SABRE Simulation

Student Guide
Version 3.5

Developed by

IIBD

© 2010 International Institute for Business Development Ltd. www.iibd.com +1 250-595-8440 info@iibd.com

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SABRE Market Simulation - Student’s Guide
Version 3.5
This student guide is intended to provide a general overview of how to use SABRE and how the simulations work. You will also receive information specific to your simulation, either in the form of another document or in-class presentation, which details the marketplace in which you will be running your simulated company.

1.0

Introduction

SABRE is a flexible business simulation program that allows course instructors to design and run highly customized simulations. Its name stands for “Strategic Allocation of Business REsources”. SABRE allows up to six teams to compete against each other, as companies, for profits and market share. Each team operates its company by making decisions regarding product development, production, advertising and sales. The simulation typically is run over six to ten periods, which you will treat as years or quarters. With that relatively long simulated timeframe and many decisions to be made, you and your team will have the opportunity to develop and implement your marketing strategies, and see the results. SABRE emphasizes the main elements of marketing strategy, and provides the framework for the overall decision-making and business planning process. To be successful, you will have to work effectively as a team, as you must in real life. Each team starts with different strengths and weaknesses, as is also true in real life. It will be important to recognize your company’s strengths and use them to your competitive advantage. As you read through this introduction, you are beginning to participate in an exciting learning experience. You’ll feel the frustration associated with failure and the rush of excitement when your team is successful. You will be challenged and, to be successful, you must constantly look for new opportunities to serve your market and gain competitive advantage. There will be emotional ups and downs but, as in any memorable experience, these are a necessity. Section 2 describes the essential terms and concepts used in the simulation. Then the steps to getting SABRE up and running are presented in Section 3. Section 4 covers how to access information in SABRE and Section 5 describes the process to make decisions for your company.

2.0

Key Concepts and Terms

The business context of your simulation will be described by your instructor, or simulation “administrator”. This section describes, in general, how a simulation works and some of the key
© 2010 International Institute for Business Development Ltd. www.iibd.com +1 250-595-8440 info@iibd.com 2

terms. The specific market dynamics and sensitivities to various parameters will depend on the particular simulation. In the simulation, you will be operating a company within a structure that views the scope of your responsibility as a profit center. Your company is rewarded each year with a budget that is a percentage of your net profits, subject to a minimum and a maximum. These floor and ceiling values and the percentage that you receive are specific to your simulation. You are not allowed to go over budget, so you must make tough resource allocation decisions. Where and how the budget is allocated is the execution of your strategy.

2.1

Financial Performance

Sales, less cost of goods sold, less all marketing and other expenses, gives the company’s profit for the period. Your firm will receive the following information each period:
Total Sales Revenue less Cost of Goods Sold = Gross Profit --------------------------------------------Basic Expenses advertising market research studies research and development sales force plus Other Expenses inventory holding costs excess inventory sales cost = Total Expenses --------------------------------------------NET PROFIT = Gross Profit - Total Expenses

In the calculation of net profit above, the “Basic Expenses” must be covered within your budget for the period. However, the “Other Expenses” are not budget-affecting – they are applied outside the constraints of your company’s budget.

2.2

Markets and Segments

You will be competing with other teams in either one or two Markets. Markets differ in the general type of Product being sold. The consumers in each market are grouped into Segments. Segments will be defined and shown as groups of customers with similar needs and wants. Each market has a set of Attributes (e.g. price, weight, speed, etc.) that describe the products in that market. Each segment has a different preference as to the ideal product. Those ideal attributes for each segment specify the segment’s Ideal Point. These ideal points will move over time as the market evolves, and the segment sizes will also change. It is crucial to understand that an individual will be more inclined to buy a product that best matches their ideal point.

2.3

Reports and Studies

Every company receives a set of Reports (they’re free!) each period which describe the company’s performance and summarizes its situation. Additionally, companies receive the Studies that they purchased in the previous period, using money from their budget. Each study is specific to a
© 2010 International Institute for Business Development Ltd. www.iibd.com +1 250-595-8440 info@iibd.com 3

market, and conveys information needed to make decisions. Section 5.4 describes the studies in detail, and examples of the Reports and Studies are provided in Appendix A.

2.4

Products and R&D Projects

As a company, you will put products on the market for sale. Every product is based on an R&D Project. That R&D project defines the underlying physical attributes of the product (e.g. weight, speed, etc.). More than one product can be based on a single R&D project. The cost of an R&D project will depend on the unit cost of production you wish to attain for the product, and the attribute values. The lower the target unit cost, the higher the cost of the R&D project. Before a product can be launched based on an R&D project, the R&D project must be funded and completed. The R&D project can be completed over one or several periods, and includes the upfront costs to prepare to offer a product or service to the market. (e.g. physical design, tooling required for manufacturing, systems and processes to provide a service, etc.) When a product is launched the selling price and advertising must be specified.

2.5

Advertising, Media & Awareness

Each product must be advertised so that the potential purchasers are familiar with it. Awareness is gained through Advertising each product in various Media. If insufficient money is spent on advertising, the product’s awareness will decline over time. Conversely, adding to an already high advertising budget for a product with high awareness will bring little marginal benefit. Different media vary in their importance to each segment. For example, one segment may be reached primarily by newspaper advertisements, while another may get its information mainly from the internet. Your advertising budget for a product must be allocated to the various media, depending on where your target segment(s) get their information.

2.6

Sales Force & Channels

A product is sold through direct or indirect Channels (e.g. specialty shops, direct over the internet, etc.). Each channel takes a certain sales margin which must be considered, along with the cost of manufacturing, when setting the sales price. The same channels serve both markets.

2.7

Units for Attributes

In several places in SABRE, the information presented regarding perceived product attributes is provided on a standard scale, from -25 to +25. This provides a common basis for comparing different attributes, which have very different units of measurement. It also reflects the real world challenges in understanding consumers’ perceptions of products, and the fact that there is often a difference between technical specifications and consumer perceptions.

© 2010 International Institute for Business Development Ltd. www.iibd.com +1 250-595-8440 info@iibd.com

