Saturday, June 28, 2025

Markstrat/StratX Simulation Guide – Top 10 Winning Tips for Round 2

 

Markstrat/StratX Simulation Guide – Top 10 Winning Tips for Round 2

Hello and welcome back to our Markstrat simulation strategy series. In today’s session, we’re diving deep into Round 2 with 10 essential winning tips that will help you and your team gain a strong competitive edge.

Each round in Markstrat demands careful analysis and adjustment. So, let’s walk through the key areas step-by-step and ensure your decisions this round move you closer to the top of the leaderboard.


Tip 1: Analyze the Financial Report – Sales, Advertising, and Profit

First, always begin with your financial report. Look at the net sales, advertising and commercial costs, and net contribution from Round 1.

  • Did your products sell well?
  • Was your advertising effective?
  • Did you overspend or underspend on commercial support?

If your sales were weak last round, consider increasing advertising spending and optimizing commercial budgets. For example, you might reduce commercial costs to around $1,200 per brand and reallocate funds to advertising where needed. The goal is to improve brand awareness and trial, especially for your target segments.


Tip 2: Evaluate the Production Report – Inventory and Demand Matching

Next, go to your Production Report to understand what sold and what didn’t.

  • How much leftover inventory do you have?
  • Did you produce too much or too little?

Let’s say you had 11,000 units of unsold inventory for “Torn” and 15,000 for Tops”. That’s a red flag! It means demand was overestimated or your pricing and positioning were off. Use this insight to adjust your production volumes accordingly for Round 2 and avoid unnecessary inventory carrying costs.


Tip 3: Examine the Market Report – Price Positioning and Competitor Landscape

Now, shift your attention to the Market Report.

This report gives you a clear view of:

  • Price ranges across all brands
  • Brand characteristics vs. customer expectations

For instance:

  • High-end and Professional products are priced around $480–$500
  • Explorer segment products cluster around $400
  • Shopper and Saver segments fall between $300–$200

Use this data to reposition your products effectively within the competitive landscape and plan pricing strategies that maximize contribution margins without alienating customers.


Tip 4: Consumer Survey – Purchase Intent and Segment Awareness

The Consumer Survey Report is gold. It provides:

  • Brand awareness
  • Purchase intention
  • Shopping habits per segment

Let’s say “Torn” is targeting High Earners and Professionals, while “Tops” is meant for Explorers. But what if Tops has low purchase intention in Explorer and is poorly aligned with the segment's expectations? That’s a problem.

You’ll need to adjust your marketing mix and possibly launch new products that better serve your target segments.


Tip 5: Semantic Scales – Check Product Perception vs. Ideal Spot

One of the most powerful tools in Markstrat is the Semantic Scale report. It shows where your product is positioned in the minds of customers, across variables like:

  • Price perception
  • Processing power
  • Design
  • Battery life
  • Display quality

You should compare your brand's perception with the ideal point of the target segment.

For example:

  • If “Torn” is slightly aligned with Professional but far from High Earners on design and processing power, it's not optimal.
  • If “Tops” is far from Explorer expectations in display and battery life, it’s time to consider an update or a relaunch.

Use this insight to plan your R&D investments.


Tip 6: Launch New Products Based on Segment Gaps

This brings us to one of the most strategic moves in Round 2 – launching new products.

If your existing brands are not well-positioned in any segment, it’s wise to introduce a new brand. For example:

  • Launch a new brand for the Shopper segment with ideal values based on the Semantic Scale.
  • Introduce another brand for Professional or High Earner with adjusted design and performance values.

Use an Excel-based calculator (which you can download for free) to estimate semantic scores that align closely with the segment's ideal spot.

Example:

  • For a Shopper brand, you may aim for:
    • Price: $250
    • Processing Power: 4.0
    • Design: 2.5

Validate these against the ideal values before submission.


Tip 7: Recalculate Marketing Mix – Awareness & Trial Strategy

Once your new products are in place, you need a tailored Marketing Mix.

  • For high-awareness segments like High Earners and Professionals, invest more in advertising (say $2,000+ per brand).
  • For new launches, combine advertising with commercial team support to boost trial.
  • Consider setting advertising split based on target segments:
    • “Tops”: 70% Explorer, 15% Professional, 15% Others
    • “Torn”: 50% High Earner, 40% Professional, 10% Others

Ensure your marketing plan supports your brand objectives and reflects insights from the Consumer Survey.


Tip 8: Pricing Strategy – Balance Demand and Margins

Your pricing is a major lever in Round 2.

Let’s take “Torn” again – last round, you priced it at $575. If your contribution margin is low, consider adjusting to $499 to boost volume while preserving profitability.

