Business Game COUNTRY: BRAZIL

Group 6
• Tran Le Anh Thuy
• Nguyen Thi Thuy Ninh
• Le Thien Phu
• Nguyen Thi Xuan Han

1
FIRM: BLUE BUDDIES

2
table of contents
6
5
LESSON LEARNT

FEEDBACK AND
VISION
4
ROUND BLUE
3 3

ROUND BLUE-2
2
ROUND BLUE-1
1

ROUND RED

content plan
Round Red: Starting point situation

With Red Box strategy, status of Blue buddies compared to 3 competitors (Shiny Station,
Purple Player and Yellow Console) at the end of year 40 with the following overview:
 Round Red: Year 41 – 43 strategy
Objective: Be the fast moving second player in value by upgrading to enhance position in 22-35 yr old segment and
accelerate gaining share in 36+ segment
Strategy: 1. Copy cat purple player’s features targeting 22-35 yr old segment. 2. Upgrade feature and price to expand
36+, & 3.Expand geographical to Starland.
Key campaigns in year 41 to year 43
Overview and Year 42 Year 43
Year 41

•Analysis of current market forces,

strengths and weaknesses: Red Box
with Mid Range console, leader on 22-35,
less R&D power than Shiny Apples and 6-
21 segment expanding rapidly
•Strategic Decision: Focus on 22-35
segment. Pursuing a volume/cost strategy
•Implementation of strategy: Invest in
Online Gaming to increase foothold in 6-21
segment while keeping good other specs
to keep 22-35 market, and have moderate
price to appeal to both aforementioned
segments
• Geographic expansion (with %
Roundland / % Starland): 100 / 20
• Apply: D. Acquisition to Access R&D
Technology
(aiming to the Round Blue with Blue
ocean strategy)
• Apply: E. New Appraisal and
Reward System for employees
(aiming to the Round Blue with Blue
ocean strategy)
• Raise audio sophistication to
cativate 36+ segment.
• Geographical expansion of with the
expanding in Starland
(with % Roundland/% Starland):
100 / 40
(make profit to invest in Blue Ocean)
• Apply F. Comprehensive New
IT System
(aiming to the Round Blue with
Blue ocean strategy)
• Geographical expansion of
with the expanding in Starland
(with % Roundland/%
Starland): 100 / 70
(make profit to invest in Blue
Ocean)
 Round Red: performance

Red box achieved objective at the end of year 43 :

Round Red: Year 41 – 43 performance
 Round Blue-1 / Year 44
Decision on Blue box choice and actual No.

Features Create Online gaming; Controller sophistication

No. of players; 3D Games
Raise Exer-Gaming
Eliminate Multimedia Add-ons

Reduce Controller Gaming; Price; Console Power

Graphic sophistication; Audio sophistication
Product Plan (KU) 800 & 79
& Unit produced (actual demand)

Marketing Budget (K$) 10,000

Price ($) 345

Geographical Expansion 100 / 10

(Roundland / Starland) (%)

Corporate Project

Feedback • Ability to control gaming habits: not meet

the expectation of market
• 3D Games: low additional value
• Price is too high
 Round Blue-1 / Year 44
Staying true to the brand territory to create differentiation and memorability

Poor result:
Actual demand: 79 KU
compared to Production plan:
800 KU

Don’t meet the expectations of

the market:
Offering features do not create Blue Round-1:
high additional value First step of Blue Ocean
Strategy
Market and target customers
do not accept the price
The price not low enough to
attract the mass of
noncustomers

Low expenditure for

marketing
Launching new product with low
cost for marketing

content plan
Round Blue-2 / Year 45
Decision on Blue box choice and actual No.
Features Create Recharge Battery
Raise Controller sophistication
Graphic sophistication;
Console Power; Online Gaming
Control Gaming
Eliminate Multimedia Add-ons
Reduce Price, Controller sophistication
No. of Player
Product Plan (KU) 500
& Unit produced (actual demand) & 422
Marketing Budget (K$) 25,000
Price ($) 299
Geographical Expansion 50 / 0
(Roundland / Starland) (%)
Corporate Project
Feedback • Number of Possible Players &
Console Power don’t meet the
expectation of the market
• Eliminated the Value Factor
"Multimedia Add-ons”: not effective
• Price: too high for target customers
Round Blue-2 / Year 46
Decision on Blue box choice and actual No.

