Surplus Simulation Analysis
Introduction:
The simulation developed a knowledge of pricing by managing a rental car operation in Florida and developing a pricing strategy keeping the competitor in mind. The simulation involved three regions Oriando, Tampa and Miami, which vary in market dynamics, size and customers. The focus is competition between two car rental companies and the simulation last up to 12 months. I had to set weekday and weekend price for the entire three regions for each month and make a fleet decision.
Description:
I played the role of a regional marketing manager responsible for pricing a fleet of rental cars across cities in Florida. The simulation dashboard provides a high level view of real time information and navigation options. I learned the …show more content…
After a while I started to pay attention to the utilization more, than I paid more attention to each individual move in the price of the competitor. I also paid attention to the predictions as they were being made; however I would often go against them and …show more content…
Surplus was a different story because having too many vehicles meant lower prices and less potential profits.
Competitor:
The competition was constantly trying to lower prices when I went up but they were also looking at seasonality as well I think because sometimes I would go against the forecast because it seems natural to me that a work climate would have more travelers in the winter time and I could raise prices as demand was almost certain to go up. But again it was these areas that I needed to pay more attention to.
Conclusions:
Basics helped, supply or demand, and pricing were critical but I'm sure that if I was better at understanding the data that was being made available to me, I could make better decisions. I know that from what was available to me, if I took more time on each move, rather then focus on pricing and prediction, I could probably do better. I could have spent a lot more time analyzing each area and looking back at past data, charting it, and basically making scientific decisions by using everything that was available to me, however I did not spend much time on analyzing for each month. Primarily focused on increasing the market share by following differential pricing strategy and keeping prices low. Keeping in mind the target customer
The simulation developed a knowledge of pricing by managing a rental car operation in Florida and developing a pricing strategy keeping the competitor in mind. The simulation involved three regions Oriando, Tampa and Miami, which vary in market dynamics, size and customers. The focus is competition between two car rental companies and the simulation last up to 12 months. I had to set weekday and weekend price for the entire three regions for each month and make a fleet decision.
Description:
I played the role of a regional marketing manager responsible for pricing a fleet of rental cars across cities in Florida. The simulation dashboard provides a high level view of real time information and navigation options. I learned the …show more content…
After a while I started to pay attention to the utilization more, than I paid more attention to each individual move in the price of the competitor. I also paid attention to the predictions as they were being made; however I would often go against them and …show more content…
Surplus was a different story because having too many vehicles meant lower prices and less potential profits.
Competitor:
The competition was constantly trying to lower prices when I went up but they were also looking at seasonality as well I think because sometimes I would go against the forecast because it seems natural to me that a work climate would have more travelers in the winter time and I could raise prices as demand was almost certain to go up. But again it was these areas that I needed to pay more attention to.
Conclusions:
Basics helped, supply or demand, and pricing were critical but I'm sure that if I was better at understanding the data that was being made available to me, I could make better decisions. I know that from what was available to me, if I took more time on each move, rather then focus on pricing and prediction, I could probably do better. I could have spent a lot more time analyzing each area and looking back at past data, charting it, and basically making scientific decisions by using everything that was available to me, however I did not spend much time on analyzing for each month. Primarily focused on increasing the market share by following differential pricing strategy and keeping prices low. Keeping in mind the target customer