Minnesota Micromotors

Objective of case simulation:

Maximize:

1. Cumulative profit
2. Cumulative revenue
3. Market share
4. Customer satisfaction

Following are the points where we could have improved our performance:

 Failed to identify the right segment

 Choose segment A, segment B and segment D as our target segments however the need of
segment A and segment B were contrary in nature, at the same time market share of B was
significantly than less segment A
 Did not realize that segment C could have lower discounts and this discount could have been
utilized in targeted segment
 Could not adjust the price in proportion to the market appetite as we hovered around the
price levels of 142-146 which could have been increased to the level of 180
 Did not achieve “excellent level” in any of the four segments for the salesforce as A should
have been our targeted segment. The salesforce should have devoted more time catering to
segment A customers
 Did not use our core competency which was power to size ratio instead invested heavily in
thermal resistance where our competitors were way ahead of us
 Did not appropriately hired and fired the sales reps according to the customer satisfaction
and sales representative performance
 Lost considerable market share in small customer segment which was third highest in our
market share portfolio due to poor ratio of investing budget in large customers and small
customer
 Volatility in choosing the discounts for the distributors

Decisions which were made appropriately:

 We continuously invested in market research which provided an important insight into

customer’s buying behaviour and our competitors performance
 As soon as we realised that we lost considerable market share in small customer segment,
we increased the distributors margin which helped us recover in the same
 Although we were late but in the latter quarters, we decreased our sales force which was an
important policy of MM
 We made sure that our bottom line was always in green by appropriately responding to
customers demand

Submitted by:
Diksha Yadav (PGP09151)
Sumeet Bhatere (PGP09181)
Nikhil Choudhary (PGP09161)
Akhil Tripathi (PGP09130)
Saptarishi Mandal (PGP09172)
Shubham Kumar (PGP09177)