BUSI

GAM
NESS
E 1
Performance Analysis

Game Strategy

Decision making Process

Lessons Earned

2
1 PERFORMANCE ANALYSIS

3
Stock

4
Market Share

Leading both markets, in a total of 54.8% market

share 5
2 Game S t r a t e g y

6
General Strategy
o Focus differentiation:
Each brand focuses 100% on one segment
Eliminate the Buffs, just focus on Singles, Hi-earners,
Pros, Others and Vodie market
Conduct R&D at the right time to improve the
products
o Have to be the first mover to Vodie market
o Ready to change
o Spend all the money in beginning to advertising
get brand awareness

7
3 Decision-making p r o c e s s

8
 Period 1
1. Analysis

o Cash is very important

o Use all of the budget to gain competitive advantages
o SAMA & SALT already met the needs of Singles & High
earners Focus on them

SAMA focuses on single&other whereas SALT

focuses on Hi and Pro
o Prepare to the R&D project in P2 in order to be the first
team
to meet the needs of Others & Pro 9
 Period 1
2. Decision Making
o No R&D in P1
o Marketing mix
Production: based on market forecast, purchase intention
&
market share
Pricing: Based on conjoint analysis and perceptual map
Advertising: One brand for one segment
Advertising research: 10% of ads
1
0
1
1
o Market research: Purchased all studies.
o Sales forces: Based on shopping habits
study

1
2
Period 3.
1 Results

1
3
1
4
1

Over
1300

1
5
Period 2
1.
Analysis

No team
dominated Pros 1
6
1 : 6 : 1 : 1 :
1
1 7
o Have enough cash to R&D vodite
o R&D for Vodite costly reduce budget for
R&D for
Sonite
o Decide to go to Pros & Others in future
o Gain more market share
o Gain more cash
o Increase stock

1
8
 Period 2
2. Decision Making
o R&D projects
PSYG1 to improve SYGU and reduce cost
PSYOT to introduce new product for others
PVY11: new Vodite products
o Continously increase
Production
Ads budget & ads research
Sales forces
o Perceptual objective: Power and Price (numbers
based on Semantic Analysis)
o Price: based on Semantic 1
9
Period 2 decisions

2
0
 Period 2
3. Results
o More market share!
o PVY11 completed!
o R&D projects for Sonite hadnt been completed
(not
enough needed budget)
o Stock increased!
o More cash than others

2
1
2
2
Competitiv
e
Period 3
1.
Analysis

2
4
oStrateg
y
Release product for Pros to restrain budget of other
teams

Use money to boost sales and market shares.

2
5
 Period 3
2. Decision Making

o R&D
PSYG1: for singles, improve and reduce
cost
PSYTO: new products for others

PSYPO: new product for Pros

2
6
 Period 3
2. Decision Making

o Brand Portfolio
SYGU: Singles

SYCA: High-earner

SYPO: new products for Pros ( based on same

project with SYCA )
VYTO: first mover in Vodite market
2
7
 Period 3
2. Decision Making

o Realize that we dont need all the research

studies
Buy just what we need
o Continuously increase
Production
Advertising and advertising research
Sales forces 2
8
2
9
 Period 3
3. Results

o Gain more market share: SYGU,SYCA

o Dominate Vodie market: VYTO
o Cannibalization: SYPO and SYCA (based on the
same
project)
o But SYPO gain brand awareness
o Completed all R&D projects
o Stock 382
increased! 5 3
0
Period 4

3
1
R&D for
Vodite 3
2
o War against team E in segment Pros to keep
them busy
o VYTO targeted to Early Adapters and
Followers (high potential growth)
o Need money to maintain growth take
loan
o More market share
o Keep competitors busy in Pros and Others
o Dominate Singles, Hieaners, Vodite
3
3
 Period 4
2. Decision Making

o R&D

PSYC1 to improve SYCA for

High-earners

PVY22 to reduce base-cost

3
4
 Period 4
2. Decision
Making

o Increase
Production

Ads & Ads research

Sales

3
5
Period 4
3.
Results

3
6
o Good products
o Strategy go well
o More market
o share
Stock increased (well it always
increased!!)
o Technical problems-we couldnt take loan
1 vodite R&D project incompledted
Lower brand awareness
3
7
 Period 5

o Game will be played until

Period 8

o Period 7 has the special

event

o Growth too fast ?

4
0
 Period 5
1. Analysis

o We controlled Sonite, but did not control

Vodite

o Team I was rising in Vodite

o Not enough money for WAR

o Decide to take loan - 10mil

3
9
 Period 5
2. Decision Making

o R&D

PSYG2 for Singles

PVY12 : reduce cost of Vodie

products

4
0
Brand
portfolio

SYGU: SYCA:
Singles HiEarners
SYPO: SYOO:
Pros Others

VYTO:
Followers
VYAD:
4
Adapters 1
o Marketing mix

4
2
 Period 5
3. Results

Capture more market share in Singles and

Others, Vodite
Market share decreased in Pros and Others

Have a big loan to payback

However, stock increased

Total expenditure was too
high

4
3
4
4
o Net contribution 119,640 --> Budget
35,450
o Net contribution 581,770 --> Budget
35,450

4
5
 Period 6
o We have to pay the loan of 10mil
o Manage many Brands expense too much
o Period 7 is very important Bonus based on % stock
raise
o Our Brands for Pros and Others did not work well
o Our sale forces expenditure seemed to be too high
o Vodie market grow too fast and very potential we have
to control it

4
6
Period 6
1.
Analysis

4
9
5
0
 HIG
H

Is product (Followers) is better than us, the only problem is their pricing 5
2
 5
The lost sales of our Brands opportunity for other 3
Brand Awareness of I and U in
Followers
segment were not high

