1. Lena McKenna Shannon
Michael Ford
Nicole Pope
Simulation Game
Marketing Strategy Paper
Executive Summary
Initially, we selected Outdoor Enthusiast as our target market due to our desired goals
of $60 CM and 200 units. This target not only allowed us to offer a higher purchasing price, but
also gave a consistent growth rate. Each element of the marketing mix played a key role in how
we played the game, but the price and product were the top two. Our product needed to fit within
very specific needs of our consumers and their willingness to pay more for the product allowed
us to be more flexible in our asking rate. We tailored our tough and safe messages within
various distribution areas to draw consumers in while offering an affordable backpack for their
specific outdoor needs.
Due to a few final changes made in an attempt to increase overall profits, we lost a
little over a grand which put us tied with ATEAM in round 12.
As a team we ended 4th
because we failed to tie the message strategy close enough to
our product within the first few rounds. This caused us to play catch-up too far into the game and
we struggled to recover as round 12 approached. Overall we feel confident with the choices
throughout the game and enjoyed the progress we made through this assignment.
Part I: Segmentation/targeting/positioning
a. Segmentation
Psychographic
Likes to Camp Doesn’t Like to Camp
Needs more capacity X College Students
Luxury
Benefit

2. Doesn’t need as
much capacity
Kids Commuters
We chose the Outdoor Enthusiasts due to their unique demand for high capacity and
outdoor interests. Due to these demands our message strategy focused around the benefit
of maximum capacity and psychographic desire to camp. Our top features were the high
capacity of the backpack and the waterproofing feature for high durability.
b. Targeting
Due to our goal of having a $60 contribution margin, we chose Outdoor Enthusiasts
because of their willingness to pay. Our sales goal was to sell 200 units per quarter, and
by targeting Outdoor Enthusiasts, we had a better opportunity of reaching this goal.
Rounds one through five consistently maintained a $66 contribution margin. During
rounds six through twelve, our contribution margin was $60. In round two our units sold
was 61 per quarter which jumped to 368 units per quarter by the end of the game.
In conclusion, we believe that choosing Outdoor Enthusiasts was the correct choice due
to the size of the market, their willingness to pay, and the specific credentials for their
desired product.
c. Positioning Outdoor Enthusiasts
More Tough
Low
er
Perf
orm
ance
Highe
r
Perfo
rman
ce
Less Tough

3. - Last Standing: This group targeted outdoor enthusiast and college students so we
placed them in the top right quadrant to resemble their toughness and reasonably high
performance. Last Standing was one of our top competitors.
- A Team: Also targeting the outdoor enthusiast and representing one of our top
competitors as well.
- Troy Taylor: Due to the fact that Troy’s target market was school children led us to
place him at the position he is at. Though toughness could possibly be a message that
caters to school children, having a high peak performance was not one of them. His
message favored the term funky.
- Intrepids: The target segment for this group were the university students. Being
university students ourselves, having a backpack with toughness is important because
of the textbooks we have to carry. Peak performance on the other hand, does not play
much of a factor.
- Risky Business: By targeting the urban commuters, this group focused their message
on “classic.” Classic does not have heavy emphasis on toughness or high performance
which is why we have placed it lower than our other competitors.
- Almost Done: We are positioned in this area because we feel our product that we
created hits heavily on both toughness and peak performance.
Part II: Product Strategy/Promotion Strategy/Pricing Strategy/Distribution Strategy
a. Product Strategy
Like previously mentioned, our target segment was Outdoor Enthusiasts. Out of the five
characteristics, the main ones that catered to Outdoor Enthusiasts were: Capacity and
waterproof (both at 83%), and durability at 41%. In order to meet these needs, we first
started off by developing a large rectangular capacity size backpack. This gave the
Outdoor Enthusiasts plenty of room to carry their belongings.

4. Next were the straps. We selected wide padded straps because not only did they give
comfort and durability, but they were also cost efficient.
When it came to the features, we first added waterproofing in round 2. We gave this a
trial run to see exactly how it would do and it didn’t meet our expectations. Round 6, we
decided to add a Solar Device. This made a huge jump in units sold for in round 5 we
sold 184 units and in round 6, we sold 239. The features were a hit.
Because we wanted to help keep our production costs down, we went with the Synthetic
material. This material not only was $1 for production cost, but it also scored a 6 in
waterproof. After this, we chose green for our color to differentiate from our competitors.

