Please be aware that this is the basic things behind Capsim, I tried to make it as easy to follow as possible, this guide will help you avoid the kind of mistakes that makes you lose, however it will not "give you an edge" to win either. Thread carefully! Let me know if you have any questions, feel free to send me a PM or reach me at:
When TQM Starts, you want to spend $1500 on the first round, then $1500 on the second
round, and then finally $1000 on the third round.
This expenditure would be for every single aspect in TQM
Change MTBF for all our products to the maximum amount we can.
o Traditional to 19000
o Low End to 17000
o High End to 25000
o Performance to 27000
o Size to 21000
Modify each product according to the spreadsheet on each segment. You want to increase
performance and reduce size as much as you can without the revision date reaching July. (26 th of
June is the best date to release products)
THE ONLY PRODUCT THAT DOES NOT MOVE, IT’S THE PRODUCT IN LOW END SEGMENT. LEAVE
THIS PRODUCT AT 3.0 AND 17.0
o For traditional you want to start your pricing as close as your competition, undercut
o For low end, you have to have the lowest price you can afford without going below
40% in your contribution margin. And without sacrificing demand.
o For high end, performance and size segments, place your price the highest possible.
o Recommendation for round 1
Traditional at $28
Low End at $21-$22
High End at $39.50
Performance and Size at $34.50
o Do not ever expend more than $2000 on promotion in any product in any given
year. (diminish returns start at $2000)
o For the first year you want to spend $2000 in Traditional and Low End.
o For High End, Performance and Size; spend between $1000 and $1500
o Do not...