NAME: PAVITHRA.

N
USN: PES1PG20MB208
COURSE: STRATEGIC MANAGEMENT
COURSE CODE: UM20MB552

ASSIGNMENT 1 ON PRICING SIMULATION: UNIVERSAL RENTAL CAR

KEY POINTS OF SIMULATION

• Forecasting Demand and price change.
• Increasing inventory and overall Profits.
• Determining Competition.
• Trial and error with various scenarious.

LEARNING OBJECTIVES
• Our main objective was to ensure maximization of profit by finding out the highest price
the consumer was willing to pay. The theory of supply and demand is very applicable in
this case.
• Across the eleven month period of the simulation exercise, it was observed that there was
increased in demand during the warmer weather which may be attributed to the fact that
there is an increased number of conferences and business travellers in addition to tourists
and leisure travelers that prefer to go out more in the summer months than in the winter
months.
• By analyzing demand for the cars we had to consider the supply of cars at each location. I
understood in vacation times running out of cars resulted in reduced revenue and keeping
the car idle resulting in affecting the profitability since there certain fixed cost association
with each cars.

RESULTS ON THE FOLLOWING METRICS

• Cumulative profit : $38.1M
• Final market share : 43.0%
• Cumulative unit sale : 12.1M
• Capacity utilization : 60%
• Final month’s profit : $2.36M

Strategy: Each city had revenue. Tampa had more business customers, Orlando and Miami
had a mix of both business and leisure customers. Therefore I decided to increase weekday
price and decrease weekend price compared to Tampa. And since there will be more
customers visiting the tourist on weekends the need for cars could be more in weekends in
Orlando and Miami so, decreasing the prices in weekends could help getting more customers.
And I ensured no rental cars was idle or shortage of cars it could reduce the revenue of the
agency.

ASSIGNMENT 2 ON MARKET SIMULATION: MANAGING SEGMENTS AND

CUSTOMERS

Roles and responsibilities in the simulation

• We has to understand the different parts of the marketing decision making process, their
relationship with each other and their impact on the company's overall results.
• We had to keep in mind overtime we decided that spending more on battery life resulted in
better battery life but in case of sensor size there was inverse proportion between them
• We had prioritised the manufacturer's effort in acquiring and retaining customer’s ignorer
to achieve a combination of sustainable revenues and profits and maximize cumulative
profits.

Learning objectives
• We were able to understand the connection between marketing strategy formulation and
successful execution
• We were able to understand that segments wanted more interaction and on the other side
some wanted better product quality
• We were able to fully comprehend the different parts of marketing decision making
process, their relationship with each other and their impact on the company's overall
results.

Final results
Market share: 12.83%
Cumulative revenue: $64,356,688
Cumulative profit: $4,488,329
Score: 63
Customer satisfaction: Segment A (5 Star)
Segment B (1 Star)
Segment C (1 Star)
Segment D (3 Star)
Small Customers (5 Stars)
Strategy: I used the strategy of allocating more time in segment A i.e 40%, in segment B
spending 30%of time and 10%, 10% of time segment C and D and increased in the price of
$155. Even though the price was increased more people bought from segment. A since it
matched their battery life expectation. I decided to spend 30% of available budget on small
customers and 75% on large customers. I increased the marketing budget to $70000 as it
helps small customers and sales teams and since direct customers communication
increased brand awareness to your customers increases the budget to $10000. And finally
since allocating budget and battery life were directly correlated so increased the amount to
$1000000. As a result segment a, c and d rose up and profits increased to 10.60. I continued
the same as when budget decreased I reduced the sales force and latency spending and
allocating accordingly when there were more budget .