Always check the Price Sensitivity of each segment. If your brand is overpriced for its features, you'll struggle with demand. Adjust your price to match the perceived value seen in the Semantic Scale report.


Tip 9: Focused R&D Investment – Target the Ideal Spot

With limited R&D budget in Round 2, prioritize brands that:

  • Are misaligned with the semantic scale
  • Have high sales potential
  • Serve growing segments

Use the Ideal Spot Calculator to design:

  • Processing power
  • Design and display
  • Battery life

Plan ahead – you can even set R&D values that project two rounds into the future, ensuring your product hits the ideal spot when it launches.


Tip 10: Cost Reduction and Efficiency Projects

Finally, consider launching cost reduction projects.

These internal efforts help:

  • Improve profitability
  • Reduce unit costs
  • Increase long-term competitiveness

Apply them to your most successful brand (e.g., “Torn” if it has large volume). You may save $5–$8 per unit in the long run, which can drastically increase your net contribution.


📊 Example Summary of Key Actions for Round 2:

Category

Action

Financial Review

Adjust advertising, reduce commercial support if needed

Production

Match forecasted demand to avoid excess inventory

Market Analysis

Check price positioning vs. competitors

Consumer Insight

Analyze purchase intention and awareness

Semantic Scale

Identify gaps between brand and ideal spot

R&D Planning

Launch new product with calculated specs for Professional & Shopper

Marketing Strategy

Allocate awareness & trial budget based on survey data

Pricing

Adjust based on segment sensitivity and competition

Cost Control

Launch efficiency projects for high-volume brands


🔚 Final Notes

To win in Markstrat, every round matters — especially early ones like Round 2 where you lay the foundation for brand positioning, market share, and profitability. Use the data-driven tools provided, act strategically, and continuously adapt.

You can download the free Excel Ideal Spot Calculator and sample semantic scales at the link below. If you need help with your Round 2 plan, feel free to email: mbagame2017@gmail.com.

Thanks for watching, and good luck with your simulation. Let’s win Round 2 together!

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PART 2

Markstrat / StratX Simulation Guide – Round 2 Strategy and Tips

Hello and welcome to this detailed guide for winning the Markstrat or StratX simulation, specifically focusing on Round 2. If you want to save time, avoid beginner mistakes, and accelerate your performance, this video will walk you through a proven strategy that has helped teams achieve top results. Let’s break it down section by section.


1. New Product Development Strategy

One of the key strategies in Round 2 is launching new products. Many teams underperform because they delay this critical step. Here’s what to do:

  • Rationale: Some of your current products may not be positioned in the ideal spot on the semantic scale, or they may be absent in growing segments such as Shopper and Saver. This is a major disadvantage.
  • Action Plan:
    • Check the semantic scales and consumer survey reports.
    • Identify segments with high growth but low competition.
    • Launch new products that cater to Shopper, Saver, Professional, and High-End segments.

For example:

  • Saver product: Semantic coordinates 97, 36, 16, 29 with a cost of 1590.
  • Shopper product: 84, 48, 24, 56 at cost 2290.
  • Professional: 15, 87, 30, 75 with cost under 1000.
  • High-End: 11, 8, 50, 23 and cost 1290.

If your budget is limited, focus on Shopper and Saver first. If you have extra budget from marketing or professor allocation (like 2000–4000), launch in Professional and High-End as well. The earlier you invest, the better your returns in Round 3 and 4.


2. Marketing Mix Optimization

Once new products are launched, align your marketing mix accordingly:

  • Pricing: Start competitive.
    • E.g., lower price for your Saver product from $99 to $89 to gain share while maintaining a healthy margin.
  • Advertising: Balance budget between existing and new products. Prioritize products with the highest expected contribution margins.
  • Salesforce Allocation: Focus on segments with strong conversion.
    • E.g., if Tops yields lower profit than Torn, shift resources accordingly.
  • Distribution Strategy: Ensure coverage and shelf presence through optimal retail focus.

3. Commercial Team Deployment

Smart deployment of your commercial team will multiply your success:

  • Torn Segment Focus:
    • Salesforce: 50% Torn, 30% Professional, 20% High-End.
  • Tops Segment:
    • Explorer: 70%, 10%, 15% (depending on segment penetration and performance).

Monitor past sales data to prioritize effort where conversion rates and profit margins are higher.


4. Market Research Investment

Never skip market research. For Round 2, invest in:

  • Consumer Survey
  • Brand Awareness and Distribution Panel
  • Market Forecasts
  • Semantic Scales

This helps you position your new products precisely and track evolving preferences. If budget is tight, you may skip Competitive Advertising to reallocate toward R&D or commercial teams.


5. Financial Considerations

  • Launching 4 new products will cost you significantly upfront (~6000–8000).
  • Reduce pricing or advertising where ROI is low.
  • Budget forecasting is critical: use Excel to simulate your profitability, track production cost, margin, and expected market share.

