Running head: SIMULATION EXPERIENCE

Analysis paper

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Analysis Paper

Section 1: Introduction

The simulation encompassed developing of the business of the Allstar Brands in the

emerging markets of Argentina and the BRIC nations, that is, Brazil, Russia, India, and China.

However, the first priority was to develop the Allstar Brands in Argentina. Previously, the

business activities of the Allstar Brands only happened within North America, Western Europe,

and Australian markets. However, these markets are mature and experiencing lots of

competition. Further, the population of countries falling in this region is growing slowly and

comprises the aging group. Therefore, the decision to develop business activities was driven by

the need to generate the necessary growth for driving the stock price of Allstar Brands.

Consequently, the basis of the plan of this strategy was regional markets. Argentina took

precedence in consideration.

Section 2: Experience

In the process of making our marketing decisions, we considered six factors. These

factors included the method of market entry, the distribution method, the product to engage in,

methods of carrying out advertising, the production, and the plant.

Market entry

We decided to choose on the Foreign Direct Investment (FDI) mode of entering into the

Argentina market. The foreign direct investment involved directly owning the facilities such as

production and distribution channels in Argentina. Therefore, we transferred resources including

technology, personnel, and capital to Argentina. This mode of entry was made to materialize
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through the acquisition of another company that was existing already in Argentina. This mode of

entry into the Argentine market gave us a higher degree of controlling the business operations.

Further, it enabled us to have an in-depth knowledge of the competitive environment as well as

the consumers.

Distribution method

After considering factors such as the need of the end-users of the Allstar Brand products,

how the end-users would like to buy the products, natural partners, minimizing pricing conflicts,

and driving revenue through the channel, we opted for the wholesalers and distributors for the

circulation of our products through the market. This method is laudable since it only required us

to deliver our products to one central location. Therefore, it was the work of the wholesalers to

ensure distribution and invoicing of the customers. On the other hand, the distributors were

instrumental in the marketing side of the equation. They mostly handled the sales side.

Therefore, the placing of the markup on the products was left up to them.

Advertising methods

On advertisement, we chose on using television and radio stations to help spread

awareness on our products across the Argentine populace. This decision was as a result of the

fact that there exists about 2 dozen television and hundreds of the radio stations across

Argentina. The advertisement was made in such a way that every resident of Argentina

understood it. Therefore, there was the translation of the adverts into all languages in use within

Argentina including Spanish, English, Italian, French, Germany, and the indigenous ones. In so

doing, we made voice ads to accomplish our advertisement need. Further, we also chose on using

billboards in addition to television and radio platforms for advertisement.

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Production

We chose to carry out our production activities from within Argentina. The decision

came after adopting the Foreign Direct Investment as the method of entering the Argentine

market. This mode of production was vital in avoiding several expenses that would otherwise

have accompanied other methods such as importation that would have attracted high taxation

dues across borders. This method of production also provided an opportunity for us to engage in

the production of almost every product of the Allstar Brand products.

Some of the Argentine data that worked to influence our decision to venture into the

country are outlined below:

Demographic data

Argentina has a population of 43, 024, 374 people as per the year 2014. The majority of

this people, 79.5 percent, are youthful with a high buying capacity. About 11.4 percent fall in the

55 to 64 years bracket. The rest are elderly. Therefore, it implies that the consumer capacity of

Argentina is vibrant. Most of this population resides within the major urban areas including

Buenos Aires, Cordoba, Mendoza, Rosario, and San Miguel de Tucuman. In addition, the rate of

growth of this population is estimated to be at 0.95 percent and a birthrate of 16.88 births per

every 1,000 population. Hence, there is still capacity to increase the population, hence the

consumption capacity.

Economic data

The Gross Domestic Product (GDP) of Argentina stands at US$771 billion. The official

exchange rate of the GDP is US$484.6 billion while the GDP growth rate stands at 3.5 percent.
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The per capita income of Argentina is US$ 17,900. Hence, there is hope for high willingness to

spend. Looking at the composition of the Argentine GDP, service commands the highest chunk

at 61 percent followed by industry at 29.7 percent and lastly agriculture at 9.3 percent.

Therefore, our decision to establish a manufacturing plant in Argentina is likely to thrive.

In this processing of working on the decision-making process of the simulation, we were

in a group of 10 students and an instructor. The instructor was helpful in areas that were a bit

more technical and we were insufficient in the area of their knowledge and skills. Therefore, he

helped us to navigate such scenarios. However, the ten of us, students, did the most of work.

