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MARK 1120 – 055
Term Project
Simulation Game
Selling Backpacks
Team 1
Gursewak Badesha
Ioana Baia
Liam Kano McGregor
Manpreet Kaur
Vy Phuong Hoang Nguyen
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Table of Contents
1. Overall Outcome ………………………………………………………………….3
2. Strategy chosen ……………………………………………………………………3
3. Target Market choice ……………………………………………………………4
4. Marketing Mix …………………………………………………………………….5
5. Competitive analysis …………………………………………………………….7
6. Turn Decision-Making Review ………………………………………………..8
7. Conclusion ……………………………………………………………………….. 12
8. Appendix …………………………………………………………………………. 13
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1. Overall Outcome
As all the companies participating in the simulation game had a common vision: to maximize
profit for their shareholders, each of them had set-up specific objectives and strategies to reach
it, see Appendix I (1-5).
Based on the table below overall results at the end of the simulation game are great. Nobody
had a negative account balance, the revenues were over $100, 000, all companies made profit
and the Market share was over 15%.
Target Market
Company
Account
Balance
Revenue
Net
Profit
Market
Share
Units
Sold
School Children,
University Students,
Urban Commuters
ML Backpacks
(Vy Phuong Hoang
Nguyen)
1,094,651
276,125
75,465
23%
6,105
University Students
SnowSport
(Liam Kano McGregor)
431,964
194,787
22,713
16%
5,533
Luxury Trend
Followers
Alpine High
(Ioana Baia)
1,480,006
343,692
99,547
29%
8,382
University Students
KevGear
(Gursewak Badesha)
1,838,479
173,836
74,632
15%
7,923
School Children
Troy Taylor
(Manpreet Kaur)
298,524
204,429
3,327
17%
4,534
It was interesting to see that the most successful companies were selling products addressed to two
opposite target markets. KevGear provided an inexpensive yet durable backpack with rather low production
costs to University Students, a target market that lives in a generally reduced budget and therefore prefer
lower price products. Another company, Alpine High, had a classy backpack with higher production costs
addressed to Luxury Trendfollowers, a target market that chooses quality and appearance of a product over
price.
2. Strategy chosen
The chosen strategies were selected based on the chosen target segments. These were chosen
based on things such as market size, growth rate, the purchase behaviour, preferences and
customer feedback (cognitive dissonance later in game). The main criteria used on selecting the
customer segment strategy were market size and growth rate.
Product Strategy originally was adapted to the chosen market segment and product was
created based on the customers preferences. By the course of the simulation it was changed
more or less depending on each company’s success in the market and the willingness of
expanding their sales over other segments.
Pricing Strategy. The foundation to each pricing strategy essentially starts with the chosen
target segment and their reliance on specific features and materials compared to average
purchase price. Some target markets were willing and able to pay a higher price which allows
for better quality and special features. Also, higher price allows for a different variety of
retailers that require a certain price range. For the other target markets it is more important to
have a more affordable backpack but will have more potential to be repeat buyers.
Placement Strategy. The strategy chosen for this was very basic, the more distributors the
higher customer reach. With each segment, certain pricing discounts are strategically
beneficial, for example, University Students and the University Store or Luxury Trendfollowers
and the Fashion Boutique. These were used throughout the game to increase sales, create
product awareness, and also create brand loyalty.
Promotion strategy. The strategy chosen for this was very basic, the more distributors the
higher customers reach. With each segment, certain pricing discounts are strategically
beneficial, for example, University Students and the University Store or Luxury Trendfollowers
and the Fashion Boutique. These were used throughout the game to increase sales, create
