Capsim Case Study
TEAM ANDREWS EXECUTIVE SUMMARY
For all the products we took into consideration the top 3 aspects that affected sales and profit. Manipulated those top 3 aspects and tried to stay as close to the "sweet spot" and revision dates as possible. Improved performance, size and increased quality, while staying within the age at revision threshold
ABLE - Traditional Segment
Marketing:For this product we already gained a significant market penetration in the first round. Therefore, we did not make any major changes to the marketing camping. Except for bringing the price down by $1
Plant Utilization: Due to a large inventory we utilized only about 10% of the 1st capacity. Anticipating using full capacity next round.
Forecasting: We anticipate that with the dropped price …show more content…
Therefore we anticipate a 5% increase in our market share.
ADAM-High Segment
Improved performance, size and quality. Increased MTBF by 10000.
Marketing: Increased marketing by 8% to deliver ~70% awareness and 60% accessibility
Plant Utilization: Used 1st and 2nd shift capacity to deliver on high demand.
Forecasting: Anticipate to maintain the current market share and sell out inventory.
AFT-Performance
No major changes. Moved along the "sweet spot" curve.
Marketing: Increased marketing by 6% to deliver ~70% awareness and 60% accessibility
Plant Utilization:Due to a small inventory used about 50% of 1st shift capacity.
Forecasting: Due to an increased marketing camping we anticipate a slight increase in our sales and predict to sell out inventory.
AGAPE-Size
No major changes. Moved along the "sweet spot" curve.
Marketing:Increased marketing by 5% to deliver ~50% awareness and 50% accessibility
Plant Utilization:Sold capacity down to 1. Did not sell down to 0 because we wanted to sell what we had on hand. Will bring it down to 0 next round
Forecasting:Anticipate to sell out inventory and get out of this
For all the products we took into consideration the top 3 aspects that affected sales and profit. Manipulated those top 3 aspects and tried to stay as close to the "sweet spot" and revision dates as possible. Improved performance, size and increased quality, while staying within the age at revision threshold
ABLE - Traditional Segment
Marketing:For this product we already gained a significant market penetration in the first round. Therefore, we did not make any major changes to the marketing camping. Except for bringing the price down by $1
Plant Utilization: Due to a large inventory we utilized only about 10% of the 1st capacity. Anticipating using full capacity next round.
Forecasting: We anticipate that with the dropped price …show more content…
Therefore we anticipate a 5% increase in our market share.
ADAM-High Segment
Improved performance, size and quality. Increased MTBF by 10000.
Marketing: Increased marketing by 8% to deliver ~70% awareness and 60% accessibility
Plant Utilization: Used 1st and 2nd shift capacity to deliver on high demand.
Forecasting: Anticipate to maintain the current market share and sell out inventory.
AFT-Performance
No major changes. Moved along the "sweet spot" curve.
Marketing: Increased marketing by 6% to deliver ~70% awareness and 60% accessibility
Plant Utilization:Due to a small inventory used about 50% of 1st shift capacity.
Forecasting: Due to an increased marketing camping we anticipate a slight increase in our sales and predict to sell out inventory.
AGAPE-Size
No major changes. Moved along the "sweet spot" curve.
Marketing:Increased marketing by 5% to deliver ~50% awareness and 50% accessibility
Plant Utilization:Sold capacity down to 1. Did not sell down to 0 because we wanted to sell what we had on hand. Will bring it down to 0 next round
Forecasting:Anticipate to sell out inventory and get out of this