Marketing Plan Analysis: Adventure Works Mikesbikes Simulation Game

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Added on  2023/01/11

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AI Summary
This project analyzes a marketing plan developed within the Mikesbikes business simulation game. The report details the decision-making process across eight simulated years, including company name selection, pricing strategies, promotional campaigns, and production adjustments. The analysis covers key performance indicators such as shareholder value, profit after tax, and sales figures, comparing the company's performance against competitors. The project highlights the impact of marketing efforts, such as advertising and public relations, on market awareness and sales. Furthermore, it examines the strategic implications of product launches, dividend decisions, and capacity management. The conclusion reflects on the lessons learned from the simulation, emphasizing the importance of strategic planning, financial management, and adapting to market dynamics to achieve business success. The report also includes the financial statements and benefits of the course.
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Title page
Name and Id
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Table of Contents
Introduction:...................................................................2
Multi-Player Experience:................................................2
1st Rollover:.....................................................................2
2nd Rollover:....................................................................3
3rd Rollover:....................................................................4
4th Rollover:....................................................................5
5th Rollover:....................................................................5
6th Rollover:....................................................................6
7th Rollover:....................................................................7
8th Rollover:....................................................................8
The summery of the game play:.....................................9
The benefit of the course:............................................14
Future:..........................................................................14
Conclusion:...................................................................14
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Introduction:
In developing an understanding of a real business scenario, the game of business
simulation act as an evident and effective contributor. The process of understanding
involves numerous accounting calculations and theories. The game contribute towards
shaping business decision-making strategies in the real business scenario. One of the
virtual scenario of business, Mikesbikes includes various segments such as, distribution
debt, equity control, capacity and advertising allocation.
Multi-Player Experience:
1st Rollover:
We received the opportunity of changing the company’s name with our preference. I
preferred the name Bikes. With the help of the report from previous year I extracted an
overall idea for the market trends and for constructing decision-making step for our
business. In accordance with the above mentioned strategy, we as a team prepared pricing
strategies and promotional campaigns. The pricing strategy was decided to be moderate
and print media like magazines and Public Relation tools were selected as promotional
strategies. We implemented the decision of producing more numbers of mountain bike
for the purpose of responding to the sales loss. The company was established for
operating with mountain related products. In the process of trying to enter price amounts
that was more than default price, 700 dollars in association with the changes in
advertisement and PR.
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The shareholder value in the year 2019 was 12.79 dollars. At that time competitors in the
industry were leading with the maximum SHV, 13.17 and at the same time, superbikes
demonstrated lowest SHV, which was around 10.98. These reasons led to our 2nd position
in the market. On the other hand, our company have experienced changes in the SHV
from the previous year, and it amounted up to 21 percent as well as the competitors’
lowest change was around 11 percent. The PAT (Profit After Tax) amounted to 0000
dollars and the sales in the retail outlets was 00000 dollars.
2nd Rollover:
I wanted to learn more about the simulation in second week of game. My decision-
making capabilities was better in first years in comparison to the last week. I extracted
recordings from the gameplay. In a discussion with my respected tutor, I developed the
understanding of the importance of advertisements in the first year. I made the decision
of incorporating improvements after the discussion, in accordance with the suggestion of
my tutor. The same year also concentrated in the figures of distribution and branding. The
recommendations and improvements led to the decision of decreasing pricing to 705
dollars for the purpose of increasing sales.
I understood the importance of market awareness and production efficiency after the
conduction of market research. Thus, I made the decision of increasing the production
level with the association of forecast sales. With the strategy of increasing production, I
increased the brand awareness value of the products by 700000 dollars. We also came up
with the decision increasing the margin of retail shops by 25 percent over sales figure.
The results of the rollover are given below:
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If I manage to compare the data in regards with the resources spent in simulation, the
outcome reflected potentiality. I also realized a positive growth in the PR and awareness.
We did not experienced lost sales with the rise in share market. Spending financial,
operational and efforts of human resources was necessary for the results.
3rd Rollover:
The forecasted repot of sales acted as a base for decision planning strategy of 2021. I
ensured the alignment of my activities in respect to the principles instructed by the
forecasted report. I decided to increase my spending on PR and advertisement by
increasing retail price for the bikes. I also decided to increase the budget of quality
department by 80 percent. I decided to increase the level of production for keeping
market share and sales in sync with increasing level as depicted in the previous reports.
