The Marketing Game: Team D2

1. The Marketing Game:Team D2 Marketing Managers: Maria Cruz Sandra Horowitz Sin Yi Yeung Peter Stathopulos

2. Targeting Segments • EZDuzit • Home Users • Parents • Students (beginning in period 4) • KeepitEZ • Managers • Creators

3. Strategies • EZDuzit • Price Penetration • Pricing based on competitors • Year 7 – Desperately seeking profits • Dramatic price increase • KeepitEZ • Premium pricing • Future plans to implement price skimming

4. Profits

5. Our Closest Competitors • EZDuzit • VoiceTek (low-priced products like ours) • KeepitEZ • wind (division of storm) • ROXYVOX (division of VOICEVOX)

6. Competitor Performance

7. Turning Points • Year 1 • Started in first place • Year 5 • Introduced product #2 (KeepitEZ) bringing us back to the top. • Year 7 • Lack of funds led to cutbacks and dramatic decrease in profits • UH OH!!! (It’s okay…have some cookies)

8. Successes • Product Introductions • Industry leader with the introduction of product 1 (Year 1) • Industry leader with the introduction of product 2 (Year 5) • Market leader of Home Users and Parents for Years 1-4 • Market leader of Students for Year 4 • Market leader for product 2 in Years 5 & 6 • Great customer service (until Year 7) • Great brand recognition (until Year 7) • Group dynamics

9. Failures • Inefficient Distribution Intensity • 10 salespeople – 30% distribution intensity paradigm used throughout • TOO MANY SALESPEOPLE! • Budget not large enough… • To sustain two products • Advertising • Customer Service • Salespeople • Salaries were too large (74.6% of our allotted budget) • Firings became necessary to cut costs • Inconsistent performance due to intense competitive environment

10. Recommendations • Request separate budget for product 2 • Master distribution intensity • Don’t hire too many salespeople • Keep informed – market research • Advertising is key!! • Remember C.R.A.P.: Conserve & Reserve for Advertising& Promotion

11. GOOD LUCK!