211812018 ‘Stop 5 - Firm Proft and Loss statement Step 5 - Firm Profit and Loss statement On the basis of your decisions and your estimates for segment sizes and brand shares, the marketing plan tool can make financial projections for the decision period. This form, depicted in Figure 65, shows a pro forma firm profit and loss statement, similar to the one in your annual report. The lines from Revenues to Contribution after marketing are obtained by summing the columns in the previous form Brand contribution. The other lines are explained below: G) Market research studies: Equal to the total cost of the market studies ordered in your decisions; the cost of each study is given in the Market studies decision form. (k) Research and development: Equal to the sum of all budgets allocated to R&D projects in your decisions; the allocated budget is one of the many decisions which you have to make when initiating or continuing a research project. (1) Exceptional costs & profits: Usually equal to 0, You may incur an exceptional cost if you decide to withdraw a brand; in this case, any remaining inventory will have to be disposed of, the cost of which will be calculated as explained previously in the Inventory disposal loss. (m) Earnings before taxes: Equal to Contribution after marketing ~ (j) ~ (k) - (I) Team mor about Manet Plan? Company Profit & Loss Statement Peed 7 Period © Perad$ = Penod4 = Petiog 2 Revenues 170.355 819 SANT oot of goods 600 45 @2 0 260 Inventory costs 110 ear 12 138 1251 Contrioution before marketing e523 92008 1646 22282 Advetising expenditures 2500 950) sue Commercial team costs 42 1 98 1 585 researc tities 85 85 3 792 93 Feseorch and developmen ° 0 1130 +700 Exceptional costs & prefs ’ 0 0 Earnings before taxes 005 = 7169 370 = «RT 145 Figure 65 - Marketing Plan - Company P&L statement Marketing Team Americas: Paul Ritmo & Jesica Zelek Marketing Team EMEAA: Stéphanie Zanon, Neda Brigui & Patricia Huber Development Team: Aurélien Dauvergne, Ali Oulhaci, Rémi Triolet & Alexandre Veillet Support Team: Moranne Held hpiiwmw stratxsimulaions.comlalest_materals_markstal_weblenuiMandbook-SM-82C-DG/DocToHelpOulpulNetHelpidefauttnimalWordDacument.... 12211812018 ‘Stop 5 - Firm Proft and Loss statement Copyright © 2003, 2015 by Jean-Claude Larréché, Hubert Gatignon & Rémi Triolet Software © 2003, 2015 by Stratx Markstrat is a registered trademark of Stratx All rights reserved ISBN-10 0-9743063-9-8 ISBN-13: 978-9743063-9- 1 ABOUT MARKSTRAT ‘The Markstrat simulation was created more than thirty years ago by Jean-Claude Larréché, Alfred H Heineken Professor of Marketing at INSEAD, and Hubert Gatignon, The Claude Janssen Chaired Professor of Business Administration and Professor of Marketing at INSEAD, and has been constantly improved since its creation. Used in combination with traditional training methods such as conceptual sessions or case studies, Markstrat is a highly effective tool for learning strategic marketing concepts, such as brand portfolio, segmentation, and/or positioning strategies, as well as for learning operational marketing. Similar to a flight simulator, this marketing simulation allows students and managers to practice new skills in an intensive time frame and in a risk-free environment before trying them out in a real business environment. ‘The mathematical model of Markstrat is based on solid theoretical foundations, whose underlying formulas have been extensively tested, These simulations have been used to successfully train large number of participants and executives from many universities and organizations. You and your team will be given a company and product portfolio to manage in a dynamic and interactive environment. No previous computer experience is required but it is important to read this handbook prior to your course. If you do not read it carefully, you will run the risk of putting your team at a competitive disadvantage! ABOUT STRATX SIMULATIONS StratX Simulations is a subsidiary of StratX, a unique training and development group founded by INSEAD Marketing Professor, Jean-Claude Larréché, Stratx brings together disciplines from leading business schools, management consultants and learning design specialists, StratX Simulations’ mission is to develop and market business games to the Academic Community. We develop high-tech, sophisticated simulations and tools, in partnership with academic stars such as Jean-Claude Larréché, Huber Gatignon, Chan Kim and Renée Mauborgne, all professors at INSEAD. StratX Simulations is active in three disciplines: Marketing, Strategy, and Management. Our methodology is based on our belief that new skills must be learned through action and experience in addition to books and lectures. Over the past twenty years, Stratx Simulations has designed and developed a portfolio of world-class business simulations, including Markstrat, Markops and Blue Ocean Strategy Simulation, used in over 500 business schools in 60+ countries. hpiwmw stratxsimulaions.comlalest_materals_markstal_weblenuiHandbook-SM-82C-DG/DocToHelpOulpulNetHelpidefaultnimalWordDacument.... 22