Simulation Game

Simulation Game Assignment / Rubric

Strategy

Target Market

Selection of target market is always a key to company’s success. The choices they make defines the entire process. As a manager, I had to think a lot before choosing the target market. I really looked at the demographics each segment has before choosing my target market as school children. I particularly felt this segment gives me an extra cushion as I can pull some university students in my sales. I also want to mention the segment size of 35000 for school students with a growth rate of 1% is always a win – win if we can match the consumer's needs and price range. In one of the practice tutorials, I have tried with outdoor enthusiasts but the end of the year sales was not as I expected. So I thought it is safe to choose school children. Now that I have a target segment let's move to price.

Product

For the product, I choose a rounded top model. I have replaced thin spaghetti straps with basic, keeping in mind the segment I choose, I have added a cartoon graphic and a water bottle. With most of the school children's preference as blue/red, I went on to choose my backpack color as red. With all set, I was ready with my price.

Price

With the average price for the target segment given as $24, we have to make sure we don't over price the backpack. So I have selected a price range of $29 - $30 for my turns, with an initial profit of $16 and $15.

Place

Now that I am all set, I have to find a place to sell my backpack. I have initially reached a distribution deal with Direct, followed by the university store, discount retail chain, and online discount retailer in my turn 1. I almost used the same strategy in turn 2 but ended my distribution deal with direct. No change in turn 3. In my last turn, I have again started sales promotion with direct and distribution deal with university store.

Promotion

When it comes to promotion we have to make sure it hits the right segment with proper message. I choose fun, great value, and funky as my positioning message, then for the media part I have adverts running in a comic book and cartoon channel. This campaign helped me reach my target audience which in turn helped the sales of the backpack.