Marketing Simulation Performance (50 points)

There will be six required decision periods. Unfortunately with our class size, no extensions can be given to the due date of each simulation decision period.

*Each late decision will automatically result in a 5 point deduction from your total; this will turn into a 10-point deduction if that quarter’s decisions are more than a week late

Your simulation performance will be graded based on your actual performance with respect to your cumulative balanced scorecard total (CBS) and your final quarter (Q6) total. I will add your CBS to your Q6 scores to determine your points. I will use the following scale – if you achieve this level of CBS+Q6 points, you will receive at least the following points:

CBS+Q6 > 175 50/50 points

CBS+Q6 > 163 48/50 points

CBS+Q6 > 151 46/50 points

CBS+Q6 > 139 44/50 points

CBS+Q6 > 127 42/50 points

CBS+Q6 > 115 40/50 points

CBS+Q6 > 103 38/50 points

CBS+Q6 > 91 36/50 points

CBS+Q6 > 80 34/50 points

CBS+Q6 > 70 32/50 points

CBS+Q6 > 65 30/50 points

CBS+Q6 > 60 28/50 points

CBS+Q6 > 55 26/50 points

CBS+Q6 > 50 24/50 points

CBS+Q6 > 45 22/50 points

CBS+Q6 > 40 20/50 points

Marketing Simulation Analysis Paper (50 points)

The paper grade will be based on your ability to describe and analyze your strategic decisions from our marketing simulation. These points are independent of your actual simulation results. The paper will be submitted AFTER you’ve completed all six quarters.

Formatting Instructions:

NONE – This paper is meant to capture your thoughts as to how you are proceeding with the simulation as well as reflecting back upon your actions so that we may learn from any mistakes. I do not care about the format, just the content (FYI, headings throughout the paper make it much easier to read). Type size, type font, margins single-/double-spaced are all irrelevant to me, as I am grading solely on the quality of your explanations of your decisions.

I don’t have any set page-length in mind but I would argue that for this assignment, if you spent a paragraph or two on every quarter, you probably wouldn’t be supplying me with an *extensive* analysis of your simulation decisions/results. For comparison, decent papers average 12 pages, double-spaced.

For each of the six quarters you need to extensively address the following:

1. Major decisions made for this quarter (what did you do?) and most importantly a thorough explanation as to why each decision was made (why did you do it?)

2. After you receive the simulation results for each quarter, describe your company’s results in depth (how did it turn out?) – I want you to analyze to find opportunities in your performance with respect to:

a) Brand/ad/price judgments for each product

b) Number of sales force per market per product

c) Number of ads per product per market

d) Major Competitors’ results for the above

e) Balanced scorecard results

So, reflecting upon your strategy, detail the changes you would make to your strategic decisions and explain why this would improve your strategy and results (what did you learn from these results and how can you improve your decision making strategies for next quarter?).

We will combine Q1 and Q2 since there are no results to discuss for Q1. Therefore your paper should have five sections to it (Q1+Q2, Q3, Q4, Q5, Q6). Each of these sections will constitute 10 of the 50 points.

Papers covering all six quarters are due Wednesday, October 4th, 2017 at 11:59pm.

Papers will automatically lose 10 points per hour past the deadline

(1-60 minutes late = 10 point penalty).

Papers must be turned in through our MKT 300 Blackboard site. Near the end of the class, I will post a link for the assignment on Blackboard. To turn in the assignment, go to Blackboard and then “Course Documents.”  There you’ll see a link to the Simulation Paper assignment.  Click this.  You’ll see “1. Assignment Information.”  Next is “2. Assignment Materials” – scroll down to “Attach File.”  Click “Browse My Computer” to attach your Word document.  After your file is attached, scroll down to “3. Submit.”  Then make sure you click submit.

Helpful Hints:

1. Picture yourself in front of a board of directors to explain how you’re spending their money. They want in-depth explanations of *why* you’re doing what you’re doing. SO DO I. You need to sell me on your strategic thought process. 

2. Failure to thoroughly discuss how your competitors’ actions affect your actions will kill your score.

3. Write your paper as you go! This will generate a much stronger paper…

All paper submissions will analyzed for plagiarism by the SafeAssign software through Blackboard.  FYI, my SafeAssign database has thousands of papers.  If yours is determined to be plagiarized in any way, this will not result in a 0/50 for the paper, but rather a penalty up to and including a grade of XE for the entire course, regardless of your exam performance.  Plus you will get to meet with the Dean of Academic Affairs; he will be handling all academic improprieties as this will be out of my hands.  In short, you are far better off not turning in a paper and taking a zero than turning in a paper that in any way has borrowed from a different source.  I cannot be clearer about this.

