Neilsen’s Ice Cream Report
HMMA• CAH • January 17, 2011
The company that I was part of during this marketing game was known as Nielsen’s Ice Cream. The aim of the game was to earn the most market share by making the right choices in marketing the products, purchasing the inventory, managing human resources, and working together. This report will go through the decisions made, reasons for them, and the outcome.
When starting out the game, our first round of decisions on marketing can be summed up with the following chart :
|Price |Marketing Budget |Promotion |Purchase | |Standard Ice Cream |280 |4000 |Commercial – Rich history |500 | |Special Ice Cream |295 |4000 |Commercial – Best quality |500 | |Luxury Ice Cream |295 |4000 |Sales Promotion -Cheap |500 | |Sugar Free Ice Cream |285 |4000 |Commercial – Quality/Price |500 | |Then we moved to our Human Resource Management, and made decisions that would affect our company internally.
Board Salary: 5500 euro
Size Sales Department:20 euro
Education Budget:Average --> 2500 euro
Working CircumstancesAverage --> 2600 euro
Training for management
Training result oriented work
Training on team building
Flexible working conditions
To start off the research and development, we more so went with our best guess, feeling that this round would truly come close to being some what of a trail and error round. So the numbers for research and development are as follows: Process: 1000 euro
Standard Ice Cream2100 euro
Luxury Ice Cream2600 euro
Special Ice Cream2400 euro
Sugar Free Ice Cream2200 euro
Looking at the results from the previous round we made according adjustments, which are as follows.
Standard Ice Cream
With a starting price of 280 euro for the standard ice cream, the product did fairly well on the market. Our market share of the standard ice cream is 29%, which is pleasing, but staying there will be tough. A small change in the price, will be made in order to see if demand goes up or down, or is affected. We will still continue promoting the product a commercial approach, and continue with the same amount of money for the budget (4000 euro).
Special Ice Cream
Nielsen strongest product was our Special Ice Creams with an amount of 483. We won’t change anything on this product and will see if this does effect the company results in the next round. We will purchase 600 new items for the next round.
Luxury Ice Cream
The Luxury Ice Cream did a good job in the previous round, but can be improved by making some small changes. Nielsen changes the way of promoting to a Price/Quality advertisement, hoping that form of marketing will catch more attention.
Sugar Free Ice Cream
We sold 387 units of Sugar free ice creams last round, which is quite a high amount if you compare it with to our competitors. To attempt to increase sales and market share, Nielsen will lower prices on this product from 285 to 280. The marketing budget of 4000 euro still stands and is put towards a commercial where they are telling about the price and quality relation.
Standard Ice Cream
The standard ice cream was doing quite well the last round, so we felt only minor changes were needed. We had an average quality for this standard ice cream which we changed into a high quality, this is due to we believe that in order to be competitive you can’t settle on average. We purchased 350 products with a good quality. This high quality needs to be compensated by a higher price, because if you are just higher your quality, you will lose money. We changed the price from 285 to 295 euro. We are going to promote this product to a commercial which is giving the rich history of the product. Our marketing budget for the standard ice cream in this round is 4000 euro. With a higher quality and higher price, we should make...