mkting paper - New Shoes Simulation Game MKT 230 Team J:...

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New Shoes Simulation Game MKT 230 Team J: Ryan Knutson Robert T Nelson Jordan Goldenstein Steven Rice Joanna Kucek
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The New Shoe Simulation has been a work in progress for our team but we have learned a great deal through our efforts. In period 3 we manage to actually lose money, approximately a million dollars bringing us to a net lost of 1.4 million dollars. The decisions we used to cost us money are we decreased a lot of our expenses and increase market research. Included, were decreasing advertisement by .5 million, product development by $800,000 and dealer promotion by $200,000. We also increased market research by $110,000. Revenue Total % of Revenue Home Sales # Sold 67,522 X Price $110.00 $7,427,420.00 61.70% Domestic Sales # Sold 51,220 X Price $90.00 $4,609,800.00 38.30% Special Income $0.00 0.00% Total Revenue $12,037,220.00 100.00% Cost of Goods Sold Total Cost of Goods # Sold 118,742 X Unit COGS $34.83 $4,135,783.86 34.40% Gross Margin $7,901,436.14 65.60% Expenses Advertising $3,000,000.00 24.90% Consumer Promotions $3,000,000.00 24.90% Personal Selling $1,120,000.00 9.30% Dealer Promotion $2,000,000.00 16.60% Product Development $100,000.00 0.80% Market Research $110,000.00 0.90% Start-up $0.00 0.00% Special Expenses $0.00 0.00% Total Expenses $9,330,000.00 77.50%
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Net Profit ($1,428,563.86) -11.90% In the next period we did not see improvement, only more failure. We lost an additional million dollars. Even with the knowledge we learned through the market research, we did not make any advancement. As a group we decreased advertisement by an additional 1.25 million bringing both the home and the domestic region down to 1.75 million in total advertisement. We kept every other expense and the price of the shoe constant. However, we did spend another $110,000 on market research; mainly focusing on advertisement, dealer and sales promotion, price and market research. These moves brought our net lost to a new low of $2.4million.
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mkting paper - New Shoes Simulation Game MKT 230 Team J:...

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