6. Production Planning

Plan production one round ahead based on expected demand. Underproduction means lost sales; overproduction ties up capital.

  • Check for plant capacity, and inventory levels.
  • Monitor cost reductions from R&D to improve contribution margin.

7. Key Tips to Win Round 2

  • Launch 2–4 new products early.
  • Adjust marketing mix to reflect real-time feedback.
  • Focus commercial teams based on historical performance.
  • Monitor costs tightly and anticipate cash shortfalls.
  • Use semantic scales to avoid positioning errors.

8. Example Scenario Summary

Your team launches:

  • 2 new products in Saver and Shopper.
  • 2 more in Professional and High-End, using R&D and budgeting tips.
  • Shifts marketing budget toward high-performing segments.
  • Allocates sales team 50-30-20 to Torn-Pro-High.
  • Buys full consumer research but skips low-ROI reports.
  • Projects to double revenue and profits in Round 3.

9. Final Words and Support

The key to success is early product launches + optimized budget. Don’t delay investing in growth segments. Track every decision carefully.

🎓 If you need free support for Round 1 or Round 2:
📩 Email: mbagame2017@gmail.com
📘 Download the free Excel planner & winning guide here: https://markstrat2019.blogspot.com

Good luck and success in your Markstrat journey!

Thank you for watching!

 

Markstrat / StratX Simulation - Winning Guide and Strategy Breakdown for Round 2

 

Markstrat / StratX Simulation - Winning Guide and Strategy Breakdown for Round 2

Hello and welcome back to the Markstrat Simulation walkthrough. In this video, we'll dive into the Top 10 Winning Tips for Round 2, helping you stay ahead of your competitors and make smart strategic decisions based on real data, analytics, and tactical insights. Whether you’re a first-time player or improving from Round 1, this guide will give you a solid roadmap.


Tip 1: Analyze the Financial Report from Round 1

Before making any decisions in Round 2, start by reviewing the Financial Report. Look at last round’s sales figures. If your sales dropped, examine why:

  • Was your pricing too aggressive?
  • Did you cut promotion costs too much?

It’s essential to understand the balance between price sensitivity and perceived value. If your price was too high, customers likely moved to competitors. In Round 2, aim to maintain or slightly lower your price—avoid overpricing.


Tip 2: Evaluate the Production Report and Inventory

Next, open the Production Report to assess:

  • Units produced vs. units sold
  • Inventory levels

Excess inventory means lost efficiency. Use the inventory numbers to guide this round’s production. For example, if you produced 100,000 units but only sold 60,000, reduce production and adjust your forecast accordingly.

Also, remember: each team starts with two products, randomly assigned among five market segments:

  1. Shoppers
  2. Savers
  3. Explorers
  4. Professionals
  5. High Earners

Because segments and product allocations vary, strategies should be segment-specific.


Tip 3: Understand Your Product Positioning

In this example, our team controls two products: T and Tops. Based on prior round data:

  • Product T fits best in Professional and High Earner segments.
  • Product Tops is positioned better for the Explorer segment.

Different segments have different pricing and feature expectations. Tailor your product updates and marketing to the segment you're targeting.


Tip 4: Study the Market Report

The Market Report provides an overview of:

  • Competitor product characteristics
  • Price levels
  • Estimated market shares

Compare your product to others in the same segment. Are you pricing above average? Is your processing power or display resolution below average? Use this data to shape pricing, advertising, and R&D investment.


Tip 5: Use the Consumer Survey Wisely

The Consumer Survey is crucial for identifying demand:

  • Look at brand awareness and purchase intention for your products
  • Focus only on segments where purchase intention is high

Example:

  • T has high purchase intention from Professionals (20%) and High Earners (25%)
  • Tops shows potential in the Explorer segment

Don’t waste advertising spend on low-potential segments. Instead, concentrate on 1–2 high-yield segments.


Tip 6: Leverage the Semantic Scale for Product Updates

Buy the Semantic Scale Report every round. It shows:

  • Ideal values (7-point scale) for each product attribute by segment
  • Where your product currently stands

If the ideal display size for Professionals is 5.5 and your product has 4.2, update it in R&D. If you don’t have products targeting Shoppers or Savers, consider launching a new product tailored to their needs.


Tip 7: Plan for New Product Development (NPD)

Markstrat allows product launches, and the earlier you invest, the sooner you benefit. Based on current gaps:

  • If you don’t serve Shoppers and Savers, develop new products for them
  • Use the semantic map to identify attribute requirements (e.g., lower price, basic processing)

Budget some funds from advertising into NPD this round.


Tip 8: Smart Pricing Strategy

Avoid extreme pricing. In Round 1, many teams price above $550, but that backfires.

