Business Capstone Capstone® R & D, Marketing and Production Dr Peter Hosie Unit Coordinator Business Capstone School of Marketing Curtin Business School Curtin University Email: BC301@curtin.edu.au CRICOS Provider Code 00301J Business Capstone • • • • • For general announcements about Business Capstone regularly check Blackboard > Business Capstone > ‘Announcements.’ Regularly check Curtin student email Only communicate with tutors using Curtin student email accounts (@student.curtin.edu.au) Email from other addresses (e.g @gmail.com, @yahoo.com, etc) may end up in a Junk folder and not be seen or answered Finding tutor’s name, email address and Industry ID: Blackboard > Business Capstone > Contacts > Timetable and Tutors Email sent to a tutor, administrator or the Unit Coordinator must provide Curtin University ID number and Industry ID (Help us to help you) Email directed to the Business Capstone Unit Coordinator will usually only be answered if the issue has been first discussed and cannot be resolved with the relevant tutor CRICOS Provider Code 00301J Business Capstone Outline of Presentation • Research and Development Basics • Capstone Market Segments – Ideal Locations • Marketing Basics • Advanced Marketing • Production Basics CRICOS Provider Code 00301J Business Capstone Research and Development Basics • Invent new products (sensors) • Revise Existing Products – Impact Sensor Age – Alter sensor MTBF (reliability) – Alter sensor size – Alter sensor performance level • Support Company Strategy CRICOS Provider Code 00301J Business Capstone Capstone® R&D • Before you enter your decisions: – Read the Industry Conditions Report – Complete the Situation Analysis – Know the segment Customer Buying Criteria • Low End • Traditional • High End • Performance • Size – Discuss Company Strategy CRICOS Provider Code 00301J Business Capstone Capstone® Market Segments – Ideal Locations CRICOS Provider Code 00301J Business Capstone Capstone® R&D (cont) • After you have entered your decisions: – Check the revision date/s! • What year is the new/revised product coming out? • How far through the year? – Take note of the product new age at revision • Is the age appropriate for the segment? – Check the new position on the perceptual map • Where is the product relative to the segment ideal position? – Observe the impact on product material costs – Do the R&D decisions align with company strategy? CRICOS Provider Code 00301J Business Capstone Capstone® R&D (cont) • Don’t forget: – Buy capacity for new products before the release year – R&D decisions need to communicated effectively: • Marketing needs to price, promote and forecast based on R&D decisions and timelines • Production need to buy/sell capacity and increase automation/workforce depending on forecasts • HR need to then train/recruit/dismiss appropriate staff • Finance need to then raise the appropriate capital etc • All in pursuit of the overall Company Strategy! CRICOS Provider Code 00301J Business Capstone R&D Screen CRICOS Provider Code 00301J Business Capstone Marketing Basics • The four ‘P’s: – Price – Product – Promotion – Place • The other two important factors: – Credit Terms – Availability (Stock Outs?) CRICOS Provider Code 00301J Business Capstone Capstone® Marketing • Pricing your products – Be aware of the customer buying criteria – Investigate segment analysis (Courier) – Analyse competitor’s demand vs capacity – Remember the acceptable price range decreases by 50 cents per year, however: • Increase / Decrease / Keep Constant – Do not price your products more than $4.99 above or below the expected price range CRICOS Provider Code 00301J Business Capstone Capstone® Marketing (cont) • Promo (before) & Sales (during) budgets – Be aware of the customer buying criteria – Analyse competitor’s products – Investigate segment analysis • Diminishing returns for marketing spend – Don’t overspend > use the formulas • Remember internal strategic alignment CRICOS Provider Code 00301J Business Capstone Capstone® Marketing (cont) • Sales forecasting – No magic formula – Do not rely on computer prediction – Check December Customer Survey Scores – Be aware of the customer buying criteria – Analyse competitor’s products – Best Case / Worst Case – Check Courier for last years results and why – Analyse market share – Any new products coming out? CRICOS Provider Code 00301J Business Capstone Marketing Screen CRICOS Provider Code 00301J Business Capstone Capstone® Advanced Marketing • Focuses marketing budget – Reach and Frequency • Allocate segment sales budget across: – Outside Sales – Inside Sales – Distributors • Time Allocations ‘fine tune’ sales budget for individual products CRICOS Provider Code 00301J Business Capstone Capstone Advanced Marketing • Allocate segment promo budget across: – Print Media – Direct Mail – Web Media – Email – Trade Shows CRICOS Provider Code 00301J Business Capstone Production Basics • Production schedule • Production capacity • Automation (Human labour vs Machines) • Workforce complement • Consider effect of a/c payable policy • Discontinue production of product line/s CRICOS Provider Code 00301J Business Capstone Capstone® Production • Production schedule – Note: Production after Adjustment – ‘Buffer’ for Best Case / Worse Case • Do not rely on computer prediction forecasts! • Take notice of plant utilisation levels – Buy New Capacity or Eliminate idle plant? – Note the capacity of other teams • Remember internal strategic alignment CRICOS Provider Code 00301J Business Capstone Capstone® Production (cont) • Automation – Effect on employees – Effect on R & D – Effect on contribution margin – Cost of automation • Provide enough employees – Workforce complement % • Check your proformas! CRICOS Provider Code 00301J Business Capstone Production Screen CRICOS Provider Code 00301J Business Capstone References and Acknowledgement © Capsim Management Simulations, Inc 2012 All Rights Reserved 55 E Monroe, Suite 3210, Chicago, IL 60603 USA and Canada 877-477-8787 Others 1-312-477-7200 Capstone®, Capstone® Simulation, Capstone® Business Simulation, Foundation®, Foundation® Simulation, Foundation® Business Simulation, Capsim®, Comp-XM®, Management Simulations, Inc.® and MSI® are among the many trademarks of Capsim Management Simulations, Inc.® CRICOS Provider Code 00301J Business Capstone These slides are in Blackboard ‘Unit Resources’ CRICOS Provider Code 00301J Business Capstone Thank you for your attention! CRICOS Provider Code 00301J