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the selling price. 256 colors. Linear interpolation between these values is required for converting other values. and should be listed within the Start Menu | Programs. you may wish to have SABRE running using the sample data (described in the next section) so you can experiment with the features being described. and equate them to -25 and +25 respectively. 96 MB of memory.exe” (or a similar file name) and follow the instructions.8 Summary For a product to do well in a market it should: • Have Attributes that closely match the Ideal Points for one or more Segments. 2. www.0 3. To install SABRE. you may launch SABRE from the icon that is either on your desktop or in your Start Menu under “Programs”. and the margins your sales channels take. 3. • Have enough Product available to meet demand. and the non-dimensional value of +25 corresponds to 50 Watts. it almost certainly is lacking in one or more of these requirements. The minimum requirements for SABRE are: Microsoft Windows 2000 or later. For example. suppose an attribute called “Power” has a range from 10 Watts to 50 Watts. If the installer program reports “No software will be installed or removed”. 3.com +1 250-595-8440 info@iibd. The non-dimensional value of -25 corresponds to 10 Watts. which requires management of the cost of manufacturing. If your product has low market share. Once it is installed. • Have an effective Sales Force / Channel strategy. run (double-click on) the self-installing package called “sabre33xxpartic_setup. 1024x768. leading to predisposition to purchase. Furthermore. and 30MB of free disk space. that indicates that SABRE is already installed.Should you need to convert between the +/-25 non-dimensional units and the actual values. your company can only do well if your products are profitable.1 Getting Started with SABRE Installation SABRE is distributed by a self-extracting installation file. • Have good Awareness. SABRE can be uninstalled by using the Add/Remove Programs feature of the Windows Control Panel. you can use the minimum and maximum values for each attributes range. For example a “0” corresponds to 30 Watts.iibd. and “10” corresponds to 38 Watts.2 Operation Each period of the simulation is run following this sequence of steps: © 2010 International Institute for Business Development Ltd.com 5 . found in several reports. As you read through this document.

you should return to this page for further details on data files.iibd. you may click on “Use Sample Data” to become more familiar with SABRE before your simulation starts. click the white check-box. If you do not yet have a results data file from your course administrator. e-mail. 4. and distributes the results files to the teams. If your simulation does use the upload/download capabilities. including server logon information will be provided by your course administrator. in certain network implementations they may need to be different. Figure 1 Welcome Screen When you first use SABRE. The administrator writes “results” data files for each team. or via a network. The teams’ decision files are returned to the administrator.com +1 250-595-8440 info@iibd. and where it is to store the data file containing your decisions that will be returned to the administrator (“decisions”).com 6 . The simulation is run out to the next period and each company’s performance is calculated. either by a USB flash drive. In most cases these locations are the same. For some simulations you may use SABRE to directly download your results data file and upload your decisions. any previously specified results and decisions file locations will be retained. © 2010 International Institute for Business Development Ltd. Detailed instructions for upload and download. When you actually use data from your administrator. however. skip to Section 4 (“Accessing Information in SABRE”) of this document. 2. 3. To specify a different location for the decision files. The teams load the results into SABRE and enter their decisions. If you choose to use the sample data. a window similar to that shown in Figure 1 is displayed. there is a “Reset Paths” button. the files are still saved locally to enable subsequent off-line use of SABRE.1. SABRE needs to be told where the data files from the administrator (“results”) are stored on your computer. To get started. When SABRE is started. To reset them to the defaults. www.

you can switch to another tab to view or enter information.0 Accessing Market Information in SABRE Once it has read in your results files. the data file containing those decisions would be “industry_C3P4. Use Windows Explorer to navigate to either the “Application Data” folder. click on “Read Data”. If you think you have lost your decision file. SABRE defaults to a folder called “. If there are multiple simulations run in parallel. you will see that SABRE’s interface is divided into sections using tabs.com 7 . © 2010 International Institute for Business Development Ltd. so do not rename the results files.res and the decision files all end in . you should know where SABRE will be reading results from and where the decision data files should be saved. Your course administrator likely will recommend a standard location that is appropriate for your situation. a text file (.txt) containing the decision summary report is saved in the same location.Before proceeding.iibd.dec. Once you have ensured your files are in the specified location.dec). SABRE will present all the available files for you to select one. In the first period you may also be prompted for a company name.res”. you should enter a name that you want your team to be known by for the rest of the simulation. SABRE only shows the most recent period’s results file for each company to minimize the number of choices. At almost any point while using SABRE. the file names include “_C#P#”. Your administrator will provide you with your data files and a team password. (Some simulations are set up with fixed names for each team.) At this point. for example due to a faulty removable disk. The results files all end in .dec”. The “run name” forms the basis of all file names associated with the simulation. and once they have saved their period 4 decisions. In addition to the decision data file (. there is one backup location where you can go to recover it.com +1 250-595-8440 info@iibd. To distinguish between files for a particular company or period. The “_C#P#” part of the file name is used to identify the results file. 4. do not share your password with any competitors. To help avoid any confusion with data files. This text file is not used by SABRE – it is there only in case you want to quickly double-check your decision file. For example. SABRE will prompt you for your team password. www. Next. the results file for Company 3 to use when making decisions for period 4 would be “industry_C3P4. and then return to the tab you were previously viewing. each simulation may be referred to as an “industry” or “world”. If there are multiple files for different teams and/or industries in the specified results folder. It is highly recommended that you start with an empty folder that is dedicated for this purpose.. In this example the name of the simulation is “industry”. File names and locations The “Find Decision File” button on the Help tabs will locate your decision file in Windows. or the location where the SABRE executable is stored (usually C:\Program Files\IIBD\SABRE\ or similar).\My Documents\SABRE”. Every simulation has a name (or “run name”). From this location there is a folder called DecBackup where you should find a backup of your most recent decisions.

www. This is applicable to most controls in SABRE.4. and the Studies which must be purchased. Once one of the controls for the plot. market or segment has been used. 4. which are generated each period.iibd. You may also select the particular segment or market to plot using the controls on the left.Figure 2: Tabs Each of the Tabs is described in detail in the following sections.1 Standings Tab The Standings tab shows plots that compare team performance related to the other teams in the simulation.3 Results The Results tab provides access to the Reports. © 2010 International Institute for Business Development Ltd. At this point you may use the up/down arrow keys on your keyboard to scroll through the choices in that control. Further details on them are provided in Section 5. Like the Standing plots.2 Trends Tab The Trends tab shows plots of a variety of values over time for each market or segment. the plots on the Trends tab are available to all teams and do not need to be purchased. The type of plots available in the top pull-down box will vary from simulation to simulation. The report or study can be selected from the list in the left pane and it will be displayed in the right pane. a light grey box around its label will identify it as the active control.com 8 .com +1 250-595-8440 info@iibd. They are primarily for interest and are not central to the making of business decisions when running your company. Figure 3: Trends 4. 4.

the image of the current window may be captured to the clipboard by pressing <Alt>-<Print Screen>. www.iibd. The border between the report/study list and the text can be dragged left or right. print. Frequently-used reports or studies can be captured in a separate resizable window using the “Snapshot” button. As with any Windows program. Also. The “To Excel” button exports just the currently displayed report or study to Excel. please do not operate your PC during the data exchange. it will ask you to assist in finding it. or Excel 97 or later. Only the text / numeric studies are exported to Excel. There are several features that you may find useful when viewing the results tab: • • • The font size can be adjusted with the “+/-” button in the top right. The “Export all” button allows all the reports and studies to be exported to text file. re-size. There. The Conjoint and Perceptual Map studies are highly interactive and must be viewed in SABRE. Microsoft Word. When exporting data to Word it takes about 10 seconds to prepare Word for the data exchange. you may re-format. If SABRE is unable to locate Word on your computer.Figure 4: Reports & Studies The graphical studies (Perceptual Map and Conjoint Study) are accessed with the buttons in the lower left.com 9 • • • .com +1 250-595-8440 info@iibd. The image can then be pasted into any © 2010 International Institute for Business Development Ltd. This can be particularly useful if you have multiple monitors or a large monitor. or re-arrange them as you see fit.