5
1
 Period 6
2. Decision-
making
Open 3 new brands in Vodie
Focus all Vodie Brands on
o Focus on Vodie Followers
Withdraw the Others
o Give up the Sonite market Reduce the volume of Singles,
Hiearners, Pros
o Win the Bonus in Period 7 Not purchase any Sonite research

Keep the Stock rise slightly in P.6

&
Have needed things to win the Bonus in
P.7 5
2
Our decisions
Sonite Reduce the
market production
keep the Stock
o
lw

5
3
Our decisions Gan
i the
Vodie Brand
market Awareness

5
4
Period 6
3.
Results

Higher than what we 5

5
 Ov
950
er

We got the o Each Brand can produce maxm i um 2000K

ADVANTAGE products
o The Folowerssize rises significantly 5
9
 Period 7
1. Analysis

o The Vodie Analysis Tools have not worked well yet

Other teams would have the problems like us in R&D
o We get the advantages in Vodie market
dominate other teams
o Vodie market size would be over 12000 in Period 8 & we
can run
maximum 5 brands
come back to the
Sonite market

6
9
 Period 7
2. Decision-
o Come back to Sonite
making market
o Limited budget we
could
not spend more

Buy 4 studies for the Sonite market: Consumer survey, Consumer panel, Semantic
Scale and Market forecast
5
8
 For Vodie

In good situation, 5 Brands with the total of

we can get 90% 7500
6000<our sales<9000
market share
5
9
Period 7
3. Domn i ated the Vode
i market
Come back and gain ~1/4
Results Sonite

Team O earn the benefit of our scarification in Sonite 6

market 3
 Period 7
3. Results

o Rank second in the events, got extra

money

o A lot of lost sales in Sonite, if we

produced more, maybe we will win since

almost money team O gained from

Singles

6
4
4 LESSONS EARNED

6
2
 1. First mover into Vodie market
experience
o Lower cost for R&D
o Dominate the market with large shares gain more budget
o Know the market better than others (not sure since we didnt know whether other
teams can see the Vodie studies or not)
o Vodie market is very potential, the market size would be larger than Sonite in
few periods
o In Vodie, focus 100% on Followers, this segment will account to over 95% of
the
market. So, dont waste money on other segments
o The forecast of Vodie is not accurate at some first few periods. In our
course, from P3
to P6, the actual market size always > forecast one plan your production
wisely
o The estimate tool could not be used in first 2 periods and even when it began
working, the accuracy is not good if your product is worse than others: can use 6
3
 2. Set up objective and strategy
experience

o Always try to satisfy the customers, but, do it wisely

o The objective and strategy should cover at least 2 following periods think
about long term, not short term
o Be proactive and flexible Foresee the trend and dare to change
o Think about the milestones of the game ( P1,2,6 and 8) to get the right
strategy
o Sacrifice is needed if you want to earn more (P6)

6
4
 3. Budget experience

o The key factor of success

o It has the upper limit if you run a big business like us, your job is not easy
o In this game, we:
Spend all the money in first, second periods gain more market share, contribution and
lessen the budget of others we have enough money to R&D Vodie, etc while others can
not
Spend all the money in other periods caused we have to run a very big business
o Tips:
Ads is needed, spend more and earn more, but when you control the segment, 2500-3000
is enough
The longer the game is, the more expensive the R&D would be R&D for 2 or 3
period in the
future. If we in P3, we would R&D for P5 or P6
Allocate sale force effectively, at the beginning, for 100K products we used 10 people, at
the end, for 100k products we used 3 people, and they still did the job well
Use the loan at right time could give you a big advantage
6
5
4. Number setting technique experience

o For production plan, you have +/- 20% automatic adjustment use it
o Price & Perceptual Objective : use the semantic scale or MDS, but use the next
period forecasted number
o You can set the price lower than base cost as long as it larger than the transfer
cost
o For the sales force, use shopping habit as a tool to allocate, but, adjust the
percentage
to next period by yourself since the number you got is the current one
o R&D: use the analysis tools to get the characteristics of project, however, should
take a
look at the numbers and self adjust them, dont believe the program 100%

P P9: 56-21-
P7 23
8

9
0
 6. Other experiences

o For each market, your firm can only manage 5 brands, each brand produce a maximum
of 2000k products (can auto-adjust to 2400)
o For each market, the maximum you can produce is 12000
o Good product is the key factor to increase market share, not the ads
o Your can take advantage of ads in special way: open a brand based on old R&D project
with a low production (50-100K) and a high ads gain brand awareness. Then when
the project complete, you modify that brand with new characteristics
o Buy the studies effectively, at the beginning, you should buy all of them to get a broad
view, but in next periods, you can eliminate some of them.
o For us: Benchmarking, Consumer survey, Consumer panel, Market forecast and one
analysis tools (Semantic scale or MDS) are required. The conjoint analysis you just need
it one time. The others do not add much values

6
7
 And more
important
o The leader has advantages, but those could not ensure a victory always
try your best and be careful

o Other teams can catch up the leader, in 2-3 last periods, many teams have
the maximum-same budget, event the leader Spend money in smart way
and make the different

6
8
WHY Y WIN

?
Team Y
took it
more
serious
1
Read the book
Practice File
Learning curve
2 Foc
us

I fear not the man who has

practiced 10,000 kicks once,
but I fear the man who has
practiced one kick 10,000
times.
2 Foc
us

Well, One brand is for

just One
segment
3 Be
Innovativ
e
 Be
Innovativ
e
I
mean
R&D
Leader heavy R&D,
just a bit
marketing & ads
Follower Heavy
advertising,
somewhat R&D
Few
R&D

are falling
behind?
4 Dare to
Risk
5 Be Flexible
THANK
YOU
for your listening

10
8