SIM to the board

SIM to the board - Report to the Board of Directors Our...

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Unformatted text preview: Report to the Board of Directors Our marketing team was given the task of creating new products and introducing them to different markets. To gather information to create an efficient marketing mix, we listened to the tutorials and gathered important information given about the different market and customer needs. Understanding what the different markets and customers were asking allowed us to make critical strategic decisions for our products. We decided on a team name, MAKE (which we made easily out of each initial of our group member names) and began our process of creating products and developing marketing strategies for our company. While MAKE began with a very slow start, we eventually were able to take over the marketplace. Overall, MAKE is satisfied with our final standings and an overall gross margin of $21,895,047. Large strides were made in the final quarters will help build momentum for next year. QUARTER 1: Our first task was to select one target market to aim our initial product to. We chose a workhorse product as our first trial because it could be sold at the lowest price customers were willing to pay. The city we decided to open to sell this product was Shanghai because the workhorse was the biggest potential demand in this market, so we expected it to be a success. QUARTER 2: The first product we created was the workhorse EZOffice. We chose to make this a laptop, which was our first major mistake. On a practical level, we thought a laptop would be better because it could be used in the office, at home, or on business trips. However, when we were made aware our market performance was lower than every competitor, we realized a laptop was not a workhorse consumer need. The EZOffice was designed with basic features. We included office software, presentation software, standard computing power, standard hard drive, standard networking, standard keyboard, and a standard 14 monitor. This early in the year, we thought it was be best to build a price-cautious product at $893 to then sell at $2,000 with a rebate of $200. We were unaware of the major mistakes we made until the quarterly performance report. As it turns out, the customers were willing to pay $2,500 so we were very off on pricing. We also discovered that the workhorse design was made the wrong market, as it was more appropriate for the traveler market. An error we made was trying to make it an easy-to-use product sold at a low price, but we ignored important aspects of the workhorse market such as word processing, or engineering and design applications. The advertisement we made for EZOffice consisted of the brand name, a picture of business professionals, the fact it was easy to use, the fact there was a rebate, portable design, feature of office applications, and the ability for it to link PCs with network and Internet. It cost $8,000 to place twelve advertisements in Shanghai. The total expenses for our media placement were $74,878. We did not know how many people to hire for our ads so we decided to hire two people at a cost of $37,000. Unfortunately, we ended up with a total performance score of 11.505 while the Unfortunately, we ended up with a total performance score of 11....
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SIM to the board - Report to the Board of Directors Our...

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