Dos and Donts in Markstrat

7/25/2019 Dos and Donts in Markstrat

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Dos and Donts in Markstrat:

Read the manual: even though it is long, and tedious. IT IS THE BEST GUIDE to

SUCESS.

Make an e!el sheet to kee" all the data a#out the !om"etito$s. This %ill hel" &ou anal&'e

and "$edi!t %hat the !om"etito$s a$e u" to.

Be the (i$st one in the )odite ma$ket. Do not #e a($aid that &ou$ "$odu!t %on*t #e good

enough. +ou !an al%a&s !hange it late$ th$ough RD. Consume$*s a%a$eness and"e$!e"tions a$e the most im"o$tant (a!to$s to gain the ma$ket sha$e in the )odite ma$ket.

Use &ou$ $esou$!es: talk to the "$o(esso$ ea$l& in the "e$iod, o$ othe$s %ho al$ead& "la&ed

this game.

Continuall& have RD to im"$ove the "$odu!ts #e!ause the -RDUCT /I0E C+C/E in

Ma$kst$at is $eal.

1 "$odu!t should onl& ta$get one segment. T$&ing to ta$get mo$e segments %ith one

"$odu!ts %ill #e the disadvantage (o$ the long $un.

Take a $isk. Don*t #e a($aid to take sho$t te$m losses (o$ long te$m gains. Be !$eative #ut

sma$t a#out &ou$ de!ision.

Make su$e that &ou have enough mone& to kee" &ou$ "$odu!t in the "o$t(olio

!om"etitivel&. Too man& "$odu!ts %ithout management %ill de!$ease the ma$ket sha$e inthe long $un.

Ma" out &ou$ team de!isions. 2no% %h& &ou a$e doing %hat &ou doing, have data, and

num#e$s to su""o$t it. Do not go %ith 3I think %e should4. That*s vague and dange$ous.

-e$(o$man!es in the late$ "e$iods dete$mine &ou$ %in o$ loss, so do not get too

!om(o$ta#le %ith the initial su!!ess.

-eo"le said #u& all the $e"o$ts. But I think it is $edundant. 1 !ou"le o( $esea$!h $e"o$ts I

suggest #u&ing a$e:

o Indust$& #en!hma$king: &ou %ill #e a#le to see %hat othe$ teams s"end on RD,

thus "$edi!t thei$ net ste"s.

o Ma$ket Re"o$t: sho%s ho% mu!h "$odu!t did othe$ teams sold, thei$ "$i!es, and

#ased !osts

o Consume$ -anel: sho%s the ma$ket sha$e ea!h "$odu!t gains in ea!h segment.


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o Dist$i#ution -anel: ma$ket sha$e "e$ dist$i#ution !hannel. This %ill hel" to

allo!ate the !omme$!ial team

o Semanti! S!ales: B$and "e$!e"tions, im"o$tant !ha$a!te$isti!s that !onsume$s

%ant.

o Ma$ket 0o$e!ast: Hel"s &ou !al!ulate "$odu!tion "lan. 5 I %ill have mo$e detail

on ho% to !al!ulate this net #log6

o Com"etitive adve$tising and !om"etitive !omme$!ial teams: sho%s ho% mu!h

!om"etito$s s"end on these t%o !atego$ies. Hel" &ou dete$mine ho% mu!h &oushould s"end to gain mo$e ma$ket sha$e.

How to calculate opportunity cost inMarkstrat?

7h& do %e %ant to !al!ulate the !ost "e$ "$odu!t8

7e %ant to kno% ho% mu!h do %e lost #& not "$odu!ing enough. This %ill hel" &ou$ $e"o$t to#e mo$e !lea$ and !on!ise %ith num#e$s and data. This %ill not #e hel"(ul until &ou have a"e$iod that the invento$& e9ual 'e$o.

Ste" :

Choose t%o !onse!utive "e$iods, in %hi!h one o( them has 'e$o invento$& 5-6 and the othe$ onehas le(t;ove$ invento$& 5-&6. 5 the ma$ket sha$e o( the "e$iod %ith le(t;ove$ invento$& has to #e#igge$ than that o( the "e$iod %ith 'e$o invento$&6. I( the ma$ket sha$e o( 'e$o invento$& "e$iod is#igge$ , that means the segment is sh$inking, and &ou "$odu!e less net "e$iod.

