Results:
This round we slipped even further to fourth place and our stock price was at $1234. It wasn't a good feeling dropping from first to fourth, but we knew it was because we had axed so many of our programs to implement our vodites this round. SAMA and SALT purchases were decreasing still, and SACK was slightly increasing, but we were still only making money off of SALT and its high margin.
Decisions:
This period we launched VAXY. We didn't anticipate the costs that we would incur having to hire another sales force and doing the marketing for another launch so we had to cut back a little more on our Sonites. We dropped the price on all sonites by about $20, and produced 48K SAMA's, 120K SALT's, 40K SACK's and 80K VAXY's. We set VAXY's price at $1471 to stay competitive in the market. We also hired 50 VAXY salespeople, but only spent $3500 total in marketing this period!
The blog of our experience in using Markstrat for our Commerce 363 class at UBC!
This was a really hard moment for us. We were so happy to finally make to first place and then we dropped all the way to 4th place. The reason this happened is because we focused on putting the last amount to release our vodites. At this point we just wanted to get into 3rd place so that we felt that we had accomplished our goal of improving.
ReplyDeleteI think it is important to put more money into marketing! Its alright though guys, we got one more period and some money. We still have a chance to make a pretty big move and hopefully move up a couple places!
ReplyDelete