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First and foremost…I need this done by 9 PM!!!

I already had part 1 done. Now I need part 2.

• Incorporate all comments provided by your faculty member in Part 1; continue with your marketing plan by completing the following sections:
• C.  Objectives and Issues
• 1.  Statement of marketing objective(s) (for first year only)
• 2.  Issues that may hinder marketing objectives
• D.  Marketing Strategy Recommendations
• 1.  Positioning strategy
• 2.  Product/Branding strategy
• 3.  Pricing strategy
• 4.  Distribution strategy
• 5.  Marketing Communications objectives
• 6.  Marketing Research
•  E.  Action Programs
• 1.  IMC
• 2.  Message design, content, and structure
• 3.  Media choices
• 4.  Promotion mix tools
• F.  Budgets
• 1.  Objective/task method
• G.  Controls
• 1.  Metrics needed to monitor marketing plan progress
• Finished product: Put it all together by incorporating changes to Part 1 as suggested by your faculty member’s feedback, and then add your title slide, an index slide, an executive summary slide, endnotes, and a bibliography.
• Marketing Plan Term Project Submission Requirements for Parts 1 and 2
• Length. Minimally, you should have at least one slide per topic, plus your title page and source page(s).
• All information should be contained on the slide itself. Do not use the ‘notes’ section of the slide.
• Reference numbers. Include the reference numbers noted in the outline for both Part 1 and Part 2 on your slides (e.g., A.1.a; A.1.b; A.1.c, and so forth).
• Professionalism. Be sure to refer to the PowerPoint Presentation Tips under Course Content, Marketing Toolbox, to ensure that you submit a professional product. This will be part of your grade for both Part 1 and Part 2.
• Citations and Bibliography. Use an acceptable style guide (e.g., APA or MLA) for citations.
• Submit for grading. Save your PowerPoint presentation file as a .ppt file and upload it to your Assignment Drop
• I attached the part 1 presentation so that you can see how it should look.
• Part 2 will also include an executive summary, all slides from Part 1, all footnotes, and a bibliography
• attach part 1 and part 2 with the the footnotes and bibliography.

  Jonathan Parsons
  UMUC
  Titleist

   

  Segmentation

  • In order to market its golf products, Titleist always considers the two important groups: the Golf balls owners (segment 1) and the people who play golf (segment 2). By specifically identifying those who play golf, Titleist can design its market strategy around the feasible media which will attract a golf player.
  • The U.S ownership of Golf Balls survey was carried out for people who own golf balls. The survey is a crucial segmentation strategy for Titleist because golf balls are very durable. Since most golfers play the sport their entire lives, the data can easily be extrapolated to get more buyers of golf balls.
  • There are basically three categories of people who play golf. There are those who play when given chance, others play occasionally while the third category is those who hardly play. Out of these three categories, Titleist can disregard those who hardly play because it does not want to make golf products for people who don’t play golf.

  Marketing targeting strategy

  • Just like many market-oriented organizations, Titleist main marketing strategy is to create and communicate value to its clients. With a good marketing reputation, Titleist parent organization, Fortune Brands, has come up with an innovative framework that affords significant latitude its group of companies. As a multinational, Fortune Brands has achieved a lot through effective planning and balancing among its diverse group of companies. It has also delegated marketing responsibilities to each individual companies and this allows for specialization and can enable Titleist, for instance, to assume responsibility for devising their own marketing strategies.
  • While Fortune Brands has a secluded approach for marketing its products, it does not imply that Titleist or any other company within the conglomerate cannot form co-alliances to co-market products. Titleist, for instance, partnered with Scotty Cameron to build up specialty putters. For sophisticated golf products, Titleist’s marketing strategy has included professional sponsorships, timely new product launches, individualized quests such as the Titleist and a series of print and television ads. To keep in synch with technology, the company has also gone tech by launching a visually attractive website and its tour blog.

  Value proposition

  • Most professional as well as low handicap beginners play Titleist Pro V golf balls because they find out that value proposition favors them. A good number of golfers go for the lower priced Titleist products such as NXT, Carry or Roll balls that are customized to suit their specific requirements. In general, Titleist segments the market with value propositions with an aim of improving performance at perceptible levels.
  • Every golfer is granted an opportunity by this strategic planning, to choose the Titleist products at a price they feel to a value for their particular skill level. Other than responding to customer needs, Titleist also creates these needs through introduction of new golfer-friendly products, and in the process, gain a competitive advantage.

