Product Management: Computer Simulation

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Information to Players

You all are representatives of companies competing in Laptop Market in India.

There are four brands A, B, C, D and the as you are named Player 1, Player 2, Player 3, Player 4 respectively.

The objective of the game is to provide a computer based simulation of all the companies competing in the market.

The market dynamics , in terms of product life cycle maturity , effect of brand promotions and product promotion in customer acquisition, will be simulated by the computer program.

The following are the product management variables to choose from

• Selling Price
• Product Promotion
• Brand Promotion
• Reach
• Retailer Margin(%)
• R & D Cost per laptop

Selling Price
You are privy to the information that the manufacturing price for all the companies is same 400 and all the companies sell to the consumer through only one intermediary – retailer.

Product Promotion
is the consumer and channel promotion for the particular product. Product promotion can be from 0 to any amount.

Brand Promotion
is the promotion the brand with print advertisement , TVC, sponsorship etc. It can be between 0 to any amount.

The market size in terms of geography is divided into 100 territories with equal market potential. The market gain by reaching more geographies will be effected by the overall presence of the other companies. The cost of reaching each geographical territory is 5000.

Retailer Margin
The retailers have to be provided a minimum margin of 5%. You can choose to give more margin. It is known to all that retailers prefer to sell those brand on which they get greater margin, but a push by a retailer is just one of the factor that effects a customer in purchasing.

R & D Cost
Finally, product wise each of the companies get similar product differing in branding in terms of labeling, hence product differentiation among the product of different brand is low. Hence you may choose to...
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