Ste"


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Su#t$a!t ma$ket sha$e o( the "$odu!t*s ta$get segment o( -& and -. 5-&;-6.The ma$ket sha$e o( the "$odu!t (o$ ea!h segment %ill #e (ound in the !onsume$ "anel.

Ste" =:Multi"l& the di((e$en!e #& segment si'e.

The segment si'e %ill #e (ound in ma$ket (o$e!ast.

Ste" >:Multi"l& the num#e$ &ou got in ste" = %ith the "$i!e o( the "$odu!t in -.

Belo% is the eam"le:

Segment si'e: =,>? (o$ not "$odu!e enough (o$ "e$iod


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CMBA 607 | Strategic Marketing

5) Decide in the first round if you want to go into Vodite. I( &ou %ant to go )odite, sta$t

saving mone&. ust a little ti": It %ill take a$ound @,??? to !$eate a )odite "$oe!t. That is alot

in the Ma$kst$at %o$ld. u$ team*s ave$age #udget (o$ a given "e$iod %as a#out the same

amount.

6) o into Vodite. M& team $esea$!hed othe$ games outside ou$ o%n. The$e is a lot o( mone& to

#e made in )odite. The %inne$ in ou$ game and in othe$ games usuall& had at least one )odite in

the ma$ket.

!) "peaking of #$D%think a#out it and "lan t%oth$ee "e$iods in advan!e. It takes one "e$iod

ust to develo" o$ modi(& a "$odu!t, t%o "e$iods i( &ou %ant to develo" it at the lo%est !ost.

&) 'hen doing #$D% (lways% (lways% (lways!he!k the #o to develo" &ou$ "$odu!t at

minimum #ase !ost. ne o( ou$ teams (o$got to !he!k it. The #ase !ost (o$ thei$ "$odu!t %as

@???, eve$&one else*s %as @=??. /et*s ust sa& thei$ ma$gins %e$e in the negative.

) "ales *orce is tricky% costly% and offers little return.Sales 0o$!e is most needed in ne%

ma$kets, not as mu!h in esta#lished ones. Give $eal thought i( &ou sta$t hi$ing "eo"le #e!ause it

!osts t%i!e as mu!h to (i$e them. Use that mone& instead on RD o$ 1dve$tising.

+,) -roduction and n/entory is a real 0alancing act.ve$ "$odu!ing leads to ve$& high

holding !osts and unde$ "$odu!ing leads to missed sales. u$ team lea$ned that it %as #ette$ to

ove$ "$odu!e #& a !e$tain amount than $un out o( invento$& !om"letel&. 7e missed a$ound


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#e!ause the& don*t have "$ett& !olo$s and g$a"hs doesn*t mean the& a$e not EFTREME/+

in(o$mative.

+1) 2arget each product for one 3arket seg3ent. I( &ou$ "$odu!t (its the needs o( %hat

-$o(essionals %ant, then ta$get that g$ou" ??. S"litting ta$get segment "e$!entages goes

against &ou.

+4) Dont create the 3ost 0asic product possi0le. /et*s ust sa& ou$ team had a "lan to !$eate

the most #asi! )odite and utili'e a skimming st$ateg& 5!ha$ge a ve$& high "$i!e and d$o" it

slo%l& to gain mo$e ma$ket sha$es6. o one %ill #u& s!$a" medal, -e$iod Even i( &ou a$e one

o( the (i$st to the )odite ma$ket, it*s not a good idea to s"end @,??? to develo" a tin !an. Best to

sta& in the middle %hen "utting togethe$ &ou$ RD s"e!s.

u$ team*s ove$all "e$(o$man!e ve$sus the teams %as second placein net !ont$i#ution. 7e heldou$ o%n, #ut also made some #ig mistakes. I ho"e these "ointe$s hel" &ou$ team avoid some o(

the same mistakes ou$ team did. f you ha/e already participated in a Markstrat si3ulation%

share so3e of your own pointers in the co33ents section 0elow.

rin M. 'iles

Sel(;Em"lo&ed Ma$keting -$o(essional

MB1 Con!ent$ation: -$oe!t Management

G$aduating: Ma&

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Dos and Donts in Markstrat