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Industry A – Firm 1

Industry A – Firm 1. Product 1. OOPS. Objectives. Profit maximization for the firm over the period of the game Grow sales and market share Success in making profit all 9 years and average annual growth of retail sales of 9.44%. Strategy.

rashad-adams
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Industry A – Firm 1

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  1. Industry A – Firm 1

  2. Product 1 OOPS

  3. Objectives • Profit maximization for the firm over the period of the game • Grow sales and market share • Success in making profit all 9 years and average annual growth of retail sales of 9.44%

  4. Strategy • Initially our strategy was to increase product attributes and price to appeal to creators and managers • After over differentiation of our product we decided to make a product that had a broad appeal

  5. Performance • Average annual retail sales growth of 9.44% • Industry wide average annual retail sales growth of 13.65% • Average annual net contribution growth of 26% • Average annual net profit margin of 13%

  6. Success and Failures • Our firms biggest problem was declining dealer push and brand recognition

  7. Future Strategy • To be successful in the future we need to grow “dealer push” by sales promotion and dealer satisfaction while keeping a product that is appealing across many market segments

  8. Product 2 Zapem

  9. Objectives • Our primary objective in introducing the second product was to increase net contribution for the firm, we also wanted to be the DVC market leader • Highly successful – 40% of total net contribution over last 5 years and 60% of total net contribution over last 3 years

  10. Strategies • Originally we introduced the DVC as cheaply as possible to both have our foot in the market and to steal sales from any other firm that entered the market • As time progressed we developed Zapem to be a major money maker by increasing advertising and product attributes

  11. Performance • Average annual retail sales growth of 104.88% • Average annual retail sales growth of Getem (only competitor) was 70.09% • Average annual net profit margin of 16% • Average market share ($ sales) of 76%

  12. Success and Failures • Our key to success with our DVC brand, Zapem, was our early entry into the market • High brand recognition and willingness to make large production orders also contributed to the success of Zapem

  13. Future Strategy • To ensure future success in the DVC market we should strive to create a broadly appealing product with a markup of 45% - 50% while increasing sales promotion

  14. Combined OOPS and Zapem

  15. Performance • Average combined annual retail sales growth of 14.05% • Industry wide average combined annual retail sales growth of 17.54% • Average annual net contribution growth of 41% • Average annual net profit margin of 14%

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