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Case Study - Business Simulation Modeling
A Quebec based newsprint producer used our simulation modeling techniques to develop and implement new marketing and sales strategies with outstanding results; they became the highest profitability producers in Canada and weathered a recession with higher operating rates than all other Canadian mills.
Initially we analyzed their markets in terms of market segments and the different need profiles of each segment. This included each segment's price sensitivity. The segments were then reviewed with respect to the relative strengths and weaknesses of our client and prioritized in terms of desirability. All this data was then fed into the model and various different product, marketing and sales ideas were evaluated in order to find an optimum result. Marketing plans were then prepared to maximize share in the highest priority markets by responding directly to their customer's needs. This involved new pricing policies, the revision of production planning, inventory and delivery policies, new sales and service guidelines, and training for the company's sales and service personnel.
The resultant changes in performance were clearly visible in higher returns and changes in segment shares but were not put to the ultimate test of a recession for three years. When the recession occurred, the company was able to take less down time and continue to produce better mill nets than its competition.
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