Marketing Simulation: Managing Segments and Customers

Das  Narayandas

Simulation | 2010

Marketing Simulation: Managing Segments and Customers

Abstract

In this single-player simulation, students assume the position of CEO of a medical motor manufacturer and are tasked with executing a successful business-to-business marketing strategy over a period of twelve fiscal quarters. Students determine all aspects of the company's go-to-market approach (including sales-force deployment and distribution channel strategy) and associated elements of product policy, including pricing and market positioning of the company's product line to both small and large volume customers. Students also prioritize the manufacturer's efforts in acquiring and retaining customers in order to achieve a combination of sustainable revenues and profits and maximize cumulative profits at the end of the simulation. The simulation also illustrates the benefits of investment in market research. Ideal for core marketing 101 courses (as a Capstone session) or in the introductory module of an advanced marketing strategy course. This simulation can be used in advanced undergraduate, MBA, and executive education programs.

Keywords: Marketing Strategy; Salesforce Management; Distribution Channels; Price; Product Positioning; Customer Relationship Management; Profit; Revenue; Cost vs Benefits; Policy; Manufacturing Industry;

Language: English

Format: Electronic

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Citation:

Narayandas, Das. "Marketing Simulation: Managing Segments and Customers." Simulation and Teaching Note. Harvard Business Publishing, 2010. Electronic.

Twenty-four-year old Ritesh Agarwal, founder and CEO of India-based online, hotel branding network OYO Rooms, has tackled the issue of unreliability in India's highly-fragmented budget hotel industry. In 2018, OYO branded 8,500 properties across 200 cities and managed to capture almost 1.5% of India's budget hotel market. Ritesh believes that in the process, OYO has honed technological skills and infrastructural capabilities that can transform the company from being a technology player to a hotel developer. OYO now aspires to convert corporate spaces and homes into accommodation spaces, and to make its mark worldwide.

Soon after being named regional managing partner for Ernst & Yong (EY) China in September 2009, Albert Ng reflects on the enormity of challenges facing EY China. Despite EY Global's commitment to the China practice, EY China’s growth agenda has been reversed, post global financial crisis. The smallest of the Big Four global accounting firms in China, EY China’s reputation has weakened in the market, morale of its professionals has plummeted, and it faces the threat of a major lawsuit. Ng is musing how to address all these challenges confronting EY China.

The case outlines how regional managing partner (RMP) Albert Ng steered Ernst & Young (EY) China through a period of significant growth from 2009, when it was the smallest of the Big Four firms in China, to 2017, by when it had become the second largest firm. Partners worldwide felt a sense of shared achievement, since EY Global had come together with China leadership to invest in building a strong China practice that was integral to all of EY.
But Ng was not resting content. He believed that EY China was at a critical juncture. Chinese economic growth, which had partially fueled EY China’s dramatic rise, was slowing down, just as competition was intensifying. Was EY China prepared to face the challenges that lay ahead?

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Marketing Simulation: Managing Segments and Customers

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