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Showing posts from January, 2013

Monte Carlo Simulation - The Bus Delays

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Monte Carlo Simulation is a very powerful way to forecast and predict situations. It works on a collection of historical data. Various data points are collected and the probability of an event is calculated. KPI's are then formed to determine future outcomes and take predictive measures.



For example, Simulations can be used at an airport to improve efficiency. The time a customer waits in a queue can be recorded and then the time taken to check his handbag/passport can be noted down. After a representative sample is collected, probabilities are assigned to all possible outcomes. Now a simulation can be run and a customers' average wait time can be calculated. It can also be determined to a great accuracy how many customers have to wait for how long. Thus remedial actions can be taken to counter the problems if any. For example, more checking counters can be added in the simulation to measure its impact on the waiting time.


Brand Strategic Platforms - The key Positioning element

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Recently in our Brand Management classes, we were taught a very interesting topic of Brand Strategic Platform by Prof. Ashley Konson.  A positioning strategy is essential for a brand/product. Brand positioning refers to the specific, intended meaning for a brand in a consumer's mind. The brand positioning should be clear in a marketer's mind before the same can be conveyed to the end customer through advertising/communication channels etc.  
As Prof. Konson puts it. "The managerial challenge is getting everyone seeing the same green apple the same way". 

Thus, there is a need to clearly layout the product positioning strategy internally so that the product idea is consistent throughout the organization. Kellogg provides a powerful framework to lay out a Positioning statement. Will discuss that in detail followed by some illustrations after the following example of a wonderful product which lost out due to the lack of a clear positioning strategy.
The failure of TiVo:  Wh…