In our simulation, as we moved from round to round, we gave a lot of attention to pricing

and promotion. On pricing, we sought to know the pricing of both the substitute and complement

products to ours that existed in these foreign markets. Thereafter, we set the prices of our

products in a way that it falls within the imaginable margins. The reason for concentrating on the

pricing of our products was the need to create a situation where the potential customers either

shy away from our products due to high prices or develop doubt concerning their genuineness

due to low prices. Further, we sought to study the markets to understand the best method of

promotion that was most appropriate for adopting. This meant that we were to study the social

life of the people in these two different regions.

In the process of gathering relevant information for the various decisions we made, we

used various materials. Some of these materials included scholarly websites, our class textbooks,

and simulation reports on the case of Argentina. However, the main source of our information

came from the online books and websites.

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One major setback in the process of simulation was the difficulties we encountered in

navigating through the simulation program. This was because all of us were new to this

simulation software. The only help came from the instructor who was not always available.

Therefore, it meant that we take longer than we had expected. However, irrespective of the delay

we were able to find the relevant results to what our expectations were.

Section 3: Examine

Learning outcome 1: Marketing Knowledge

One major marketing concept that became very apparent in the course of the simulation

was optimal pricing (Ottman, 2017). This concept involves arriving at a price that guarantees

largest gross profit as opposed to most sales volume, profit margin, or total revenue. This

concept became more real when we were trying to set our prices in a manner that they resonate

well with the customers and at the same time assure the profitability.

However, generally, there were various concepts that helped us to realize our goal. Apart

from optimal pricing, some of these concepts included product development, promotion,

distribution, customer care, and public relations (Royle & Laing, 2014). Product development

was essential in helping us come up with a unique benefit as well as unique features. Hence, the

customers were eased to identify with our products. Further, effective distribution was of great

help in understanding the best way to reach our potential customers. Therefore, we juggled

between using wholesaling, retailing, distributing, sales representative, among other methods at

various levels where we felt relevant. The concept of promotion also did not fail. It was relevant

in helping us on the best ways to reach our potential customers with the information concerning
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our products. Lastly, the concepts of customer care and public relations helped us in creating a

good rapport between the public and the Allstar Brands.

Change is always necessary and important, especially if it leads to a greater benefit. For

us case, it was inevitable. We started the simulation with very little understanding of what it

entails. Therefore, this meant that our speed was slow and we could only simulate to a limited

extent. However, after the instructor gave us a few instructions on what were the expectations

from us, we changed the tactic of doing our simulation. Consequently, our speed increased too.

The concepts learned in class and read in the textbook will forever remain fairy tales until

when put into practice. From the simulation, I came to learn that there is a huge gap between

learning and reading concepts and applying them to the real-life situation. This because in the

application of the concepts, one gets to learn more than what is gained in classes and through

textbooks. If I get the opportunity to tell others of the reality in the place of market, I will let

them know what awaits them. I will seek to expose to them the whole difference in the

application of the concepts learned in class. There are chances, and I know I will let this known

to many.

From what I had heard the teacher and senior student tell us about the simulation

software, the expectations of my mind were to find an easy-to-use program. My view was that all

I had to do is just to type a few data and wait for the reaction after some time. However, this was

not the entire truth. I was shocked when I found out that among a group of ten students none of

us could manage to move beyond a certain stage. Though simulation is easy, it only becomes

easy after a little time of exposition to it.

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From the experience gained through simulation, there was one major thing that stood out:

marketing requires active participation and interaction with both fellow workers and potential

customers. Interacting with the fellow workers helps one to get an opportunity to assess his or

her strengths and weaknesses through their comments. On the contrary, interacting with the

public provides a perfect platform for a person to active put his or her skills to use. These facts

are true to both international and domestic marketing. In my career, I intend to create a rapport

with my fellow workers as well as the good professional relationship with the public, who also

constitute the potential customers.

Learning outcome 2: Marketing Skills

The main goal of the simulation was to try to find out the optimal price that can function

both in Latin America and in Asia for the same product and guarantee a profit from both

markets. We set a specific price for several of our products and tried to investigate whether these

prices were viable. The realization of this goal was not successful. The different prevailing factor

in the two markets could not provide a common price for the same product that could at the same

time result in profit.

In the attempt to arrive at our goal, we employed various skills. One major skill that stood

out encompassed making of advertising billboards and audio ads (Ottman, 2017). We formed

these feature in a manner that they were appealing both in visual and in audio. Therefore, the

potential customers could interact with them without experiencing boredom easily. These

billboards and audio ads were of great help in helping to attract large chunks of customers.

