URGENT! Please help with Capsim round 2 for marketing, the premise is understandable but the answers are tricky, this is round 1's answers but please help with what are rounds 2's answers should be ?

Promo Name Price Benchmark Prediction Your Forecast Sales Budget $ 1000 Gross Revenue Variable Costs Budget $ 1000 Contrib Margin 0 $ 3,836 Less Promo/Sales $ 1,836 Cake $ 28.00 1,326 0 $ 37,137 $33,302 Chairs $0.0 $ 0 $0 $ 0 0 0 $ 0 $0 $ 0 $0 Candy $0.0 $ 0 $0 0 0 $0 $0 $ 0 $ 0 NA $0.0 $ 0 $0 0 $0 $0 $0 $ 0 NA $0.0 $0 $0 0 0 $0 $ 0 $ 0 $ 0 Total $1,000 $ 1,000 1,326 0 $ 37,137 $ 33,302 $ 3,836 $ 1,836 A/R Lag (days) 30 A/P Lag (days) 0:1 ) 30 Revenue Forecast Unit Sales Forecast 40 $37,138 1.5 1,327 Low : 1002 Revenue forecast (in 000's) Unit Sales forecast (in 000's) 0.5 High: 325 0 High: 0 Chairs High: 0 Candy Cake $0 $0 Chairs Candy Marketing Margin After Marketing Cake Variable Cost Low High Ideal Spots Table 3 Ideal Spot Offsets: Customers prefer products located this distance from the center of the segment circle. Segment Low Tech High Tech Pfmn -0.0 +1.4 Size +0.0 -1.4 The information in Table 3 shows the Ideal Spot "offsets" or distances from the segment center. The ideal spot is that point where, all other things being equal, demand is highest. It is different from the segment center. Why are some ideal spots ahead of the segment centers? The segments moving. From a customer's perspective, if they buy a product at the ideal spot, it will still be a cutting edge product when it wears out. 2 Segment Sizes and Growth Rates At the beginning of the simulation, Low Tech sells more units than High Tech. Page 7 of the Foundation Fast Track, the Market Segment Report, displays total industry sales. The market segments grow at different rates. Table 4 lists the beginning segment growth rates for your industry. The growth rates might change from year to year. Check the Segment Analysis reports in the Foundation Fast Track each round for the upcoming year's growth rates. Table 4 Beginning Segment Growth Rates Segment Low Tech High Tech Growth Rate 10.0% 20.0% 3 Buying Criteria By Segment The buying criteria for each segment, in order of importance, are displayed below. See Chapter 3 of the Team Member Guide for explanations of Positioning, Age, Price and MTBF scores. Drift Rates Each year, the segments drift the length of the hypotenuse of the triangle formed by customers' desire for smaller and faster products. Table 1 Segment Circle Drift Rates: Every year, customers demand increased performance (Pfmn) and decreased size. Note that the drift rates vary for each segment. Segment Low Tech High Tech Pfmn +0.5 +0.7 Size -0.5 -0.7 Su RUCE 0.5 UNITS 0.7 UN SMED PERFORSANGE INCREASED 0.5 Us Segment Centers Table 2 Segment Centers at the End of Each Round: Size is on the vertical axis and performance (Pfmn) is on the horizontal axis. Round Low Tech Pfmn 4.8 0 Hi Tech Pfmn 6.0 6.7 7.4 1 5.3 5.8 2 Size 14.0 13.3 12.6 11.9 11.2 10.5 9.8 3 6.3 Size 15.2 14.7 14.2 13.7 13.2 12.7 12.2 11.7 11.2 8.1 4 8.8 5 6.8 7.3 7.8 6 9.5 10.2 10.9 11.6 9.1 7 8 8.3 8.8 8.4 The information in Table 2 reflects the segment centers at the end of the round. Therefore, the Round 0 positions can be seen as the Round 1 starting positions, Round 2 positions can be seen as the Round 3 starting position, etc. Each month during the simulation year, the segment drifts 1/12th of the distance from the starting position to the ending position. Size 201 Perceptual map (at end of this year) 19 18 17 16 15 Vow Tech 14 High Tech 131 12 111 101 9 8 7 6 5 4 st 3 N 2 1 Performance 10 11 12 13 14 15 16 17 18 19 20 0 2 3 4 ON 7 8 3.1 Low Tech Segment Buying Criteria (Round 0) Low Tech customers seek proven products, are indifferent to technological sophistication and are price motivated. Price, $15.00-$35.00 - importance: 41% Age, 3 years - importance: 29% MTBF, 14,000-20,000 - importance: 21% Ideal Position, performance 4.8 size 15.2 - importance: 9% Industry Conditions: Low Tech Buying Criteria POSITIONING 9% MTBF 21% PRICE 41% AGE 29% Click image to enlarge Better IIIIII Poorer Click image to enlarge Low Tech customers give higher position scores to sensors located in the center of the segment circle. The quality rating decreases the further away from the center you get. Better Poorer 0 1 2 Yen 3.2 High Tech Segment Buying Criteria (Round 0) High Tech customers seek cutting-edge technology in size/performance and new designs. Ideal Position, performance 7.4 size 12.6 - importance: 33% Age, 0 years - importance: 29% Price, $25.00-$45.00 - importance: 25% MTBF, 17,000-23,000 - importance: 13% Industry Conditions: High Tech Buying Criteria PRICE 25% MTB 13% AGE 29% POSITIONING 33% Click image to enlarge Better OIIIIIIIIIII Poorer Click image to enlarge High Tech customers demand cutting edge sensors with high