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:
- Focus
advertising and commercial efforts on High-End customers.
- Set a
price consistent with High-End expectations.
- 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:
- Analyze
the Financial Report – control costs, track profit, and monitor ad
spending.
- Review
the Production Report – avoid over/understocking.
- Understand
the Market Report – identify your segment and position.
- Buy
the Consumer Survey – follow purchase intent and awareness trends.
- Purchase
Semantic Scales – prep for future R&D.
- Read
the Market Forecast – align products with growth areas.
- Plan
R&D Early – use it to beat the market by Round 4.
- Allocate
Sales Force Wisely – match customer shopping behavior.
- Set
Strategic Prices – don’t guess, align with segment expectations.
- 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:
- 📧
Email: mbagame2017@gmail.com
- 🌐
Blog with free guides: https://markstrat2019.blogspot.com/
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!
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