Week 9 – Reflection from Periods 3 – 7

This week’s blog post we were asked to discuss the implementation of our team’s strategy, more of a reflection as oppose to the actual actions that took place.

After playing out Periods 3-7, I can clearly see the importance of having a marketing plan in place to help guide your decisions.  The marketing plan is essential the tracks that guide the train down its path. 

Just like when we developed the marketing plan, we communicated and made our decisions through the team discussion module within Kodiak.  Prior to making the period’s decision, we would outline what has happened coming out of the previous Period and then highlight key metrics/situations that would impact the decisions that needed to be made.  Once we’ve outlined those topics, we then would reference our marketing plan to understanding exactly how we should approach the period.  Example, in Period 5 we had the opportunity to introduce a new product:  one of the 3 options we did not previously choose, a non-drowsy allergy product, or a nasal spray.  Although it would be interesting to launch the non-drowsy allergy product because it would be the first one on the market, it was not outlined and discussed in our marketing plan.  Based on the strategy outlined, it was decided to not launch any new products and focus on Allround and Allround+.

Looking back and fully understanding the importance and direction setting the marketing plan provides, I think I would have focused more in certain areas and would have changed a few things.  However, it was important for our team to follow the strategy.  Although some periods performed better than others, we did make those critical decisions but stressed them against the plan.

Marketing Plan

Our group exercise was to develop our strategy for Pharmasim over the next five periods.  This exercise was completed through our group discussion as the team had conflicting schedules throughout the week, however the assignment was completed.

The first task was to compare each group members SWOTs to determine where we all came to agreements and where were the areas of differing thoughts.  Thankfully all three of us were pretty much in a consensus regarding Allstar entering certain markets, key issues, and to keep Allstar a higher end brand.

After we discussed potential markets, each team member took a target market to analyze.  Perhaps we, as a team, should have done a better job with these three markets.  I know I should have done my analysis then would have shared it with the team in order to make sure it aligned with our mission statement and overall goals for the company.  Certainly an opportunity for next time.  It will be interesting to see how the next five periods play out as we align to the plan.

Performance Metrics

We were asked to determine the five most important metrics for measuring team performance regarding our simulation groups.  My list would consist of the following:

1.       Market Share

2.       Net Income Percentage

3.       Customer Satisfaction

4.       Trade Rating

5.       Capacity Utilization

Week 6 - Simulation Periods 1 & 2

I felt our team did a great job communicating for the decisions within Periods 1 & 2.  We decided to just use the Kodiak team discussion, but it did work because we were actively participating multiple times each day.  Each team member made recommendations as to what decisions should be made based on the research reports.  For the most part, each member had similar thoughts as to what decisions needed to be made, so it was easy for all of us to work together.  I anticipate the great teamwork to continue throughout the rest of the semester.

The first decision we had to make as a team was regarding social media.  The choice that had to be made was working with Facebook and Twitter or an interactive blog.  In addition to choosing between these two we had to decide whether we wanted to allocate resources for Google Adwords.  Knowing that we offer a premium product and have a premium brand with Allround, I felt comfortable making the recommendation to choose an interactive blog with Adwords instead of Facebook and Twitter.  Also, we know that our core consumer groups are middle-aged with families.  As a team, we decided to run a website in order to message our product appropriately to our family based consumers.  We felt that our core market would be more inclined to use the blog than Facebook and Twitter as well as we could tell the consumers all about the benefits of the product rather than trying to sell it with a quick glimpse of the eye.  I personally know that I just skip all the advertisements I see when I use social media, so I think the team made the correct choice here choosing the blog with Adwords.

For the second period the decision was based around quality assurance.  The team could have decided to move the close to expiration date product to the market to sell it, but there was a large risk that some of the product would be sold after the expiration date.  The second option was the spend $100,000 to dispose of this batch of product.  The last option was to spend $50,000 to give to a 3^rd party who would move the product through the market quicker, but still at a risk as the first option.  The whole team agreed that we should discard the product for $100,000.   This fee was worth it to us so we can maintain our premium brand experience with the consumer.

