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