Neilsen’s Ice Cream – Marketing Game

pic Neilsens deoxyephedrine rink rink unguent write up Report Katherine Johnstone HMMA CAH January 17, 2011 pic Introduction The company that I was recess of during this tradeing game was known as Nielsens deoxyephedrine unguent off. The aim of the game was to earn the to the highest degree mart sh be by making the compensate cho glassfuls in selling the harvest-tides, purchasing the document, managing human resources, and geting(a)(a) together. This report pull up stakes go through the endings come, reasons for them, and the bycome. eke knocked out(p) 1 When starting out the game, our first sharpshoot of decisions on marketing can be summed up with the following chart terms Marketing compute Promotion Purchase stock(a) fruitcake thresh about 280 4000 Commercial Rich history euchre surplus frosting beat 295 4000 Commercial Best eccentric 500 Luxury home(a)-combustion engine lam 295 4000 sales Promotion -Cheap 500 Sugar open nut ba lm 285 4000 Commercial Quality/ expense 500 thence we moved to our Human Resource Management, and make decisions that would affect our company intern tout ensembley. Board Salary 5500 euro coat Sales Department20 euro Education budgetAverage 2500 euro Working CircumstancesAverage 2600 euro Working Conditions provision for focal point Training result oriented work Training on team building Flexible working conditions Music workplace To start off the explore and suppuration, we practic everyy so went with our best guess, feeling that this stave would truly come close to organism rough what of a trail and error dilate. So the poem for research and development are as follows crop metre euro Standard field glass thresh2100 euro Luxury fruitcake Cream2600 euro specific Ice Cream2400 euro Sugar Free Ice Cream2cc euro wheel 2 looking for at the results from the former(prenominal) bustabout we made according adjustments, which are as follows.Standard Ice Cream With a starting mo internetary value of 280 euro for the stock(a) nut case unguent, the product did fairly skillful on the market. Our market pct of the standard ice balm is 29%, which is pleasing, and staying there testament be tough. A sm all change in the price, flip be made in collection to get wind if demand goes up or down, or is affected. We impart be quiet continue promoting the product a commercial approach, and continue with the same amount of silver for the budget (4000 euro). supererogatory Ice Cream Nielsen strongest product was our Special Ice Creams with an amount of 483.We wont change anything on this product and testament see if this does effect the company results in the next round of golf off. We go out acquire 600 new items for the next round. Luxury Ice Cream The Luxury Ice Cream did a skilful job in the previous round, tho can be improved by making some(prenominal) small changes. Nielsen changes the way of promoting to a Price/Quality adver tisement, hoping that form of marketing will enamour more(prenominal)(prenominal) than attention. Sugar Free Ice Cream We sold 387 units of Sugar abbreviate ice creams pull through round, which is quite a high amount if you comparability it with to our competitors.To attempt to addition 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 attri alonee relation. lap 3 Standard Ice Cream The standard ice cream was doing quite sound the kick the bucket round, so we snarl besides minor changes were occupyed. We had an mean(a) whole tone for this standard ice cream which we changed into a high quality, this is ascribable to we believe that in graze to be competitive you cant sink on norm.We purchased 350 products with a life-threatening quality. This high quality needs to be compensated by a high 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 enkindle this product to a commercial which is giving the blue 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 lay down some more profit out our standard ice cream. Special Ice Cream Again it seems that the extra ice cream is our strongest selling product.We had a price of 295 with a good quality. The changes will be made to up the sales of this additional ice cream. We increase the marketing budget from 4000 euro to 4100 euro, so that people wont loose interest and withal to stay leading of competition. We invested this 4100 euro in a tv commercial where Nielsens is proud of the high level of quality at this special ice cream. Because of the high sales we purchased 450 special ice cream on a subtile basis. The sales are very good for this special ice cream, so we made a decision to change the price from 295 to three hundred euro.This shouldnt make much(prenominal) an effect on peoples buying behavior. Its in relation to change from a good quality to an excellent quality of the purchased items. Luxury Ice Cream The sales of the luxury ice cream werent so high in the ordinal period. in that location should be a reason for this, which we need to fix with making some changes. First we need to change the price from 295 to 290. This should people make more convenient to buy our product. When you are just heavy(a) the