Instead:

  • Set price to match or slightly undercut competitors
  • For high earners/professionals, $499 is often a sweet spot
  • Match price to product value and segment expectations

Lower price doesn’t always mean lower profit if it boosts volume significantly.


Tip 9: Optimize Advertising and Commercial Team

In Round 2:

  • Cut wasteful ad spending
  • Focus media spending on target segments only
  • Use commercial team allocation (sales force) aligned with your market focus

If you’re investing in a new product, divert some ad budget to R&D to get the product to market faster.


Tip 10: Forecast Demand and Production

Use all available reports to build a reasonable sales forecast:

  • Use last round’s sales as a base
  • Adjust for changes in price, product features, and advertising

Example:

  • If you sold 150,000 units last round but plan to lower price and increase ad spend, aim for 170,000 units
  • Account for existing inventory when planning production

Avoid both stockouts and oversupply. Balance is key.


Bonus: Use Excel Models to Simulate Outcomes

If possible, build a simple Excel sheet with:

  • Demand forecast formulas
  • Unit cost per product
  • Profit estimation per scenario

Simulate:

  • If price drops by $20 and ad increases by 10%, how much sales and profit change?
  • If you launch a new product in Round 4, how much can it contribute to market share by Round 6?

Recap of Key Actions for Round 2:

  1. Review financial and production reports
  2. Adjust price to align with market expectations
  3. Refocus advertising and commercial team on high-intent segments
  4. Use semantic scale and consumer surveys to update or plan new products
  5. Forecast demand realistically and avoid inventory waste

Final Thoughts

Markstrat is a strategic simulation—success doesn’t come from copying another team, but from reading the data better and adapting faster. Focus on your own market segments, evolve your products wisely, and be proactive with investments.

Thank you for watching this Markstrat Round 2 strategy video. If you found it helpful, feel free to check the full guide or contact us for help.

🔗 Top Winning Guide to Markstrat Simulation = https://markstrat2019.blogspot.com/
📩 FREE support for Round 1 and 2: mbagame2017@gmail.com

Good luck in your simulation, and see you in Round 3!



PART 2

Certainly! Below is the completed and enhanced video lecture script for your Markstrat/StratX Simulation Guide – designed for Round 2 strategy, including step-by-step guidance, explanations, and transitions. This script has been cleaned up, logically structured, and expanded to approximately 2,100 words, maintaining a natural spoken tone for video recording.


🎥 [MARKSTRAT/STRATX VIDEO LECTURE SCRIPT – ROUND 2 STRATEGY GUIDE]

[Opening]

Hello everyone, and welcome to our Markstrat/StratX Simulation Guide for Round 2. This is a strategic walkthrough to help you make high-impact decisions that will maximize your market share, brand equity, and long-term profitability.

If you are new to Markstrat or StratX, don't worry — this video will guide you step by step through the core areas you need to focus on in Round 2, including:

  • Marketing mix decisions
  • Product updates using R&D
  • Budget allocation
  • New product development
  • Commercial team deployment
  • Forecasting sales and profits
  • And common pitfalls to avoid

Let’s get started!


🧭 Part 1: Market Focus Review – Understanding Explorer and Professional

First, let's revisit the market focus for your existing products — especially “T” and “Tops”.

From the latest market data and consumer surveys, we observe the following:

  • Explorer segment: demand is relatively flat at 183 this round, similar to last round (180).
  • Professional segment: demand has grown by about 40 units. This indicates a slight upward trend.

So what does this mean?

  • Your Tops product still sells mostly to Explorer and a small percentage to Professional.
  • But since Explorer demand isn’t growing significantly, we need to price Tops carefully and invest in R&D to sustain sales.

🎯 Part 2: Marketing Mix for “Tops”

Let’s look at the actual decisions.

  • Last round, Tops sold 53,000 units.
  • This round, we aim for around 65,000 units, so set the sales forecast to 50,000–55,000 units to stay conservative.

Pricing Strategy

  • Last time, the price was too low. This round, aim for $489 — a strong mid-point between $400–$500.
  • At this price, we keep a healthy unit margin while remaining attractive to Explorer customers.

Advertising Budget

  • We’ll reduce advertising slightly this round. Why? Because we’re allocating a significant portion of the budget to new product development, which will yield stronger returns in future rounds.

So, your final Marketing Mix for “Tops”:

  • Sales forecast: 50,000–55,000
  • Price: $489
  • Advertising: Reduced
  • Distribution: Focused based on segment split

🔬 Part 3: Product Update – Cost Reduction Strategy

Now let’s talk about brand updates — a powerful way to improve product margins through cost reduction projects.

In the previous round, you launched cost reduction R&D for both T and Tops. Now is the time to apply them.

