Author Topic: The curious case of the MF cameras that didn't sell  (Read 4691 times)

bdubbs

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The curious case of the MF cameras that didn't sell
« on: March 02, 2016, 02:57:23 PM »
This topic isn't actually about something going on with my team in my Glo Bus game, but it stood out to me so much I wanted to get any kind of second opinion on it. I took first place in year 6 with a $310 2 star mf camera (which I have decided was a mistake due to the loss of retail dealers) but I noticed something very strange in the quarterly snapshot.

Company E sells 2 star mf camera for 410, 450, 460, and 470 across the regions.

Company F sells 3 star mf camera for 340, 350, 330, and 340 in parity with company E

Expensive 2 star camera sells 17.2%, 8%, 12.6%, and 14.1%

Cheapest 3 star camera sells 6.9%, 8%, 19.5%, 17.6% respectively

Now I realize company E lost market share in its biggest regions but it actually gained market share in the 2 smaller ones. Obviously they had the best promotions available 3 for 3 weeks at 20%, 90d warranty. I have to imagine they got murdered on retailer dealers like I did, but here's the thing that strikes me as strange. 2 companies were selling 3 star cameras that were cheaper than company E, 1 company had a 2.5 that was cheaper, and there were 2 other 2 star MF cameras that were considerably cheaper options.

I only have 3 rounds experience with this game (2 practice rounds plus this year) but from my experience so far the marketing abilities you have to increase market share (promotions, tech support budget, marketing budget) add very modest increases to market share projections even without turning up the competitive aggressiveness slider and my market share projections are considerably more sensitive to changes in price than anything.

So what gives? out of 8 companies only 2 were priced more expensive than company E with MF cameras (one was 3 stars and only slightly more expensive, the other was the big loser of the game with a 5 star camera selling for 750) I am the only company that sold out of MF cameras (and that was only 1 region) So even if they benefit from the team that lost almost all its market share there's still 6 other teams with cameras that from every angle I look at it are a better deal. I fully expect them to get killed over the next few weeks if they don't change strategies and I'm aware that its in no way going to be a viable long term strategy that I need to be concerned with having to compete against, but how do they even get through week 1 without getting smacked? Any insight would be great, I'm just super curious how something like this can happen

N

bdubbs

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Re: The curious case of the MF cameras that didn't sell
« Reply #1 on: March 02, 2016, 03:41:10 PM »
So I may have just found my answer, it seems like under the right conditions running 3 promotions instead of 1 can be very effective but it does force you to raise the price of the camera. In my game running 3 promotions instead of one cuts my operating profit by close to $50 per camera, but under my current projections its expected to outperform the same camera with only 1 promotion running for $50 cheaper.

wish me luck

WinBusinessStrategyGameTips

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Re: The curious case of the MF cameras that didn't sell
« Reply #2 on: March 02, 2016, 06:16:55 PM »
It seems like you got it covered. However, if you wanted a more in depth answer, I would have to see your company.
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