The only way to change the file locations is from the initial “Welcome” screen. and also the BCG Portfolio plotting tool. What segments should the development efforts target? 3. How many sales people should you allocate to each channel? 2. How much should you spend on sales force training? Product Planning 1. Which products should be placed in the marketplace for sale? 2. Reports are free. www. 4. What should be the quality and quantity of advertising? 5. How should you distribute the advertising budget among the various media? 6.5 Help The Help tab contains information on file locations. but which studies should you purchase? 2. Note that you can almost always jump to another tab or window while in the middle of entering decisions. versions. In managing a company in a SABRE simulation. 5.com 10 . What characteristics will be best for the market. etc. given the trends? © 2010 International Institute for Business Development Ltd. How much product should be produced to satisfy customer demand? 3. Excel.4 Decisions All the company decisions are entered within the Decision tab. How much information is needed in order to make good decisions? R&D Projects 1. At what price will each product be sold? 4. and return to finish the data entry. The details of the Decision tab are covered in section 5.0 Making Decisions for your Company Now we can turn to the real focus of the simulation – making decisions.com +1 250-595-8440 info@iibd. 4. or a graphics program. PowerPoint. an e-mail message. How much should you invest and into which projects? 2.iibd.application such as Word. This can be used to create a custom collection of your important graphs. How and where should you best position product offerings? Market Research (Studies) 1. you are required to make decisions in four key areas: Sales Force 1.

Note that this text file is not the decision data file that the course administrator requires! The decision data file ends in “. it will default to the same values and selections as in the previous period. you can export a text “Decision Summary” that is quite useful for reviewing or sharing with teammates. If.com 11 . It will find your results data file and your decision file and ask you if you would like to re-load the decisions. click on the “Save Decisions and Exit” button.dec” as described in the side-bar in Section 3. after saving and exiting. two columns of buttons correspond to the two markets that are named above them (“Things” and “Objects” in this case). From here. you decide that you need to go back and change a decision. if given the opportunity. When you have finished making your decisions. a team name) you will be presented with the main decision panel which is shown in Figure 5. In the main menu under “Output”. you may not be able to change it. © 2010 International Institute for Business Development Ltd.iibd. click on the buttons in the “Enter Decisions” region to make decisions in each of the four key areas for each market. Figure 5: Decision Panel In the lower half.Having entered your password (and. If you do not specify a new decision on a particular issue. You can locate it with the “Find Decision File” button on the Help tab. It is important that as a team you have a system to ensure that all your decisions are recorded in the one file that is submitted. Note that once you submit your decision file to your administrator. Your administrator will advise you on the policy in place for your simulation. Each button will change color when it is clicked on. www. to help you keep track of the areas that still need your attention. start SABRE and click on the “Read Data” button.com +1 250-595-8440 info@iibd.

com +1 250-595-8440 info@iibd. white boxes require your input. and the support that it will require? Note that Report 11 “Report to Managers” provides some characteristics of each channel. You can type in the numbers in the white boxes or click on the increment/decrement arrows.1 Sales Force After clicking on a Sales Force button you can set the number of sales staff and the budget for training them. www.iibd.com 12 . so it is only the net change in staff which incurs these hiring and layoff costs. Extra costs are associated with hiring and laying-off sales people. but sales people are transferable between markets. Yellow boxes are for information display only.The following is a description of the four main decision areas: 5. or low volume per store? What does that mean in terms of the number of brands a channel will likely carry. Figure 6: Sales Force Planning In simulations in which Study 5 gives ”Channel Coverage” (which provides a product by product breakdown of coverage in each channel) there are more detailed issues that you must consider when making your sales force allocations: What is the nature of the channel – high volume per store. This color convention applies to all SABRE panels. Figure 6 shows the panel for making Sales Force decisions. © 2010 International Institute for Business Development Ltd.

The decision to remove it is final only after you submit your decisions. Doubleclicking on the product allows you to edit the parameters for that product in the panel shown in Figure 8. Should you need to remove a product from the market. pricing and advertising for each product. © 2010 International Institute for Business Development Ltd. but you will need to re-enter decisions for that product. you should review your production. In each period. Figure 7: Production Planning By selecting a product in the white box (Figure 7).2 Products Products are launched and managed from the “Production Planning” window (shown below in Figure 7) that appears when a “Products” button is clicked in the panel in Figure 5. a summary appears at the bottom.iibd. www. If you change your mind.5. There is a limit to the total number of products (across all markets) that you may have for sale at any given time. It will now appear in red in the list of products. double click on it and select “Remove From Market”. it can be returned to the market by double-clicking on it and selecting “Return To Market”. Typically it is between 5 and 10. Your course instructor will inform you of the actual limit for your simulation.com +1 250-595-8440 info@iibd.com 13 .

iibd. Over time. The cost of disposing of inventory is provided in Report 11. your team must make a trade-off between possible lost sales versus the risk of incurring inventory holding costs. and conversely. Disposal If you have inventory left from the previous period. the manufacturing operations of your company can sell the unwanted products at 70% to 90% of the cost of manufacturing. © 2010 International Institute for Business Development Ltd. If you over-produce.) Advertising The primary purpose of advertising in the simulation is to build or maintain product awareness.Figure 8: Decisions for a Product When making decisions for a product. and you do not produce any more this period. Typically it is 10% to 30% of the cost of manufacturing. awareness of a product will decline unless it is sufficiently advertised. www. Awareness will typically plateau at some level below 100%. (In other words. there are several areas that must be addressed: Production When you specify a production number. no matter how much you spend. you may dispose of some of your inventory. This would be done to reduce holding costs in future periods if you expect that your current inventory will not all be sold over the longer term. and they pass the 10% . if you under-produce. you will be left with extra product in stock to sell next period.com +1 250-595-8440 info@iibd. This is an important decision and miscalculations can be costly. you will be left with no stock and lost market share.com 14 .30% loss on to your profit center.

