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RETAIL MIX

RETAIL MIX. This simulation challenges your ability to make business decisions affecting the sales for several periods. The group is divided into teams, each of which form a sales and marketing team. You will be responsible for selling two ranges through two outlets.

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RETAIL MIX

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  1. RETAIL MIX This simulation challenges your ability to make business decisions affecting the sales for several periods. The group is divided into teams, each of which form a sales and marketing team. You will be responsible for selling two ranges through two outlets. To keep all then numbers manageable, all prices, costs and profits are measured in a universal currency - the Account Unit (AU)

  2. The Ranges The ranges that you sell are imaginatively called Range A and Range B Product A is well established but has considerable competition. It has been sold at a mark-up of 50%. Product B is new but has few competitors. It should sell for between 50% and 100% mark-up Both ranges sell to the same types of customer but for different use. A B

  3. THE OUTLETS The two outlets are called Outlet 1 & Outlet 2. Currently, you only sell into Outlet 1 but are about the enter Outlet 2. Both areas are believed to be similar in terms of potential and mix of customers. Outlet 1 currently employs 8 staff each costing 5000 AUs.

  4. COSTS Range A costs 13 AUs. Range B costs 16 AUs Fixed Overheads are 20,000 AUs each period Staff levels are decided by you for each outlet separately. AUs

  5. USING THE COMPUTER • Enter team name (up to six letters) • Enter decisions • Mark-up for each range • Staff Numbers for each outlet • Period Results • Unit Sales for each range, outlet and totals • Sales Revenue for each range, outlet and totals • Income Statement for period and cumulatively • Unit Sales Forecast for next period • Go away to review, think and make next decisions.

  6. ROLES & TASKS Range Managers • authority to set prices for the ranges • responsible for unit sales volumes Outlet Managers • authority to set staffing levels • responsible for outlet revenues General Manager • co-ordination of the team • responsible for profit

  7. OBJECTIVES Discover how to successfully set prices and promotion to meet your goals. Work as a team. Have fun!

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