group project
kentucky79
Practice_Marketing_Simulation_Presentation.pptxPractice Marketing Simulation
Team 1:
Ohio Dominican University
Target Audience Overview
Initial Target Audience: School Children
Largest population with room for growth
Tested audience response in practice simulation
Final simulation competition was steep
Final Target Audience: Luxury Trend Followers
Switched target audience and product
Existing Team had strong market share of customer base
Population small but competition limited
Product Design & Characteristics
Backpack for School Children
Followed customer insights closely
Focused on style preferences, function and production price
Backpack for Luxury Trend Followers
Design based on customer insights and knowledge of competition’s product
Product appeared to be direct competition to existing market products but undercut the price
Pricing Strategy
School Children
Price: $39.00
Simulation Practice
Luxury Trend Followers
Price: $89.00
Cost Leadership Strategy
Distribution Channels
School Children
Direct Distribution
Discount Retail Chain
University Store
Online Discount Retailer
Department Store
Distribution Channels
Luxury Trend Followers
Direct Distribution
High End Outdoor
Fashion Boutique
Online Discount Retailer
Department Store
Promotional Strategy
Positioning message to school children:
Initially used “fun” to target schoolchildren, and “lightweight” and “great value” to target their parents
Removed “great value” for turn 4
Positioning message to luxury trend followers:
Initially used “luxurious” and “classic”
Streamlined to “luxurious” for turn 9
Promotional Strategy
Spending on promotion
Entering into promotional agreements during practice rounds was of little benefit, money seemed better spent on advertising
No promotional agreements were employed when targeting school children
During turn 9, and in an effort to promote sales, promotional agreements were utilized with all distribution channels except for the fashion boutique
Promotional Strategy
Utilizing promotion activities was of no value
increased number of sales through some channels by 1-2%, but overall sales did not increase
Market share dropped from 14% in turn 7 to 12% in turn 8
Market share rank dropped from 3 to 4
Promotional Strategy
Current/final advertising strategy
No advertising was done during turn 10 in an effort to reduce loss, improve our profit margin, and ultimately increase our score
Key Changes
Rationale for key changes made from initial to final decisions
Initially targeted school children because it was successful in individual and group practice rounds
Changed to luxury trend followers in an effort to undercut the leading team and take their market share
Key Learnings: Timing
Timing of making changes is important
Made change from schoolchildren to luxury trend followers too late in the game
Timing of advertising
Increased advertising at wrong turns when marketing to school children
Key Learnings: Consistent Message
Marketing message needs to be clear and consistent
Making changes to message leaves you vulnerable to confused consumers
Increase spend/frequency to spread message
Focus message to target market and do not try to reach all markets
Key Learnings: Overall
Timing and Consistency are important
Right decision to change strategy, just too late