Recall that a product’s R&D project defines its underlying attributes. Also. you will be able to move the product a noticeable distance on the Perceptual Map. a product can be shifted to move closer to a segment’s ideal point. However you will not be able to re-position it wherever you like! Price As mentioned earlier. lower is not always better because prices that are too low are associated with low quality. The sum of the percentages directed at each medium. the more the advertising agency will try to convince customers of an increase. Advertising must be directed through the media appropriate to the target segment to be most effective. for each product. by requesting a perceptual shift and spending money on advertising.2.iibd.Advertising is more effective if a fraction of your advertising budget is spent on advertising creative design to design effective ads for your target audience. A perceptual shift does not change the importance of an attribute in the purchase decision – only the perception of a product in the eyes of the customers.com +1 250-595-8440 info@iibd. there is some uncertainty about the actual shift that will be achieved in response to the attempt to change perceptions. As in the real world. A good starting assumption is that with the maximum requested shift. the all attributes receive equal emphasis in the advertising campaign. The amount of shift that you can achieve is limited. However. With experience. but large shifts quickly become much more difficult to achieve. Furthermore. It is also very important to consider the segment ideal points.com 15 . In other words. whereas moving the slider to the left or right requests a shift with respect to that attribute.) The farther the slider is moved to the right for example. Small shifts are relatively easy to accomplish. Perceptual Shifts In some simulations. you will get a better idea of how much to move the slider for the desired effect. particularly those modeling a consumer market. A move to the right always increases the attribute's perceived value and a move to the left decreases it. © 2010 International Institute for Business Development Ltd. customer perceptions are harder to change. It does not change the product itself. The shifts requested are relative to the current perceptions. (But increases or decreases are not necessarily better! – See section 2. move the slider shown with an arrow in Figure 8 to the right or left for a particular attribute. www. and fairly low awareness. To request a perceptual shift. if the product already has high awareness. This allows you to change the way a product is seen by the market. nor does it change the ideal value for a segment – just how the purchasers perceive the product. must be 100%. so leaving the slider in the center position reinforces the current position on the Perceptual Map with respect to that attribute. advertising also has an important role in Perceptual Shifts. the margins and cost of manufacturing should be considered when setting the price.

com 16 . note also that large changes in price (+ or .iibd. and specifying a name. www. Note that new products typically suffer from low awareness. If you need to make such large changes in price. possibly even from the same R&D project. Once a product is launched. Next the usual advertising and perceptual shift data must be entered in the panel shown in Figure 8. Figure 9: Creating a New Product If you need a product with completely different attributes from what you already have. you are often better off launching another product. You will need to use perceptual shifts and/or set different prices to make them appear different to the market. Multiple products may be launched from a single R&D Project. you will first need to complete an appropriate R&D Project. and the R&D Project on which it is based in the panel shown in Figure 9. this cost of production will decrease over time with an experience curve. © 2010 International Institute for Business Development Ltd.Although the price is much more easily changed than the other attributes. Only when it is complete will you be able to launch the product.30%) are poorly received by the market. its cost of production is based on the R&D Project with which it is associated. Launching New Products The process of launching a product involves clicking on “Add New Product” in Figure 7.com +1 250-595-8440 info@iibd. and will require more advertising to get them to a level comparable to existing products. However. and using advertising to build awareness under a new name.

or launching a new product under an old name to capitalize on existing awareness of the old name. The attribute values default to the mid-point of the range for each attribute. Products may be launched only after the R&D Projects are completed. so if you need to change the price by more than about 30%. in effect the product must be removed from the market and a new product with exactly the same name is launched based on the newly completed R&D project. however. or double-click on an ongoing or new project to edit it. If a new product is launched. www. From the R&D panel (Figure 10). From the main decision panel (Figure 5). you will generally be better off building a new product name’s awareness. you may choose not to complete an R&D project. If an existing product is modified (i. or the existing product can be modified by basing it on a new R&D project. but the market’s perception of it may lag behind the actual changes in the product’s attributes. To take the latter approach (base an existing product on a new R&D project). If you have sufficient funds. click on the R&D button corresponding to the market for which the R&D project will be designed. The ongoing projects (those initiated in previous periods and not yet complete). In this case two options are available: either a new product can be launched. When you start a new R&D Project (Figure 10) it is important to be sure to set all the parameters for that project. including the unit cost and the attribute values. can only have their funding adjusted.3 Research and Development To create new products that meet the needs of the changing market.com +1 250-595-8440 info@iibd. this procedure is not recommended. you can use the button add a new project. To use an existing R&D project’s values as the defaults © 2010 International Institute for Business Development Ltd. you will need to complete R&D Projects. Re-launching Products based on a new R&D Project In some cases competition or changing needs of a segment will require modifications to a product to reduce the cost of production. This process is achieved by using the “Replace R&D” button on the right side of the window in Figure 8. 5. based on a new R&D project) it will benefit from the awareness of that product name.iibd. the market will receive a large price change poorly. you may complete the R&D in one period. R&D projects that are very similar to previously completed ones are less costly than the original R&D project. you may also fund it over several periods. it will initially have low awareness.e.com 17 . This makes possible more advanced decision-making options: fine-tuning an existing product through R&D. however.It is also important to realize that awareness is associated with the product name. In that case. If circumstances change. it can be designed to meet the required specifications and the market’s perception of it will not be affected by the older product. As mentioned earlier. or to fine tune some attributes.

com 18 .for the new project.com +1 250-595-8440 info@iibd.iibd. Figure 10: Managing R&D Projects © 2010 International Institute for Business Development Ltd. <Shift>-double-click on an existing project. www. or select an existing project and press <Shift><Enter>.

R&D will cost less. the R&D may cost more. This section briefly describes each Study. other attributes may result in a lower R&D cost if they are increased. • • 5. including: • • Unit cost of production. and explains how to design a Conjoint Study. For example. If the design values of some attributes are set higher. If you have completed R&D Projects with very similar attribute values. © 2010 International Institute for Business Development Ltd. The attribute values specified.com 19 .4 Studies For each market. the more the R&D Project will cost. Examples of Studies 1-15 are provided in Appendix A. www.Figure 11: Designing a New R&D Project There are several factors that contribute to your R&D costs. Total R&D experience. Similarity to previous R&D Projects. The panel for selecting studies is shown in Figure 12. The more R&D you have done. but would be expected to decrease if the computer were to weigh more.iibd. The lower the production cost. you may purchase Studies which will help you to understand various aspects of that market. however. the more efficient your company will be at R&D. the R&D costs for a new notebook computer would be expected to increase if the computer were to have more computing power.com +1 250-595-8440 info@iibd.

6.iibd.) 3.1. a more detailed picture of coverage in each channel is provided on a per product basis in this study. 2.g. etc. www. there are richer dynamics in the channels related to the relative sizes of the average store or outlet. This affects the ability for outlets in channels to carry a large number of brands. as customers are reluctant to buy products with which they are not familiar. In simulations with those dynamics. Purchase intent by segment Sometimes called “Preference” rather than “Purchase Intent”. Without market awareness. It should be used in conjunction with Study 6.com +1 250-595-8440 info@iibd. Effectiveness is a function of both the size. Awareness is achieved through advertising. 4. Any discrepancy between the two studies would indicate there has been a breakdown in marketing execution.com 20 . and their channel purchase preference. Market share by segment This study indicates what customers in each segment actually purchased. this study reveals purchase intentions by customers in each channel. product stocked out. based on how well a product meets their needs. based solely on how well each product’s perceived attributes match each segment’s ideal point(s). Sales force effectiveness by channel (or Channel Coverge) This study also shows the overall effectiveness of your sales force by channel. Purchase habits by channel This study shows the market channels through which each segment will purchase. This study should be used in conjunction with Study 3. and the study is called “Channel Coverage”. 5. 7. © 2010 International Institute for Business Development Ltd. Any discrepancy between the two studies would indicate there has been a breakdown in marketing execution. Market awareness This study lists each product’s market awareness for all companies. Segment media preferences This study shows the media sources from which each segment obtains information about the products. (e. products do not sell. Market Share by Segment. 8. Market share by channel This study shows how much product is actually sold through each channel. Purchase intent by channel Sometimes called “Preference” rather than “Purchase Intent”. this study shows what customers would have purchased. lack of effective sales force supporting the channels. In some simulations. and the level of training. and the level of support required by that channel. Market Share by Channel.

