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MANAGING CUSTOMER SIMULATION The customer simulation exercise of Minnesota Micromotors Inc, was a very intriguing one. It exposed me to a variety of moving pieces that enable a successful business performance across different objectives and parameters. The introductory note on the company and industry was helpful – in that it helped me to have a better understanding of the product and customer profile. This report also touched upon competition and growth prospects along with challenges. My overall strategy was to ensure that I have a good customer satisfaction as product quality and performance was most critical. While we did have customers A and D who were large customers and value conscious – quality and performance across all …show more content…

Customer satisfaction report suggested our goods were expensive and I had to bring down levels of discount to initial level. Meanwhile I tried to reduce discount level of customers A, B, C to compensate for the increase of discount offered to D – to ensure profitability of the overall business generated in the quarter. This ensured that profitability came back to regular levels. While I increased the discount levels to 20% for D – I also reduced the sales force time allocation gradually specific to D. While this was on – surprisingly the customer satisfaction levels of D didn’t show much improvement. Similarly – the customer satisfaction report of B & C were continuously suggesting more product improvement and sales consultation requirement. I tried to increase the sales force time allocation to them. The training and marketing communication spends was something I played with and reduced as my allocation to R&D increased. This did affect the quality of interactions of the sales force – what I could have tried was to increase the spends. While my effort was to ensure that I marry the product attributes and increase points of difference with increasing customer knowledge of the product – the reduction in sales volume and profitability impacted the spends on communication and training of sales force who could have helped bring in the points of differentiation. As per the class materials – changes in the sales force availability is critical – I tried to reduce

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