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Final Presentation Yogo

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Kamanasish Kundu, MBA, PMP速
Kamanasish Kundu, MBA, PMP速

The document summarizes a simulation analysis conducted by Team 5 on a new product development. It outlines their initial objectives, strategy, changes made during the simulation, competition analysis, and one firm's success factors. Graphs show forecasts of indicative variables, price vs. sales, and sales vs. profits over 8 periods. The team's advertising campaign is also summarized. Key learnings from the simulation include the importance of understanding the market prior to decisions, how the initial strategy impacts future outcomes, and how data analysis informs both present and future decisions.

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+ Simulation Analysis New Product Development Team 5 July 30, 2012
+ Agenda Market Conditions Initial Objectives and Strategy Changes Competition Firms Success in The Industry Indicative Variables Forecast Price vs. Sales Force Cost vs. Profits Forecast Advertising campaign Indicative Variables Decision Analysis Learning Takeaways
+ Market Conditions Low market barriers High customer readiness Long product life cycle Low switching costs
+ Initial Objectives Maximum Profits in the middle segment Market share within top three firms Moderate competitive pricing Achieve breakeven by the 4th period of the game Achieve cumulative breakeven by the 6th period of the game
+ Initial Strategy Purchase of Entry price of $0.45 in Test marketing market Period 2 research Advertising to $90K in Target middle market create channel segment with a first awareness and promotions for mover advantage stimulate trial period 2
+ Changes Price adjustment by a maximum limit of $0.4 Continuously monitor the performance of our competitors Calculation of next periods sales forecast using indicative variables to determine production quantity Re-allocation of advertising budget to increase initial sales and consumption rate.
+ Competition Larger firms have lesser risk taking capability. Firm 2 switched from segment 1 to 3 in the 3rd period. Firm 6 switched from segment 1 to segment 2 in the 3rd period. Firms when in their nascent formation stage are willing to take greater risk and this have a greater chance of success. Large firms are not willing to take risks since If they fail in the strategy they have a lot to lose. Profit Market share Shareholders
+ Firms success in the industry Company 2 Company 4 Company 6 Entered the third Initial strategy: wait Medium size segment creating a Competitive segment competitive advantage with Effective advantage market and combination of Small market, the competitors price, advertising volume of unit sales information and production achieved at the end Best results in its strategies of period 7 was not segment with the Leader in the enough to generate highest market segment cumulative profits share and cumulative profits
+ Indicative variables forecast 1.2 1 0.8 Availability 0.6 Initial Purchase 0.4 Repurchase rate 0.2 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 20 15 10 Consumption rate 5 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
+ Price vs. Sales Forecast Sales (units) Price (in $) Sales (units) Pr ice (in $) 6,738 0.58 0.45 4,352 0.41 0.37 3,448 0.33 0.29 0.25 2,770 0.21 1,900 1,100 2 189 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
+ Sales vs. Profits Forecast Sales vs Profits Sales (in $ 000) Profits (in $ 000) 1415 1088 1000 914 703 451 367 212 210 246 85 1 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 -49 -340 -96 -15 Initial Investment: $2,171,000 Profits: $535,000 ROI: 25%
+ Advertising Campaign
+ Advertising Campaign
+ Indicative Variables Variables are different in the After selecting a sample size data and analysis they we can analyze their buying provide to a company but habits and determine the have the same approach in important variables to determining their value. identify stand in the market. Future of the market competition also can assessed by doing this.
+ Decision Analysis Viable to observe the market and analyze the results Increase the accuracy of forecasting for the launch of product on the full scale Scope for refinement of the product prior to full scale launch Greater chances of success meeting companys objectives Reduce the investment risk
+ Learning Takeaways - Simulation Have knowledge The initial strategy Communicating Data analysis is not about the will have a huge clearly under time only related to the market, customers impact on the future pressure is the basis past and presence. needs and the of the product, the for a good Its all about the product prior to the company and its cooperation. future. decision making departments. processes. Document the Simulation reflected Constructive decision making the work of many of feedback is process in a us in the past and motivating and clear, cohesive and has shown others enlightening. understandable way. what their work might look like.
+ Learning Takeaways - Lectures Correctly assessing key factors Situation analysis Internal analysis External analysis Goals Developing marketing strategies Market expansion strategies How to utilize an information system?
+ Q&A