Features Create

Raise No. of Players

Eliminate Disc Protection

Reduce

Product Plan (KU) 700

& Unit produced (actual demand) & 806

Marketing Budget (K$) 30,000

Price ($) 279

Geographical Expansion 90 / 0
(Roundland / Starland) (%)

Corporate Project
Feedback • Console Power: exceeds the
expectation of market
• Price: too high for one of group
of customers
 Round Blue-2 / Year 45-46
Staying true to the brand territory to create differentiation and memorability

Positive result:
product plan and product
produced from actual demand

Start to inline with the market

demand Blue Round-2:
Second step of
Blue Ocean Strategy

Lower price to attract target

customers

High cost for marketing

content plan
 Round Blue-3 / Year 47
Decision Blue box

Features Create
Raise Extended Warranty
Warranty Offer
Ease of repair

Eliminate Ability to swap games

Speed of providing patches
Loyal Card and Rewards
Manufacturers Insurance
Ability to buy from catalogue
Trial and Return
Local sales and service
Dedicated stores
No. of complexity of bundles

Reduce Informed salespersons

Deal and price promotion
Product Plan (KU) 1,000
& Unit produced (actual demand) & 849
Marketing Budget (K$) 35,000

Price ($) 279

Geographical Expansion 100 / 10

(Roundland/ Starland) %
Corporate Project P. Hiring Expert Trainers to Train Distributors'
Salespeople
Feedback
Round Blue-3 / Year 48
Decision Blue box

Features Create No. of complexity of bundles

Raise Ease of repair
Warranty Offer
Trial and Return
Deal and price promotion

Eliminate

Reduce

Product Plan (KU) 1,000

& Unit produced (actual & 1,101
demand)

Marketing Budget (K$) 30,000

Price ($) 265

Geographical Expansion 100 / 20

(Roundland / Starland) (%)

Corporate Project N. Radically upgrading Leadership and

Service in the Customer Contact Centre

Feedback • Trial and Return: low additional value

 Round Blue-3 / Year 49
Decision Blue box

Features Create Gaming Cafes

Friendly Salepersons

Raise Warranty offer

Eliminate

Reduce

Product Plan (KU) 1,400

& Unit produced (actual demand) & 1,461

Marketing Budget (K$) 30,000

Price ($) 259

Geographical Expansion 100 / 40

(Roundland / Starland) (%)

Corporate Project
Feedback • "(D) No. and Complexity of Bundles,
(D) Friendly Salespersons”: exceeds
the expectation of market
• (D) Deals and Price Promotions: low
value-added
Feedback & Vision
Feedback & Vision
Result at the end of year 49
Share price 1,162
index
Production The production plan is consistent with market prediction and
plan product expectations.
(1400 & 1461)
The increase of Actual demand for Blue ocean Product increases 18 times
new product compared to actual demand and produced product in Year 44
demand (1461 KU & 19 KU)

• After reviewing our share price index of 1,162, the Board

is pleased to announce that we have met investors'
expectations for growth and profitability, and have full
confidence that we will continue to find new 'Blue Ocean'
markets for driving success through value innovation.
 Lesson Learnt
• Having an accurate market research, • Creating new USP in service and
esp. on customer insights and product to leverage the differentiation
feedback is the MOST important thing in firm’s market

• Enhancing the innovation to improve • Creating new niche market to get

product quality space for expansion with high profit,
and especially without competition in
• Adjusting the service and delivery, this market
price to fit with consumer need
• Corporate projects: Focusing mainly
• Investing more for Marketing cost in on improving the quality of Human
the year 44 since it is the initial time Resources >> more benefit in long-run

• Observing competitors but not going • Make it fun and enjoy your job
after them when they upgrade their security!
features
Thank you!