Results:
We took off this round! Our team moved into 4th place in the stock market and we hit a stock price of $1149, with the leaders at only $1424. We saw our market shares go up this round and finally things were looking positively for our team!
Decisions:
While we were happy to be moving up we were still not nearly satisfied with our standing of 4th place. We needed to keep improving. Our sales in the last period were perfect as we had only 61 units of SAMA and 77 of SALT in inventory. Our selling price stayed the same except for a $2 increase in SALT. The contribution of SAMA was 6 million, while SALT made an astounding 16 million for us this quarter.
After looking at the sales forecast for the following periods we decided to slow SAMA production by 6,000 units, and increase SALT production by about 40,000 units. We increased the sales force this round to 49 for SAMA and 47 for SALT. Advertising increased by $600,000 this round too to increase sales.
As well we focused heavily on R&D this period. We felt that it was important to get another new Sonite on the market a few rounds before we got into the Vodite market. We decided to sink $1.45 million into our PSACK project so that we could release it the next period. We also put $350,000 into PVAXY and $100,000 into PVAJO.
We submitted our decisions and hoped for the best again.
The blog of our experience in using Markstrat for our Commerce 363 class at UBC!
Guys we are improving!!! I am so proud of us.
ReplyDeleteAlthough I was a little nervous about focusing so much on adding new products, it was a good idea to put more into R&D because there was a good chance that we would improve in the next round.
I think all the decisions we made showed how much we studied to actually understand all the surveys and functions of Markstrat. This round we learned new aspects such as changing the dimensions of the products and that we should always use as much money as we can into each round.
Good job guys! I can't wait to see what going to happen on FRIDAY!! We so excited!
At least we're not too far behind! We probably showed the most improvement this period, lets keep it up.
ReplyDeleteThe Markstrat meetings are becoming way more fun as we grow closer as a team. I hope that we are investing enough into VAXY and VAJO so that we can really reap the benefits of everything we are sinking into R and D.