Competitive Group 10

Marketing
Swathi M G 0152/56
Strategy Ansh Arora 0169/56
with Snehal Shinde 0224/56
Simulation Apoorva Bansal 0258/56
Harsha Vardhan 0369/56
Strategy followed and related tactics
deployed
• Spent the entire budget in the beginning periods. In the later periods, the budget will be determined by the performance in
the previous round, and budget surpluses will carry over into the next period.

• Focused on ideal points in the Semantic Scales chart. These points moved each period, so tracked them and forecasted
them when building new base projects in R&D.

• Every period when advertising the brands, we set perceptual objectives for two characteristics in either the semantic
scales or multidimensional scaling to try and bring our brand closer to that point.

• The beginning periods were all about gaining market share for us. 

• Using market research reports. There’s a lot of data, so we spent the first period familiarizing ourselves with each report to
know what to look for moving forward.

• We spent at least 15% of our advertising budget per brand on advertising research.

• We out-spent our competitors in the advertising and commercial team. In the early periods (when brand awareness is low)
advertising seemed to be a little more important, but as the game moved forward it became evident that having a higher
commercial team helped to increase our sales and net contribution. We paid attention to our Experiments report to see
where we should be spending more money.
Adjustments made as per changes in the
environment
Adjusted advertising spend and
Product Innovations and R&D the commercial team spends
done to keep the products based on competitor actions.
relevant to the customer This was achieved by studying
demands, especially in the
the Experiments’ data.
Vodite segment

Also adjusted commercial Adjusting production,

team allocation based on marketing spends and
varying strata of consumer innovation according to
segmentation. research reports
 Key Learning Points from Round 6-8

● It is better to set perceptual objectives based on multidimensional scaling rather than semantic scales.
This is because multidimensional scaling enables you to target 2-3 product characteristics at once
despite the fact that setting perceptual objectives using semantic scaling is much more accurate.
● With almost at par advertising spend in the later rounds, market share depends on the right
communication message (advertising research) and competent commercial team.
● It is also necessary to also allocate your commercial team basis the fraction of a particular segment
visiting a particular type of store (specialty, mass, or online)
● With our first Vodite product observing a slight decline in market share over subsequent rounds, due to
competitors trying to grossly undercut our prices, we decided to launch a new product in the same
segment with a slightly lower price. This resulted in boosted market share in the Followers segment while
maintaining earlier levels of market share in the other 2 segments (Innovators and Adopters)
 Plan for the future

● Withdraw products with a low brand contribution, in this case from the Savers
segment, from the market (product LOCK). This is to divert expenses in improving the
features and specifications of other products with respect to market demands as
authorised budget becomes a problem with higher number of products.
● Try to maintain the position of the market leader in the segments we are already
leading
● If possible, cut down on expenses not worth fighting for. For example, cut down on
market studies which you can eyeball, and try to figure out what is the exact required
strength of the commercial team.
● The market demand in specifications moves much more quickly in Vodites. So, try to
R&D vodite products as soon as possible.
 Revenue and Market Share Trends

Revenue kept on increasing steadily from We observed an increase in market share from
Period 6-8. Period 6-8. Then we observed a little drop in
Period 5 due to inventory generation which in
turn was due to heavy R&D in Period 4.
 Share Price Index Evolution

Share Price Index (evaluation metric) also kept on increasing steadily from
Period 6-8 and further increase is quite likely given competitors are facing
stagnation at the same stage.
 KPIs Analysis

With significant expenses already incurred in the previous rounds, all the required brands
launched, and no heavy expenses in the foreseeable future, there is a very good chance of
observing leaps and bounds increase in the top and bottom line.
 Distribution KPIs

Distribution KPIs for

• Coverage was almost stagnant from period 6 to 8
• Commercial cost has seen a constant increase
• Commercial cost (% Rev) has seen a constant decrease
• Lost sales percentage increased to 33.8 in period 6 but decreased
 Production KPIs

Production KPIs for

• Units Sold and production were constantly increasing for the entire time
• Inventory and Inv. Holding cost is decreasing for period 7 and 8
• Lost sales and Inv. Disposal losses have increased in period 6 but decreasing afterwards