need Lo do a cerLaln amounL of analysls
before seLLlng a sLraLeglc dlrecLlon for your flrm
Data
nformation
Strategic
Options
esearc sLudles provlde markeL daLa lL ls up Lo
you Lo prlorlLlze dlgesL lnLerpreL Lem
Consumer survey
Consumer panel
Distribution panel
Semantic scales
Multi-dimensional
scaling (MDS)
ndustry benchmarking
Market forecast
Competitive advertising
Competitive sales force
Advertising experiment
Sales force experiment
Conjoint analysis
Cnce your sLraLegy ls clear you sould make
a number of LacLlcal declslons eac year
Production planning
nventory disposal
Pricing
Mass communication
Sales force & distribution
Market research
nventory
buiId-up
Lost
saIes
umber of
Units
QP
(1-20%)
(assuming zero
inventory level)
QP
(1+20%)
roducLlon deparLmenL ad[usLmenL
Market
demand
Production
"P
Requested
production
IeveI
our production department will automatically adjust production
levels (+ or -) 20% against your plan
our production department will automatically adjust production
levels (+ or -) 20% against your plan
Competitors
"rder-book"
Lost to industry
omparlng purcase lnLenL wlL markeL sare
can glve you a feel for Le slze of losL sales
Purchase
ntent
Market
$hare
Lost
$aIes
rlclng ln MarksLraL ls flxed once a year
$peciaIty
$tores
epartment
$tores
Mass
Merchandisers
Average Retail
Price $100 $100 $90
Distrib. Margin
$40 $ 30 $ 27
Average Selling
Price $ 60
$ 70 $ 63
Recommended RetaiI Price $100
ac flrm recelves a markeLlng budgeL for Le
comlng perlod
The budget amount is based on the previous period's performance
B
u
d
g
e
t
Market
Research
$onite and 'odite
study costs
$onite and 'odite
study costs
for each
project
for each
project
R&
eveIopment budget eveIopment budget
$aIes force
Hiring & training cost Hiring & training cost
Firing cost Firing cost
perating cost perating cost
for each
brand
for each
brand
dvertising
dvertising research
expenditures
dvertising research
expenditures
dvertising expenditures dvertising expenditures
rand resulLs
ompany performance
@e slmulaLlon sLarLs aL Le end of Le lnlLlal perlod
.
.
The new
management (you!)
make decisions for
the next period
@e declslons for Le flrsL perlod are llmlLed
ln scope
our team can get familiar with Markstrat
Gather information
Do not make any major changes in your firm's operation
Do not introduce new brands, modify or withdraw existing ones
Do not start R&D projects
Do not give perceptual objectives for advertising
Crganlze yourselves and manage Le group
process
Time
pressure
ConfIicting
opinions
nformation
overIoad
The
Markstrat
WorId
Managing
your firm
Getting
started
Wen you reLurn Lo your Leam room
Le Maln Menu wlll be on your screen
CIick here to
access session
information
CIick here to
access session
information
ou can access all Le declslons on Le maln
screen Lo make declslons for Le nexL perlod
The decisions
you wiII make
The decisions
you wiII make
MarkeLlng Mlx declslons sould be enLered for
eac brand
ou are
making
decisions for
the brand
$M
ou are
making
decisions for
the brand
$M
$witch from
$onites to
'odites
$witch from
$onites to
'odites
@e sales force ls organlzed by cannel Lype Lo
meeL Le speclflc needs of Le cannels
CIick on the
assistant to heIp
you aIIocate to
saIes forces
automaticaIIy
CIick on the
assistant to heIp
you aIIocate to
saIes forces
automaticaIIy
uylng markeL researc sLudles wlll elp you
make sound declslons
The cost of
each study
appears as
you make your
seIections
The cost of
each study
appears as
you make your
seIections
ou can monlLor Le sLaLus of your declslons
aL any Llme
onL forgeL Lo Lransfer your declslons Lo
your lnsLrucLor by closlng Le sesslon
ou can cIose
your session by
cIicking on
nterface/CIose
Markstrat $ession
or just cIick here
ou can cIose
your session by
cIicking on
nterface/CIose
Markstrat $ession
or just cIick here
Cn your marks geL seL CC!
Give a name to your company
Respect the deadlines