Transcript of MarketPlace Simulation
MarketPlace Simulation Antoine Martin, Corey Gomes, Gabby Paolini Jake Dinerman, Jacob Simmons Team 4: Cheetah Quarter One: Decisions Made: Textbook Concepts: * We identified that there are a lot of overlapping needs between workhorse and traveler. When reading the graphs, we noticed the needs and wants of both were at similar priorities. We chose these two segments for the wrong reasons since we thought we would be able to make one product to satisfy two needs. Our mission statement explained that we would "be the best" and focus on "high end and large markets," leading us to make decisions where we chose the best of everything causing us to dig ourselves into a financial hole. We chose to enter into Paris and New York because we assumed we would be able to compete with every other competitor in that area because our goal was to have the "ideal" products. When developing our products we thought we were meeting all the needs of our consumers by choosing exactly what the market research said. However, when doing this we did not take into consideration our finances. Leaving us completely in debt, with an emergency loan. We also made the choice to only put one of our products on the market and really focus our attention on that one product. This limited our profits and future expansion because when our one product did not "take off" we were left with nothing to back it up. We did end up with a lot of fixed assets, which we thought would help us out in the long term, however they did not. Quarter Two: Decisions Made: When we found out we had been given an emergency loan, we were genuinely confused as to why that happened. We assumed we would have been notified if we were short on money, which was a shock to us. We stuck with our goals because we still thought our initial investments would eventually earn us profit. We continued to develop fixed assets because we still assumed they would benefit us later on. We decided to open a new sales office in Brazil because we introduced a new product and anticipated more demand because of it. We introduced our second brand into the market with the hopes that this would increase our profit, however we were already so far in debt that this did not help us very much. We cashed out our entire certificate of deposit in order to start paying back our unexpected loan. We continued to spend a large portion of what finances we had left on advertising with the assumption that our products would get noticed. Textbook Concepts: Quarter 3: Decisions Made: After realizing we were not being very successful with our workhorse brand, we downgraded work horse to our second priority and increased traveler to our first priority. We introduced a new, highly competitive product into the market. We spent our finances and energy into making this product appealing to the market. We also decided to open a new sales office in Tokyo thinking we would have a bunch of sales since no other competitors were in that market. We thought the benefits would cover the cost of shutting down one sales office and reopening in this new area---it did not. Instead of shutting down Paris however, we thought it would be smarter to just take out all of our sales people and leave empty stores. We also cut our employee pay and benefits in our other locations. After viewing the results for this quarter, we did have some growth during this time. Textbook Concepts: Quarter 4: Decisions Made: We highly emphasized the new product we produced but even with that sold less than what we intended but managed to make some profit on our products. Our advertisements had been very good up until this point, however at this point in time we had a lack of funds so we had to cut back on our promotion aspect. We did much better in this quarter. Our sales increased by a substantial amount because we upgraded our best selling product and focused in on important markets. We shut down our Paris market for real because we did not want any empty stores and at the same time we increased the sales force in Brazil where we were able to sell our products efficiently. We kept the sales force salary low but expected more from them in order to get our business going upward. Textbook Concepts: Our Performance: Decisions: When looking at our decisions as a whole we did not make the smartest choices in the beginning. Not really focusing our attention on our finances in the first quarter really hurt us in the long run. From this point forward we were always in debt and had a lack of funds. However, in the last two quarters we had a better understanding of what exactly we needed to do to earn profits and we did just that. We had growth in both quarters 3 and 4 and if the simulation were to continue we believe we would continue to grow. Our Performance: Looking at Competitors: In the beginning we did not take the competitors into consideration. We believed that if we focused on our own goals, we would not need to see what they were doing. When we ended up in debt with an emergency loan, we thought it would help to see what other competitors were doing, what was working and what was not. Our competitors were doing very well in comparison to us which helped us focus more on our business, trying to catch them and make our company better. Our Performance: Textbook: Goal of Business [chp. 1]: Full transcript
our goal was to earn a profit and be the best we could be Management Functions [chp. 6]
We used the functions of management to...
These 5 different functions were used when it came to developing our product, choosing market segments, etc. Marketing Management [chp. 6]
We were responsible for managing the four 'Ps' which were product, price, placement and promotion.
Marketing Concept [chp. 11]
Idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals and find out consumer desire/fulfill needs and wants
We tried to do this when developing our product. Market Orientation [chp. 11]
We really focused our energy into market orientation and really focusing on giving the consumers exactly what they wanted, which did not work out for us the way we had hoped. Selecting a Target Market [chp. 11]
We decided to open a new sales office and target a new area to hopefully increase our sales and appeal to a new group of people. Income Statement/Balance Sheet [chp. 14]
Our entire income statement in quarter 2 was not what we would have liked it to be. Our net income was very negative and we had accumulated a lot of debt. Areas of Management [chp. 6]
The one area we needed to focus more on was finance: obtaining money needed for the successful operation of the organization and using that money in accordance with organizational goals
We had issues with our finances in quarter one and did not want that to continue Product Strategy [chp. 12]
We decided to release our second product this quarter after the product development and business analysis. We then focused our efforts into commercializing and strategically promoting this product. Selecting a Target Market [chp. 11]
We decided in this quarter to shift our focus from the work horse to the traveler and focus our attention on a different type of consumer. The 4 P's [chp. 6]
We really put a lot of our finances into promotion. We knew we needed to make out product known so we focused on that. The 4 P's [chp 6]
We also focused on place by shutting down one of our sales offices and opening a new one in a new location. Income Statement/Balance Sheet [chp. 14]
Our income sheet/balance sheet showed growth in this quarter. Although our net income was still negative, we started making progress. The 4 P's [chp. 6]
Until this quarter we focused a lot on the promotion factor. However, this quarter we could not put as much money and effort into the promotion factor due to lack of funds. Selecting a Target Market [chp. 11]
By shutting down our Paris market completely we were better able to focus our attention on the markets that were earning us profit.
Income Statement/Balance Sheet [chp. 14]
When looking at the results from this quarter we saw that our business was growing a faster rate than it had in the past. We had more profits than any other quarter and our net income is now closer to the positive range. Relating our performance back to textbook concepts is easy when looking at our product strategy, the markets we selected, our market orientation and our income/balance sheets. Our products did not help us earn profits at first but with using the market orientation effectively we were able to eventually tweak our products to what the consumers wanted. It took us a little bit of time to choose our target markets in a manner that would earn us profit but once we figured out where we wanted to focus in on we started to grow. You could see our growth on our income/balance sheets. Looking at our net income, we have been slowly growing since the first quarter and hopefully if the simulation were to continue we would continue to grow.