  Factors Influencing Consumer Behavior of the Primary Target Market

  • Consumer’s buyer behavior is influenced by four major factors: cultural; personal; social and psychological.
  • Cultural factors comprises of the golfer’s culture, sub-culture as well as social class. These factors are usually inherent in ones values and decision making process.
  • Personal factors include aspects such as lifestyle, age, occupation, self concept, personality and economic circumstance. This explains why a golfer’s preference can change when his/her situation changes.
  • Social factors include groups (member groups, inspirational groups, and reference groups), family and social class. Therefore outside influence can influence one either to buy or not to buy a given golf product
  • Psychological factors affection a golfer’s decision to buy a certain golf product includes perception, motivation attitudes and beliefs.

  Buyer decision process of the primary target market

  • For first-time purchasers of golf products, the buyer might seek the advice of a friend, family member or colleague with experience in golf products. In such situation, the buyer’s decision might depend on the guidance received from the experienced advisor.
  • Other factors that may influence the buyer’s decision include attractive packaging, price, and existing brand preferences. For instance, if a buyer had recently purchased Titleist golf clubs, he/she is more likely to purchase Titleist golf balls than Callaway golf balls.
  • While the time required by first-time buyers to make a decision exceeds that of a straight re-buy situation, it is clearly evident from the relative simplicity of golf balls that ball type and brand choice is more of an impulse buy.

  Levels of products

  • The Titleist golf ball symbolizes product performance as well as quality excellence and is the unmistakable number one ball in golf, as it has been for more than six decades. The latest Titleist golf clubs are longer, straighter and more accommodating than clubs from elsewhere.
  • They have earned broad acceptance with club professionals, tour professionals and spirited amateurs across the globe through steadfast commitment to fitting, performance and quality excellence.

  Levels of product cont’d

  • The Titleist 915 driver shafts are very strong and durable and give every player an opportunity to correct shaft characteristics without the need for getting very expensive shafts.
  • State of the art quality and performance, technological advancement, product innovation and performance justification at every level of the game result in the world wide appreciation that Titleist is golf’s symbol of excellence.

  Types of products

  • There is a variety of products at Titleist with the DT SoLo the ball of choice for many renowned golfers in the world for over the past three decades. The DT SoLo is characterized with a red ‘1’ under the Titleist logo and its recent upgrades have made it capable of getting between six to fifteen more feet at swings between 90 and 150 miles/hour.
  • NXT Extreme is another golf ball designed to attain maximum distance with less hustle. This model has both an outer and inner polybutadiene core and fusablend cover that enables high performance control.
  • Other products are the Pro V1 and Pro V1x lines. They feature an Alignment Integrated Marking side stamp that improves the alignment. The Pro V1 offers long and steady distances when hit with irons and drivers. It is characterized by a black ‘1’ under the Titleist logo and it’s the most durable of all Tour-played golf balls.

  Product life cycle

  • The introduction of new technologies into the golf ball industry has not changed much as the total sales in dollars within the industry have stagnated in the recent years as the product continues to mature.
  • According to a survey conducted by Simmons Market Research Bureau there is a decline in participation in golf sport since 2003. Golf club membership, which is a key driver of demand, has also gone down. In 2003, golf memberships were 1.8% but the figure had fallen to 1.3% by 2005. The membership rates continued to decay as a result of busy lifestyles.
  • Between 2005 and 2010, the shipment of golf products declined at a rate of -0.5% each year.

  Benefits/features analysis

  • Building upon the state of the art design and booming success of the original AP irons, Titleist designed other two high performance golf products for enthusiastic golfers. Extensive improvements to the new AP1 and AP2 irons include the enhancement of heel and toe to increase stability at the expense of the face thickness.
  • The ideology for the sophisticated performance irons emerged as a result of research that revealed that enthusiastic golfers prefer performance with great feel rather than performance at the expense of feel.
  • The company’s Research and Development team has been conducting extensive and sound surveys aimed at suppressing the unwanted low frequency vibration that affect feel in irons. Several technologies and materials were then combined in the manufacture of new AP irons resulting in the new impressive feel.

