Homework: Situation Analysis and Marketing Plan
The Music2Go Marketing Simulation gives you the opportunity to formulate and implement a Marketing Campaign within your own company (an MP3 Player Manufacturer). Music2Go will require you to analyze Company Reports and Market Research to implement your own Marketing Plan while keeping to a fixed budget.
You will need to log into the Smartsims website, open your Music2Go company and make decisions before the Sunday midnight (MST) rollover (decision deadline). In the first decision period, you will be making decisions for the company's only product. These decisions will be Retail Price, Retail Margin, Advertising budget, Advertising mix, and entering a Sales Forecast. In following weeks you will be able to make Sales Promotion decisions, conduct Product Development, and launch New Products. The success of your decisions will be determined by your Total Marketing Contribution (TMC) over the length of the simulation.
To begin you must first register for the Music2Go Marketing Simulation through the Smartsims website. After registration has been completed, it is strongly recommended you start by reading the Music2Go Homework Schedule, Music2Go Player's Manual, and view the Music2Go Tutorial Videos available through the Smartsims website.
For this homework you are required to complete each of the following:
o Part I: Conduct a Situation Analysis
o Part II: Write a Marketing Plan
For this Homework: Music2Go Situation Analysis and Marketing Plan, follow these detailed directions:
Part I. Conduct a Situation Analysis
Your goal in Music2Go is to maximize Marketing Contribution for your MP3 Player company. Marketing Contribution is your profit after sales and marketing expenses have been deducted. At the end of the simulation, you will then be graded on your Total Marketing Contribution (TMC).
To understand the simulation and achieve the highest TMC you can, you must first conduct a Situation Analysis. To complete this written homework you will need to have open the Music2Go Player's Manual and be logged into your Music2Go company (log in through the Smartsims website). Part A should be two-three pages in length.
• Using the information provided in Chapter 2 of the Music2Go Player's Manual write a brief description of the three market segments in the Music2Go MP3 Player Market. Your answer should be half a page in length.
• Complete a short analysis of your company by answering the short answer questions below:
o What was your Sales Revenue, Gross Margin and Marketing Contribution last year? (Hint: see the Industry Benchmark Report)
o What was your Original Base Marketing Budget Limit last year and how much was not spent? (Hint: see the Budgeted Expenditure Report)
o Based on Total Marketing Contribution (TMC) where is your company ranked in the industry? (Hint: see the Industry Benchmark Report)
• Using the Market Information Report answer the following short answer questions on your target audience:
o What are the estimated potential market sizes of the Sports, Standard and Youth markets at the start of the simulation?
o What are the recommended retail prices for the Sports, Standard and Youth markets?
o For the Standard segment, which attributes of the product are most desirable and least desirable to customers in this segment?
o For the Standard segment, what are the two media channels that consumers in this segment view the most?
o Of the four media channels which is the most expensive to reach 20% of the viewing audience? (Hint: see Advertising Media Reach graph on the Market Information Report)
• Evaluate the performance of your only current product (Sonic1) by answering the short answer questions below (hint: see Some Product Details Report and Product Contribution Report):
o Which market segment is your product positioned in?
o How many other products are competing in this market segment?
o What is the Retail Price of your product and how does this compare to other products in this market segment?
o How many units did you sell last year and how does this compare to other products in this market segment?
o How much are you currently spending on Advertising in total and how has your Advertising budget been allocated across the four media channels?
o What was your Awareness index last year?
Part II. Write a Marketing Plan
You should now have an understanding of the MP3 Player market, your company, and your product. The next step is for you to write your Marketing Plan which will guide your company to achieve the highest Total Marketing Contribution (TMC) over five decision periods.
To complete this written homework you will need to be logged into your Music2Go company (through the Smartsimswebsite) and the prescribed textbook may also be helpful. Your Marketing Plan should be one page in length.
• What is your company's Mission Statement?
Your mission statement should be brief and include the purpose of your company, your target market and how you intend to differentiate yourself from competitors. The mission statement will guide your decisions and provide a method of achieving your goals.
• Write at least three Goals for your company's Goals.
Company Goals are the overall targets your marketing campaign seeks to achieve. Your Goals should be realistic, clearly defined and accompanied by a time frame.
• Describe your company's Implementation Strategy to achieve these Goals? You should at least include the following (with justification for each):
o Your Pricing strategy for Sonic1;
o How you intend to manage your Retail Margin for Sonic1;
o Your Advertising Budget for Sonic1 for the coming year;
o How you intend to spend this Advertising Budget for Sonic1 across the four media channels;
o Your Sales Forecast for Sonic1 in units;
o Your Product Development strategy for Sonic1;
o Your Target Markets for New Product launches over the length of the simulation;
o Your Marketing Contribution forecast for year one and your Total Marketing Contribution forecast by the end of the simulation.
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.