group project
kentucky79
MBA_620_Presentation.pptxTeam 3: EastWest Practice Marketing Simulation
Results
Target Audience
#1: Outdoor Enthusiasts
#2: Urban Commuters
#3: Luxury Trendfollowers
#4: University Students
#5: School Children
Most Profitable Segments
Consideration of Other Markets
After our initial target (outdoor enthusiast) we sought to get our products in the hands of Urban Commuter, Luxury Trend Followers and University Students. We were most interested in the Luxury Trend Followers market but we could not get the returns that we anticipated.
Product Characteristics
Rationale?
Fit with audience?
Changes?
Features
Experimented with different features to appeal to our audience
Water bottle, water proofing,
Experimented with a solar device to make it more eco friendly
Added a designer tag to appeal to the Luxury Trend Followers during the practice rounds
Pricing Strategy
Undercut our main competitor
Keep high enough to make a substantial profit
8
Distribution Strategy
Primary channel = High End Outdoor
Goal = distribute through as many channels as possible
Challenges = making a profit in all of the channels
9
Promotional Strategy
Positioning message
Tough
Peak Performance
Spending
MDF
Discounts
Advertising
TV: Wilderness Network
Radio: Top 40
Print: Newspaper
Internet: Online News
Effectiveness?
MDF and Discounts
Goal = increase the number of units sold in each channel
Strategy = invest as much MDF as possible
Challenges = maintaining a reasonable profit margin
Key Changes Made
Key = Consistency
Slow and steady investment in MDF
Price - $89 $92 in 8th round
Goal = increase net profit
Make up for increased spending in MDF
Key Learnings
Production costs
High production costs
Make competing on a price platform more difficult
Market appeal
Customer satisfaction score: 20
Helpful to broaden backpack for larger appeal
Key Learnings Continued
Marketing
Pain point for our team
We did not seem to be reaching our target market
Competitors
Important to monitor competitors
Stay confident in our own marketing decisions
Conclusion
Finished in 2nd place
Overall our strategy was consistent
ROM and net profit is where we struggled
Costs offset our profits
