Marketing Simulation: Minnesota Micromotors

DashBoard for 2012 Q3 :

Marketshare:

Large Customers

Segment A : Down 1.2%

Segment B : Down 0.2%

Segment C: Down 0.1%

Segment D : Down 0.1%

Small Customers

Segment : Down 0.3%

Segment Share: MM large Customer 8% - Competitor 92%

MM small Customer 11% - Competitor 11%

Quarterly revenue: Large Customer: $2,164,190

Small Customer: $864,475

Unit Sales: Large Customer: 17,354

Small Customer: 6,918

MM profit Margin: 7% Average Prices: $124.96 Spending on Features: Thermal Resistance : $60.000

Net Price 2012 Q3: Segment A $125 - Competitor $115 Segment B $131 - Competitor $120 Segment C $136 - Competitor $126

Segment D $119 - Competitor $110 Segment Small Customers $132 - Competitor $122

Customer purchase 2012 Q3: Large customer Unit per sales = 17,354 - Small customer Unit per sales = 6,918

Segment A = 8,121 , Segment B = 1,871 , Segment C = 1,609 , Segment D = 5,808

Sales 2012 Q3: Large Customer : News = 8,884 , existing = 8,470

Small Customer : News = 1,285 , existing = 5,633

Income Statement 2012 Q3: $ Volume

Revenue from Large Customers=$2,164,190

Revenue from Small Customers=$864,475

Total Revenue=$3,028,665

Cost of Goods Sold=$1,891,960

Gross Margin=$1,136,705S

G&A Expense=$630,000

R&D Expense=$120,000

Marketing Research Expenditures=$50,000

Other Operating Expense$=$130,421

Total Operating Expense=$930,421

Net Income=$206,284

Cumulative Profit=0

Per Unit 2012 Q3:

Revenue from Large Customers=$124.71

Revenue from Small Customers=$124.96

Total Revenue=$124.78

Cost of Goods Sold=$77.95

Gross Margin=$46.83S

G&A Expense=$25.96

R&D Expense=$4.94

Marketing Research Expenditures=$2.06

Other Operating Expense=$5.37

Total Operating Expense=$38.33

Net Income=$8.50

Cumulative Profit=$0.00

Percentage 2012 Q3:

Revenue from Large Customers=71.5%

Revenue from Small Customers=28.5%

Total Revenue1=100.0%

Cost of Goods Sold=62.5%

Gross Margin=37.5%

SG&A Expense=20.8%

R&D Expense3=4.0%

Marketing Research Expenditures=1.7%

Other Operating Expense=4.3%

Total Operating Expense=30.7%

Net Income=6.8%

Cumulative Profit=0%

Gross Margin Detail 2012 Q3:

Segment A=$381,799

Segment B=$95,723

Segment C=$93,902

Segment D=$240,048

Small Customers=$325,233

Market Research 2012 Q3:

Power-to-Size Ratio / Thermal Resistance:

Large Customer: Segment A 19% - Competitor 81%

Segment B 4% - Competitor 96%

Segment C 4% - Competitor 96%

Segment D 7% - Competitor 93%

Small Customer 12%- Competitor 88%

Power-to-Size Ratio / Price:

Large Customer: Segment A 19% - Competitor 81%

Segment B 4% - Competitor 96%

Segment C 4% - Competitor 96%

Segment D 7% - Competitor 93%

Small Customer 12%- Competitor 88%

Thermal Resistance / Price:

Large Customer: Segment A 19% - Competitor 81%

Segment B 4% - Competitor 96%

Segment C 4% - Competitor 96%

Segment D 7% - Competitor 93%

Small Customer 12%- Competitor 88%

View DATA

Large Customer: Power-to-Size Ratio: Desired: A=19.19, B= 14.14, C=20.20, D=13

Actual:16.08

Thermal Resistance: Desired: A=121.20, B= 161.60, C=151.50, D=115

Actual:125.16

Price: Desired/Actual: A=126/125, B=132/131, C=165/136, D=83/119

Small Customer:Power-to-Size Ratio:Desired: 13 , Actual: 16.08

Thermal Resistance: Desired: 115 , Actual: 125.16

Price: Desired: 92, Actual: 132

Product performance 2012 Q3: Power-to-Size Ratio : 16.08 - Competitor : 15.30

Thermal Resistance: 145.12 - Competitor : 125.16

Customer Satisfaction: Segment A : Satisfied - Segment B: Dissatisfied - Segment C: Satisfied - Segment D: dissatisfied - Small Customer: Very Satisfied

Sales Force Report: A 25% good, B 25% good, C 25% good, D 25% good

DECISION FOR 2012 Q4, 2013 Q1 Q2 Q3 Q4; 2014 Q1 Q2 Q3 Q4; 2015 Q1 Q2 Q3 Q4:

List Price= ? ($142)

Distributor Discounts= ? (12%)

Large Customer Discounts

Segment A Discounts = ? (12%)

Segment B Discounts= ? (8%)

Segment C Discounts= ? (4%)

Segment D Discounts= ? (16%)

Sales Force Emphasis Allocation by Segment :

A = ?% ,B = ?% ,C = ?% ,D = ?%

Total Budget = 800,000

Sales Budget:

Next Quarter's Sales Force=? ( 11 - $550,000 )

Spending on Large Customers=? ( 50% - $250,000 )

Spending on Small Customers=? ( 50% - $250,000 )

Spending to Retain Large Customers=? ( 50% - $135,000 )

Spending to Acquire Large Customers=? ( 50% - $135,000 )

Marketing Budget:

Integrated Marketing Communications and Training=? ( $80,000 )

Spending on Market Research = 50,000 ( Yes/No ) ?

Product Development:

Power-to-Size Ratio Feature Spending =? ( $60,000 )

Manufacturing Efficiency Improvement=? ( $0 )

Thermal Resistance Feature Spending=? ( $60,000 )