I shared a small amount about the simulation I'll host on March 30 (click here for details - please join us by the way).
What are the decisions you get to make?
- You get to decide how much of your cash to invest in offline marketing.
- You get to decide how much of your cash to invest in online marketing.
- You get to allocate headcount (10 staffers) into offline strategy, online strategy, and mobile/social strategy.
- You get to determine the price of "Widgets" based on a cost of goods of $30.
- You get to determine the price of "Bidgets" based on a cost of goods of $20.
- You get to determine the price of "Tidgets" based on a cost of goods of $10.
- You get to determine the discounting strategy (0% off, 10% off, 20% off, 50% off - have at it).
- You get to determine if you charge $12 for shipping, if you offer free shipping with a hurdle, or you offer free shipping 24/7/365.
Each of those decisions impact Widgets / Bidgets / Tidgets differently, and as a result, impact net sales and company profit differently.
The room will be divided into twenty teams.
Your team will have to agree upon the eight strategy points above. Do you sell Widgets at $60 with 20% off or at $48 and call $48 full price? It's on you. You decide. And everybody else decides simultaneously - you'll get to see their decisions after the "year" is complete. You'll know why you succeeded or failed.
Then you get to make new decisions in year two. And as you make your decisions, all other teams act independently as well, making their decisions. Their decisions impact your decisions, and vice versa.
After five years, one team will maximize the mix between sales growth and profit dollars better than everybody else. That team will be declared "the winner".
More on the topic tomorrow. Please click here to register for the conference.