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!
---
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!