The second period’s decision reminded me a lot of the company I work for, LEGO.  The mission statement for LEGO is ,”only the best is good enough”.  There was a story of the founder of LEGO explaining to his son who made a wooden toy, prior to the plastic LEGO brick, that he must re-work the toy because the quality in which it was made was not perfect and did not want to leave the consumer with the perception that LEGO produces sub-par products.  LEGO has many tests and settings in place during our production that ensures the LEGO brick is manufactured perfectly, down to the 1/100^th of an inch so that it is compatible with LEGO bricks that were made 50 years ago.  During the manufacturing process, if batches of bricks are not correct then they do not make the final product.  We make sure these bricks are either thrown away or re-worked because we do not want to risk the consumer having a poor first experience, or experience in general, with our premium products.  We felt the decision in PharmaSim was too risky, so we didn’t want the consumers of Allround to have a poor experience with our product, especially since there are many other options to choose from for the consumers.

Benefits Ladder and Post-Purchase Dissonance

As discussed in this week’s Chalk Talk session, the benefits ladder consists for the following:

·         Emotional Benefits
·         Functional Benefits
·         Product Attributes

To determine what should be categorized as emotional benefits, we ask the question what are the dominant feelings produced by or associated with the possession of or use of the product?  Consumers who have developed an emotional attached to the brand would be classified as an emotional benefit for the particular item.  Under the emotional benefits step of the benefits ladder you would find:  Allround being the most effective cold and allergy multi-symptom relief medication, being a trusted brand, and providing consumers symptom relief so they can get a full night’s rest.

What does the product actually do for the customer?  What is the unique value of this product?  These questions fall under functional benefits.  Within this step for Allround you can find:  breaks up chest congestion; 4 hour relief from aches and fever, nasal congestion, runny nose, chest congestion, and cough; and provides sleep aid.

Product attributes asks what are the specific, measurable, characteristics, or features of the product.  The following would be classified under product attributes:  the ingredients of Allround (1000mg of Analgesic, 4mg of Antihistamine, 60mg of Decongestant, 30mg of Cough Suppressant, and 20mg of Alcohol), and Allround is provided in a liquid form.

We also talked this week about post-purchase dissonance.  Post-purchase dissonance is defined as the uncomfortable feeling following a high-involvement decision.  Marketers can limit post-purchase dissonance from the consumers by placing ads that help reassure consumer they’ve made the right decision.  By focusing ads on all the positive aspects of the purchase decision it helps consumers avoid the urge to delay the purchase or post-purchase dissonance.  Lastly, markets can reduce this dissonance after the purchase by making direct contact with the consumer after the purchase decision has been made.  These direct marketing appeals help reinforce the positive aspects of the consumer’s decision, and serve as a gesture to show the consumers that the company hasn’t simply written them off now that the transaction is complete.

I experienced post-purchase dissonance after I purchased my vehicle recently.  I did plenty of research since this is going to be an investment that will last multiple years.  I wanted to have something that was stylish, yet practical.  I wanted a car that had good gas mileage, a car that was fully loaded, and lastly a company that was well respected and had high brand equity.  I had a few different cars in mind, but there was no clear number one.  I also had to keep in mind I should get a car with four doors so I can fit more things when moving or people when I’m driving.  I couldn’t get a sports car due to harsh winters and I needed something reliable as I’ll drive the car daily.  I settled on a Honda Accord and honestly drove past the 3 or 4 cars I was deciding amongst during the first week after I made my decision.  I found myself noticing it was a comfortable ride, but was this truly the car for me?  The more I drove the car I saw more on the road and like their design more and more.  I saw many TV commercials that stressed the dependability of Honda.  Also, I received a letter in the mail from Honda saying they appreciated my business as well as an estimated dollar amount I’d save over the next 10 years from purchasing a Honda.  Based on the MPG, average longevity, and the estimated service required for the vehicle compared to their two major competitors (names were not listed, just competitor A and B) they provided some reassurance that the investment I made was well worth it and this was something I would be able to use for many years to come.  I am pleased I made that decision.