Marketing Strategy and Analytics Simulation MKTG2005

Assignment 2 Sample

Part 1Operations

AccordingtotheMarketSharePercentagebyTotalRevenueGraph,our teamhadamedium-sized market share. We didn't have a significant market share, despite being verysimilar to Team 1 and Team 3. We didn't have a considerable market share because we sold very little product in all quarters except Q6-Q8. If we had higher product sales, we would've had a more considerable marketsharepercentage,butsincewedidn'thaveincreasedsales,we,unfortunately,hadalower marketsharepercentagethanTeam1 andTeam 2.As youcanseeonthe graph, our teamonlyhit 15.0% in market share through all the quarters, but we did improve from Q1 to Q3, which helped our company gain more profit and sales.

My understanding is that we had a number of units available in Quarters 1 and 2 based on the numbers and information on the table. We didn't sell many units in the months, which isn't ideal; wealsoendedthefourthquarterwithmoreinventorythanthepreviousthree.Inquarter8,wehad the worst performance on all inventory subjects, which isn't good, so we lost a lot of sales. In addition, I've found that ourUnits Receivedfluctuated across the quarters. I can also see that we didn't have a lot of inventory to begin with, but we had a lot of ending inventory leftover in some quarters. What we should've done in Product 1 in Region 1 is we should've sold more units in product 1, and we should've added more features because that would really increase our sales and profit.

Part2-PromotionalStrategy

Part3-MarketResearch

Since they have a higher actual demand, Team 3 has the most significant market share in my product1andregion1inquarter8.Thedemandfor Team3is$48,224,whileoursis$26,991.Also, since theirofferwascheaper thananyone else's,theyhadamuchlargermarketshare.I'mnoticing that in many companies in Q4 for P1/R1, prices and quality went up in price and quality because Co.1 was at $18.00, Co.2 was at $17.00, Co.3 at $18.45 approximately and Co.6 was at 18.50 approximately. Most of these companies are now lower than Q4 because Co.1 is now at $17.45 approximately, Co.2 is now at $17.40 approximately, we now have a new company on the map, Co.4 which, is at $17.50 approx. Co. 6 is currently at $18.00 approximately. The companies' price and quality definitely went down a bit, so their market share has gone down as well.

Part4IncomeStatement

No, ourcompanycouldnot achieveits goalsbecause COGS inQ5were$959,219,while COGSinQ8 were $246,967.65. Our company lost a significant amount of money in this quarter because we didn't have any features in product 1 inQ8 and no search engine in product1, causing our COGSto dropinprice.Furthermore,ournetmarginhasdeclinedsignificantlyintheQ8incomestatement.It increased from $633,339 in Q5 to $236,171.25 in Q8 and then rose again from $633,339 to

$236,171.25inQ8.Ourinventorycarryingcostwas$56,077inQ5and$17,222inQ8.InQ5,ournet

profit increased to $68 211, but in Q8, it fell sharply to $38,919. We've achieved some of our objectiveswithsomeofthestrategiesmentionedintheincomestatementinthetableabove.

Part5-ManagementControls

UnitContribution=SellingPriceTotalproductcostperunit

UnitContribution=$17.9$9.15

=$8.65

TotalOperatingCost=sellingandadminexpense+inventorycarryingcost

=$478,485+$17,222

TotalOperatingCost=$495,707

Break-even=TotalOperatingCost/UnitContribution

=$495,707/$26,991

=18.4unitsareneedtobreak-even.

InQuarter8,wesoldonly26,991unitsinour Product1Region1.Wedidn'thaveanystock-outsin this product and region in this quarter, but we were also left with much-ending inventory in this quarter. Also, we had many available units to be sold, yet not all of them were sold, which is why weendedupwithmuchinventoryintheend.Yes,myproductispricedcorrectlyinmyregion.The selling price we have for Product 1 and Region 1 is$16.50. It is an excellent price for Product 1 because starting with a low price can increase sales and increase profits.

Part6-Reflection

We didnot meetourforecastsbasedonthe wholecompany's performanceinMavenbecausewe had 31,565-unit revenues in Region 1 Product 1 in Q5. Although we strictly adhered to our promotional budget. We did not go over or under budget; we actually stayed at 50,000. Based on our abysmal sales in some quarters, I believe this product and area should have done well. But I'd sayI'mkindofdisappointedbecauseitmadesomeprofits,butnotenoughtoimproveor addgain to our business.

According to my product and region, we made many mistakes, like we should've invested more money in the search engine, social media, and even features into our products. If we invested more, we would be able to make more profit and gain followers with the social media background. We have had some successes as well, not just failures; we sold some units in Q1-5; also, we had many units available for sale. My tactics did reflect on my strategy because my strategy was to determine how many sales we would make and how much profit we can make for our firm. If I could start all over again, I would invest more into social media for sure, search engine well, and features because features make products attractive to retailers or wholesalers.