9. It does not mean that you should add 10 percentage points to your market share to obtain the result of the experiment! 11. while others will purchase substitutes. Note that a +10% change in demand means the demand for your product will increase by a factor of 1. Figure 12: Purchasing Studies © 2010 International Institute for Business Development Ltd. Market forecast This predicts the growth and the size of each market and each segment for the upcoming period.1.iibd. For example. Conversely. Advertising experiment This study is the same as for the Sales Force. Demand differs from market share in that it does not include the effect of you or your competitors producing too few products.com 21 . Sales force experiment This study reports the percent change in demand for all products if you were to increase your sales force by a certain factor (usually 2).com +1 250-595-8440 info@iibd. the market will grow faster than anticipated. if several products are close to the ideal points. due to the quality of the product offerings. 10. except that the Advertising budget is adjusted and the percent change in demand is reported. Market dynamics can cause significant discrepancies between predicted market size and actual market size. a product that has stocked out can slow the growth of the market as some consumers will postpone purchasing (causing pent up demand). www.

An example of the Perceptual Map is shown in Figure 13. Attribute importance by segment For each segment. so you may gauge your response accordingly. Perceptual map This study plots pairs of attributes on a perceptual map to show each product’s perceived position in the marketplace. and what each segment ideally wants. This study also includes a performance index which estimates the level of training of each competitor’s sales force. (Comparing these third party estimates of your own spending can help you assess their accuracy. 15. this study estimates the importance of each of the attributes in the purchase decision. Each attribute of each product is placed on an arbitrary scale. Competitive advertising estimates These are estimates of the competitors’ advertising levels. indicating the distribution of ideal points within the segment’s members. Product attribute perceptions Customers compare all of the products on the market to assess their similarities and differences. This data is used to determine customer perceptions of the products. The Perceptual Map will usually show a cloud of points comprising each segment.com +1 250-595-8440 info@iibd. Are your products perceived as being too fast or too slow in speed? Too high or too low in price? This study will tell you where you are positioned in the purchasers’ minds. © 2010 International Institute for Business Development Ltd. and the numbers denote the segments. this one shows estimates of what other companies are estimated to be spending on their sales force. The letters on the plot denote products. as seen by the purchasers. www.) 13. 14. 17.12. The perceptual map (Study 17) is drawn from these values.iibd. Competitive sales force estimates Like the previous study.com 22 . This information is useful to assess the significance of the distances seen in the Perceptual Map and will help identify which attributes must be correct to meet a segment’s needs. Lagging or leading in this area could mean you are investing either not enough or too much in advertising.

A plot that rises and then declines indicates that the segment ideal © 2010 International Institute for Business Development Ltd. or selecting from a set of choices.e. The plot is put on a relative scale and reflects (a) the homogeneity or distribution of the members of the segment. Your administrator may also elect to have SABRE set reasonable default levels each period. 18. Additionally. In other simulations. a red box is placed around it to flag it as off-scale. (b) the range of levels which the respondents are asked to assess. In such a study. sorting.iibd. In this plot. you are restricted to setting a single set of levels per attribute. it is pulled into range for plotting purposes to ensure it is visible.com 23 . In some simulations you are able to set the attribute levels for the study on a per-segment basis. the study is best used by designing the study to obtain information on the segment of most interest for that attribute.Figure 13: Perceptual Map If a product is out of range on the perceptual map. This study plots the relative response of each segment to different levels (i.com +1 250-595-8440 info@iibd. the market. In SABRE. attribute and period can be specified. In the latter case. www. Conjoint study SABRE presents results similar to those obtained if a sample of a population of purchasers were presented with a conjoint study. typically by scoring. values) of each attribute. Each plotted line corresponds to a segment shown in the legend. the results are presented on a per-segment basis. An example is shown in Figure 14. the participants are asked to respond to some hypothetical product offerings. and (c) the importance of that attribute in their purchase decision. The relative response to the various hypothetical products can then be interpreted to gain significant insight into the respondents’ product preferences.

Figure 14: Conjoint Study The height of the plot is a measure of (a) how close the levels were set to the middle of a segment. In some cases. or very nearly flat. (b) how important the attribute is in the purchase decision. and (c) what the lowest response was for that segment. you must set the levels for each segment while.point is somewhere in the middle of the range of levels used. The minimum and maximum responses are used to scale the final results. for others. In cases (b) and (c) above. the design of the conjoint study levels for that attribute can be improved for that segment.com 24 . In some simulations. click on the “Design Conjoint” button on the Market Studies decision panel (Figure 12). You must select levels that will elicit a wide range of responses from the respondents. this means keeping at least one of your extreme values near the boundaries or outside the segment’s distribution of preferences for that attribute. You must also set other levels that are sufficiently different so as to obtain a range of responses. This can arise if (a) the attribute has negligible importance in the purchase decision. on the Perceptual Map the cloud of points is widely spread) relative to the range of levels used in the study. As mentioned earlier. This last point is crucial to properly designing the Conjoint Study. This will bring up a panel that shows a tabular summary of your conjoint design (Figure 15).iibd. If the “Segment” box is not grayed-out. In practice. or (c) the attribute levels are so far from the ideal for that segment that the response is uniformly poor to all the attribute levels used. only one set of levels is available. However. To design a conjoint study. to design an effective conjoint study.e. you must select levels that are close enough to the segment ideal point to obtain a positive response. or (b) if the segment is highly heterogeneous in its response to that attribute (i. you must use it to set levels © 2010 International Institute for Business Development Ltd.com +1 250-595-8440 info@iibd. a rising or falling plot shows that the segments ideal point is out of the range of attribute levels used in the study. the plot is flat. www.

It will be highlighted in blue. The new levels are indicated with vertical red lines on the graph to the right. To set the levels: 1. the results are plotted for comparison. the plot on the right displays the current attribute Conjoint Results for the last period (if purchased) and a red vertical line to show the new levels being set. If you have difficulties that can not be resolved using this guide.com 25 . If available. Good luck and have fun! © 2010 International Institute for Business Development Ltd. 2.com +1 250-595-8440 info@iibd. please consult your course administrator. Click on an attribute in the main white box. If you do not set conjoint levels for a period. Use the four white boxes below to set the attribute levels. 3. the values default to those in the previous period. Repeat steps 1-3 for all attributes.iibd. While making these changes. Choose segment if enabled Choose attribute Set levels Figure 15: Designing Next Period's Conjoint Study 6. select the next segment.0 Conclusion You now have the information needed to compete and be successful in SABRE. 5. 4. If you bought the conjoint study in the previous period. either by typing in values or using the increment/decrement arrows.for each segment. and repeat steps 1-4. www.

