SimVenture Evolution-recap Lesson 9 - Promotion www.simventure.co.uk 26/09/2019

Summary of Lesson 8 In this module we covered: Setting the selling points & pricing in line with your product design [Branding] Choose a primary segment for your product Reflective Journal Summary of Lesson 8 9/26/2019 www.simventure.co.uk

Promotion Overview of what we’re going to cover today: Promotional Strategy case study Reflective diary In this module you will be reviewing the company’s promotional strategy, resources, budgets and return on investment (ROI). You will be reviewing the current promotional strategy of the company using case study DL-SCS-102-Promotions-SN. When you’ve finished the case study write up your reflections in the Journal. www.simventure.co.uk 26/09/2019

Process to get to market Research Company set-up Product Create new product Selling points & pricing Promotions Sales Channels Production More research Employability Skills & Capabilities Enterprise Innovation Entrepreneurship Process to get to market In order to get the best out of running your virtual business we have given you a structure to work through called THE PROCESS TO GET TO MARKET. This is the process model you should follow to get the business moving along. For those of you who don’t like to work in a structured way please feel free to run the virtual business as you’d like to but this process works and could be a great starting point for you. The basic process to get to market is to start with Research and in particular Market Research and we completed this section in a previous module. So, today we’re going to look at how your company promotes your product(s). So, here is the process to get to market and where we are currently in the process. This week we’re moving onto to PROMOTIONS. The basic process to get to market… Action - Gather and analyse all the market research reports. If there are no reports you’ll need to order them in the simulation. Competition Customer Focus Group Segment Market overview Why - To inform: Product Design / Promotions / Sales Channels   The Scenario Briefing & Research Reports provide market intelligence to inform your decisions. Design a Product or evaluate and change an existing product [PRODUCT DESIGN] Taking into consideration your research A simple approach to start with is to ‘copycat’ the competition Create or re-create the product design [PRODUCT DESIGN] The design process has 3 stages: A concept or blueprint with no time or cost to generate (New Design) A technical specification (requires hours assigned to the design process using the Change Strategy button). As quarters are run the designated hours are assigned to completing the design process. A completed design containing the detail required for manufacture Set Selling Points in line with your product design [BRANDING] Choose a Primary Segment and select a Secondary Segment if you wish. Set your Product Design ready for Production [PRICING] Set the selling price (and discount if you wish). *Set Promotions [PROMOTIONS] To generate awareness about your company and its products… Set Sales Channels strategy [SALES CHANNELS] To push your product through the channels. Manufacture some Products [PRODUCTION] So they are ready for display in the Sales Channel outlets. Gather more research to keep your market intelligence up to date: [ALL MARKET RESEARCH REPORTS] View detailed feedback on your product. Identify the sub-segments / demographics your sales were drawn from in the last quarter. Identify the Promotions which attracted Customer attention. Identify changes as they occur (Competitor Designs & Market Share). Demographic Identify the potential reach of Promotions & Sales Channels for each demographic group. A breakdown of the demographics and preferred Sales Channel for each Sub-segment. From this point on you should be gaining traction in the market and the challenge is to manage cashflow expand your sales to begin to turn a regular profit. www.simventure.co.uk 9/26/2019

Log in Open up a browser remembering not to use Internet Explorer. Try Chrome or Firefox instead. Go to http://server.simventure.co.uk/SimVenture/ - don’t forget to add the last forward slash. Log in with your user name and password using the LOGIN button. Open the activity that has been allocated to you. www.simventure.co.uk 9/26/2019

The Next Step Once you’ve logged in you will see this page called MAIN MENU. Go to the second section called OPEN ACTIVITY outlined in GREEN and CLICK. Open the activity that has been allocated to you.

Next This is the next screen you will see. From here navigate to the left hand side of the screen to SALES & MARKETING and CLICK.

PROMOTION After clicking into the PROMOTIONS tab look for the tab for PROMOTIONS as outlined in green on the slide. Click.

Promotions Once you’ve clicked into Promotions you will see this page. If you’re not sure what the Promotions function is read the information in the TABS – Overview-Information-Key Considerations – Impacts Remember to switch on the Magnifying Glass Button on the top right hand side of your screen to gain further in depth information.

