Marketing Strategy Simulation Game - FREE Winning Guides and Tips
MARK STRAT - The best guide with helpful tips to Win Markstrat
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WINNING TIPS
Markstrat Tips: Introduction and How to Win Markstrat
Markstrat is a marketing strategy simulation used by over 500 academic institutions in undergraduate and MBA programs.
This is entry level winning guides and tips for Mark Strat.
Also, key decisions and explanations for each period (round).
To keep it simple, will limit each article in 1-2 pages.
To start, after log in, your team will manage a company, and compete with other teams (play by class mates or by computers).
The products are Sonite and Vodite (can be smart phone, laptop, tablet, or any consumer products).
Sonite and Vodites are produced with different physical attributes:
- Features
- Design
- Battery
- Display
- Power
- Price
Each attribute has different scales, eg. Battery hours from 24 to 96, screen display scales from 4 to 40.
In each market, different consumer segments will prefer different product attributes (about five segments of consumers).
Round 1 starts with 2 products in Sonite, then each team can launch new brands in Vodite in later rounds.
Winning team will be the one with higher sales, net profit, contribution margins, price share… depending of factors selected by professor.
Key decisions areas include:
1. Market Research
2. Marketing Mix (advertising, production planning, pricing)
3. Commercial Team
4. Brand Portfolio (launch, drop, or modify brands)
5. Research and Development (build the brands)
Basic Markstrat Tips to Start and Win
1. Spending Budget in Round 1
Each team will have a certain budget to spend from round 1.
Gain as high market share as possible.
Next round budget will be decided bases on this round result.
Budget surplus will be carried to next round.
The focus should be maximizing net profit margin.
Need to balance advertising and profit margin.
2. Focus on the Ideal points
This is the most important decision and tip.
Open the Market Research Report to find positioning map.
Find the position of each Brand.
Find the competitors in each segment.
Keep the products as close to ideal points as possible.
Forecast ahead when build new projects in R&D.
3. Find out the most important attributes in each segment
Each segment has their focus on certain attribute.
For Sonite, this is Power and Price
For Vodite, this is Connectivity and Price.
Check the Conjoint Analysis report to find out important attributes
Also check positioning map to check the two most important factors
When advertising every round/period, set perceptual objectives for the two attributes
Try to bring brands close to the point.
4. Produce high in round 1, do not stock out
For round 1, it is important to gain good market share, so do produce high, 10% higher than demand.
Do not lose potential sales and market share.
Some inventory in round 1 is acceptable.
Spend all your budget in round 1.
5. Use market research report
Use the market research report to study competitors, their strategies, their spending on advertising, commercial team for each brand, their target segment, R&D investment…
Also use market research to study each segment and check results of last round decisions.
Go through all sections of report so that can find needed data quickly in later rounds.
6. Launch a new brand to replace bad brand
We can launch a new brand close to ideal spot, spend high advertising, then can sell better than old brand which is far from ideal spot. We can also retire or drop bad positioning brands.
Drop brand that far from ideal spot as early as we can, so can save cost.
Launch new brand as early as we can and invest high advertisement then they can sell well soon.
7. Keep track of Perceptual Objectives
In project, brand determines its physical attributes
Ideal points are always moving, as customer demands change all the time.
Use perceptual objectives to bring brands closer to ideal point each round.
Need to spend from 10% to 15% of advertising budget per brand on advertising research.
8. Advertising higher than competitors
This is close to real world of business; stronger advertising often is better.
Brand is perceived close to the ideal spot then sales is better.
This perception depends on advertising, so spend more on advertising.
Do this as early as possible, to build more image in mind of customers.
Also, having higher commercial team will increase sales and net contribution.
Give commercial team about 20% of marketing spend (ads and commercial).
In later rounds, we can use 50/50.
Spend more advertising for better brands, support best selling brands to maintain sales and market shares and lead the market.
For brands with good margins, spend more advertising to increase sales, market shares.
For round 1, allocate budget based on sales of each product.