MARKET STUDIES Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Things Y/N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y N 1269 (k$) 36 54 42 27 27 46 42 9 9 68 88 50 62 114 21 50 96 132 Objects Y/N N Y N Y Y N Y Y Y N N N N Y Y N Y N (k$) 36 56 47 27 27 49 42 9 9 78 103 62 78 156 21 50 130 141 Market Awareness Purchase Intentions by Segment (%) Market Share by Segment (%) Purch Intent by Chan Sales Force Eff by Chan Market Share by Channel (%) Segment Purchase Habits by Chan Segment Media Preferences Market Forecast Sales Force Experiment Advertising Experiment Competitive Advertising Estimates Competitive Sales Force Estimates Product Attribute Perceptions Attribute Importance by Segment Inter-market Linkage Perceptual Map Conjoint Study TOTAL EXPENDITURE ON STUDIES (k$) ____________________________________________________________________________ REPORT 2: DECISION SUMMARY .Appendix A – Sample Reports and Studies REPORT 1: DECISION SUMMARY . www.iibd.com +1 250-595-8440 info@iibd.com .SALES FORCE Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Number of Sales Personnel Channel Market: Things Market: Objects Direct 15 0 Indirect 14 0 Train.% 10 0 Expenditure Expenditure Expenditure Expenditure on on on on Training (k$) Salaries (k$) Hiring (k$) Layoffs (k$) 154 1539 21 0 1713 26 TOTAL SALES FORCE EXPENDITURES (k$) © 2010 International Institute for Business Development Ltd.

com +1 250-595-8440 info@iibd.PRODUCTION Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Products Research Project Market Sale Price ($) Production (k) Disposal (k) Creative Des(k$) Advertising (k$) Advertisement Channels NewsPap (%) Radio (%) Mags (%) Dmail (%) Internet (%) Perceptual Shifts Price Mass/Rating Perform.____________________________________________________________________________ REPORT 3: DECISION SUMMARY .iibd.0 75 0 0 800 TOTAL ADVERTISEMENT EXPENSES (k$) 1750 © 2010 International Institute for Business Development Ltd.0 120 0 100 850 Banness RProj_2 Things 525.com 27 . www./Length Size/Battery Power/Weight Speed/Ease 0 0 1 0 0 2 -4 0 4 0 0 0 12 16 35 14 23 25 10 30 5 30 Baller RProj_1 Things 490.

com 28 .com +1 250-595-8440 info@iibd.iibd. www. kg index 3-10 7-150 Project Seg4Mon Market: Objects Rating index 7-15 Project Length cm 50-95 Battery hours 1-6 Weight grams 100-900 Ease index 0-99 Unit Cost ($) Budget (k$) 5 77 Size mm 50-80 65 Power watts 15-50 30 Speed GHz 0-99 51 Unit Cost ($) 120.0 Budget (k$) 2625 TOTAL RESEARCH AND DEVELOPMENT EXPENDITURES (k$) 2625 ___________________________________________________________ SUMMARY Available Budget (k$) Committed Budget (k$) Loans (k$) Inventory Disposal (k$) TOTAL COMMITMENT (k$) 8080 7357 0 0 7357 © 2010 International Institute for Business Development Ltd.RESEARCH & DEVELOPMENT PROJECTS Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Market: Things Mass Perform.____________________________________________________________________________ REPORT 4: DECISION SUMMARY .

Inventory k Requested k Disposal k Produced k Sold k Fin.iibd.Distr Margin Sales (net) Cost of Sales Gross Profit 48053 15479 32574 15612 16962 Banness Things 43601 13985 29616 18557 11059 Total 91655 29464 62190 34169 28022 Advertising 950 800 1750 Holding Costs 63 0 63 Net Contribution 15950 10259 26209 ______________________________________________ Market Studies Research and Development Sales Force Inventory Disposal Loan Principal + Interest TOTAL NET CONTRIBUTION 1269 2625 1713 0 0 20602 BUDGET FOR NEXT PERIOD 8859 29 © 2010 International Institute for Business Development Ltd.com +1 250-595-8440 info@iibd.com . www.____________________________________________________________________________ REPORT 5: PRODUCT SALES REPORT Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Baller Things Banness Things Total Market R&D Project Retail Price $ Unit Cost $ Ini. Inventory k RProj_1 490 159 0 120 0 102 98 4 RProj_2 525 223 0 75 0 83 83 0 195 185 181 4 ____________________________________________________________________________ REPORT 6: INCOME STATEMENT (k$) Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Baller Things Gross Sales .

com +1 250-595-8440 info@iibd.____________________________________________________________________________ REPORT 7: CUMULATIVE FINANCIAL STATEMENT (k$) Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Total Sales Revenue Cost of Sales Gross Profit Less Expenses Advertising Expenses Market Studies Research and Development Sales Force Less Other Expenses Inventory Holding Costs Inventory Disposal Costs Loan Principal + Interest Total expenses TOTAL CUMULATIVE NET CONTRIBUTION 139410 81820 57590 6160 2799 2625 4303 2533 0 0 18419 85454 © 2010 International Institute for Business Development Ltd.com 30 .iibd. www.

____________________________________________________________________________ REPORT 8: RESEARCH AND DEVELOPMENT PROJECTS Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Things Successful Projects Mass Perform. kg index 3-10 7-150 RProj_1 RProj_2 Seg4Mon 6 7 5 60 70 77 Size mm 50-80 64 70 65 Power watts 15-50 45 34 30 Speed GHz 0-99 68 95 51 Unit Cost ($) 200.0 250. www.0 120.com 31 .com +1 250-595-8440 info@iibd.0 Amount Spent (k$) 1414 1191 2625 Incomplete Projects ** NOTE: Unit Manufacturing Cost Based on the Production of 100000 Units ____________________________________________________________________________ Objects Successful Projects Rating index 7-15 Length cm 50-95 Battery hours 1-6 Weight grams 100-900 Ease index 0-99 Unit Cost ($) Amount Spent (k$) Incomplete Projects ** NOTE: Unit Manufacturing Cost Based on the Production of 100000 Units ____________________________________________________________________________ © 2010 International Institute for Business Development Ltd.iibd.

iibd.com +1 250-595-8440 info@iibd.____________________________________________________________________________ REPORT 9: PRODUCT CHARACTERISTICS Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Things Mass Perform. www. kg index 3-10 7-150 Samp_T Baller Banness Elmar Caster Camst Fanatics Danil Daibi ZED Faldo Fano CoFive Gats Gamer 6 7 60 70 Size mm 50-80 64 70 Power watts 15-50 45 34 Speed GHz 0-99 68 95 Unit Cost ($) 200 250 Sales Price ($) 490 525 7 6 66 56 55 76 35 29 27 22 119 112 275 250 4 5 58 48 78 57 45 25 27 24 117 112 263 279 7 5 35 33 67 55 40 25 75 90 210 240 368 480 8 5 141 29 75 78 41 41 16 72 120 215 285 470 _________________________________________________________________________ Objects Rating index 7-15 Length cm 50-95 Battery hours 1-6 Weight grams 100-900 Ease index 0-99 Unit Cost ($) Sales Price ($) © 2010 International Institute for Business Development Ltd.com 32 .

