In this small PC simulation, teams try to build and sustain sales and profitability for a high-value consumer brand, such as a premium coffee in a market with many potential consumers, who buy through retail stores. Success depends on:
- developing consumer interest by advertising, while not spending more than necessary to reach target consumers,
- growing distribution of the product through retail stores by deciding on the size of sales force – making sure not to employ more effort and cost than is worthwhile,
- setting a wholesale price that gives a good margin, whilst resulting in a retail price through stores that ensures consumers buy the product and still give stores a good profit.
The brand competes in a broad market, rather than taking on specific competitors. Teams can focus on marketing and sales issues, since production and distribution activities and costs are fixed.
In addition to launching a completely new brand with a limited budget, teams can take over a business that has been spending on sales and advertising with little success, another that has grown quickly, or another that must be rescued from declining sales and profits.