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)
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%.
A
B
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.
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.
COSTS
Range A costs 13 AUs.
AUs
Range B costs 16 AUs
Fixed Overheads are 20,000 AUs each period
Staff levels are decided by you for each outlet
separately.
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.
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
OBJECTIVES
Discover how to successfully set prices and
promotion to meet your goals.
Work as a team.
Have fun!