6 % Market Share (value) TOTAL UNITS SOLD (k) 989 TOTAL MARKET VALUE (k$) 348930 ________________________________________________ Objects % Market Share (units) % Market Share (value) TOTAL UNITS SOLD (k) TOTAL MARKET VALUE (k$) 0 0 © 2010 International Institute for Business Development Ltd.4 9.com +1 250-595-8440 info@iibd. www.7 10.____________________________________________________________________________ REPORT 10: MARKET SHARE Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Things % Market Share (units) Samp_T Baller Banness Elmar Caster Camst Fanatics Danil Daibi ZED Faldo Fano CoFive Gats Gamer 7.8 8.9 8.1 8.iibd.4 13.7 5.3 7.9 10.6 10.5 14.9 10.1 11.9 10.com 33 .8 13.3 8.2 7.8 12.9 8.

.........iibd...............com +1 250-595-8440 info@iibd..... Cost to carry inventory (% of Unit Cost) ... Cost of inventory liquidation (% of Unit Cost).............____________________________________________________________________________ REPORT 11: REPORT TO MANAGERS Run Name: Sample_v31 Company: Samp_T (Company 1) Period: 2 Next Period Forecast Economic growth (%)................. Inflation (%) .....# Things Previous period This period Objects Previous period This period 25 29 Hires 0 4 Xfers 0 0 0 0 - - © 2010 International Institute for Business Development Ltd...........2 10.... Salaries (per annum) .....com 34 ........0 10.....4 3.... www...... Channel Information Direct Margin (%) Number of outlets Channel support score (0-10) (Things) Channel support score (0-10) (Objects) Indirect Margin (%) Number of outlets Channel support score (0-10) (Things) Channel support score (0-10) (Objects) 5......0 54752 30 149 7 2 35 12 8 6 Detailed Sales Force Report Tot....................................................................

5 8.6 9.79 0.5 3.69 0.76 0.76 0.80 0.80 Elmar Fanatics ZED CoFive ____________________________________________________________________________ Market Study 2: Purchase Intentions by Segment (%) Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 ____________________________________________________________________________ Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer Innovat EAdopter EMajorit 11.8 15.2 LMajor G.79 0.7 3.4 7.76 0.Consum 0.8 13.79 0.4 14.Consum 10.2 10.1 9.71 0.80 0.5 8.76 0.80 0.80 0.71 0.7 8.0 4.79 0.6 7.4 4.80 LMajor G.79 0.0 7.3 7.7 9.7 10. www.4 5.5 11.0 7.71 0.79 0.69 0.3 Elmar Fanatics ZED CoFive © 2010 International Institute for Business Development Ltd.6 11.7 21.8 9.1 9.7 12.71 0.79 0.9 7.9 10.5 7.80 0.79 0.79 0.3 6.79 0.3 9.2 6.79 0.76 0.79 0.71 0.69 0.71 0.0 Overall 11.8 7.6 10.4 7.80 0.5 4.69 0.iibd.79 0.____________________________________________________________________________ Market Study 1: Market Awareness Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer Innovat EAdopter EMajorit 0.6 8.0 8.3 13.3 18.1 10.71 0.1 8.79 0.71 0.79 0.8 9.80 0.3 15.4 10.79 0.8 16.71 0.4 20.5 10.71 0.7 8.79 0.79 0.3 16.5 8.80 0.4 9.6 14.79 0.com +1 250-595-8440 info@iibd.9 11.79 0.69 0.1 8.2 9.com 35 .

9 3.2 14.8 2.4 8.9 11.4 11.6 11.5 8.0 7.7 3.4 Total 11.3 16.7 Elmar Fanatics ZED CoFive ____________________________________________________________________________ Market Study 4: Purch Intent by Chan Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer Direct 13.3 7.6 7.0 7.4 9.7 7.5 Indirect 9.2 7.6 10. www.9 9.8 9.6 8.8 10.6 11.4 7.3 11.6 10.1 8.2 3.3 8.7 10.6 8.9 13.3 7.9 7.0 8.2 7.3 13.3 6.5 21.1 11.9 6.4 14.iibd.8 9.9 9.Consum 9.0 6.5 11.4 14.5 10.6 11.7 8.8 8.3 6.9 8.0 13.3 6.7 3.9 10.____________________________________________________________________________ Market Study 3: Market Share by Segment (%) Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer Innovat EAdopter EMajorit 10.2 7.8 13.3 36 Elmar Fanatics ZED CoFive © 2010 International Institute for Business Development Ltd.3 5.9 Total 9.0 14.2 7.0 11.9 9.3 9.7 11.1 9.7 7.0 10.9 8.6 10.9 7.8 21.com +1 250-595-8440 info@iibd.4 16.7 10.2 9.0 14.5 10.2 19.7 16.2 4.com .4 12.1 7.8 15.9 LMajor G.

72 0.78 0.53 0.____________________________________________________________________________ Market Study 5: Sales Force Eff by Chan / Channel Coverage Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 [ This section below is OPTIONAL DATA depending on the simulation design] Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer Direct 0.86 0.68 0.75 0.71 0.82 0.74 © 2010 International Institute for Business Development Ltd.49 0.59 0.57 0.66 0.56 0.60 0.82 0.54 0.75 Indirect 0.80 0.67 0.87 0.88 0.77 Elmar Fanatics ZED CoFive [This section below is STANDARD DATA] Sales Force Effectiveness by Channel Company Samp_T Elmar Fanatics ZED CoFive Direct 0.56 Indirect 0.iibd.95 0.86 0.77 0.69 0. www.com +1 250-595-8440 info@iibd.com 37 .50 0.72 0.

3 10.9 13.5 15.0 16.7 5.2 7.7 12.0 8.2 11.com +1 250-595-8440 info@iibd.com 38 .4 6.7 5.1 11.7 Elmar Fanatics ZED CoFive © 2010 International Institute for Business Development Ltd.9 8.9 9.7 10.4 14.9 7.9 8.1 8. www.2 Indirect 8.9 8.0 6.3 7.5 Total 9.2 6.3 17.3 10.____________________________________________________________________________ Market Study 6: Market Share by Channel (%) Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 ____________________________________________________________________________ Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer Direct 12.7 11.iibd.5 9.

www.com +1 250-595-8440 info@iibd.6 63.0 20.0 20.0 20.4 14.0 20.0 20.7 12.8 36.0 LMajor G.0 20.0 20.6 37.0 20.com 39 .2 62.0 20.0 20.0 20.3 72.iibd.0 20.0 20.4 27.0 20.0 20.0 20.0 20.0 20.0 20.____________________________________________________________________________ Market Study 7: Segment Purchase Habits by Chan Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 Innovat EAdopter EMajorit Purchase Habits Direct Indirect 85.Consum ____________________________________________________________________________ Market Study 8: Segment Media Preferences Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 Innovat EAdopter EMajorit Information Sources NewsPap Radio Mags Dmail Internet 20.0 20.1 LMajor G.0 20.Consum © 2010 International Institute for Business Development Ltd.9 87.0 20.0 20.0 20.

