I tailored my product to match their needs such as their need for comfort, capacity, and product to be waterproofed. I created my blue backpack with the highest comfort and capacity based on the materials and features provided. I also waterproofed the backpack. I choose to distribute my product to the department store, which had the highest customer traffic for commuters compared to the other stores. I decided to spend large amounts of money on marketing and advertising to build my customer clientele. The marketing campaign message was classic and professional and was …show more content…
First of all, the lesson was the importance of too much advertising, even though at one point in the game I had the largest market share for commuters, the cost of spending money to attract more customer was breaking my bottom line. Secondly, I learned that I could never please all needs and wants of the customer, I ended the game with the best customer feedback at almost every turn. However, my cost of goods was ultimately higher than net profit. Finally, I learned that using too many distributors can affect your net profit as well, their profit share was taking most of the profit I was receiving from the sales of my backpacks.
To conclude, I would certainly make several choices differently, such as spend less money on the first few turns on advertising, monitor closely the cost of goods sold to ensure a profit margin for each backpack sold, and use selective distributors such as online store and department store to distribute my