Steps:

  1. Go to the Brand Portfolio section
  2. Select T → Click Modify → Apply the cost reduction project
  3. Do the same for Tops

This will reduce your production costs and improve profit margins for both products without affecting customer perception.


🧪 Part 4: New Product Development (INDD Projects)

Now let’s move to the most important part of Round 2: Launching New Products via R&D.

Why? Because new products allow you to:

  • Enter untapped segments
  • Grow your market share
  • Double your revenue and profits in future rounds

Current Projects:

You’re working on two new products:

  • Shoer (for the Shopper segment)
  • Saver (for the Saver segment)

Let’s break down how to set them up.


🧮 Part 5: Calculating Ideal Semantic Scales (Using Excel)

To calculate ideal product specifications, use the semantic scale and input the ideal customer values for each segment.

For Shoer (Shopper segment):

  • Increase values slightly beyond the ideal to maintain competitive advantage over time
  • Example semantic values:
    • Economy: 2.0
    • Performance: 5.5
    • Convenience: 4.4
    • Reliability: 4.2
  • Convert to internal units: 8, 8, 48, 24, 56
  • Enter these into the INDD project

Estimated Cost: ~$1,290
(Expensive, but crucial for future growth)

For Saver (Saver segment):

  • Semantic values: 2.7, 4.1, 2.6, 2.2
  • Converted units: 9, 7, 36, 16, 29
  • Estimated Cost: ~$1,590

These projects are costly, which is why we cut advertising in Round 2 and invest in R&D instead.

🔔 Tip: You can download a free Excel calculator under the description of this video to help automate semantic scale calculations.


🧾 Part 6: Budget Reallocation and Sacrifice Strategy

Since INDD projects consume a large budget, we must sacrifice in the short term to win in the long term.

How?

  • Cut advertising this round
  • Delay launching additional products like “Vodi” to Round 4 or later
  • Avoid launching weak products just to fill the portfolio

Remember, Round 2 is about foundation. Future rounds will reward you for these R&D investments.


🏬 Part 7: Commercial Team Deployment

Let’s discuss how to allocate your commercial team, which handles sales distribution across different channels.

For “T” (targets Professionals & High Earners):

  • 50% Specialty Stores
  • 30% Mass Merchandisers
  • 20% Online Retailers

For “Tops” (targets Explorers):

  • 75% Specialty Stores
  • 10% Mass Merchandisers
  • 15% Online Retailers

This channel allocation boosts availability in relevant markets and improves your distribution coverage index.


📊 Part 8: Market Research Reports

This round, purchase selective market reports only. Don’t overspend.

Recommended:

  • Consumer Panel
  • Semantic Scales
  • Market Forecast

Avoid buying the full suite of reports unless you have excess budget. Save resources for R&D and future launches.


💼 Part 9: Marketing Plan Review and Forecasting

Now it’s time to check the financial projections for this round:

  1. Copy the forecast data from the system
  2. Review:
    • Estimated brand contribution
    • Profit and Loss statement
    • Sales forecast by product
    • Market share estimates

If you’ve followed the above strategies, you should see:

  • Moderate sales for T and Tops
  • Controlled costs
  • Negative net profit (expected due to R&D investment)
  • Strong positioning for explosive growth starting Round 4

📌 Reminder: In Markstrat, short-term loss is acceptable if it leads to long-term dominance.


🧠 Part 10: What NOT to Do in Round 2

Let’s quickly go over common mistakes to avoid:

Don’t overspend on advertising
Dont launch products without proper R&D
Dont ignore semantic scale optimization
Dont invest in too many market reports
Dont apply pricing without analyzing segment sensitivity

Focus your energy and budget on things that matter: cost control, R&D, and core marketing mix.


📩 Support and Resources

If you need help calculating semantic scales or want to ask for strategy tips, feel free to reach out:

📧 Email: mbagame2017@gmail.com
📝 Free Blog & Tools: https://markstrat2019.blogspot.com/

We’re here to support you — especially during the critical first 3 rounds.


[Closing – Motivation & Wrap-Up]

To sum up, Round 2 is all about strategy:

  • Refine your pricing and positioning
  • Update products using R&D
  • Invest smartly in new product development
  • Control budget while laying the groundwork for future growth
  • And most importantly, don’t panic if profits are low this round — it’s part of the plan!

Thank you for watching this guide on Markstrat/StratX Round 2 Strategy.
I wish you good luck and high performance in the upcoming rounds.
Stay sharp, play smart, and dominate the game!

