Post Graduate Diploma in Management (2023–25)

Simulation

Strategy Note

Submitted to:
Prof. Maninder Khalsa

Submitted by:
Team 6 (Section C)
23PGDM148- Pranjal Singhal
23PGDM154- Rutvik Shah
23PGDM166- Smiti Joshi
Tournament Code:
20240203111340IMIC52555
 Executive Summary
Round 1:

Building on our initial insights, we took proactive steps to drive revenue growth and improve operational
efficiency. By refining our strategies and targeting specific market segments, we set the stage for further
expansion.

Round 2:

This round marked a shift towards capitalizing on emerging opportunities and optimizing our operations.
We made bold decisions to accelerate growth and enhance profitability, paving the way for future success.

Round 3:

Despite challenges, we remained committed to driving sustainable growth. Through targeted marketing
and operational optimization, we fortified our competitive position and prepared for future opportunities.

Round 4:

As competition intensified, we adapted our strategy to navigate challenges and seize new opportunities. By
doubling down on marketing and innovation, we strengthened our position and set the stage for continued
growth.

Round 5:

In this round, we demonstrated resilience and agility in the face of challenges. By prioritizing innovation
and operational excellence, we continued to drive growth and create value for shareholders.

Round 6:

Focused on maximizing profitability, we implemented strategic initiatives to enhance our competitive

edge. This round marked a critical milestone in our journey towards sustained growth and success.

Round 7:

In the final round, we executed a comprehensive strategy aimed at securing our market position and
delivering value to shareholders. Through innovation and operational excellence, we achieved our goal of
long-term growth and profitability.
Key Milestone Maps
 Strategy - Decisions - Impact
Goal: The goal is to increase Profit, reduce Cost, and increase Market Share.

ROUND 1
★ Strategy:
The initial strategy of the team was to understand the purpose of each report and how they could be used
in decision-making. Then analyse the data given in the reports and make decisions accordingly. Based on
the data, we decided to target 2 segments each for both products:
T6LO: Low Earners
T6GE: Geeks

★ Decisions:

● Price: T6LO: Rs. 171/- (Increased by minimal amount)

: T6GE: Rs. 565/-

● Production Decision: Production efficiency was increased to utilise more capacity capacity.
● Sales Decision: We decided to hire salespeople to help increase our sales.
● R&D Decision: We invested 5,000,000/- to reduce cost of T6LO.
● Marketing Decision: Advertisement and Marketing of both the products were focused on each
category based on the available data.
T6LO: More focus was on Low-earners
T6GE: More focus was on Geeks
● Enterprise Decision: In the enterprise decision, we chose medium-expense CSR activity.
★ Impact:

● Net Sales: 225686400/- (increased from 200263679/- )

● PAT: 35345139/- (increased from 37278260/- )
● Share Price: 8.6/- (decreased from 10/-)
★ Mistakes:
We weren’t sure about what to do so we acted very reserved and didn’t make any major decisions.

4th Position in the Tournament

ROUND 2
★ Strategy:
We revised our strategy for the second round seeing the downfall of our products in Round 1 & became aspirational
and decided to increase our sales by increasing the advertisement budget of our products.

★ Decisions:

● Price: T6LO: Rs. 170/-

: T6GE: Rs. 565/-

● Production Decision: Production efficiency was increased to utilize maximum capacity.

: Additional plants were opened to increase production.
● Sales Decision: We decided to hire salespeople to help increase our sales and decided on opening
more stores and increasing our margins to Speciality Stores and Mass Merchandisers.
● Marketing Decision: Advertisement and Marketing of both the products were focused on each
category based on the available data.
T6LO: More budget was on Low Earners.
T6GE: More budget was on Geeks.
● Enterprise Decision: In enterprise decision we chose to sponsor secondary education for 50
students as our CSR activity and address citizen’s grievances and address environmental
pollution.

★ Impact (TURNING POINT):

● Net Sales: 356646500/- (decreased from 225686400/-)

● PAT: 62507136/- (increased from 35345139/-)
● Share Price: 11.3/- (increased from 8.6/-)

3rd Position in the Tournament

ROUND 3
★ Strategy:
Launching T6GE as a new product with the same specs under the name of T6HIEL. Modifying T6LO to
gather more market share. Recover from the loss of sales.

★ Decisions:

● Price: T6LO: Rs. 170/- (Reduced from 220/-)

: T6GE: Rs. 535/- (Reduced from 565/-)
● Production Decision: Production efficiency was increased to utilise maximum capacity.
: New plants were set.
● Sales Decision: Neither new stores were opened nor were any new salespeople employed.
● Financing Decision: We kept our stream of giving dividends constant to maintain shareholders’
interest.
● R&D Decision: We invested 5,000,000/- to reduce the cost of T6LO.
● Marketing Decision: Advertisement and Marketing of both the products were focused on each
category based on the available data.
T6LO: More focus was on Low Earners and Others
T6GE: More focus was on Geeks and High Earners
● Enterprise Decision: In the enterprise decision we chose to change our CSR activity to sponsor
basic amenities of 300 poor people.

