1. New Product Alert - New Product Alert - New Product Alert
SOUPER HOT
The innovative self-heating soup for busy people on the move.
A short computerized simulation to explore essential marketing and financial concepts.
To build skills in analysis, decision-making and team working.

2. The Task
You will be divided into small groups to run the Souper Hot company for at least eight periods.
You will use your own micro-computer to simulate the effect of your decisions.

3. The Good News Souper Hot is a totally new product
and there is no competition
Each period, potential sales are 1,000,000
It only costs $0.50 to make
but you should be able to sell it for $2.00

4. The Bad News Eventually competition will arrive.
No one knows about Souper Hot.
Fixed Costs (each period) are $20,000.
Every time you increase production you invest $2 per unit of new capacity.
Souper Hot has a limited shelf-life and so you lose half any inventory remaining at period end.

5. The Even Worse News! You only have $400,000 to fund your growth.
If you over spend on
production capacity
inventory
initial losses
You may go bankrupt!

6. Your Decisions PRICE 1.90 PROMOTION 75000 PRODUCTION 70000
Besides illustrating the decisions, these have been tested and a forecast of the results produced.

7. Your Results 95000 140000 Penetration 5 Market Share 100 Unit Sales
50000
Inventory (units)
10000
Sales Income
95000
Net Profit
-30000
Fixed Assets
140000
Inventory (value)
5000
Cash
225000
Cum Profit

8. Using the Computer Enter a team name
to identify your data and demonstrate creativity, aggression etc.
Enter Decisions into the template & confirm
Results will be printed and displayed
Analyze and make your next decisions

9. YOUR OBJECTIVES run the business for at least eight periods
make the greatest possible cumulative profit
without going bankrupt
explore essential marketing & finance
practice your decision-making skills
work as a team sharing understanding
HAVE FUN!