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Copy of Chester CAPSIM

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Chester CAPSIM

on 6 December 2012

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Transcript of Copy of Chester CAPSIM

Chester Staci Elliott
Joel Flores
Ceevan Sherman
Noam Steinhart Research & Development 6 year review Finance Mission Statement Maintaining a competitive advantage in all segments of the market by reducing costs in R&D, production, and material costs, allowing us to compete solely on price. Business Strategy Allowing products to drift through segments as market demands change. Broad Cost Leader- Life Cycle Focus Social Performance - Competitive salary
- 3rd highest productivity index
- Training vs. Recruiting Trends in Margin The Future... - Reposition Chili

- Launch New Product in High End Market Segment ? - Reduce R&D costs to create a competitive advantage

- Work with market demand shifts

- Release new product in High End segment every 2 years

- Total R& D costs: $11.73 M Chick Introduced Chilli Introduced Chilli Introduced Chick Introduced Initiated Pricing Strategies

- Cake: Traditional

- Cedar: Low End

- Cid: High End (reap Sales)

- Coat: Performance

- Cure: Size( reap Sales) Round 1
Marketing Most Successful Products

- Cake-1,831 units (Sold Out)

- Cedar-1,377 units( Sold out)

- Coat-423 units

Highest Contribution Margin

Launched a Chick Product

Sales Forecasts

Cumulative Profit
Goal: Increase Market Share/Survey Score

Compete on basis of price

Lowered Prices within expectations
- Cake: Traditional 14%-16%

- Cedar: Low End 17%-16%

- Cid: High End(Stocked Out)

- Coat: Performance :Decrease budget and price

- Cure: Size

- Chick: Performance: Increase Marketing Budget
Round 2
Marketing Goal: Increase Customer Awareness/Accessibility

2nd Highest Contribution Margin:42.1%

- Increased Prices on Products we were doing well and Increase Budget

- Increase/lower prices based on customer expectations/importance

- Develop Chili Product
Round 3
Marketing Round 4
Marketing Goal: Create a Competitive Advantage and Position Chili Correctly

Actions: Strategically Price according to drifts in segments

- Price Chili to do well

- Price other products below the market

- Reduced Variable Costs-labor, material

- Buy More capacity for Chili Next Round

Increase Sales Budget for every Product
Round 5
Marketing Goal: Increase Inventory Turnover

- Following in the Lines of Customer Criteria

- Change marketing Budget based on Products drifting

Decreased our inventory substantially from last round

Stocked out in Cake, Coat, Cure

All Products were very accessible

All Products are drifting properly
- Priced Chili to do very well

Priced well based on customer expectations/competitors
Goal: Successful Launch of Chili

- Sell as much as we can


- Kept prices the same overall accept Chili

- Increased Sales Forecasts

- Increased Promo Budget

- Left Sales Budget the same

- Price Chili lower within customer expectations

- Could not follow original pricing strategy
Round 6
Marketing Emergency Loan Take-Aways
Full transcript