5. Our competitors targeting the same segment, ATEAM and Last Standing, all of us went
with the color green. In terms of our product, we believe ours was more superior for
several a couple key reasons. First off, in round 2, we were the ones to turn our backpack
green—differentiating us from our key competitors. Last Standing converted to the color
green in round 7 and ATEAM did so in round 6. Secondly, we went with wide padded
straps in round 1 while Last Standing changed theirs to wide pad in round 6. Like us,
ATEAM also went with wide padded straps from the get go. Though very similar, our
product was still inferior to those of our competitors. Promotion Strategy
Characteristics Scores
Last
Standing
Troy
Taylor
RiskyBusiness ATEAM Intrepids Almost
Done
R1-93 77 73 84 93 68
R2-93 77 73 86 93 66
R3-93 77 73 86 80 66
R4-93 77 73 86 80 66
R5-93 77 80 86 78 66
R6-43 77 80 86 78 69
R7-66 77 80 86 78 69
R8-66 77 80 86 78 69
R9-66 77 73 86 78 69
R10-66 77 80 86 78 69
R11-66 77 80 86 78 69
R12-66 77 80 86 78 69

6. Features Score
Last
Standing
Troy
Taylor
RiskyBusiness ATEAM Intrepids Almost
Done
R1-0 9 0 0 0 0
R2-9 9 0 0 0 9
R3-9 9 0 0 0 9
R4-9 9 0 0 0 9
R5-9 9 0 0 0 9
R6-0 9 0 9 0 9
R7-9 9 0 9 0 9
R8-9 0 0 9 0 9
R9-9 0 0 9 0 9
R10-9 0 0 9 0 9
R11-9 0 0 9 0 9
R12-9 0 0 9 0 9
In regards to the characteristic score, we initially started off with a high number, but
after round 1 we made some changes in media and our product which caused our score to
fall. The feedback round helped us understand how our characteristics benefitted, so we
made some additional changes and our score exceeded the original from round 1.
When first assembling our product we focused on the material to replace our features
which caused our score to start at zero. Once we understand the demands of the
consumers we added additional features that fit their needs. Our score jumped to 9 and
stayed constant for the remainder of the rounds.

7. When first creating our product we focused our features and design around our
target’s need; Outdoor Enthusiast. They desired a backpack with large capacity, durable,
and eco-friendly, which is why we designed our pack with a large shape, wide padded
straps, and an earthy green color. From there we chose additive features to improve our
pack; these include a solar device and waterproofing features to endure the outdoor
elements. The final feature focused around the material, synthetic, to reassure our
consumers on the durability of the pack.
b. Promotion Strategy: Message
Peak performance, safe, and tough were a part of our message strategy for Outdoor
Enthusiasts because being outdoors requires a backpack such as this. Due to the fact that
they could possibly be in incrementing weather, they would need a backpack that was
tough and could stand any weather. Also, with dealing with the outdoors, they would
need a backpack with peak performance that meets their durability, capacity, and
waterproof needs. According to our key competitors, ATEAM and Last Standing, our
product was more superior because we included tough along with peak performance.
Both ATEAM and Last Standing, had peak performance, but with us including tough, it
gave us a perspective of how Outdoor Enthusiasts think.
Large rectangular
Green
Wide padded straps
Safe
Tough
Peak PerformanceSynthetic
Waterproofing Solar Device

8. Message Scores
Last
Standing
Troy
Taylor
RiskyBusiness ATEAM Intrepids Almost
Done
R1-0 8 5 15 15 15
R2-12 7 4 15 10 7
R3-10 9.6 6 15 15 8
R4-12 21 7 15 15 8
R5-14 15 12.8 18 18 9.6
R6-0 19.2 8 25.2 22.4 9.8
R7-7 19 9.6 28 24 11.2
R8-8.4 4 11.2 28 27 12.6
R9-9.9 4.8 8 28 30 28
R10-11.2 5.6 5 28 30 12
R11-12.6 6.4 6 28 30 12
R12-14 7.2 7 28 30 14.4
From the beginning we targeted peak performance as the message strategy, and
throughout the rounds worked with different words to understand different reactions,
which is why we fluctuated scores. Round 9 was our largest score due to the addition of
tough as a message, but when we added safe our score dropped.
c. Promotion Strategy: Media
Our interest score didn’t see major fluctuations, until round 6 through round 8. At that
point in the game we were shifting our message strategy and adjusted our media interests.
By round 9 we were back up to a higher interest score.
Interest Scores
Last
Standing
Troy
Taylor
RiskyBusiness ATEAM Intrepids Almost
Done
R1-18 18 18 18 18 18
R2-16 17 16 16 16 16
R3-15 16 14 16 14 15
R4-15 18 13 17 14 14

9. R5-14 19 13 20 13 13
R6-13 20 12 23 12 12
R7-9 19 12 24 12 12
R8-8 18 13 25 12 12
R9-8 17 13 25 13 15
R10-7 17 12 26 14 15
R11-7 16 12 26 14 16
R12-6 16 12 27 14 17
ROI
Round 10 Round 11 Total CM=$60
Media $5,050.01 $7,050.01 = $2,000 480
Total Units 311 319 8 units 8x60=480 -2000
=-$1,520
ROI
Starting in round 1, we wanted to add a media outlet to start the game with an increase in
coverage. Since we were targeting the outdoor enthusiast it made sense to add the
outdoor magazine with a single rotation to start. With increases in sales and outreach, in
addition to a sales promotion for radio outlets we expanded our media in round 3 with
radio sports. Throughout the remainder of the rounds we made small adjustments such as:
addition of gym posters and top 40 radio, as well as taking away radio sports. The largest
media we added was on round 11 with Wilderness TV.
d. Pricing Strategy
Price Score
Due to the specificity of the product and the narrow target market we were able to charge
a higher price and stretch the consumer’s price elasticity. We focused more on the
message attached to the product than the actual price, so after initially setting the product
and the price we maintained a consistent price score of 3 throughout the remainder of the
rounds.
Last
Standing
Troy
Taylor
RiskyBusiness ATEAM Intrepids Almost
Done