★ Impact:

● Net Sales: 378,385,625/- (increased from 278,694,000/-)

● PAT: 27670847/- (increased from 62507136/-)
● We saw a significant increase in our Profit after Tax and showed recovery from the setback.
● Share Price: 8.3/- (decreased from 11.3/-)
★ Mistakes:
● We by mistake decreased the margin of merchandisers than the discount on company-owned showrooms.
● So, our T6LO sold very less and we held a lot of inventory there.

5th Position in the Tournament

ROUND 4
★ Strategy:
Launch a new product in R&D.

★ Decisions:

● Price: T6LO: Rs. 165/-

: T6GE: Rs. 555/-

● Production Decision: The existing capacity was divided in the production of three products, with
more focus on T6LO then T6GE.
: Investment was made in opening new manufacturing plants.
● Sales Decision: New salespeople were hired and a decision was made to open more stores.
● Financing Decision: We kept our stream of giving dividend constant to maintain shareholder’s
interest.
● R&D Decision: We invested 100,000,000/- to Launch a new product named as T6HIEL to target both High
earners and Elites with the same product.
● Marketing Decision:
T6LO: The marketing budget was increased significantly.
T6GE: The marketing budget was increased significantly.
● Enterprise Decision: In the enterprise decision we chose to change our CSR activity to sponsor
vocational training for 300 disabled people. From this round on, we decided to buy a Product
Perception report.

★ Impact:

● Net Sales: 599,157,735/- (increased from 531,480,000/- )

● PAT: 44985977/- (increased from 27670847/- )
● Share Price: 13.5/- (increased from 8.3/-)

3rd Position in the Tournament

ROUND 5
★ Strategy:
Marketing and launch of our new product is done in the market.

★ Decisions:

● Price: T6LO: Rs. 220/-

: T6GE: Rs. 570/-
: T6HIEL: Rs. 745/-

● Production Decision: Production capacity was maximized.

: T6LO had the maximum number of production units, followed by T6GE and T6HIEL.
: New manufacturing plants were set up.
● Sales Decision: No new store was opened but a decision was made to hire more salespeople.
● Financing Decision: We kept our stream of giving dividend constant to maintain shareholder’s
interest.
● R&D Decision: We invested 5,000,000/- to modify T6LO.
● Marketing Decision:
T6LO: Investment in Marketing was increased and solely focused on Low Earners.
T6GE: Investment in Marketing was increased and solely focused on Geeks.
T6HIEL: Investment in Marketing was increased.
● Enterprise Decision: In the enterprise decision we chose to sponsor vocational training for 300
disabled people as our CSR activity and address citizen’s grievances and address environmental
pollution.

★ Impact: Sudden increase in sales and share Price.

● Net Sales: 599,157,735/- (increased from 531,480,000/- )

● PAT: 71995818/- (increased from 44985977/- )
● PAT Margin: Even though the PAT increased from the previous year, we saw a decline in PAT
margin.
● Share Price: 22.5/- (increased from 13.5/-)

1st Position in the Tournament

ROUND 6
★ Strategy:
The way forward was to make the products target one particular market segment and cater to the needs of
that segment only.
T6LO: Low Earners
T6GE: Geeks
T6HIEL: Others

★ Decisions:

● Price: T6LO: Rs.170/-

: T6GE: Rs. 560/-
: T6HIEL: Rs. 745/-

● Production Decision: We decided to increase production of T6HIEL to focus on selling more of

this product to HE and ELand increase their willingness. Therefore, the major focus was on
T6LO, followed by T6HIEL and then T6GE.
: We decided to open 10 more plants to help increase our production capacity.
● Sales Decision: We decided to hire salespeople to help increase our sales.
● Financing Decision: We kept our stream of giving dividend constant to maintain shareholder’s
interest.
● R&D Decision: We made an investment of 10,000,000/- to reduce cost and modify T1lO.
● Marketing Decision:
T6LO: Investment in Marketing was increased and solely focused on Low Earners.
T6GE: Investment in Marketing was increased and solely focused on Geeks.
T6HIEL:Investment in Marketing was increased.
● Enterprise Decision: In enterprise decision we chose to sponsor secondary education for 50
students as our CSR activity and address citizen’s grievances and address environmental
pollution.

