Entering the first decision of the simulation we were already one of the most well-known, and consumer-trusted brands in the marketplace. However, at this point in time we have not yet introduced any other products so our sole product of focus is Allround. For our first decision, we focused on increasing our price (from $5.75 to $5.95), as well as increasing our salesforce in response to retailer suggestions of increasing sales support. Staying aligned to market trends, we also increased our advertising spend by two million dollars, as well as slightly upping our spend on consumer promotions. Our objective for decision one was to increase product awareness by increasing advertising and promotional spend, as well as to test the price elasticity
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The last two periods our sales decreased significantly, but this period they rebounded back up to $350.3 million. Not increasing the price last decision worked very well for us, as we expected. With the addition of a new product, Allround+ for children, sales initially reached $28.1 million. As far as promotion goes, product trade ratings went back up as well for Allround (6.0) and Allround+ (4.5). Grocery store sales showed the strongest growth with an increase of 9.9%, and retail sales also grew by 6.6%. However, we unexpectedly faced a significant social media problem in this period. Our decision in Period 3 to respond to negative comments has increased consumer participation on forms of social media, giving customers more power and incentive to speak their mind (both good and bad). According to best practices, companies should respond to negative comments in a polite and generous manner rather than delete or ignore them. Monitoring the social media comments tool was very useful so that we knew what our consumers were thinking about us. Now we know what to change for the next …show more content…
Previously, we had been dropping in terms of our stock price, and had been struggling to launch Allround+ and promoting it correctly. However, in period 5 we saw increases in stock price, revenue, net income, and gross margin. We decided to focus on our Allround+ product in this round, because our product of Allround is solid in terms of product recognition, price, and value. A major positive is that our stock price is increasing from our previous low of $20.00 in Round 2 to now being at $36.91. Also, we almost doubled our income from $40 million dollars in round 4 to almost $80 million in round
The last two periods our sales decreased significantly, but this period they rebounded back up to $350.3 million. Not increasing the price last decision worked very well for us, as we expected. With the addition of a new product, Allround+ for children, sales initially reached $28.1 million. As far as promotion goes, product trade ratings went back up as well for Allround (6.0) and Allround+ (4.5). Grocery store sales showed the strongest growth with an increase of 9.9%, and retail sales also grew by 6.6%. However, we unexpectedly faced a significant social media problem in this period. Our decision in Period 3 to respond to negative comments has increased consumer participation on forms of social media, giving customers more power and incentive to speak their mind (both good and bad). According to best practices, companies should respond to negative comments in a polite and generous manner rather than delete or ignore them. Monitoring the social media comments tool was very useful so that we knew what our consumers were thinking about us. Now we know what to change for the next …show more content…
Previously, we had been dropping in terms of our stock price, and had been struggling to launch Allround+ and promoting it correctly. However, in period 5 we saw increases in stock price, revenue, net income, and gross margin. We decided to focus on our Allround+ product in this round, because our product of Allround is solid in terms of product recognition, price, and value. A major positive is that our stock price is increasing from our previous low of $20.00 in Round 2 to now being at $36.91. Also, we almost doubled our income from $40 million dollars in round 4 to almost $80 million in round