Therefore, the more the number of people that saw and heard the adverts of our products, the

more we made the sales.

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One assumption that we had put in our mind was that the simulation program was an

easy-to-use platform. However, it turned out that this program, though easy after some exposure

to it, one could not use it from the beginning without someone with prior expertise to help

navigate through several of its icons. Therefore, this reality hit us and we had to seek help from

the director. Therefore, in addition to advertising through billboards and audio ads, we employed

the knowledge about the consumer behavior to help reconcile our assumptions to the reality on

the ground. Such consumer behaviors that became of interest included their response towards

adverts and entry of a new substitute or complement product or even company into the market.

Simulation is of great benefit in helping the student get in touch with the virtual reality of

his or her subject of study. However, it also has challenges of ascertaining whether the results

obtained guarantee reality. Therefore, for this simulation to be more viable there should be

provisions for showing how the results that emerge from the simulation vary from the reality on

the ground. This will help one to adjust his assumptions to what he expects after undertaking

simulation. The task was a both easy and difficult. It was difficult in the initial stages since we

only had superficial knowledge concerning simulation. However, it became easy after we had

had an exposition to the simulation program through the help of our instructor. Lastly, in the

process of accomplishing our goal, we only sought the help of our instructor. We did not hire an

extra person.

Other thoughts

Indeed this was an awesome experience. It made me appreciate the relevance and the

scope of my course in marketing. Therefore, it made me develop such a strong desire to increase

my knowledge in the marketing knowledge and skills and their application in the market.
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Further, this experience will truly affect my future career and education. I intend to apply

simulation throughout my career life. This has the potential of simplifying tasks that may seem

difficult.

One of the knowledge that stood out in this simulation process was that the people have a

great significance in the process of accomplishing goals in life. Therefore, the art of establishing

a relationship, both with the customers and the workmates, affects the achievement of the goals.

Therefore, one has to seek to be in a good relationship with all people while maintaining high

standards of ethics.

For continued commitment to this task of simulation, we decided that we would split our

group into more manageable groups of two. At this level, we will ensure that our personal

computers have this simulation programs and, therefore, we will handle various tasks and make a

comparison at the larger group level. The tasks will be made available on weekly basis. Hence,

this continued plan will help us to acquaint ourselves fully with this program and identify areas

where we still have difficulties.

Section 4: Articulate Learning

One thing that caught my mind is that there exist differences between doing business

from a local setting and from an international platform. Due to this difference, there is a demand

to adjust the approach that one uses to the demands of the market. For instance, doing market in

a foreign market there are high chances of experiencing hostilities from the local competitors

within that region. Therefore, one has to use a lot of money in advertising in order to curb the

competition. This reality hit my mind through the adverts and audio ads we used to reach out to

our potential customers. We had to use many of these platforms since only a few were proving to
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be futile. Therefore, this learning-by-doing process was such a great instrument for gaining an

enormous understanding of the class materials.

Simulation is a great way of learning that should gain a great deal of appreciation in

learning institutions. This program helped me to develop a great knowledge in the use of a

computer for marketing and business promotion purposes. I learned how to make advertisement

ads for digital platforms. This proficiency will be a backbone when the time comes for me to join

the career. It is true that the business world is continuously becoming digital every other day.

Therefore, this skill will be of great relevance in my practice.

The skills and knowledge about the simulation that I gained for the first time of using this

program were enormous. However, I still understand that there are other in-depth things I have

not yet captured. Therefore, with an opportunity to use simulation again, I will improve my

advertising skills to reach out to more customers. Further, I would recommend that the

simulation program should be made in such a way that there exist a means of harmonizing the

results obtained with the reality of the situation on the ground. This will be of great benefit in

helping to reduce the amount of money used in studying the market dynamics.
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References

Bourreau, M., Sun, Y., & Verboven, F. (2018). Market Entry, Fighting Brands and Tacit

Collusion: The Case of the French Mobile Telecommunications Market (No. 12866).

CEPR Discussion Papers.

Furtado, C. (2018). Economic Development of Latin America. In Promise Of Development (pp.

124-148). Routledge.

Gereffi, G., & Wyman, D. L. (Eds.). (2014). Manufacturing miracles: paths of industrialization

in Latin America and East Asia. Princeton University Press.

Ottman, J. (2017). The new rules of green marketing: Strategies, tools, and inspiration for

sustainable branding. Routledge.

Royle, J., & Laing, A. (2014). The digital marketing skills gap: Developing a Digital Marketer

Model for the communication industries. International Journal of Information

Management, 34(2), 65-73.