10. R1-3 3 4 3 2 3
R2-3 3 4 3 2 3
R3-3 3 4 3 3 3
R4-3 3 4 3 2 3
R5-3 3 3 3 1 3
R6-4 3 3 3 2 3
R7-3 3 3 3 2 3
R8-3 4 3 3 2 3
R9-3 4 3 3 2 3
R10-3 4 3 3 2 3
R11-3 4 3 3 2 3
R12-3 4 3 3 2 3
Cost Competition
Last
Standing
ATEAM
Almost
Done
R1 - $14.00 $40.00 $28.00
R2 - $12.00 $48.00 $34.00
R3 - $12.00 $48.00 $34.00
R4 - $14.00 $48.00 $34.00
R5 - $14.00 $48.00 $34.00
R6 - $34.00 $48.00 $44.00
R7 - $34.00 $48.00 $44.00
R8 - $34.00 $48.00 $44.00
R9 - $34.00 $48.00 $44.00
R10 -
$34.00
$48.00 $44.00
R11 -
$34.00
$48.00 $44.00

11. R12 -
$34.00
$48.00 $44.00
From the beginning we all started with a lower unit cost, but as we began to gain more
information on the needs and demands from the consumers regarding the product, we
slowly began to raise our prices. By round 6 all three of us had a grasp on the unit cost to
best fit our individual products and goals. For our group we had a contribution margin of
$60; from the beginning we knew we’d need to have a higher purchasing price and unit
price to fit our needs.
Our group didn’t specifically look at our competitor’s pricing strategy to determine
our asking price, but instead looked into the feedback of our consumers to determine if
the unit price was fair or too high. Once the game neared the end we took a peak at what
our competitors were doing and realized we had a higher unit price, but also had a higher
unit cost. Between the three players involved in outdoor enthusiast we all remained in
similar realms for our unit price and unit cost.
Unit Price
Last
Standing
ATEAM
Almost
Done
R1 - $50.00 $120.00 $95.00
R2 - $32.00 $120.00 $100.00
R3 - $32.00 $90.00 $100.00
R4 - $32.00 $90.00 $100.00
R5 - $36.00 $90.00 $100.00
R6 - $83.00 $95.00 $104.00
R7 - $83.00 $95.00 $104.00
R8 - $85.00 $95.00 $104.00
R9 - $85.00 $95.00 $104.00
R10 -
$85.00
$99.00 $104.00
R11 -
$85.00
$99.00 $104.00
R12 -
$85.00
$99.00 $104.00

12. Because of our smaller, more precise target market, we didn’t feel like skimming or
penetration would’ve interested or encouraged purchases of our product. Status quo maintained
growth in units sold while still appealed to the consumer’s specific needs.
e. Distribution Strategy
Our main focus was on two of the three distribution strategies: selective and exclusive because of
the specificity of our product, but the direct distribution was a convenient choice which falls
under intensive. Our exclusive distribution center was the outdoor store, while we chose the
department store and the online discount retailer as our selective choices. We expanded our
choices throughout the course of the game because of our desire to reach maximum consumers.
Round 11 Round 12 Total CM=$60
Discount $0 $500 = $500
Total Units 319 368 49 units 49x60=2940 2940-500
=$2,440 ROI
Part III: Emphasis and Allocation
a. How You Played the Game
In order to maintain the initial $10,000 dollar budget, we set our price for our product
higher than our competitors. By increasing the price and keeping the unit cost low we
were able to sustain a continued profit while also promoting and distributing our product
into different avenues. The best ROI we found was between round 4 and round 5; round 4
we had a net profit of $2,311.33 and made a distribution deal with the Department Store.
Following the next round we had a spike of $3,470.33 as our net profit which marked the
best ROI during the entire game.
b. Results
Last Standing ATEAM Almost Done
R12 - $14,747 $8, 040.82 $19,716.19
In an urgent, slightly spontaneous decision we added a sales promotion within the
Department Store. After losing profits in round 11 we were hoping to regain it in round 12, but
ended up losing more.
If we could go back and repeat the game we’d focus on tying our message to our
product and creating a clear understanding of what we wanted to gain throughout the rounds. We
failed to tie the message strategy close enough to our product within the first few rounds and it
caused us to play catch-up too far into the game, but overall we felt confident with our overall
choices and progress during the game.