Promotions Case Study Read the case study in the notes below Complete the tasks in the case study Title: Promotions Scenario: Driving Lesson Format: Static Case Study Green Spokes is a bicycle manufacturing business that has been running for a few years. After conducting initial research, a new product design was created to target the Road Commuting segment of the market. The market is worth roughly 2.8 million (GBP) annually in terms of sales. Students are a large part of the bike buying population. The Sales & Marketing team continually monitor its promotional activity to make sure it is efficient. The department is currently looking to review its promotional activity with a view to find the more cost-effective ways to create demand for its products and awareness of the brand in the student market. Any strategic decisions will be informed by research: the market, segment, customer and demographic reports. Remember to consider: • The appropriate media used to reach the target market • The effectiveness of the media used • The budget needed • The impact of changing strategy • The return on investment • The impact on Sales • The impact on Production • Overall efficiency Each of these activities can be analysed as individual learning points. TASK: Analyse and evaluate the current promotional activity using a SWOT analysis. If you’re not sure what a SWOT analysis is use a search engine to find out and then download and complete a SWOT analysis for the current promotional activity in your business. If the business continued with their current strategy for the next two quarters what do you think the outcome might be? What do you think the outcome might be? Would you recommend any changes, if so what are your recommendations? Implement your recommendations in the simulation by using the CHANGE STRATEGY button. When you have decided which promotions you want to change click CONFIRM CHANGES and then RUN QUARTER and analyse the effect of your decisions. Rewind the game if you were not satisfied with the outcome and try something else. Tip: Bear in mind that promotional decisions will have some kind of impact on the organisation as a whole. Ref: Promotions Page 1 of 1 Ref: DL-SCS-102-Promotions-SN

Which CBI skills were developed today? As we outlined in a previous module. Along with the skills outlined by the QAA at the beginning of this program of studies we’re also going to explore the Chamber of British Industry’s (CBI) definition of employability. This is because these are the skills that are specifically needed by employers along with the skills identified in the QAA documentation. This module will help you to become more aware of what employability skills are and how you can develop them. To do this you’ll be taking part in an evaluation of your skills both before and after the program for a number of reasons: Part of your assessment will then reflect on the development of these skills. You will be able to see how your skills have developed and add them to your CV with evidence of how you’ve developed them. If you haven’t already, please download and read the PDF document you can find here: https://www.universitiesuk.ac.uk/policy-and-analysis/reports/Documents/2009/future-fit-preparing-graduates-for-the-world-of-work.PDF Think about which employability skills you have developed in this module. Whilst you might think you already have all these skills if I asked you show some evidence from this module would you be able to do that? If not, then you have some further development to do for this module. www.simventure.co.uk 9/26/2019

Journal Finding the Journal – go to LEFT HAND SIDE OF SCREEN – ON BLUE TABS YOU WILL SEE JOURNAL. Click the tab called Journal and you should see a screen like this.

Add Journal Entry Write up a summary of the business as your starting point for your assessed work. Give the entry a TITLE CATEGORY AREA MESSAGE - Write up your summary which you can use in your assessment. Keep it short and bullet pointed as happens in the real business world. Remember to press Submit to save the entry. Well done everyone you’re set up and ready to go. Go back into the journal to check that your notes are there.

Summary In this module we covered: Overview: Promotional Strategy case study Reflective diary The CBI skills you will have developed today are: A positive attitude (readiness to take part, openness to new ideas and activities, desire to achieve) Self-management – readiness to accept responsibility, flexibility, time management, readiness to improve own performance Team working – respecting others, co-operating, negotiating/ persuading, contributing to discussion (if you are working in a group). Business and customer awareness- basic understanding of the key drivers for business success and the need to provide customer satisfaction. Problem solving- analysing facts and circumstances and applying creative thinking to develop appropriate solutions. Application of numeracy-manipulation of numbers, general mathematical awareness and its application in practical contexts. Application of information technology-basic IT skills, including familiarity with word processing, spread sheets, file management and the use of internet search engines. Summary 9/26/2019 www.simventure.co.uk