SBU 220 45 Marketing Management

New Shoes Simulation Final Presentation

Roadrunner: Alex Clark, Tyler Neely, Bobbi McVay, Cristina Zorrilla,Hannah Kennedy

The team selected a name, product design, and marketing plan. Each team member
came up with rationale for decisions made throughout the simulation. The marketing
plan began with the product design.

Goal for the New Shoes Simulation to have a cumulative net profit of 35%, cumulative
Return on Sales at 35%, and Cumulative market share of 30% (see figure 1.1)

Measure Result

Cumulative Net Profit 35%

Cumulative Return on Sales 35%
Cumulative Market Share 30%
Total 100%

Figure 1.1
Decision 1

Decided to increase product development in order to produce a higher quality shoe. The
marketing mix planning began with product development to bring profitable customer
relationships through trust of a quality product (Armstrong, p.203). We were given the
role of designing a new product, while adhering to the marketing strategies following the
4 P’s of marketing. The product, price, promotion, and place were all evaluated during
this decision 1. After the product was developed, we began to evaluate our price which
needed to cover the production of the quality shoe we developed. We started at the
price of $110.00 for the Home market which was an increase of $20.00 from our start-up
decision. Advertising was increased by 500,000, and we spent 500,000 more in
consumer promotions to launch our product.

Special Decision

Roadrunner decided to expand into the Domestic Market during. The information
provided through SIMs was evaluated, stating customers prefer high quality athletic
shoes. We decided to reduce the price for shoes as domestic customers are not willing
to pay as much as home market customers. We focused on pricing and promotions for
this decision. We cut back on our advertising, promotions, and sales staff in this market.

Summary of Results

Measure Result

Cumulative Net Profit -26.2%

Cumulative Return on Sales -26.2%
Cumulative Market Share 11%
Total - 41 %

Figure 1.2
 Figure 1.3

Decision 2

We continued to analyze the current situation of the company’s new product, determine
what our major problems were and where we had the most opportunity.

Decision 3

Decision 4

Decision 5

Decision 6
References:

Armstrong, G., Kotler, P., & Opresnik, M.O. (2020). Marketing: An introduction. Harlow:
Pearson.