Moon Brand Simulation Paper

In the first simulation from year 0 to year 1 I thought we might have done a few things differently based on the information we have regarding the growth rates for the 3 market segments. Based on our research, the pros and savvy market segments are projected to grown substantially in the next 5 years while the trendy segment is expected to decrease by 10%. The Mojo brand is best aligned with the trendy market segment which I suspect is a matured market. Lowering the price without increasing costs allowed us increase the number in units sold and the lowering price didn’t seem to hurt us as we had healthy growth in revenue. However, the decrease in price didn’t lead to a positive result for the Moon brand. Moon was basically flat in unit sold, but because we lowered our price we ended up down in revenue. Moving forward, I do feel that the Moon Brand is in better position because of the brands characteristics of Moon and the market segment growth projected for the pro and savvy buyers.

This to me was somewhat surprising since the trendy market appears to be shrinking in the coming years. I think we would have been better off to leave the price at its current level and cut costs to maximize our margins with the brand. In year 1 to year 2 we dropped the price from 550 to 520 for the Moon Brand. Overall, during year 1 to year 2 Mojo performed well selling 31 more units and an increase in revenue of $10. The Moon brand underperformed in year 1 to year 2. Units were down -17 and revenue was down -11.1 in $. The market segments moving for appear be consistent with previous projections. The Pros and Savvy segments will continue to grow while the Trendy Segment continues to