Marketing Management Simulation
(submitted as a part of the coursework Marketing Management-II course,
under the guidance of Pankaj Vishwakarma, PGP Term 2, IIM Visakhapatnam)
Submitted By: Group 3
Section D
Team Members-
Amisha Govind - 2410260
Nayana M- 2410302
Yash Patel -2410306
Vaibhav Kashyap - 2410333
Farzan Nazeer – 2410280
Ajinkya Mankar -2410257
1. Strategic Implementation
Market Entry and Customer Segmentation:
We entered the European and Asian smartphone markets, strategically targeting distinct customer
segments—households, high-end households, businesses, and premium companies. Each segment had
unique needs, and we tailored our approach to resonate with these preferences.In order to differentiate
ourselves, we prioritized innovative designs and tailored features, helping us appeal to region-specific
trends and demand.
Product and Pricing Strategy:
We launched the iPhone 17 Pro with a pricing plan that maintained a balance between profitability
and competition. We purposefully increased our R&D spending in subsequent rounds to improve
product performance after intentionally reducing it in the early rounds to save costs.In order to remain
relevant, we constantly monitored competition pricing and adjusted our prices for each area, aiming
for affordability in Asia and premium appeal in Europe.
Promotional and Brand Positioning:
We began with a moderate investment in advertising to build brand presence without overspending.
We had considerably raised our advertising budget by Round 2, which broadened our audience and
helped us build strong brand recognition among target audiences.As our market share and brand
recognition increased, our products gained recognition and credibility, and our brand became a top
option in both areas.
2. Key Insights and Metrics
Round 1 - Initial Market Testing:
o Gross Profit Margin: We started with a gross margin of 16.7%, indicating an
opportunity to improve our cost structure and pricing model to be more competitive.
o Market Penetration: We established ourselves as a prospective new entrant by
securing 7–11% of the European market and 6-12% of the Asian market.
Round 2 - Investment in Growth:
o Enhanced Brand Equity: The significant rise in the share price of Universe 1
indicates that an increase in R&D and advertising expenditures paid off in terms of
product quality and brand awareness.
o Market Position: We achieved the highest share price among competitors,
solidifying our brand as a financially robust choice for investors.
Round 3 - Achieving Profitability:
o Financial Success: We became the first team to reach profitability, with cumulative
earnings of €13,181K, validating our strategy’s effectiveness.
o Market Dominance: We became the market leader in Asia after increasing our
market share to 20–24% and in Europe to 18–22%.
Round 4 - Leading the Market:
o Investor Confidence: A 240% surge in our share price (from €58.96 to €141.80)
reflected strong investor confidence in our growth trajectory.
o Expanded Market Share: We continued to grow market share across both Europe
and Asia, securing our role as a market leader with significant brand loyalty.
3. Learning and Insights
Optimizing Pricing and Cost Structures:
Early rounds revealed that our pricing and cost structures needed refinement to improve margins. In
order to increase profitability without compromising product quality, we developed more competitive
pricing by revising R&D allocation and utilizing efficiency.We observed that our cost-efficient
competitors thrived by achieving better gross margins, inspiring us to streamline production costs in
later rounds.
Customer-Centric Segmentation:
We were able to cater to the varied needs of European and Asian consumers by segmenting the market
into several customer groups. We maintained our competitive advantage in both markets by
customizing each product launch to align with the values and buying habits of both categories.
Achieving best-seller status in Asia and a dominant position in Europe was made achievable by our
proactive strategy of introducing new items based on consumer preferences.
Impact of Marketing Investment on Brand Growth:
The correlation between R&D, marketing investment, and brand performance was clear—every
strategic increase in budget for these areas was reflected in better market traction and brand loyalty.
By focusing on digital channels and distribution partners, we maximized brand reach and ensured a
consistent, high-quality consumer experience.
4. Conclusion
The significance of strategic investment, flexible cost control, and a thorough comprehension of
customer needs were all highlighted by our experience in this simulation. In addition to achieving
profitability, we established Company as a reliable brand with a significant market share in Europe
and Asia by refining our strategy with each iteration. With an ongoing emphasis on product
innovation and market responsiveness, we are poised to maintain this growth in the future.