★ Impact (TURNING POINT):

● Even though most of our inventory of T6HIEL was sold out, we were still left with 10% of what
we produced as our inventory.
● Net Sales:760,234,252/- (increased from 599,157,735/- )
● PAT: 157698838/- (increased from 71995818/- )
● Share Price: 28.6/- (increased from 22.5/-). We saw a sharp increase in our share price.

1st Position in the Tournament

ROUND 7
★ Strategy:
T6HIEL was still covering the majority of HI and EL, therefore we decided to retain them.

★ Decisions:

● Price: T6LO: Rs.170/-

: T6GE: Rs. 265/-
: T6HIEL: Rs. 745/-

● Production Decision: Production of T6LO was increased by a significant margin, whereas

T6HIEL and T6GE productions were kept moderate to accommodate the previous round’s
remaining inventory.
● Sales Decision: No new store was opened but a decision was made to hire more salespeople.
● Financing Decision: We decided to reward our shareholders by giving out dividends of Rs.
10,000,000/- and an additional Rs. 20,00,000 as special dividend since ours is a cash rich
company.
● R&D Decision: We invested 5,000,000/- to modify T6LO.
● Marketing:
T6LO: Focused on Low Earners.
T6GE: Focused on Geeks.
T6HIEL: Marketing efforts were divided between Geeks and Others, with a major focus on
High-earners
● Enterprise Decision: In the enterprise decision, we chose to change our CSR activity to sponsor
a mid-day meal scheme at 10 schools secondary education for 50 students to address citizen’s
grievances and address environmental pollution.

★ Impact:

● Net Sales: 788,393,740/- (increased from 760,234,252/- )

● PAT: 84573884/- (decreased from 157698838/- )
● Share Price: 21.4 /- (decreased from 28.6/-)

2nd Position in the Tournament

ROUND 8
★ Strategy:
Key Milestone Map:
•Round 1: Inaugurated the tournament cautiously, focusing on understanding market dynamics and
establishing a solid foundation for subsequent rounds.
•Round 2: Recognized the significance of marketing investments and augmented advertising
expenditure to bolster brand visibility and drive sales growth.
•Round 3: Initiated a strategic pivot towards product differentiation and market segmentation to
address evolving consumer preferences and enhance competitive positioning.
•Round 4: Introduced a new flagship product, T6HIEL, strategically priced to capture market share
and stimulate revenue expansion.
•Round 5: Consolidated gains from T6HIEL's success and refined marketing efforts to target high-
margin customer segments, optimizing profitability.
•Round 6: Proactively engaged shareholders by implementing a dividend distribution strategy,
fostering investor confidence and loyalty.
•Round 7: Maintained revenue momentum while refining operational efficiencies to sustain
profitability amidst evolving market conditions.

What Went Well:

•Strategic allocation of resources based on thorough market analysis and consumer insights.
•Successful product innovation and differentiation, particularly with the introduction of T6HIEL.
•Effective utilization of advertising expenditure to drive brand awareness and customer acquisition.

Areas for Improvement:

•Enhanced focus on margin optimization and cost management to ensure sustained profitability.
•Greater agility in responding to competitive threats and market disruptions.
•Continued investment in research and development to foster product innovation and maintain market
leadership.

Team Strategies:
Adopted a data-driven approach to decision-making, leveraging insights from financial reports and
market intelligence.
•Implemented a phased strategy, balancing risk and reward to capitalize on emerging opportunities.
•Emphasized collaboration and communication among team members to align objectives and execute
strategic initiatives effectively.

Turning Point:
•Rounds 3 and 4 represented pivotal moments in our strategy, as we shifted towards product
differentiation and introduced T6HIEL, respectively.
•These initiatives propelled revenue growth and solidified our competitive position in the market,
setting the stage for sustained success in subsequent rounds.

Key Learning:
ROUND 9
★ Strategy:
•Flexibility and adaptability are essential in navigating dynamic market conditions and responding to
changing consumer preferences.
•Strategic pricing and product positioning are critical drivers of revenue growth and market share
expansion.
•Continuous investment in research and development is vital for sustaining innovation and
maintaining a competitive edge.

Future Strategies:
•Prioritize margin optimization and cost containment measures to ensure sustainable profitability.
•Expand market penetration through targeted marketing campaigns and strategic partnerships.
•Foster a culture of innovation and creativity to drive product development and maintain relevance in
the marketplace.
•Strengthen customer engagement and loyalty initiatives to enhance brand equity and long-term value
creation.

Additional Financial Insights:

•Revenue growth was fueled by successful product launches and effective marketing strategies.
•Operational efficiencies improved over time, reflecting ongoing efforts to streamline processes and
optimize resource utilization.
•Shareholder value was enhanced through dividend distributions and strategic investments in
organizational assets and capabilities.
•Key financial metrics, such as EBITDA margin and profit after tax, demonstrated consistent
improvement, underscoring the effectiveness of our strategic initiatives.