9. Get max 2 or 3 segments in Sonites
We can launch max of 5 brands in Sonites and also max of 5 in Vodite.
Brand as a package of product.
Base project is actually physical product features.
So, we need different project for different target segment.
Multiple brands can use the same project, like core product features.
This can also save cost of R&D and cost of production.
So, we can have 2 base projects and then base on the 2 projects, build 5 brands in Sonites markets.
This can help capture as much market share as possible.
10. Long term strategy game
This is long term strategy game, so think ahead.
Think when to invest in R&D, when to enter Vodite markets.
Start with Round 1 carefully.
Select target segment wisely, based on Price, Competition, Perceptual maps and also check Competitors…
Good Luck and Success !!
MARK STRAT
FREE PERSONAL SUPPORT FOR 2 ROUNDS
Email: mbagame2017@gmail.com
MARKSTRAT – FREE WINNING GUIDES AND TIPS (TIP 10 – 20)
11. Read the manual
This is the best guide.
12. Make an excel file to keep track of 8 rounds strategies and Competitors
This excel file can save a lot of time and keep all calculation precisely
Free download the excel file
Or contact mbagame2017@gmailcom for Free excel file creation and guides.
13. Be first one in Vodite market
Just add new product
We can always change R&D
For Vodite market, increase customer awareness and also perception is important
14. Use all budget
Use all budget and try to get as high market share as possible
15. Continuous R&D
Improve products continually with R&D to keep product moving along with Product Life Cycle
16. One product one target segment
Use one product for one target segment.
Manage product portfolio wisely.
Do not add too many products.
17. Use numbers to support all decisions
It is simulation games, use number to support and test ideas.
Take risk and creative ideas, but need to support by good figures and calculation
18. Later rounds will decide the winner
Keep moving for all rounds, later rounds results will decide winner.
19. Buying the needed reports
- Industry benchmarking: see other teams spending on R&D
- Market report: see other spending, prices, based cost
- Consumer Panel: share of each product in each segment
- Distribution Panel: market share per channel, help allocation of commercial team
- Semantics Scales: brand perception, what characteristics customers want
- Market Forecast: help calculate production, use the excel file
- Competitive advertising and Competitive Commercial teams: how much competitors spend of two categories, how much to spend to gain market shares.
20. Understanding of how to calculate cost, perception, preference and production
- Do not guess numbers, use a reason and numbers to support any decisions
- Markstrat gives more information than needed, get what needed to make decisions
- R&D is always first important, can not sell the wrong products
- Use strong advertising, use both media and market research budgets to ensure products success.
- Give 7% to 15% media budget to market research.
- Advertising, again, is the key to win, it increase brand awareness, and sales.
- Save money for Vodite: it needs $8.000 to create a Vodite project. That is a lot in MarkStrat world. So, need to save money for Vodite development new product.
- Winner often have at least one product in Vodite.
- R&D cost: it need one or two rounds to develop a new product. One period if we want to sell fast, two periods will save the cost.
- R&D again: Check the box to develop product at base cost. Otherwise it can increase 2-3 times.
- Sales Force needed for new market. Not much needed in established markets.
- DO NOT over hire or hire too many people, it will cost a lot in training, running and even compensation when not hiring them.
- Keep a good balance of Production and Inventory. But it is BETTER to over produce, keep some inventory. DO NOT under produce or stock out. Out of inventory is bad for us, and good for competitors.
- One PRODUCT target one SEGMENT: if we develop product then that fits each segment, use 100% to target that segment. Do not try to split a product for more than one segment.
- Do not sell the most basic product. Customer and even we do not buy too simple product in Vodite. It cost USD 8.000 to develop a product. Best is average product and charge high prices for higher margins.
SAMPLE WINNING STRATEGIES
MarkStrat - 8 Round by Round - Guides and Tips
ALL 8 ROUNDS GUIDES AND TIPS – ROUND BY ROUND DECISIONS EXPLANATION
ROUND 1
Gain market share as high as possible.
