Report Business Game course - period 5
Period 5
1. Period analysis
Our team continued to control 3 products which are SEAM, SEED, SEHU in Sonite market, and we began to bring VENA product to Vodite market. Besides that, in period 3, we have big trouble with SEHU that is its base cost ($273) is greater than retail price ($255). That makes the profitable seriously affected.
2. Period Decision
Firstly, we modified the physical characteristics of SEHU product reasonably. We aim to the customer of Buffs segment this product.
Secondly, we try to maintain two remaining brands SEAM and SEED in Sonite market and VENA in Vodite brand
In this period, we realized that advertising plays an important role in our result, so we decided to reduce the amount of advertising from SEAM to divided split and reasonable for all three products. After editing the characteristics of SEHU, we produced 50 units and had new retail price ($407). For SEED, we reduced production planning from 200 units (period 4) to 20 units in this period, because we wanted to sell products in inventory from previous period.
In Vodite market, we produced 80 units for VENA to consider new market. VENA products tried to focus on Innovators segment because its physical characteristics which accounted for 70% customer segments appropriated customer class here.
3. Result
We captured more market share in Buffs segment of Sonite market and new Vodite market share for Innovs segment. However, we lost market share in Pros and Others segments, we also have a loan to payback , and high expenditure cost to maintain big sales forces and advertising budget.
After the 5th period, our team is in the last stand with the stock price index base 1000 is 726.
The contribution by brand in our firm is evidence that proves the bad performance of our firm. We need to change strategy to improve the performance in next period.
4. Lesson
1. Period analysis
Our team continued to control 3 products which are SEAM, SEED, SEHU in Sonite market, and we began to bring VENA product to Vodite market. Besides that, in period 3, we have big trouble with SEHU that is its base cost ($273) is greater than retail price ($255). That makes the profitable seriously affected.
2. Period Decision
Firstly, we modified the physical characteristics of SEHU product reasonably. We aim to the customer of Buffs segment this product.
Secondly, we try to maintain two remaining brands SEAM and SEED in Sonite market and VENA in Vodite brand
In this period, we realized that advertising plays an important role in our result, so we decided to reduce the amount of advertising from SEAM to divided split and reasonable for all three products. After editing the characteristics of SEHU, we produced 50 units and had new retail price ($407). For SEED, we reduced production planning from 200 units (period 4) to 20 units in this period, because we wanted to sell products in inventory from previous period.
In Vodite market, we produced 80 units for VENA to consider new market. VENA products tried to focus on Innovators segment because its physical characteristics which accounted for 70% customer segments appropriated customer class here.
3. Result
We captured more market share in Buffs segment of Sonite market and new Vodite market share for Innovs segment. However, we lost market share in Pros and Others segments, we also have a loan to payback , and high expenditure cost to maintain big sales forces and advertising budget.
After the 5th period, our team is in the last stand with the stock price index base 1000 is 726.
The contribution by brand in our firm is evidence that proves the bad performance of our firm. We need to change strategy to improve the performance in next period.
4. Lesson