____________________________________________________________________________ Market Study 9: Market Forecast Run Name: Sample_v3 Market: Things Company: Samp_T (Company 1) Period: 2 Segment Current Units (k) 135 157 223 197 276 989 Projected Growth (%) 3 15 23 23 24 19 Projected Units (k) 139 181 275 243 343 1180 Innovat EAdopter EMajorit LMajor G. www.com 40 .com +1 250-595-8440 info@iibd. numbers reflect potential market size.Consum Total Note: In markets with no sales. © 2010 International Institute for Business Development Ltd.iibd.

iibd.com 41 .) © 2010 International Institute for Business Development Ltd.com +1 250-595-8440 info@iibd. Note that stock-outs can prevent demand from being met. if everything else including competitors' actions were held constant.Consum +22% +22% -3% -3% -3% -3% -2% -2% -3% -3% +25% +25% -1% -1% -1% -1% +0% +0% -1% -1% Total +19% +19% -2% -2% -3% -3% -4% -4% -5% -5% Elmar Fanatics ZED CoFive Percent change in demand if your Sales Force were multiplied by 2. www.____________________________________________________________________________ Market Study 10: Sales Force Experiment Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer Innovat EAdopter EMajorit +19% +19% -2% -2% -4% -4% -5% -5% -6% -6% +17% +17% -5% -5% -6% -6% -6% -6% -7% -7% +18% +18% -4% -4% -5% -5% -5% -5% -6% -6% LMajor G.0 (For example +100 means that twice as many purchasers would want to buy the product.

Consum +16% +13% -1% -1% -2% -2% -2% -2% -1% -1% +18% +15% +0% +0% -1% +0% -1% -1% +0% +0% Total +15% +12% -1% -1% -2% -2% -3% -3% -2% -2% Elmar Fanatics ZED CoFive Percent change in demand if your Advertisement expenditure were multiplied by 2.____________________________________________________________________________ Market Study 11: Advertising Experiment Run Name: Sample_v3 Market: Things Company: Samp_T (Company1)Administrator Period: 2 Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer Innovat EAdopter EMajorit +15% +12% -3% -3% -3% -3% -3% -3% -2% -2% +13% +11% -4% -4% -4% -4% -4% -4% -3% -3% +14% +11% -3% -3% -4% -4% -4% -4% -3% -3% LMajor G. www.com +1 250-595-8440 info@iibd.com 42 .) © 2010 International Institute for Business Development Ltd.iibd. if everything else including competitors' actions were held constant. Note that stock-outs can prevent demand from being met.0 (For example +100 means that twice as many purchasers would want to buy the product.

8 Note: Performance Index Range.com 43 .____________________________________________________________________________ Market Study 12: Competitive Advertising Estimates Run Name: Sample_v3 Market: Things Company: Samp_T (Company 1) Period: 2 Advertising (k$) Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer NewsPap 93 231 0 0 109 131 0 116 514 137 Radio 146 86 273 375 203 196 207 119 600 176 Mags 323 239 446 429 162 293 231 525 182 807 Dmail 107 34 696 536 299 379 217 254 629 185 Internet 256 242 0 0 56 77 0 259 193 442 Total 925 832 1415 1340 829 1076 655 1273 2118 1747 Elmar Fanatics ZED CoFive ____________________________________________________________________________ Market Study 13: Competitive Sales Force Estimates Run Name: Sample_v3 Market: Things Company: Samp_T (Company 1) Period: 2 Company Samp_T Elmar Fanatics ZED CoFive Direct Indirect 13 5 10 29 13 15 22 22 10 13 TotalPerformance Index 28 27 32 39 26 9.0 10.8 9. 0=Poor to 10=Excellent © 2010 International Institute for Business Development Ltd.iibd. www.0 9.com +1 250-595-8440 info@iibd.8 10.

92 15.57 3.com 44 .40 -0.67 8.67 Power 17.71 3. Size Power Speed -8.67 18.59 -11.58 -12.86 2. www.iibd.33 -16.00 2.43 -9.29 LMajor -9.98 -8.81 -8.95 EAdopter 3.45 -16.67 22.00 1.96 -9.02 21.87 -4.57 -10.56 -9.32 -1.57 3.57 3.51 -8.94 Elmar Fanatics ZED CoFive © 2010 International Institute for Business Development Ltd.67 21.com +1 250-595-8440 info@iibd.57 4.71 -13.33 19.71 10.14 3.25 20.57 -5.81 8.33 -19.86 -10.Consum -14.41 Mass Perform.93 -8.71 12.50 -15.58 7.29 12.71 10.57 -17.71 -10.88 EMajorit 5.92 12. -3.71 -5.33 3.00 17.55 Size -1.57 2.00 17.16 -9.14 16.36 -4.33 -16.25 7.86 -10.91 -7.85 -15.71 -10.10 -13.67 -13.78 G.41 -1.14 12.26 6.14 Speed 10.67 16.77 13.75 8.33 -16.57 -3.08 20.85 Product Values (-25 to +25) Company Samp_T Product A Baller B Banness C Caster D Camst E Danil F Daibi G Faldo H Fano I Gats J Gamer Price 5.14 19.00 8.33 -13.37 -7.88 15.____________________________________________________________________________ Market Study 14: Product Attribute Perceptions Run Name: Sample_v3 Market: Things Company: Samp_T (Company 1) Period: 2 ____________________________________________________________________________ Segment Ideal Values (-25 to +25) Innovat Price Mass Perform.17 20.14 5.30 -14.71 -3.

1 1.0 0. Size Power Speed 1.0 0.0 0.0 0.] ____________________________________________________________________________ Market Study 18 – Conjoint Study Run Name: Sample Market: Things Period: 9 A sample of the Conjoint Study is provided in Figure 14 © 2010 International Institute for Business Development Ltd. Low = 0 ____________________________________________________________________________ Market Study 17: Perceptual Map Run Name: Sample_v3 Market: Things Company: Samp_T (Company1) Period: 2 A sample of the Perceptual Map is provided in Figure 13 [Note: Perceptual Maps are provided for some or all attributes.0 0.1 1.Consum 1.9 1.9 1.com 45 .com +1 250-595-8440 info@iibd. www.0 0.0 0. depending on the simulation.iibd.0 0.0 0.0 0.____________________________________________________________________________ Market Study 15: Attribute Importance by Segment Run Name: Sample_v3 Market: Things Company: Samp_T (Company 1) Period: 2 ____________________________________________________________________________ Innovat EAdopter EMajorit Price Mass Perform.0 0.0 0.0 0.1 1.0 0.0 0.1 1.0 0.2 1.8 1.0 0.0 0.9 LMajor G.9 Note: High = 1.0 0.0 0.

Appendix B – Designing an R&D Project © 2010 International Institute for Business Development Ltd. www.com 46 .iibd.com +1 250-595-8440 info@iibd.

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