1. SALES MIX
This simulation challenges your ability to make business decisions affecting the sales for several periods.
The group is divided into teams, each of which form a sales and marketing team.
You will be responsible for selling two products into two sales areas.
To keep all then numbers manageable, all prices, costs and profits are measured in a universal currency - the Account Unit (AU)

2. The Products
The products that you sell are imaginatively called Product A and Product B
Product A is well established but has considerable competition.
It has been sold at 20 AUs per unit.
Product B is new but has few competitors.
It should sell for between 25 and 30 AUs/unit
Both products sell to the same types of customer but for different use. A B

3. THE SALES AREAS The two sales areas are called Area 1 & Area 2.
Currently, you only sell into Area 1 but are about the enter Area 2.
Both areas are believed to be similar in terms of potential and mix of customers.
Promotion for Area 1 is currently 40,000 AUs

4. COSTS Product A costs 13 AUs. Product B costs 16 AUs
Fixed Overheads are 20,000 AUs each period
Promotion is decided by you for each area separately.
AUs

5. USING THE COMPUTER Enter team name (up to six letters) Enter decisions
price for each product
promotion for each area
Period Results
Unit Sales for each product, area and totals
Sales Revenue for each product, area and totals
Income Statement for period and cumulatively
Unit Sales Forecast for next period
Go away to review, think and make next decisions.

6. ROLES & TASKS Product Managers
authority to set prices for the products
responsible for unit sales volumes
Sales Managers
authority to set promotion expenditures
responsible for area revenues
Marketing Manager
co-ordination of the team
responsible for profit

7. OBJECTIVES
Discover how to successfully set prices and promotion to meet your goals.
Work as a team.
Have fun!