What is the Music2Go Marketing Simulation?
Music2Go marketing simulation is a platform by Smartsims designed to explain and illustrate the core marketing terms and concepts. Concepts are introduced as the simulation progresses throughout the rollovers. Users are responsible over price, retail margin, sales forecast, sales promotion, product development, product launch and advertising decisions.
Music2Go Ranking
- Total Marketing Contribution (TMC): $1,301,753,652
- Marketing Contribution (MC): $319,076,997
- Music2Go Single-Player (2024/2025): 1st
- Music2Go Single-Player (All-Time): 2nd
- Date: April 2025
- Rollovers: 8
Fanshawe College Report
Music2Go Hints & Tips
Your goal is try to increase your Marketing Contribution so that it is higher than your competitors. Lost sales shows how many more units could have been sold if a given firm had ordered more stock. This is unsatisfied excess demand for a product.
Increase Market Share
- Decrease Retail Price
- Increase/Improve Advertising
- Increase Distribution Coverage
- Increase/Improve Sales Promotion
- Spec Improvement Development
Increase Profitability
- Cost Reduction Development
- Decrease Retail Margin
Retail Price
The recommended retail price range is a guideline. You can price higher or lower than this, but be aware it becomes harder to cover your costs if you price too low, and you may lose market share if you price too high.
| Retail Price | Music | Gaming | Fitness |
|---|---|---|---|
| Sensitivity | High | Low | Medium |
| Retail Price ($) | $101 | $147 | $67 |
Retail Margin
Distribution Coverage is the proportion of consumers who can buy a product in the places that they normally shop. Even though having a lower Retail Price would create more sales, there became a need to strike a balance between an above average price Retail Margin to ensure Distribution Coverage was not neglected.
| Distribution | Music | Gaming | Fitness |
|---|---|---|---|
| Sensitivity | High | Medium | Medium |
| Retail Margin (%) | 30% | 30% | 30% |
Sales Forecast
The Forecast Demand is an estimate of the likely size of each market segment for next year. Enter your sales forecast for the year ahead to determine required inventory. A Sales Forecast (Units) goal can be to increase market share by a percentage each rollover.
- Forecast Market Demand This Year * Current Market Share * (1 + Percentage Increase)
Advertising
Product Awareness is the percentage of potential customers who remember your product and would mention it if asked to list some specific headphones. This is affected by how much you spend on Advertising, how efficiently you allocate it across the media channels, and how much past accumulated advertising awareness there is for a product. This was calculated by multiplying the Media Viewing Habits by the Advertising Media Reach to decide on an optimal advertising mix. Focusing on one or two advertising strategies created the highest amount of Awareness for the allocated budget.
| Advertising | Music | Gaming | Fitness |
|---|---|---|---|
| Sensitivity | Medium | Low | High |
| Budget ($) | $8,000,000 | $2,000,000 | $9,000,000 |
| $500,000 | Radio | Radio | Digital Media |
| $1,000,000 | Radio | Digital Media | |
| $1,500,000 | Radio | Digital Media | |
| $2,000,000 | Digital Media | ||
| $2,500,000 | Digital Media | ||
| $3,000,000 | Radio | Digital Media | |
| $3,500,000 | Radio | Digital Media | |
| $4,000,000 | Digital Media | Digital Media | |
| $4,500,000 | Digital Media | Digital Media | |
| $5,000,000 | Digital Media | Digital Media | |
| $5,500,000 | TV | TV | Digital Media |
| $6,000,000 | TV | TV | Digital Media |
| $6,500,000 | TV | TV | Digital Media |
| $7,000,000 | TV | TV | TV |
| $7,500,000 | TV | TV | TV |
| $8,000,000 | TV | TV | TV |
| $8,500,000 | TV | TV | TV |
| $9,000,000 | TV | TV | TV |
| $9,500,000 | TV | TV | TV |
| $10,000,000 | TV | TV | TV |
Sales Promotion
Sales Promotion is a rating from 1 to 100 which indicates the effectiveness of each product’s activities. This is based on a combination of the sales promotion expenditure and the promotion mix effectiveness. Each promotional activity has particular relevance to certain stages of the product life cycle. New products start in the Growth phase then over the next six rollovers they gradually transition from to Mature, and eventually the Decline phase.
| Sales Promotion | Music | Gaming | Fitness |
|---|---|---|---|
| Sensitivity | Medium | High | Low |
| Budget ($) | $5,000,000 | $8,500,000 | $2,000,000 |
Music Segment
| Product Cycle | Growth | Mature | Decline | ||||
|---|---|---|---|---|---|---|---|
| Allocations | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6+ |
| Trade Shows | 20% | 15% | 10% | 5% | 7% | 8% | 10% |
| Sales Force Training | 20% | 15% | 10% | 5% | 5% | 5% | 5% |
| Premiums (Gifts) | 25% | 30% | 35% | 40% | 35% | 30% | 25% |
| Website / Social Media | 10% | 10% | 10% | 10% | 10% | 10% | 10% |
| Point of Purchase Displays | 15% | 17% | 18% | 20% | 20% | 20% | 20% |
| Rebates | 10% | 13% | 17% | 20% | 23% | 27% | 30% |
Gaming Segment
| Product Cycle | Growth | Mature | Decline | ||||
|---|---|---|---|---|---|---|---|
| Allocations | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6+ |
| Trade Shows | 20% | 15% | 10% | 5% | 7% | 8% | 10% |
| Sales Force Training | 30% | 27% | 23% | 20% | 20% | 20% | 20% |
| Premiums (Gifts) | 20% | 27% | 33% | 40% | 35% | 30% | 25% |
| Website / Social Media | 15% | 13% | 12% | 10% | 10% | 10% | 10% |
| Point of Purchase Displays | 15% | 17% | 18% | 20% | 20% | 20% | 20% |
| Rebates | 0% | 2% | 3% | 5% | 8% | 12% | 15% |
Fitness Segment
| Product Cycle | Growth | Mature | Decline | ||||
|---|---|---|---|---|---|---|---|
| Allocations | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6+ |
| Trade Shows | 15% | 12% | 8% | 5% | 5% | 5% | 5% |
| Sales Force Training | 25% | 20% | 15% | 10% | 8% | 7% | 5% |
| Premiums (Gifts) | 5% | 12% | 18% | 25% | 23% | 22% | 20% |
| Website / Social Media | 25% | 23% | 22% | 20% | 18% | 17% | 15% |
| Point of Purchase Displays | 25% | 25% | 25% | 25% | 25% | 25% | 25% |
| Rebates | 5% | 8% | 12% | 15% | 20% | 25% | 30% |
Development
The Product Specs is a rating from 1 to 100 that measures how close your product is to an ideal product in each market segment. You may have dumped obsolete inventory units if you improved your product with product development. Your existing stock of finished goods is sold off cheaply to an overseas market because consumers prefer to buy your latest product designs. This usually results in an inventory disposal loss, but this is likely to be lower than the inventory holding cost of storing all those finished goods and the cost savings of improving your product design.
- Cost Reduction Development for every product.
- Spec Improvement for every product.
| Spec Improvement | Music | Gaming | Fitness |
|---|---|---|---|
| Sensitivity | Medium | High | Low |