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    Simulation Analysis: Did You Meet Your SMART Objective? Why or Why Not?

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    Bùi Thanh Sang
    The student's team changed their target customer from school students to outdoor enthusiasts for their backpack product in the simulation. This required changing the product features, pricing, distribution, and promotions strategy. While revenue and sales increased with the new strategy, they did not meet their goals for net profit, revenue, market share or return on marketing. To improve their performance, the student says they should have set a higher price while still being affordable, advertised more broadly including social media, and produced a higher quality product.

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    Simulation Analysis: Did You Meet Your SMART Objective? Why or Why Not?

    Uploaded by

    Bùi Thanh Sang
    550 views3 pages
    The student's team changed their target customer from school students to outdoor enthusiasts for their backpack product in the simulation. This required changing the product features, pricing, distribution, and promotions strategy. While revenue and sales increased with the new strategy, they did not meet their goals for net profit, revenue, market share or return on marketing. To improve their performance, the student says they should have set a higher price while still being affordable, advertised more broadly including social media, and produced a higher quality product.

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    Simulation Analysis

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    The student's team changed their target customer from school students to outdoor enthusiasts for their backpack product in the simulation. This required changing the product features, pricing, distribution, and promotions strategy. While revenue and sales increased with the new strategy, they did not meet their goals for net profit, revenue, market share or return on marketing. To improve their performance, the student says they should have set a higher price while still being affordable, advertised more broadly including social media, and produced a higher quality product.

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    Download as docx, pdf, or txt
    550 views3 pages

    Simulation Analysis: Did You Meet Your SMART Objective? Why or Why Not?

    Uploaded by

    Bùi Thanh Sang
    The student's team changed their target customer from school students to outdoor enthusiasts for their backpack product in the simulation. This required changing the product features, pricing, distribution, and promotions strategy. While revenue and sales increased with the new strategy, they did not meet their goals for net profit, revenue, market share or return on marketing. To improve their performance, the student says they should have set a higher price while still being affordable, advertised more broadly including social media, and produced a higher quality product.

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    Simulation Analysis

    Did you meet your SMART objective? Why or why not?


    In the competition game, we built backpack for outdoor enthusiastic.
    Generally, we meet our SMART objective. In term of specific measurable,
    attainable marketing goal, we plan to make the most attractive and high-quality
    backpack and get more monthly profit in simulation strategy and we got it as
    result. We got many positive feedbacks from customers. We created exactly the
    kind of outdoor backpack which has many of the special features customers are
    looking for. Our customers also love the color and size of this pack. The reason
    why our customers are highly satisfied with our product are the following designs.
    We’ve adopted the Large rectangular backpack as it has a quite a large capacity
    and helps create enough comfort for the outdoor enthusiast. We’ve chosen the
    Wide-padded because it creates enough durability and comfort for the outdoor
    enthusiast, and provides a more cost-effective approach than Wide + Chest or the
    Advanced support straps. Outdoor enthusiasts are more concerned with the
    capacity and water proof of the backpack, rather than comfort and durability.
    We’ve added features such as a water bottle holder to allow the travelers to grab
    water at their convenience, waterproof material to help protect the backpack
    from weather related issues. We avoided a GPS tracker in our backpack because it
    is too costly for our price. We chose advanced material as the material for our
    backpack which offers excellent durability with its synthetic coating and also
    provides enhanced waterproofing. As for color, we chose green to promote and
    relate to the outdoor enthusiast. The green color provides camouflage and
    symbolizes the outdoors.
    However, we cannot meet realistic marketing goal for our product. We aim
    to increase sales rather than making more profit, but we did not achieve both
    revenue and sales. We need to increase net profit by 10%, but we were able to
    increase the net profit by 4%. We only sold 13,580 units compared to total market
    size of 37,146. In this turn, the total production cost of backpack is $44. This is
    very efficient in comparison with the demands of an outdoor enthusiast.
    Everything is provided, and we save production costs by avoiding extra benefits
    such as a GPS system and advanced support straps. We have decided to price our
    backpack at $105 as the average an outdoor enthusiast spends is $90 on a
    backpack. This provides a $61 margin per unit cost, but it still did not bring much
    revenue for our business. About distribution strategy, we decided to distribute
    our backpacks directly, with a $5 discount due to %0 distributer cut. We also
    decided to distribute a High End Outdoor store, similarly giving a $5 discount.
    Distributing at High End Outdoor Stores with a $5 discount can be efficient as it
    promotes purchases in the most customer reaching area, and only takes a %35
    distributor cut. We will also distribute through Department stores and Online
    Discount Retailers to spread the likeliness of customers discovering and
    purchasing our backpacks. We will not offer a discount in Department stores and
    Online Discount Retailers as they take a larger distributer cut. This is an effective
    distribution strategy, but it did not bring a large number of customers. It may be
    because we advertised ineffectively. We only chose to advertise in TV: Wilderness
    Cable Network (twice times in 30 second spots), Print: Outdoor Adventure
    Magazine (once time in full page ads) and Internet: Online News (twice times in
    Large Banner Ads) with a communicating message of Peak performance, safe and
    lightweight. This message just reached about a small number of 672 units of the
    total demographic reach (110 of school children, 104 of University students, 153
    of urban computers, 190 outdoor enthusiasts and 115 of luxury trend followers).

    Did you change your strategy? Why or why not?


    In previous simulation strategy plan, we chose school student for our
    customer target. However, when we run game, we changed our target customer
    to outdoor enthusiasts. That is the reason we had to change almost product
    features, pricing strategy, distribution decisions as well as promotions. Because
    we cannot achieve net profit, revenue, market share and return on marketing for
    school student’s backpack, so we decided to make new strategy for outdoor
    enthusiast customers. After that we got more revenue and sales, which helps us
    get higher score in total.

    What do you think you could have or should have done to


    perform better in the simulation?
    To get better score in the simulation, we should make more effective
    strategy, especially pricing strategy and promotions. We should set higher price,
    which helps us get higher revenue but it is still in customer’s budgets. Besides, we
    need to make advertising strategy more effectively. We should advertise to many
    other channels, which helps us gain more customers and sales. We should
    increase advertising on social media, such as Instagram, Facebook, where we can
    meet many customers from many different ages. Also, people are updating news
    on social networks with a very high frequency. Advertisement on these channels
    will increase a large number of customers who know about our products.
    Nevertheless, we have to create products with higher quality and more
    professional. With these strategies, we believe that we can attract a number of
    customers and make more revenue.

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