MONSOON SIM DATA

PRESENTATION
AND ANALYSIS
The table shows the flow of how the cash on hand moves along as day passes by. On
day 35th to 36th, we started purchasing product to be sold in Melbourne, Perth and
Townsville. The changes in the line graph which moves down manifests that there is a
procurement of asset. And on the succeeding days, there is an increase of cash on hand
since the business already have gained income.
Based on the chart provided above, on day 35th to 37th there is a constant line in each
three location. During those days, there is no changes of prices yet which makes the line
in constant. On day 37th, the price of the apple juice in Melbourne is changing from ₱27
to ₱15. The three locations haven’t made some changes not until day 39th to 40th
wherein only melon juice in Melbourne remains constant. One factor that can greatly
affect the sales of the business is the pricing strategy.
As shown in the graph above, Melbourne melon juice had the highest unit sold. On day
37th, Melbourne melon juice made approximately 1,011 unit sold. And on day 38th to 40th,
there is a progress in which it can be seen that on 40th day Melbourne sold 1,136 unit of
melon juice. On day 35th to 36th, Melbourne sold 572 plus units of orange juice which
means taking its way to the second rank. Perth orange juice sold 429 units of orange
juice, followed by the same location which sold 385 units of apple juice. In conclusion
which can be seen in the graph, the most preferred juice in Melbourne is melon juice,
orange juice in Perth and in Townsville.
The graph above shows the sales of corresponding products in different location. Perth
melon juice ranked first, it accumulates for about 343,046 on its 39th day to 351,110 on
its 40th day. It was followed by Melbourne melon juice which ranks second, and Perth
orange juice taking over the third rank. It can be seen in the graph that Townsville melon
and orange juice and Melbourne apple juice had its lowest accumulated sales among
the others. This is due to a lot of factors like pricing, marketing strategy, location whether
or not there is a market competition, consumer behavior and many more.
The figure above shows the marketing and advertising expense of different locations.
We found out that our funds that placed for investment in marketing those product is not
so effective especially in Melbourne apple and orange juice for it does not result to
gaining higher sales than other. To be specific, our marketing strategy is useless and
only diminished a part of our time and our cash on hand.
 GAP ANALYSIS
Current State:
• Unit of Sold, on the later days (36-40), the location in Melbourne sold around 1,011 units of melon juice, while
in Perth, it sold around approx. 572 units of orange juice. All locations had apple juice as the lowest unit sold.
• Sales, on the 39th to 40th day Perth accumulated average sales of 343,046 for melon juice, Melbourne also
had high sales for melon juice. The current state shows very low sales on both orange and apple juice
throughout the three different locations
• Marketing, in the current state, it deemed ineffective in all three locations for all three products. It did not
significantly improve sales on any product in any location and thus diminished the company’s valuable
resources.
• Cash on Hand, in the later stages of the business, cash on hand---after purchases, procurements and other
expenses---showed an incremental increase since we are selling units; however, net income is still a loss.
• Price, at the earlier days, the selling price for each product was higher than the purchasing price; in the later
stages, the company lowered the price---even too much---in the hopes of gaining sales; this proved to be
ineffective and produced a net loss.
GAP ANALYSIS
Desired State:
 Unit Sold, it is desirable for the company to maintain or even improve units sold for melon juice throughout all
the locations; apart from that, it is also desired to significantly increase units sold for other products at the profit
margin in order to gain surplus in income.
 Sales, the company aspires to increase sales for the products in all locations, specifically orange juice and
apple juice in areas where sales are extremely low. We can achieve this by trying different strategies in pricing
and giving marketing another shot.
 Marketing, since it proven to be ineffective at the current state, using marketing strategies would not be as
desired; that being said, it’s worth the risk trying again but not prolonged like before. Thus, we desire to use
marketing wisely and carefully.
 Cash on Hand, in the current state, we had a lot of cash on hand, spent prudently on otherwise important
investments and had a low inside cash flow. It is desirable for us to monitor and wisely spend cash on hand
keeping in mind not to overspend and have the objective of gaining cash.
 Price: maintain profitable price points for melon juice in highly profitable locations while finding the sweet spot
for price on other products being sold in other locations. Avoid lowering prices below the purchasing price
point.
ACTION PLAN-STEPS
1. Cash on Hand
 Minimize or maximize product acquisition depending on the unit of sold and sales in
different location.
2. Price Strategy
 Understanding cost structure and profitability goals before price decision making
 Applying the price skimming by starting with a higher initial cost, and then lower the
price over time as consumer demand falls.
 Vigilant in monitoring of sales from previous transactions
 Considers ideal customer’s disposable income range
ACTION PLAN-STEPS
3. Sales Increase or Profitability
 Learn proper negotiation techniques
 Understand what motivates customers to buy: their needs, concerns and even interest.
 The constant price for a particular product should be monitored if there are changes in sales.
 Utilizing market strategy
4. Marketing Strategy
 Analyze whether their is a changes of sales in a particular location because of marketing.
5. Purchased of Product
 Select suppliers that are reachable at all times.
 Careful in maximizing quantity of product to be purchased accordingly in different location.
ALTERNATIVES
 Select a profitable location at the start of the simulation and maximize its area.
 Delegates and always divide labor accordingly and keep communication open.
 Before adjusting the price to increase sales, try marketing the product first.
 The product purchased should be suitable to the size of the area.
 Careful examination of suppliers is essential to make sure the products will be delivered
immediately.
 To have an effective utilization of the area in a particular location, the quantity of the
product should correspond to the area of the business.