BranchingSims ResultsReport 6

Topics: Marketing, Brand management, Product management Pages: 6 (1063 words) Published: June 8, 2015
RESULTS REPORT

Date: 5 June 2015

Name: MT
Course: MKT 571
Instructor: John Hawes

SIMULATION TITLE: Product Life Cycle

SIMULATION DESCRIPTION: Holden Evan is creating its own brand of hot sauce, Burnin\' Rock, using exotic peppers sourced through fair trade. As product brand manager, your task is to successfully introduce the new product into the marketplace, and manage the brand through the product life cycle.

You earned 100 percent.

DECISION SUMMARY

You chose to place Burnin\' Rock in health food store chains and the organic food sections of supermarkets. This was the best choice for reaching your target demographic.

You chose to use the best ingredients. This was the best choice, since it was consistent with the product definition and would be more profitable in the long term.

You chose to keep promotion levels the same in spite of slow growth and no profits. This was a good choice, since Burnin\' Rock was still in the early stages of growth.

You chose to spend $6 million – three-quarters of the product\'s first-year sales earnings – on future production capacity and promotion. This was the best answer. Heavy investment is usually appropriate in the growth stage of a successful product.

You chose to keep promotion spending the same in response to growth. This was a good choice, since you needed to continue educating consumers while warding off competition.

You chose to keep prices the same in response to growth. This was the best choice.

You chose to create new variations of the product, such as new flavors and varying degrees of heat. This was a good choice to sustain market growth.

When the product reached maturity and sales plateaued, you chose to modify the market by finding new users for the product. This was a good choice.

You dealt with product maturity and increased competition by seeking alternative markets and new consumer uses for the product. This was a good choice.

DETAILED ASSESSMENT

Background

You are the product brand manager at Holden Evan, a global corporation that sells a variety of consumer goods. Holden Evan is creating its own brand of hot sauce, Burnin\' Rock, using exotic peppers sourced through fair trade. As product brand manager, your task is to successfully introduce Burnin\' Rock into the marketplace, and manage the brand through its product life cycle. You have significant freedom to make the marketing decisions you think best, but the CFO has directed you to make at least some profit on this brand each year beyond the first.

Product Development

According to the product plan, Burnin\' Rock will contain exotic peppers sourced through free trade. These exotic peppers contain antioxidants and have a distinctive flavor. The product will have the slogan \"Hot sauce with taste\". It will be marketed for its health benefits, the quality of its ingredients, and its delicious taste. It will be aimed at upscale consumers who consider themselves sophisticated and socially responsible, and will initially sell for $5 a bottle. Initial market research indicates that this product could be very successful.

Positioning

First, you need to decide the best place to sell the product, based on the product positioning you are trying to achieve.

You chose
OPTION 2
Place the product in health food store chains, and in the organic food sections of grocery stores and supermarkets.

Ingredients

Now decide how Burnin\' Rock will actually be produced.

You chose
OPTION 1
Use the best ingredients, as specified in the product definition.

Slow Growth

It\'s still early in the launch stage. Sales of Burnin\' Rock are not rising quickly. Growth is slow and the product has not yet turned a profit. How do you respond to this?

You chose
OPTION 2
This is normal for a new product. Do not adjust promotion spending.

Growth

Burnin\' Rock sales are growing strongly, exceeding expectations and reaching $8 million in the...
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