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Final Presentation Yogo

  • 1. + Simulation Analysis New Product Development Team 5 July 30, 2012
  • 2. + Agenda Market Conditions Initial Objectives and Strategy Changes Competition Firms Success in The Industry Indicative Variables Forecast Price vs. Sales Force Cost vs. Profits Forecast Advertising campaign Indicative Variables Decision Analysis Learning Takeaways
  • 3. + Market Conditions Low market barriers High customer readiness Long product life cycle Low switching costs
  • 4. + Initial Objectives Maximum Profits in the middle segment Market share within top three firms Moderate competitive pricing Achieve breakeven by the 4th period of the game Achieve cumulative breakeven by the 6th period of the game
  • 5. + Initial Strategy Purchase of Entry price of $0.45 in Test marketing market Period 2 research Advertising to $90K in Target middle market create channel segment with a first awareness and promotions for mover advantage stimulate trial period 2
  • 6. + Changes Price adjustment by a maximum limit of $0.4 Continuously monitor the performance of our competitors Calculation of next periods sales forecast using indicative variables to determine production quantity Re-allocation of advertising budget to increase initial sales and consumption rate.
  • 7. + Competition Larger firms have lesser risk taking capability. Firm 2 switched from segment 1 to 3 in the 3rd period. Firm 6 switched from segment 1 to segment 2 in the 3rd period. Firms when in their nascent formation stage are willing to take greater risk and this have a greater chance of success. Large firms are not willing to take risks since If they fail in the strategy they have a lot to lose. Profit Market share Shareholders
  • 8. + Firms success in the industry Company 2 Company 4 Company 6 Entered the third Initial strategy: wait Medium size segment creating a Competitive segment competitive advantage with Effective advantage market and combination of Small market, the competitors price, advertising volume of unit sales information and production achieved at the end Best results in its strategies of period 7 was not segment with the Leader in the enough to generate highest market segment cumulative profits share and cumulative profits
  • 9. + Indicative variables forecast 1.2 1 0.8 Availability 0.6 Initial Purchase 0.4 Repurchase rate 0.2 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 20 15 10 Consumption rate 5 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
  • 10. + Price vs. Sales Forecast Sales (units) Price (in $) Sales (units) Pr ice (in $) 6,738 0.58 0.45 4,352 0.41 0.37 3,448 0.33 0.29 0.25 2,770 0.21 1,900 1,100 2 189 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
  • 11. + Sales vs. Profits Forecast Sales vs Profits Sales (in $ 000) Profits (in $ 000) 1415 1088 1000 914 703 451 367 212 210 246 85 1 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 -49 -340 -96 -15 Initial Investment: $2,171,000 Profits: $535,000 ROI: 25%
  • 12. + Advertising Campaign
  • 13. + Advertising Campaign
  • 14. + Indicative Variables Variables are different in the After selecting a sample size data and analysis they we can analyze their buying provide to a company but habits and determine the have the same approach in important variables to determining their value. identify stand in the market. Future of the market competition also can assessed by doing this.
  • 15. + Decision Analysis Viable to observe the market and analyze the results Increase the accuracy of forecasting for the launch of product on the full scale Scope for refinement of the product prior to full scale launch Greater chances of success meeting companys objectives Reduce the investment risk
  • 16. + Learning Takeaways - Simulation Have knowledge The initial strategy Communicating Data analysis is not about the will have a huge clearly under time only related to the market, customers impact on the future pressure is the basis past and presence. needs and the of the product, the for a good Its all about the product prior to the company and its cooperation. future. decision making departments. processes. Document the Simulation reflected Constructive decision making the work of many of feedback is process in a us in the past and motivating and clear, cohesive and has shown others enlightening. understandable way. what their work might look like.
  • 17. + Learning Takeaways - Lectures Correctly assessing key factors Situation analysis Internal analysis External analysis Goals Developing marketing strategies Market expansion strategies How to utilize an information system?
  • 18. + Q&A