Round essay

This round we decided to focus on the low end segment due to faster demand growth by increasing the advertising cost for greater reach. This round we maintain 2 products and chosen Avian Grade for both markets. Avian Grade is designed to cater to both markets and help to increase the sales volume. We added more features for both market since High end segments are willing to pay for innovative model. The warranty period remained as 18 months as longer period of the warranty will result in more demand on the products.

No changes were made on the R&D as we were afraid that it will result more cost to be incurred. Round 4 In this round we did not make sufficient profit to cover our cost. Upon comparison, we realized that Red and Pink teams earnings were E 150 to El 70 while we only made EYE for each product in the Europe market. As for Asia market Red and Pink teams were earning E 130 per product and we are only earning EYE for each product. In Asia market, we have added additional model as the population in Asia Household market is growing.

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Same as previous round, we decreased the unit price of each model. Different design of the handsets has been created to cater the different needs of the customers. Advertising cost was still increasing in Household and Companies. Since there is a vast population in Asia, we decided to top up another EYE in the as compared to the previous round. Margin on repairs for both Asia and Europe market was up by to 30%. This increase in margin was to help in the unforeseen increase number of repair that will happen in the both markets.

We had the best selling product in Asia and second best in Europe market. However it was still not sufficient to gain more market share. Our share price for round 3 was 104. 16%. We decided to focus more on the owe end segment due to faster demand growth by increasing the advertising cost for greater reach. We pumped in more advertising cost to target the low end segment since they were growing faster than the Europe market based on the market outlook. In round 2, we had 2 products in each market and decided to remain the same.

We chose Avian Grade for both markets. Avian Grade is designed to cater to both markets and help to increase the sales volume. We added more features to cater to both market since High end Our share price for round 4 was 135. 65%, sitting at 3rd position. This time round, we did not make sufficient profit to cover our cost. Upon comparison, we realized that Red and Pink teams earnings were El 50 to El 70 while we only made EYE for each product in the Europe market.

As for Asia market Red and Pink teams were earning El 30 per product and we are only earning EYE for each product. In Asia market, we have added additional model as the population in Asia Household market is growing. Same as previous round, we decreased the unit price of each model. Different design of the handsets has been created to cater the different needs of the customers. Advertising cost was still increasing in Household and Companies. Since there is a vast population in Asia, we decided to top up another EYE in the R&D as compared to the previous round.

Margin on repairs for both Asia and Europe market was up by to 30%. This increase in margin was to help in the unforeseen increase number of repair that will happen in the both marketers had the best selling product in Asia and second best in Europe market. However it was still not sufficient to gain more market share. For every rounds, we used the Geographical / Segmented pricing strategy to set the pricing of every products based on differences group of consumers in the markets.