Industry A

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Industry A Firm 1
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Product 1
OOPS
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Objectives

• Profit maximization for the firm over the period
  of the game
• Grow sales and market share
• Success in making profit all 9 years and average
  annual growth of retail sales of 9.44

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Strategy

• Initially our strategy was to increase product
  attributes and price to appeal to creators and
  managers
• After over differentiation of our product we
  decided to make a product that had a broad appeal

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Performance

• Average annual retail sales growth of 9.44
• Industry wide average annual retail sales growth
  of 13.65
• Average annual net contribution growth of 26
• Average annual net profit margin of 13

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Success and Failures

• Our firms biggest problem was declining dealer
  push and brand recognition

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Future Strategy

• To be successful in the future we need to grow
  dealer push by sales promotion and dealer
  satisfaction while keeping a product that is
  appealing across many market segments

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Product 2
Zapem
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Objectives

• Our primary objective in introducing the second
  product was to increase net contribution for the
  firm, we also wanted to be the DVC market leader
• Highly successful 40 of total net contribution
  over last 5 years and 60 of total net
  contribution over last 3 years

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Strategies

• Originally we introduced the DVC as cheaply as
  possible to both have our foot in the market and
  to steal sales from any other firm that entered
  the market
• As time progressed we developed Zapem to be a
  major money maker by increasing advertising and
  product attributes

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Performance

• Average annual retail sales growth of 104.88
• Average annual retail sales growth of Getem (only
  competitor) was 70.09
• Average annual net profit margin of 16
• Average market share ( sales) of 76

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Success and Failures

• Our key to success with our DVC brand, Zapem, was
  our early entry into the market
• High brand recognition and willingness to make
  large production orders also contributed to the
  success of Zapem

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Future Strategy

• To ensure future success in the DVC market we
  should strive to create a broadly appealing
  product with a markup of 45 - 50 while
  increasing sales promotion

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Combined

• OOPS and Zapem

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Performance

• Average combined annual retail sales growth of
  14.05
• Industry wide average combined annual retail
  sales growth of 17.54
• Average annual net contribution growth of 41
• Average annual net profit margin of 14

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