The Brands Microworld is designed to show how businesses can use their strategic
resources over time.
As the name suggests, the simulation is set at the launch of a new (Whisky)
brand and users have to plan their strategy by setting policies for size of
sales force, amount of advertising and product price. This launch encompasses
many problems typical in fast moving consumer goods (FMCG) product launches
(e.g. whether to advertise first and then send in the sales force or send in
sales team to stockists and then mass advertise with product on the shelf) but
it is relevant to anyone who needs to understand how business resources can
interact to improve performance.
This is a small simulation, supported by a short description of a common
situation, rather than a full Microworld, which would be a larger simulation
with extensive case material.
Authors: Kim Warren and Christina Spencer
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| Brand Management Microworld - Versions
available |
| The Brand Management Microworld is a PC based
simulation, running on Windows 95 and above. It requires less than 5 Mb disk
space and will run on PCs with 32Mb RAM although performance is enhanced on
higher specification machines. There are three types of licence: |
| Demo Version
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The demo version consists of a link to the software for download
and an introductory user guide.
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| Single User Licence
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The single user version is licensed for personal use only and may
not be used in training or consultancy. Purchase may be made online. The
software is the same as the demo version so there is no additional download to
be made. You will be provided with the link to the software, an unlock code and
a learning guide.
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| Site Licence |
The software for the site pack is the same as for the single user
version. Site packs contain additional materials (slides, slide handouts, and
annotations) to enable front-of-class delivery. The cost of site packs includes
copy permissions for the materials as well as software usage fees. If you would
like further information on site packs and prices please contact
our sales department stating which product(s) you have an interest in,
the type of organisation that the product would be licensed to (academic,
corporate, executive education) and the size of group with which it might be
used.
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Download a demo or a personal licence for the Brand Management Microworld
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| Brand
Management Microworld - Key learning points |
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Business performance over time (sales and earnings) depends on the
resources we have.
Resources are won and lost over time (customers = sum of all customers ever
won, minus all ever lost).
Growth depends on existing resource levels (stores are won faster if we have
more consumers)
… and …
New business growth depends on minimum levels of initial support.
There is a limit to the performance that can be extracted from a certain set of
resources.
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| Context: building a market for a consumer product
by developing consumer interest and retail store availability
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Contexts where similar generic issues arise - performance always
depends on resource-levels; it is always critical to focus on gains and loss
rates for resources; resources can only ever grow if existing resources are in
place.
Contexts where similar specific structures arise - any fast moving consumer
good, and certain business-consumables that depend on developing a sales
channel.
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| Exclusions:
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This simple microworld does not include rivalry or
soft factors (such as reputation).
It offers a simplified view of a consumer brand - hiding the complexity of
brand values, and the many forms of marketing support that may apply in
practice. |
| Decision inputs:
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Advertising expenditures
Size of sales force
Wholesale price (stores add a fixed % to set the retail price). |
| Performance outputs: |
Earnings
Sales revenue and volume
Consumers
Stores
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| Challenges offered: |
Early business start-up with limited budget.
Kick-starting a business that has been under-supported.
Turning round a business that has been managed into difficulty through
over-aggressive pursuit of profits and margins.
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Download a demo or a personal licence for the Brand Management Microworld
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| Teaching uses: |
Strategy Dynamics course - the business
resource-system, interdependence between firm resources, managing functions in
harmony (sales and advertising).
Strategy courses or workshops - basics of resource-based view (RBV): connection
between resources and performance.
Systems thinking courses or workshops - resource-building and feedback
(reinforcing)
Marketing courses or workshops - basics of developing both customers (through
advertising) and channels (through sales force), working with limited marketing
budgets.
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