The outcome of the rollover is demonstrated below:
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The company experienced a rise in the shareholder value in comparison to SHV value of
2019. The value reached 17.92 dollars. Competitor in the same segment led the market by
17.99 dollars SHV. Moreover, the SHV of the competitors increased by 1.97 dollars and
other competitor which reflected SHV of around 9.57 dollars. The mountain bike
company accomplished in the process of increasing changes in the value of SHV to 40.1
percent in comparison to last year, which was also considered as the highest. On the other
hand, lowest change was around -14.8 percent for the company, KZ Bike.
4th Rollover:
At last, we experienced a sense of control in 4th year of game. For the purpose of
increasing the awareness level, we decided to increase the capacity by spending on the
quality and production efficiency. Introduction of new product in the category of
Multiplayer was a significant strategy in 4th year of business. In the year ahead to
summarizing, clear and comprehensive decisions were provided for the purpose of
constructing effective strategies.
We implemented improvements in the market by launching Road bikes which costs
almost 3 million dollars. The reason behind increasing the product price was the
improvements in the quality and value offering of products. Road bike is considered as an
expensive product. After the strategy implication, we realized that quality can be
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considered as the main factor of influence in the Road bikes in association with PR
activities and magazine advertisement.
The results of 2022 was positive and encouraged us with the increased RATE of SHV.
The reason for improved SHV was effective strategy of distribution. The SHV increased
in comparison to previous year and it amounted 37.55 dollars. This result marked our first
position in the industry, followed by the second position of Prime naalain with SHV,
37.55 dollars.
5th Rollover:
I made the decision of repurchasing shares with an effective distribution of dividend for
the planning of next year. With a synchronized alignment of production capacity, I
decided to launch a new Road product of 2100 dollars. The price of youth bike and
mountain bike increased with time. The choice of 0 dollar dividend was made in
accordance with extreme numbers in the purchase of shares.
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My performance improved a lot in comparison with the performance of previous year.
However, I need to improve the financial section of my business. At last, the rate of SHV
have improved in last 2 years. The shareholder value of our company increased in 2023
in comparison with the previous year’s SHV. The SHV rose to 61.35 dollars. The
competitor was found to be leading in industry with minimum SHV of 18.09 dollars.
6th Rollover:
Our company decided to repurchase equity, which is known for contributing in
shareholder value as well as we also paid maximum amount of the dividend. We also
kept a slot for a new product launch. However, we decided against the product launch as
we already had our products in almost all segment of mountain bikes. The decision of
launching another product will demonstrate similarity with our own products and can
lead to camouflage launch. The effectiveness of our decision is demonstrated below:
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The SHV of our company increased in 2024 and became 71.58 dollars in comparison to
previous year, 2023. We were considered leader in the industry. Competitor reflected
lowest SHV in the industry with the value of almost 15.08 dollars. Our company
accomplished the improvement of SHV as compared to last year with a change of around
54.3 percent with a leading position in market. On the other hand, competitor reflected 35
percent change in last year.
7th Rollover:
In comparison to previous years of operation, the 7th year demonstrated an average
simulation. We made our decision of restricting the launch of new product which cost
millions of dollars in production. It was found appropriate to be offering the same range
of products and spending similar amount for public relation, branding and advertising. In
the process of buying shares, 800000, we stuck with maximizing the amount of dividend
for the purpose of increasing shareholder value. The standard values of industry are given
below:
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The SHV increased in 2025 in comparison to SHV of 2014 and it amounted 105.08
dollars. We had the third position in our industry. The lowest SHV of competitor was
15.43 dollars. Our company managed increasing changes in the rates of SHV in
comparison to last year, by securing 840 percent by becoming the leader of market. The
cumulative change of competitor amounted up to 39 percent.
8th Rollover:
Our company followed the strategy of previous year in 8th year. With the process of
improvement, we decided to decrease the price of the product for implementing stability
in sales figures. The decision of paying dividend was based on the aim of increasing the
values for shareholders. In the 8th year, we decided to restrict any change implication.
However, we decided to reduce the product price for maintaining previous year sales
figure. We decided to reduce the production capacity and managed to maintain the
quality index and efficiency from to 95 percent from 90 percent. Our sales figures was
good in last year of simulation.
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The SHV increased in 2025 in comparison to 2024, by amounting up to 105.08 dollars.
We became the third leading company in the industry. Our competitor reflected lowest
SHV by around 15.43 dollars. However, we accomplished to increase changes in the
SHV by securing 840 percent and became the industry leader. Competitor reflected 39
percent cumulative change.
The summery of game play:
The Financial statement after 8th rollover:
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