MARK112

THE MARKETING GAME – FINAL PRESENTATION & REPORT

5. Business review; performance analysis – rationales behind successes (or failures)

Our company did a pretty good work at the beginning. (Introduction stage -growth stage)

We originally targeted the segments of assistants and managers. At the first period, our market share was the second large. As the game moves on, we are able to sustain the satisfactory performance and even become the best performer of three segments.

During the period, our success can be attributed to the following reasons:

*Smart brand name
Xact - have meaning of "exact ", and "take action " which leave prospective customers a positive impression that our product are of high quality, accurate and we are willing to take action and be innovative.

*Appropriate features
Special commands, ease of learning, error protection. We do not give the best but give what is regarded as enough and the most suitable to our targeted segments. It is because we realize that improvement of the product itself probably pushing up price. It is not desirable and not necessary as long as the features are adequate.

*Relative reasonable price
We aware that our market share in dollars is relatively lower then the market share in units sold. It reveals that our product is set at a relativity lower level, not in the absolute dollar sense, but in the sense of considering all aspects of the product as a whole.

*Increases in expense on advertising, consumer service and commission, and sale rep.
In response to the increasing demand for our product, we order more inventories and employ more sale rep. We also use advertisement to ensure increased order can be sold out. Increase in commission can motivates sale persons to do better. Positive effect is witnessed.

*Good estimation of sale distribution of the two channels
As game move on we see the trend that channel 2 can sell more products, require less prepurchase help, and products should be lower in price.
We correspondingly assign suitable price, intensity of dealers, etc.

*Spend on research as need
We buy research which give useful information to us but skip research which give information which can be estimated.
It helps us effectively use our limited budget.

We experience a drastic downturn in Product 1 after we open a new product line. (Decline stage)

As we forecast the segments of our original targeted market would be situated and there would be little potential growth and as we consider our previous performance was pretty well, we decided to produce a new product which possesses fewer features which appeal to lower end users like students, parents and home users.

During the period, our failure can be attributed to the following reasons:

*Use the same name as the original products
We pay little attention at that time. Only at the following decision node, we realize that we had overlooked this little stuff.
But we did not make any change since the mistake has been already made and people already accept the new products in market named as Xact.
We think it's a mistake because product 1 and 2 are targeting two completely different market, higher end user and lower end user. The former one emphasizes on high quality while the later one emphasis on the economies. So creating the new product name as the same name would dilute the unique and high quality image among existing core segment.

*Wrong expectation of the demand from new target market.
The growth of demand for the new products is not as high as we expect.
So, we have unsold product 2 while we could have been sell more product 1 if we have ordered more.

Product 1 was under stock while there are many unsold product 2.
After knowing the situation, we try to improve our performance by following (boost)

*Paying more attention at Product 1 to recapture the accessible market.

*To Improve the features of Product 2, so that both product having the same name Xact, although targeting at difference level of end users, they would equivalently have a similar image among competitors. So, although Xact produce lower feature product, it don't give image of inferior and destroy the whole brand.

*Pay more on advertising
We observe that we left behind the competitor mainly because of our shorting of advertisement.
By many times our advertising expense was cut because budget had been exceeded. So at the last decision node, we spend more on advertising

6. Key learning experiences

For the game:

*Careful introduction of new product
While we are still doing well in the original product, do not develop a new product, which is still uncertain in market, at the expense of the original one. Only use extra money to introduce the new product. Otherwise, not only the new product line couldn't work, the original one will be ruined. Replacement made only after we are sure the new line is secure enough.

*We should save budget as reserve for later use.

*Suitable type and appropriate amount of advertisement, consumer service and sales force is essential.

*Always observe how competitors do and forecast how they are going to do and put them under consideration when we make our own decision.
　

For personal development:

*We learnt to collect ideas from individual, and through synergy and compromise, come up with final decision

*We learnt to review and evaluate our performance and give corresponding response to the market.

*We have an overall picture in our mind that how a market is like.

*We not only apply concept learnt from Mark112 but also can use our own measure which we think is suitable to cope with the situation in the virtual market.