Markstrat/StratX Round 1 simulation strategy guide

 

Markstrat/StratX Round 1 simulation strategy guide


Hello, and welcome to this detailed guide and walkthrough for the Markstrat or StratX simulation—Round 1 edition. If you're an MBA student or part of a marketing strategy course, this video will provide you with a structured, proven approach to succeed from the very first round of the simulation. We’ll go over the Top 10 Winning Tips for Round 1, including how to interpret key reports, make the right marketing and production decisions, and prepare a strong foundation for future rounds.

Let’s get started with Winning Tip #1: Analyze the Financial Report.


Tip #1: Check the Financial Report Carefully

Start your decision-making process by reviewing the financial report from the previous round. Even though this is Round 1, the simulation provides a history of your starting point.

Focus on these key indicators:

  • Sales Revenue: Review total revenue by product to understand baseline performance.
  • Advertising and Commercial Team Costs: In early rounds, it’s common to invest more heavily in advertising to boost awareness. Promotion budgets can remain low initially but should be adjusted as you go.
  • Contribution Margin Before Marketing: Ideally, you want this to be between 30–40% to ensure products are profitable before marketing expenses.
  • Profit Control: Maintain a balance—don't overspend on awareness-building if you're not generating sufficient contribution margins.

Make sure to match your marketing spend with actual product potential. Don’t overinvest in a low-growth segment.


Tip #2: Understand the Production Report

The Production Report gives insight into:

  • Last round's units sold
  • Inventory left
  • Production capacity
  • Stockouts or overproduction

While this is Round 1, each team starts with two products, but each product focuses on a different segment. Important: your team (e.g., Team T, Team S, Team R, Team A) has unique product names and specs.

Don’t copy figures from other simulations blindly. Your decisions must align with your team’s actual segment focus and initial inventory levels.

Always match forecasted demand with realistic production to avoid excess inventory or losing sales.


Tip #3: Read the Market Report Thoroughly

Your next stop is the Market Report. This is a treasure trove of information. Focus on:

  • Brand names (they’re different for each team)
  • Current product specifications (Performance, Economy, Convenience, etc.)
  • Price positioning
  • Target market segment

For example, in Team T:

  • TONI might target the Professional and High-End segments.
  • TOP might focus on the Explorer segment.

Each market segment values different product specs and pricing levels. There are 5 segments in total:

  • Explorer (middle price)
  • Shoppers and Savers (lower price)
  • Professional and High-End (premium price)

Knowing where your current products are positioned allows you to make proper decisions on pricing, advertising, and future R&D.


Tip #4: Buy and Analyze the Consumer Survey

This is one of the most powerful reports—don’t skip it. You must purchase it in each round.

Focus on:

  • Brand Awareness
  • Purchase Intention
  • Shopping Habits by segment

Let’s say you're managing product "TONI" from Team T. If the purchase intention for TONI is highest in the High-End segment, that tells you to:

  1. Focus advertising and commercial efforts on High-End customers.
  2. Set a price consistent with High-End expectations.
  3. Consider launching or updating products specifically tailored to that segment.

Also, understand shopping behavior:

  • Savers and Shoppers prefer mass merchants and online stores.
  • High-End and Professionals prefer specialty stores and are less price-sensitive.

This information directly affects Sales Force Allocation and Channel Strategy.


Tip #5: Buy the Semantic Scales Report

While not useful in Round 1 directly, this report is crucial for planning R&D in Round 2.

The Semantic Scales tell you:

  • What each market segment wants in terms of product specs.
  • Ideal levels for attributes like Performance, Convenience, Economy, etc.

Use this in Round 2 to:

  • Launch new products tailored to emerging segments like Saver or Shopper.
  • Update existing products that are mismatched with target expectations.

Always remember: Successful R&D decisions often determine long-term market dominance.


Tip #6: Study the Market Forecast

This report estimates the market growth rate of each segment over the next few rounds.

Here’s the typical trend:

  • Savers and Shoppers show rapid growth—ideal for launching new cost-effective products.
  • Professional and High-End markets grow steadily—perfect for premium products with high margins.
  • Explorer tends to stagnate—be cautious about expanding in this segment.

Match your product portfolio to where the demand is going, not just where it is now.

If you're stuck with a product in the Explorer segment (like "TOP"), you can continue selling it but consider:

  • Upgrading it slightly for Explorer retention.
  • Launching new products in Saver and Shopper segments in Round 2 or 3.

Tip #7: Build a Long-Term R&D Plan

By now, you should already be planning your R&D investment strategy.

Ask yourself:

  • Do I need to update current products to better fit their segment?
  • Can I launch a new product for a fast-growing segment?
  • How long does each R&D project take?

Product development typically takes 2–3 periods, so if you want a new Saver segment product by Round 4, start the R&D in Round 2.

Use the Semantic Scales and Competitor Specs to design better-positioned products from Round 2 onward.


