current market share

current return on sales

Write the plan for next 5 years. write in points 300 words

The industry in NewShoes is made up of competing firms from your class, each selling one basic shoe. You have been hired as a member of the new marketing management team for your company. In the simulation, there are three regions representing different kinds of markets. The Home region is a geographic sub-market, such as the Pacific Northwest in the United States or the Prairie Provinces in Canada. The Domestic region represents a national market, such as the entire United States or Canadian market, minus the Home market. The Foreign region is the entire international market outside the Home and Domestic regions. The Home market is generally a smaller market than the Domestic market, with the Foreign market being the smallest market of the three, at least early in the simulation. It is not known what the full potential of the Foreign market might be. In NewShoes, athletic shoes are sold by manufacturers such as your company to distributors in a market, who then sell to consumers in retail stores. Price is a significant factor in sales, but how you market to distributors and consumers can also impact sales. Through personal selling and dealer promotion, you can encourage distributors to push" your product and increase sales. By advertising and offering consumer promotions, you can make consumers aware of your brand and persuade them to buy it. Each market is unique, with distributors and consumers responding to your marketing decisions in different ways, so your task is to find the correct marketing mix for each region. Personal Selling Dealer Promotion Product Product Manufacturer Distributor Consumers Price Retail Price Advertising Consumer Promotion When your team takes over marketing for the firm, there are two periods of results available for you to evaluate the condition of the company. A "period" in the world of NewShoes can be viewed as a month, a quarter, or a year of operations. It is simply a period of company operation and of competition with the other NewShoes company teams. At the beginning of the simulation, your company is struggling to make a profit. After a loss of $2.4 million in period -1, the previous 9 marketing team decided to raise the price from $90 to $110 in the Home market, and expand into the Domestic market. The changes were a qualified success. Total revenue increased from $9.2 million to $19.2 million; but Home sales dropped somewhat, and the company still lost $1.2 million. Period Sales and Revenue in the Two Previous Periods (in millions) Home Domestic Total COGS Expenses Sales Sales Revenue $7.5 $11.7 $19.2 $7.9 $12.5 Net Profit 0 (Start) -$1.2 -1 (Past) $9.2 n/a $9.2 $6.4 $5.2 -$2.4 As a member of the new marketing management team, you face challenging decisions concerning your product, its pricing and promotion, and new distribution opportunities. While the same product is sold into all the regions, you must make price and promotion decisions for each market. Thus, you must consider the 4 p's of marketing in managing your firm: product, price, promotion, and place. That is, you must decide where to distribute, or place, your product; what price to charge; and how to promote it. Overall Market Share = Market Share is the percentage of a market that your company controls. In this context, the market share is in units sold. 20.9% Market Share is an important metric because it indicates how well your company is doing. Losses in Market Share can be an indicator that you may need to adjust your strategy. To find your share of the market, divide the amount your company sold by the total sold and multiply by 100. 368,216 units 79.1% 0.209 x 100 20.9% Market Share Competitors Your share 1,764,169 units Home Return On Sales = Return On Sales (ROS) is used to determine profitability in an area of interest to a company. In this context, Return On Sales for your brand is reported by market. 0% TI" -100% T Return On Sales can be used to judge whether decisions in a market are having an effect on profitability for your company. -200% -300% Negative or decreasing Return On Sales can be an indicator that you may need to adjust your strategy. To find the Return On Sales, divide your company's net profit by your company's revenue and multiply by 100. -400% 4 3 X 6 6 1 O Past Start $(4,724,860) -0.614 Period -61.4% Return On Sales $7,699,536 100