price, somebody has to know that you made this changes, so we chartered up the marketing budget from 4000 to 4200.This money will be invested in a sales promotion, so on that the sales will increase of this product. As a result of bad sales in the previous round, we dont need such a high purchase of products. We will purchase cl luxury ice creams on a good quality base. Sugar Free Ice Cream The staff of life Free Ice Cream w as the weakest product of the 4. With 203 sales and a market share of 15% the sugar free ice cream performed very poorly. We need to change something to higher up the sales and the market share. We changed the price of the sugar free ice cream from 280 to 270.We will promote this prices with a marketing budget of 4000 euro which wont be changed from the previous round. This money will be invested in sponsoring, where we are telling that the sugar free ice cream has the best quality. The sales where such as bad, that we dont need much to purchase. We are purchasing 150 sugar free ice creams, which should be comme il faut because of an stock list of 400 stocks. withal in an attempt to sell more we had a press release stating that we were offering for a extra time a Holiday Special Sale, which is wherefore the price was then lowered by 10 euros.In Human Resources we were non performing fountainhead as far as our staff was concerned, so we dogged to try increasing the education budget from average 2500 to good-4000, in hopes that a higher education will provide them with what they need to perform their job and contingent be more satisfied. Also, we felt that it was needed to make a a a couple of(prenominal)(prenominal) changes in the research and development area as a way to increase the sales of the sugar free ice cream. What we contumacious was to decrease the budget for the luxury ice cream research and cycle it into the sugar-frees Process 1000 euro Standard Ice Cream2100 euro Luxury Ice Cream2600 euro ? 200 euro Special Ice Cream2400 euro Sugar Free Ice Cream2200 euro ? 2600 euro Lastly, we felt that it was time to purchase some market research in the form of a market analysis in order to gain a better understanding of our competitors and the market we are all in. forget me drug 4 Round 5 star key observation made after reviewing the previous rounds results was that with the increase to the education budget there was a slight positive movement in our internal sector. This prompted us to then not only give on more increase of the education budget, unless to excessively provide an increase in backing to the salary department.An unfortunate fallout however from a mis communication between our group members was our history, and this is the round where we could receive saturnine it around if caught in time, however, we neglected the round delay, and terminate up running out of stock of authoritative products. Round 6 The big change was with in the Human Resources as well and the working conditions. aft(prenominal) examining the data a little more it was immovable to change the working conditions to include the following pack espresso machine Training result oriented work subscribe ERP software using ASP Lease CRM software using ASP Flexible working conditionsStandard Ice Cream There were a few changes made in the marketing of this product due to declining sales. We went from focusing on the rich history to associa ting more with price/quality. The set seemed high as well so we lowered from 285-275, as well as adjusted the budget from 4100-4000. For inventory, 280 products we purchased at a good quality Luxury Ice Cream We felt the only adjustment should be made was in the pricing, which we lowered from 290-280. Since stocking was also an issue we felt it would be refreshed to order 400, rather then 150 as in the previous round Special Ice CreamPricing was way to high, so it was set(p) that scathe our marketshares of this product the most everywhere the past few rounds. In response we lowered the price from 300 down to 280, but increased the budget from 4200 to 4300. Then we shifted the focus of the marketing from best quality to Price/Quality, and ordered 350 in inventory at good quality rather then excellent. Sugar Free Ice Cream Only adjustment made with this product was the purchase of 300 inventory. We looked at the results boost and also concluded that we were missing out on market research, which was most definately hurting our chances of competing.After discussing it, we deter exploitd that it was wise to purchase market research on the competitors prices, and societies value. The results from the pricing was shocking for us. The whole time our standard ice cream was far to over priced, as was our sugar free, but the changes made previous to the communications mingle proved to be around spot on with the research. But this information was taken heavily into rumination for the next round of decisions. Round 7 Standard Ice Cream With the huge price contravention in our products versus the competitors we decided that the price needed to be lowered immediatly from 275 to 220.Marketing communication match up with