performance and small size. Better Poorer 4 Projected Interest Rates Prime Interest Rate Round 1: 7.0% Promo Name Price Benchmark Prediction Your Forecast Sales Budget $ 1000 Gross Revenue Variable Costs Budget $ 1000 Contrib Margin 0 $ 3,836 Less Promo/Sales $ 1,836 Cake $ 28.00 1,326 0 $ 37,137 $33,302 Chairs $0.0 $ 0 $0 $ 0 0 0 $ 0 $0 $ 0 $0 Candy $0.0 $ 0 $0 0 0 $0 $0 $ 0 $ 0 NA $0.0 $ 0 $0 0 $0 $0 $0 $ 0 NA $0.0 $0 $0 0 0 $0 $ 0 $ 0 $ 0 Total $1,000 $ 1,000 1,326 0 $ 37,137 $ 33,302 $ 3,836 $ 1,836 A/R Lag (days) 30 A/P Lag (days) 0:1 ) 30 Revenue Forecast Unit Sales Forecast 40 $37,138 1.5 1,327 Low : 1002 Revenue forecast (in 000's) Unit Sales forecast (in 000's) 0.5 High: 325 0 High: 0 Chairs High: 0 Candy Cake $0 $0 Chairs Candy Marketing Margin After Marketing Cake Variable Cost Low High Ideal Spots Table 3 Ideal Spot Offsets: Customers prefer products located this distance from the center of the segment circle. Segment Low Tech High Tech Pfmn -0.0 +1.4 Size +0.0 -1.4 The information in Table 3 shows the Ideal Spot "offsets" or distances from the segment center. The ideal spot is that point where, all other things being equal, demand is highest. It is different from the segment center. Why are some ideal spots ahead of the segment centers? The segments moving. From a customer's perspective, if they buy a product at the ideal spot, it will still be a cutting edge product when it wears out. 2 Segment Sizes and Growth Rates At the beginning of the simulation, Low Tech sells more units than High Tech. Page 7 of the Foundation Fast Track, the Market Segment Report, displays total industry sales. The market segments grow at different rates. Table 4 lists the beginning segment growth rates for your industry. The growth rates might change from year to year. Check the Segment Analysis reports in the Foundation Fast Track each round for the upcoming year's growth rates. Table 4 Beginning Segment Growth Rates Segment Low Tech High Tech Growth Rate 10.0% 20.0% 3 Buying Criteria By Segment The buying criteria for each segment, in order of importance, are displayed below. See Chapter 3 of the Team Member Guide for explanations of Positioning, Age, Price and MTBF scores. Drift Rates Each year, the segments drift the length of the hypotenuse of the triangle formed by customers' desire for smaller and faster products. Table 1 Segment Circle Drift Rates: Every year, customers demand increased performance (Pfmn) and decreased size. Note that the drift rates vary for each segment. Segment Low Tech High Tech Pfmn +0.5 +0.7 Size -0.5 -0.7 Su RUCE 0.5 UNITS 0.7 UN SMED PERFORSANGE INCREASED 0.5 Us Segment Centers Table 2 Segment Centers at the End of Each Round: Size is on the vertical axis and performance (Pfmn) is on the horizontal axis. Round Low Tech Pfmn 4.8 0 Hi Tech Pfmn 6.0 6.7 7.4 1 5.3 5.8 2 Size 14.0 13.3 12.6 11.9 11.2 10.5 9.8 3 6.3 Size 15.2 14.7 14.2 13.7 13.2 12.7 12.2 11.7 11.2 8.1 4 8.8 5 6.8 7.3 7.8 6 9.5 10.2 10.9 11.6 9.1 7 8 8.3 8.8 8.4 The information in Table 2 reflects the segment centers at the end of the round. Therefore, the Round 0 positions can be seen as the Round 1 starting positions, Round 2 positions can be seen as the Round 3 starting position, etc. Each month during the simulation year, the segment drifts 1/12th of the distance from the starting position to the ending position. Size 201 Perceptual map (at end of this year) 19 18 17 16 15 Vow Tech 14 High Tech 131 12 111 101 9 8 7 6 5 4 st 3 N 2 1 Performance 10 11 12 13 14 15 16 17 18 19 20 0 2 3 4 ON 7 8 3.1 Low Tech Segment Buying Criteria (Round 0) Low Tech customers seek proven products, are indifferent to technological sophistication and are price motivated. Price, $15.00-$35.00 - importance: 41% Age, 3 years - importance: 29% MTBF, 14,000-20,000 - importance: 21% Ideal Position, performance 4.8 size 15.2 - importance: 9% Industry Conditions: Low Tech Buying Criteria POSITIONING 9% MTBF 21% PRICE 41% AGE 29% Click image to enlarge Better IIIIII Poorer Click image to enlarge Low Tech customers give higher position scores to sensors located in the center of the segment circle. The quality rating decreases the further away from the center you get. Better Poorer 0 1 2 Yen 3.2 High Tech Segment Buying Criteria (Round 0) High Tech customers seek cutting-edge technology in size/performance and new designs. Ideal Position, performance 7.4 size 12.6 - importance: 33% Age, 0 years - importance: 29% Price, $25.00-$45.00 - importance: 25% MTBF, 17,000-23,000 - importance: 13% Industry Conditions: High Tech Buying Criteria PRICE 25% MTB 13% AGE 29% POSITIONING 33% Click image to enlarge Better OIIIIIIIIIII Poorer Click image to enlarge High Tech customers demand cutting edge sensors with high performance and small size. Better Poorer 4 Projected Interest Rates Prime Interest Rate Round 1: 7.0%