Tutorial 1

The promoters of your company woke up On one side, promoters got tired of bureaucracy and
after a sobering dream and decided to fighting between various departments, on the other,
replace old heads with greenhorns they have taken a great leap of faith by promoting
greenhorns to The Boardroom.
Let us see if you can prove the promoters right

or leave them with life of nightmares
YOUR TEAM
MEMBERS WILL
HAVE TO
• Target appropriate segments by positioning your products in a highly
competitive market;
• Decide upon advertisement budgets and appropriate media channels;
• Run R&D department to design and develop new products;
• Do ample modifications to existing products to ensure obsolescence is
prevented;
• Run Production department to plan capacity and production;
• Invest in increasing efficiency of production systems;
• Decide on the Sales Force and their assignments;
• Decide on opening of New Stores and discounts to various store formats;
• Take Finance decisions to ensure ample liquidity is available to the
company;
• Ensure that shareholders are kept in high spirits;
• Order market research studies for taking informed decision making;
• Do sufficient CSR activities to prop-up Company’s image;
• Decision-making in face of ethical dilemmas.
Macro-Economic situation in “The
Boardroom” world is stable. The
game represents a general product
sector in any country where free
competition prevails. The product
can be anything from electronics to
cars. The team with good business
acumen and practical sense of
formal education should prevail in
the end.
The product is differentiable on basis of 5 parameters –
Bulk, Features, Performance, Convenience and Price
various consumer segments
Low Earners – People in
this segment have practically
zero knowledge about the
product and are only
concerned about the price.
High Earners
People in this segment are highly
qualified, demand value and also willing
to pay money for it. They demand
Lighter, Great Features, Maximum
Performance and Most Convenient
product! And if someone can provide it
cheaper, then it will be icing on the cake.
People in this segment are extremely knowledgeable about
Geeks the products in the market. They prefer more features with high
performance albeit at lower price.
Elites
People in this segment are elitist. They
will demand the best thing but will
have the least knowledge of the
product, comparable to Low Earners. If
you can dish out a product which is
Light, has Great Features with
Maximum Performance, then you can
end up charging high premium on the
price front! Such naivety stems from
the fact that the segment believes
more in brandishing the product than
using it.
Others
People in this segment cannot be

considered to belong to any other
segment. They would be happy with a
product which is slightly bulky, not too
many features, delivers average
performance at so-so convenience. The
price which they would pay would also be
greater than too low and lesser than too
high.
Question : Lifebuoy is facing trouble to decide sales target and allocation of salesmen for Jalandhar
a city with 9 lakhs population approx. The company aims to have a market share of 20% by
volume. And to achieve coverage of 200 Kirana outlet. Please help lifebuoy decide how many soap
bars should be produced and target to be given to the sales team to achieve the desired market
share and how many salesmen should be allocated for covering 200 Kirana stores
You can assume half soap bar is consumed by a person young or adult in a month . The target is to
be calculated for month and 1 salesmen can cover only 10 shops in a day
No of household in Jalandhar – 900000/4 approx. = If a salesman covers 10 shops in a day he will be able to
2.25 lakhs cover 60 shops in a week
Market share to be achieved – 20% of 2.25 lakhs
To cover 200 shops we will need 200/ 60 i.e. 3.33
household = 45000
salesmen
If 2 soap bar are used by one household in a month total
soap bar required to be sold in a month = 90000 + stock Here they may opt for 4 salesmen to improve there
in hand and damages coverage or we may drop the 4th salesmen as per there
investment appetite
Which segment will you tap the first ?
Product
Financials
Channel Sales Research
Segment Sales Research
Segment Awareness
Research
Segment Availability Research

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The promoters of your company woke up On one side, promoters got tired of bureaucracy and

Let us see if you can prove the promoters right

People in this segment cannot be

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