Chapter 9 - Case Study Promotion Challenges at Gulmarg Skis pages 242 243

Note for Promotion Challenges at Gulmarg Skis

As Gulmarg plans its response for the coming season, the company must make its plans without quite knowing what Kitz plans to do. The choices for Gulmarg are to not promote, promote in October, or promote in December. The outcome of each action is affected by what Kitz has chosen to do. There are a total of nine combinations possible and in the table below is a list of the monthly demand for Gulmarg as well as the profit generated by Gulmarg for each combination. All results are from the spreadsheet Chapter9-Gulmarg-Skis.

Gulmarg Action	No Promotion	October Promotion	December Promotion
Kitz Action	No promotion	October promotion	December promotion	No Promotion	October Promotion	December promotion	No Promotion	October Promotion	December promotion
October	1,600	1,280	1,600	4,320	3,840	4,320	1,600	1,280	1,600
November	2,400	2,160	2,400	1,920	1,920	1,920	2,400	2,160	2,400
December	4,200	3,780	3,360	3,360	3,360	2,688	7,520	6,856	6,260
January	3,800	3,420	3,420	3,040	3,040	2,736	3,040	2,736	3,040
February	2,200	2,200	1,980	2,200	2,200	1,980	1,760	1,760	1,760
March	2,200	2,200	1,980	2,200	2,200	1,980	1,760	1,760	1,760

Table 1: Demand experienced by Gulmarg under different scenarios

Your analysis will be easier if a table is made of the profits for Gulmarg for different scenarios as shown in Table 2 below.

Gulmargs Action	Kitzs Action	Gulmargs Profits
No promotion	No promotion
No promotion	Promote in October
No promotion	Promote in December
Promote in October	No promotion
Promote in October	Promote in October
Promote in October	Promote in December
Promote in December	No promotion
Promote in December	Promote in October
Promote in December	Promote in December

Table 2: Profits for Gulmarg under different scenarios

From the above results, describe what Gulmarg should do and why?

Also, create a short paragraph to your Executive Leadership Team with your recommendation and explanation of why your recommendation should be considered.