Tip #8: Allocate Sales Force by Channel

After understanding consumer shopping habits, allocate your Sales Force wisely across:

  • Specialty Stores
  • Mass Merchants
  • Online Stores

Some tips:

  • Spend more on Mass Merchants for Saver and Shopper segments.
  • Focus on Specialty Stores for Professional and High-End buyers.
  • Online stores should have moderate investment for younger or tech-savvy segments.

Proper allocation boosts distribution coverage and increases your chances of converting advertising into real sales.


Tip #9: Set the Right Pricing Strategy

Your pricing must:

  • Align with the value perception of the target segment.
  • Reflect the competition in the same segment.
  • Ensure a reasonable contribution margin.

For example:

  • Saver segment products should be low-priced, but avoid selling at a loss.
  • Professional and High-End customers accept premium prices but expect higher specs and advertising support.

Avoid massive price changes between rounds. Pricing volatility reduces customer trust and hurts brand loyalty.


Tip #10: Balance Awareness and Distribution

Advertising alone won’t bring sales unless your product is:

  • On the shelves (via Sales Force)
  • Priced correctly
  • Matched to customer expectations

A winning formula in Round 1 typically looks like this:

  • Advertising Budget: More than Sales Force for early awareness.
  • Sales Force: Moderate to match top 2-3 segments.
  • Production: Covers forecasted demand + buffer (not more than 10–15% excess).
  • Price: Based on segment norms and contribution targets.

Remember, the goal is to build momentum from Round 1, not maximize profit instantly.


[Conclusion]

To wrap up, here’s a quick recap of your Top 10 Winning Tips for Markstrat Round 1:

  1. Analyze the Financial Report – control costs, track profit, and monitor ad spending.
  2. Review the Production Report – avoid over/understocking.
  3. Understand the Market Report – identify your segment and position.
  4. Buy the Consumer Survey – follow purchase intent and awareness trends.
  5. Purchase Semantic Scales – prep for future R&D.
  6. Read the Market Forecast – align products with growth areas.
  7. Plan R&D Early – use it to beat the market by Round 4.
  8. Allocate Sales Force Wisely – match customer shopping behavior.
  9. Set Strategic Prices – don’t guess, align with segment expectations.
  10. Balance Awareness and Distribution – build a solid funnel to turn demand into sales.

If you follow these 10 strategies carefully, you’re already ahead of 80% of teams in the simulation.

If you’d like help with future rounds, you can also visit the free support blog at https://markstrat2019.blogspot.com or email us directly at mbagame2017@gmail.com for custom help on Round 2 and beyond.

Good luck with your simulation—and go win that top spot!

PART 2


🎥 Markstrat / StratX Simulation Guide – Winning Round 1 Strategy

Hello and welcome to this Markstrat / StratX Simulation Winning Guide for Round 1. In this lecture, we’ll walk through a clear, practical, and highly effective strategy that helps your team perform at the top level—especially if you are playing the game for MBA or business school purposes.

This video focuses specifically on Round 1, where information is limited, budgets are tight, and every decision matters. So, let’s dive into the Top 10 Winning Tips for Round 1, helping you build a solid foundation for the rest of the game.


🔹 Tip 1: Start with a Clear Data-Based Plan

Before making any decisions, review the market research reports carefully. You may not have access to the semantic scales yet in Round 1, but you still have essential reports like Consumer Survey, Market Share, and Brand Awareness.

Use these reports to identify your core target segments and estimate the potential demand for each of your current products. Based on this data, set realistic sales goals and align your decisions accordingly.


🔹 Tip 2: Launch Cost Reduction Projects Early

In Round 1, you won’t know the ideal specifications for new products. Therefore, instead of rushing into launching new products, we recommend initiating cost reduction projects for your current brands.

For example, if your product "Torn" currently has a unit cost of $188, a cost reduction project can bring it down to around $139—a $39 savings, or over 20%. This significantly improves your contribution margin and profitability from Round 2 onward.

Similarly, you may reduce the cost of “Top” from $205 to $152—saving $53 per unit, or more than 25%.

These savings will accumulate over time and give your brand a competitive pricing edge. Save your R&D budget to launch new products in Rounds 3–5 when semantic scales and additional reports are available.


🔹 Tip 3: Don’t Launch New Products Yet

Although launching a new brand sounds exciting, avoid doing this in Round 1. You don’t have semantic scales yet, so you’ll be guessing product specs—often leading to underperformance and wasted budget.

Instead, schedule your new product launches for Rounds 4–5. That way, you’ll be able to define specs accurately and maximize success in segments such as Sonzai, Inza, or Others depending on your strategy.


🔹 Tip 4: Understand Your Target Segments

Use the Consumer Survey to determine who your customers are. Let’s assume you’re managing two existing brands:

  • Torn: Targets High Earners and Professionals
  • Top: Targets Explorers and to a lesser extent, Professionals

Never blindly copy figures. Always check your own game data, as numbers may differ between simulations.

