Marketing Simulation

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Overview
Our company Orange experienced a very successful campaign and grew more profitable over the six quarters throughtout the Market Simulation. In terms of market share in comparison to the competition, we placed fourth holding 12 percent market share. We initially targeted the Mercedes market, and later developed products aimed at the Traveler and Workhorse clientele. In terms of profitability, we suffered a loss moving from Quarter 1 to Quarter 2, which is typical of most early-stage companies. However, each quarter thereafter we were able to maintain a profit, ending with $18,270,122 gross profit and $15,232,910 operating profit. Our six computer models are the driving factor behind such success. These models include The Motherboard, Babyboard 2.0, Horseboard, Superboard, Toddlerboard, and The Ponyboard. The Superboard, out of all the models, was our most profitable device with $6,303,840 in profit. We also embarked on a major expansion endeavor, spreading our brand originally from Chicago to Paris, Shanghai, and Sao Paulo. Our knowledgeable sales force comprised of 60 individuals, coupled with our extensive advertising and competitive pricing allowed Orange to rise to the top.

By the end of the Marketplace Simulation, Orange was in first place for cumulative total performance, accounting for a variety of business disciplines that contributed to our success. While we placed third in the simulation in terms of overall financial performance, we placed first overall for market performance and marketing effectiveness.

Brand Design:
Over the course of the six quarters, we made varying adjustments to our brands in order to keep up with the ever-changing competitive markets. In Quarter 2, we decided to enter the Mercedes market with The Motherboard computer. Specifically, this brand was designed to be the top of the line product that suited all the most important needs of Mercedes. Some of these needs included a fast and powerful processor, the ability to link with other computers, and a machine that is capable of multitasking (Fig 1.1). We figured that starting out in the highest-end market would be beneficial to creating a good name for our company, and then we would be able to trickle down throughout the other brandstarget market segments. Our results from Quarter 2 showed that we were successful with The Motherboard, as we possessed 46 percent of the market share for Mercedes. In Quarter 3, we introduced The Babyboard to the Traveler market segment. We designed our product to match the best-suited brand for Traveler, which was SwifTech’s Quickfly. We were slow to expand from our original two brands, and lost some of our momentum with our Quarter 4 decisions. When we got our results, we realized that we needed to introduce more brands in order to keep up with the highly competitive markets. Quarter 5 marked our first Quarter quarter of rapid expansion. We introduced an additional product lines to Mercedes and Traveler, and created our first unit product for Workhorse. The new product lines for Mercedes and Traveler, The Superboard and The Toddlerboard respectively, were the higher quality versions of the The Motherboard and the The Babyboard. They , which were enhanced with all of the necessities and priced slightly higher than the original lines. Our initial brand for Workhorse was the The Horseboard, and it possessed the most basic features at the lowest price, to appeal to a consumer who was looking for something simple to use. We continued the trend of making two slightly varied products for each market segment in Quarter 6 when we introduced the The Ponyboard to supplement a slightly lower-end product than the The Horseboard.

Sales Design Strategy:
The sales design strategy of Orange was based primarily on the customer’s (Workhorse, Mercedes and Traveler) needs and wants. This consisted of the top eight preferences in either a laptop or a desktop, and the top six segments of applications....
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