the societies values research, but we ordered 300 in inventory and changed the quality to weak. Luxury Ice Cream comparison our price to the research from the previous round we determined pricing was fine as is, but the marketing communications need ed to be changed from price/quality to cheap. We then ordered 500 in inventory with hopes of high future sales. Special Ice Cream The pricing again matched up well enough to stay competitive so we adjusted the communication from price/quality to best quality and also ordered 250 in inventory.Sugar-Free Ice Cream another(prenominal) big price change was made when we seen that we were almost 20 euros more then the rest, so we dropped from 270 to 250, and also ordered 500 inventory hoping for increased sales. There was no change made for the communications. Round 8 Again we ran into the problem of running out of inventory, still not fully realizing the key was in what we were over looking. With hopes to make one final comeback we decided that it would be a good idea to have another press release announcing one more final sale. Looking back, I see that this whitethorn have been our fatal error.In response to sending out the press release, our prices had to be lowered further and we thro ugh so as follows Standard Ice Cream 220 to 205 Luxury Ice Cream 280 to 250 Special Ice Cream 280 to 250 Sugar Free Ice Cream250 to 215 In combination with the lower prices, we also increased the marketing budget to 4500 for severally product, in hopes of make more people with the new of the sale. We then lade up inventory ordering 800 standard at weak quality, 800 Luxury average quality, 700 Special at average quality, and 800 Sugar-Free at average quality. ConclusionAll in all the company would have be successful had it not been for the failure to realize the inventory situation ahead. Also, earlier purchasing of market research such as competitors pricing would have proven much more beneficial in earlier rounds. Nielsens very had one of the highest company equities as well as highest net turnover, but dropped drastically in net profits in the final two rounds. Looking back all of these were very simple, if not too simple, mistakes that could have been avoided through cleare r communication. pic Nielsens Ice Cream Logbook Katherine JohnstoneHMMA CAH January 17, 2011 pic foundKatherine JohnstoneGroupNielsensWeek50, Round 1&2 When Who did what? problem went Good/ do by Why? apply at meeting earlier each(prenominal) round Jef, Dammis and I discussed our strategy and how to implement it One member remaining to go home for the holidays, but never mentioned being in opposition or showing much concern for the 2 rounds he would miss actively participating forrader each round Jef scuttlebutt data as did myself and Dammis Again, Ross was not around, and neither look essay as they should have to make contact Dividing tasks Before each round Marketing be after tasks were split, when being redone Dammis did Rosss Piece The corrections were only in the pieces Dammis and Jef covered, so I revised mine and theres, and put the report together so that we all still worked together Cooperation Before each round Minor arguments, and a small amount of miscommunication, but over all we cooperated well. Discussions Before each round Discussed all moves before and during the input of data for each round, and brought up whatever we felt might be or could be a future issue Deadlines Marketing Plan- December 8, 2010Round 1- Week 50, Tuesday December 14, 2010 Round 2- Week 50, Friday December 17, 2010 NameKatherine JohnstoneGroupNielsensWeek 1, Rounds 3&4 When Who did what? Task went Good/wrong Why? Present at meeting Before each round Ross and Myself just arrived back this day, but Jef was absent, so Myself and Ross met with Dammis on Skype Actively participating Before each round Dammis and I made most of the decisions, eon Ross tried to catch up and understand what we were doing Dividing tasks Before each round I input the data while Ross and Dammis discussed Cooperation Before each round Everyone present coorperated and agree on everything Discussions Before each round sometimes they were a little heated, but p oints were always made, but somethings did get over looked. Deadlines Round 3- January 4, 2011 Round 4- January 7, 2011 NameKatherine JohnstoneGroupNielsensWeek2, rounds 5&6 When Who did what? Task went Good/wrong Why? Present at meeting Before each round All were present at the second last meeting, but it was just myself and Ross at the last meeting Actively participating Before each round Not everyone was involved and some members seemed uninterested in completing the rounds Dividing tasks Before each round Usually it was just myself and dammis inputting the data as well as reviewing it Cooperation Before each round Not everyone helped to make the decisions, but those who did agreed and cooperated well Discussions Before each round Missed out on the little fact about inventory because a dicussion was never finished Deadlines Round 5- January 11, 2011 Round 6- January 14, 2011 Marketing Report and Logbook- January 17, 2011