Put 100% media spend into just one segment for each brand.
Put 10% of total ad spend for each brand into advertising research.
Check MDA map if provided.
Select to segment that is closest to product on the perceptual map.
Eg.
Low cost ad spend about $2.5 million
High cost ad spend about $1.5 million
Calculate production is important.
Keep some inventory is better than sold out/stock out.
Transfer cost about 8%
Inventory cost about $0.30 - $ 0.50
Contribution margin about $1.7 to $ 3.0 for Low cost and $ 2.3 to $4.1 for High cost products
Do not stock out, because demands will go to competitors.
Eg.
Low end production about: 2.500 - 2650K
High end production about: 1.300 - 1450K
Drop price for each product by $1.0
Note that do not spend too much on Commercial team, they do not bring much sales.
Keep total number of sales people constant. Allocate them between segments.
Estimated results:
- SPI from 1.000 to 1.400
- Gain 25% of VMS, and 27% of UMS
- Highest brand awareness, purchase intent, repeat sales.
- Revenue about $55 million
- Earning before tax $20 million
ROUND 2
Growth continuously, strong investment
Use all $ 7.3 or 8.0 million budget
Ad spend from $ 2.5 to $ 3.0
Increase about 20%
Eg.
Cost 500K will bring contribution about $1.7 million
Ad spend for high end about $1.2 to $1.5 million
Keep 9:1 for media spend (90%) and ad research (10%)
Launch new brand based on old R&D project
Commercial team spend about $ 300 - $360
Production about 800K units.
Consider investment into R&D for new market.
Cost of $8 million need saving funds
Low cost production about 5.700 units
High cost production about 2.200 units
Estimated results:
- SPI increase to 2100
- Revenue $ 85 million
- EBT $ 42 million
ROUND 3
Low end has five segment
High end has three segment: enderly EL, families FA and High conscious HC.
EL starts with 300k units, growth rate about 161%
FA starts with 1.200k units, growth rate about 55%
HC starts with 2.400k units, growth rate about 15%
Production for EL cost about $ 7.8 m
Production for FA cost about $ 8.2 m
Production for HC cost about $ 8.9 m
Budget about $ 8.6 million
Increase commercial team
Price reduced by $ 0.50 to increase sales
Again, do not stock out or out of inventory, demand will be down.
If demand is low, try drop prices to $ 13 or $ 13.50
Estimated results:
- PSI about 2.800
- Revenue: $ 110 million
- EBT about $ 55 million
ROUND 4
Keep expanding extremely.
QUICK GUIDES AND TIPS - QUICK TIPS FOR MARK STRAT 2018
1. Always spend your entire budget in
the beginning periods.
2.
Focus on the ideal points.
3.
Focus on most important factor for each Segmnet
-
Power and Price for SONITE
-
Connectivitt and Price for VODITE
- Check
Positioning MAP
4.
Produce max in round 1 – 2
Gain
market share
5.
Use the Market Reports
Use your market research reports to learn what your
competitors are doing:
- how much they’re spending on advertising and
commercial team per brand,
- which segments they are or will be targeting,
- when they’re investing in R&D,
6. Drop under-performing brands
7. Use Base project and target Ideal Spots
8. Spend 15-20% Advertising budget for each Brand
9. Spend more than competitors on Advertising and
Commercial Team
Early rounds: 80 ad, 20 commercial team
Later rounds 50/50
10. Focus more advertising on high performing brands
11. Allocate brand budget based on sales
12. Segments
- Target 2 or 3 in SONITE
- Use 2 base project for 2 segments for SONITE
- Launch 5 brands bases on the 2 base for 2 segments
13. Launch New Products
Plan when to launch VODITE
MarkStrat, StratX, Free Winning Guides and Tips,
Free Personal Support for 2 Rounds,
Email: mbagame2017@gmail.com
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MarkStrat, StratX, Free Winning Guides and Tips,
Free Personal Support for 2 Rounds,
Email: mbagame2017@gmail.com