For example, Torn’s demand might grow by 80,000 units, meaning you should plan your production accordingly. Segment-focused decisions allow you to align advertising, salesforce allocation, and pricing.


🔹 Tip 5: Allocate Advertising Budget Strategically

When you define your segment priorities, you can allocate your advertising budget efficiently. Here's one sample breakdown (modify this based on your simulation):

  • Torn:
    • 50% to High Earners
    • 30% to Professionals
    • 5% to Others (to increase general awareness)
  • Top:
    • 65% to Explorers
    • 25% to Professionals
    • 10% to Others

The goal is to maximize awareness where purchase intention is high. Spending 5–10% on secondary segments can help you gain broader recognition early on.


🔹 Tip 6: Set Competitive Prices

Pricing matters. You want to balance competitiveness with profitability.

Let’s say your market research indicates:

  • Torn: Sold 124,000 units in Round 0
    • Projected demand increase: 80,000 units
    • Recommended price: $499–$519, aligned with Professional and High Earner expectations
  • Top: Sold 68,000 units
    • Explorer-focused product, price-sensitive segment
    • Recommended price: $395 or lower

Pricing should reflect your target segment's willingness to pay, which varies significantly across segments. Use this insight to prevent underpricing or pricing yourself out of the market.


🔹 Tip 7: Align Production with Expected Sales

Once you estimate sales volume, adjust your production levels accordingly. Overproduction leads to inventory holding costs, while underproduction results in lost sales.

Use this simple approach:

  • Estimate Demand based on past performance + market growth
  • Adjust for Inventory from last round
  • Set Production = Estimated Sales – Inventory Carryover

For example, if Torn sold 124k and is projected to grow to 200k, and you have 10k in inventory, set production at 190k.


🔹 Tip 8: Allocate Commercial Team Smartly

Your commercial team (salesforce) should be allocated based on your segment’s shopping behavior. Use the Shopping Habits Report to guide you:

  • Specialty Stores: Often preferred by Explorers and High-End segments
  • Mass Merchandisers: Generalist segments
  • Online Stores: Increasingly popular across all

For example:

  • Torn (Professional + High Earners):
    • 50% Specialty
    • 25% Mass Merchandisers
    • 25% Online
  • Top (Explorer):
    • 70% Specialty
    • 20% Mass
    • 10% Online

Salesforce efficiency impacts channel coverage, which influences conversion rate—so allocate wisely.


🔹 Tip 9: Optimize Commercial Team Size and Conversion Rate

In early rounds, having 35–40 commercial team members is sufficient. You’ll scale this number up as the market grows and competition intensifies.

Also, invest in conversion team size. They help turn leads into sales. For Round 1, a modest team is enough, but you should grow it by 20% per round. Monitor competitors’ team sizes and adjust accordingly.

Your goal is to achieve high coverage and high conversion across all relevant channels.


🔹 Tip 10: Buy the Right Market Research Reports

Market data fuels winning strategies. In Round 1, you may skip some detailed reports to save money, but be strategic:

Must-buy reports:

  • Consumer Panel
  • Distribution Panel
  • Market Focus
  • Semantic Scales (from Round 2 onward)

You can delay purchasing certain reports (like Sonzai and Inza segments) until you’re ready to launch new products. This can save you $100k–150k, which you can invest in advertising or team size.


📊 Example Summary of Round 1 Outcomes

Let’s simulate results based on this strategy:

  • Torn:
    • Sales: Increase from 124k to 190k units
    • Contribution Margin: Boosted due to cost reduction
    • Net Profit: Up significantly due to margin and volume
  • Top:
    • Sales: Grow from 68k to 90k+ units
    • Price: Set low to capture Explorer segment
    • Commercial Effectiveness: Improved via smart allocation
  • Overall Company Performance:
    • Sales Revenue: +20%
    • Net Profit: Nearly doubles
    • Market Share: Increases across both segments

📬 Need Help? Get Free Support

If you’re unsure about your Round 1 or Round 2 decisions, don’t worry. We offer free help:

Feel free to send us screenshots of your reports and decisions. We’ll provide feedback within 24–48 hours to help you avoid costly mistakes.


🏁 Final Words: Focus on Fundamentals

Remember, the early rounds are about:

  • Building efficient, low-cost products
  • Identifying target segments
  • Making data-based decisions
  • Avoiding rushed R&D

By following this guide, your team can confidently take the lead in Round 1 and maintain momentum through the rest of the simulation.


Thank you for watching this Markstrat/StratX Simulation Winning Guide for Round 1. Good luck, and may your team dominate the leaderboard!