  Differentiation

  • Differentiation can take many forms: technology; innovation; prestige or brand image customer service; and features. Differentiation at Titleist serves to:
  • Create higher entry barriers due to uniqueness in its products and customer loyalty
  • Avoid need for low cost position by increasing its margins
  • Provide elevated margins that enable the company to effectively handle supplier power
  • Reduce consumer power because they lack appropriate alternative
  • Create customer loyalty and hence reduce threat from competitors such as Callaway

  Branding strategy

  • The brand strategy defines what the company stands for, the promise it makes and the personality it conveys. Brand strategies at Titleist include:
  • Seeing consumer engagement that others don’t
  • Establishing easily relatable identity
  • Being consistent with the product quality
  • Continuous innovation with unblemished timing and execution

  Competitive analysis

  • Titleist experiences minimal competition because of its dominance in the golf products market. However, Callaway could be the only company with potential threat to Titleist. Unlike Titleist, Callaway Golf does not operate as a fully-owned portfolio company of a multinational.
  • From a corporate point of view, this gives Callaway an upper hand as far as golf business is concerned. While Titleist might be restricted by Fortune Brands or governance from Acushnet, Callaway is free to whatever it feels is good for the company.
  • In 2006, Callaway made estimated $220 million from sales of golf balls. The company markets its products under the Callaway Golf, Ben Hogan and Top-Flite brands.
  • They make both 2-piece and multi-layer golf balls. Callaway products compete at all price levels. However, multi-layer golf balls go for higher prices as compared with 2-layer golf balls.

  Market share

  • Titleist has the majority market share in all golf products, holding close to 50% of the market
  • Callaway Golf Company, Adidas Salomon AG and Nike Inc are the major competitors with Callaway having a market share of 34% and Adidas and Nike sharing the remaining 8%
  • Competitive positions and roles
  • Competitive position is a position an organization occupies in a market or its trying to occupy relative to its competitors.
  • Titleist has a positioning strategy that is influenced by:
  • Customer segments: Golf ball owners and real players of the sport
  • Market profile: Competitors, size and stage of growth
  • Value delivering technique: How to deliver value to the market at the highest level
  • Competitive analysis: Strength, weaknesses opportunities and threats on the ground

  Strategic sweet spot

  • The strategic sweet spot of a company is where the company meets consumer’s needs in a way that competitors can’t, in a given competitive medium.
  • Titleist, for example, segments its consumers into two main groups and will therefore have two targeted sweet spots in their content:
  • Golf balls owners
  • Real players of golf
  • Content besieged to each group will have a unique bent to it, aligning with exclusive needs of each consumer group.

  Positioning

  • Currently, Titleist is regarded as number one company as far as golf products are concerned. Its voluminous sales attest to this.
  • The company already has excellent equity but the only blockade to purchase in this market is lack of disposable income.
  • The company has established itself as a market in both quality performance and innovation.
  • This position, particularly n a sport that embraces both tradition and technology is critical to Titleist’s success.

  Current supply chain members and roles

  • Stakeholders at Titleist mount a lot of pressure on supply chains to integrate a superfluity of corporate sustainability and responsibility aspects in their business practices.
  • Legal as well as commercial demands are rapidly changing and almost no organization, firm, company or supply chain remains unaffected.
  • Owing to the last decade’s outsourcing wave, purchasing and supply management at Titleist, in particular, plays a major role in guaranteeing sustainable supply chains in the market place.

  Value delivery network analysis

  • A value delivery network is a business analysis framework that addresses technical and social resources within and between businesses.
  • Fortune Brands make use of value delivery networks to address issues within all of its affiliate companies, Titleist being one of them. Roles or people are represented by nodes in a value delivery network.
  • The nodes are connected by lines that symbolize tangible and intangible deliverables. The deliverables account for overall value for products and services.

  Current type of distribution strategy

  • As a leading company in the golf product business, it is not easy for Titleist to acquire more market share.
  • Capturing new distribution strategies will require Titleist to keep up their brand reputation as well as their aggressive advertising scheme.
  • The company must continue to come up in conversation as it deals with new and non-traditional markets.
  • Maintaining at the top of trends will allow Titleist to attain more commercial success.

  SWOT Analysis
  Strengths

  • More than 50% of market share
  • Product innovation
  • Diversified product line
  • Positive financial picture

  Weaknesses

  • Some top enthusiastic golfers switched from Titleist to Nike
  • Disintegration of Fortune Brand into golf, hardware and wine while competitors focus mainly on golf market

  Opportunities

  • Increasing international sales
  • Favorable demographics
  • Developing GPS-enhanced ball tracking systems
  • Appealing to high-net worth customers

  Threats

  • Substandard golf balls from China
  • Gaining prominence of MLS, NFL and the MLB
  • Economic depression

  References

  • Pallate, D. (2010): Creating Sustainable Customer Value: Business and Economics
  • Pulizzi, J. (2013) Epic Content Marketing: Forbes
  • Sheffi, Y. 2005. The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage: Cambridge, MA: MIT Press.
  • The U.S Market for Golf Equipment (2006) Packaged Facts: Division of Market Research
  • Williamson, O. E. 2008. Outsourcing: Transaction cost economics and supply chain management: Journal of Supply Chain Management

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