STOREWARSBUSINESSSIMULATION

The Storewars StoryDeveloped in 1995 at INSEAD, Europe’s leading international business school, Storewars is one of the world’s most sophisticated total business management simulations. Used by leading manufacturers and retailers worldwide, it is designed for senior management executives, from Boardroom to Business Unit.Since its inception, Storewars has been run over 820 times in 84 countries. And some 25,000 executives from more than 500 companies have participated in this powerful management development programme.

What does a Storewars Business Simulation consist of?

Storewars is a dynamic total business simulation, in which participants run a $600m virtual company, develop the strategies, manage the resources, negotiate and make the decisions that determine its success. Key lessons are reinforced through continuous coaching and feedback on the impact of strategic and tactical decisions made during the simulation. Additionally, there are breakout lectures and sessions that relate the lessons back to real market issues. While managing the virtual business, Storewars participants develop an intuitive understanding of the business, its functional elements, and the ways to achieve a strong profitable position in the market, by establishing win-win cooperation.

In today’s challenging marketplace, the practice of business decision-making is relevant to every employee. There is a high premium on negotiating skills, on the ability to take decisions, and on a clear understanding of the responsibility for, and the consequences of, the choices that are made. Storewars Business Simulation is designed to develop and hone those skills that are key to business success. It can be used as a training resource,a recruitment tool, or as a means to develop skills and/or teamwork.

STOREWARS BUSINESS SIMULATIONA unique management development programme

STOREWARS BUSINESS SIMULATIONhow it works

The Storewars Business Simulation is based on a model refined over 10 years at INSEAD, and based on real world data and market behaviour. In each course, 18-34 participants divide into teams, and take control of virtual retail and manufacturing businesses for a simulated 2 years, operating across two markets and in two product categories. During the 3-4 day course, the teams compete and interact to capture market share and drive value in their businesses. The underlying Simulation is computer-driven, and replicates the complex interplay between manufacturers, retailers and consumers.

E-learning

To maximize the learning effect, it is crucial for all participants to familiarize themselves with the programme in advance, learn how to analyze vast amounts of initial data and information, and refresh their knowledge of marketing and management concepts, as well as market and financial indicators and ratios before the Simulation.In order to make the preparation process more effective and interesting, we have launched an interactive website for online self-preparation: Storewars E-learning. It consists of introductory lectures, tests, company and market reports, market research studies and statistics similar to those used during the training course, and is delivered across five modules in the format of animated tutorials. Participants should access the tutorials before the start of the course, both to prepare themselves for the Simulation at their own speed as well as find out how ready they are for the game! In this way, participants are able to start to work in their teams from the very start of the Simulation without the need for lengthy introductory sessions.

Decision MakingAt the start of the Simulation, each company is provided with the last period’s trading results, together with market profiles, brand information and research data on the competition. Armed with this information, a full set of strategic business decisions must be made. The manufacturers will, for example, take decisions on manufacturing quantities, brand positioning, marketing strategy, pricing and new product development. By contrast, the retailers may have to develop and then act on pricing policy, store positioning, shelf space allocation, own -strategy, service levels and inventory management.

NegotiationA further appeal of Storewars Business Simulation lies in the highly realistic recreation of the retailer-supplier negotiating process. The teams negotiate with each other to influence issues such as trading terms and conditions, as well as listing, pricing and marketing policies for each brand and category in each market.

FeedbackEach set of decisions is then fed into the computer to produce a specific set of outcomes.After each virtual 6-month period, the teams are presented with feedback on the strategies they have selected, the impact of their decisions, and the results of their negotiations. The outcomes are determined entirely by the relative strategies adopted by the participants, and the success or otherwise of their negotiations.

Workshops and LecturesIn addition to the Simulation, time is allocated for lectures, workshops, case studies or corporate presentations. In many cases this provides an excellent opportunity for companies to outline new strategies or sales and marketing initiatives.

WHAT SKILLS ARE DEVELOPED ON A STOREWARS COURSE?General skills

• Total business management: managing company resources to reach market goals • Creating and implementing sound company, market, product and customer strategies • Applying information and data to make profitable decisions• Effective strategic and tactical decision-making• Working in multifunctional teams• «Soft» and «hard» negotiation • Communication

STUCTURE OF STOREWARS PROGRAM

WHAT SKILLS ARE DEVELOPED ON A STOREWARS COURSE?Specialist skills

• Retailer strategy and tactics• Manufacturer strategy and tactics• Managing product portfolios from manufacturer and retailer perspectives • New product development and launch• Private label portfolio management• Understanding economic drivers in retailer-manufacturer relationships• Trade profitability analysis; establishing mutually profitable trading relations • Developing effective consumer, shopper and trade marketing systems • Brand power and store power: managing mind space and shelf space• Making and implementing rational tactical decisions and monitoring their effectiveness

Decision 2

Lecture

Feedback on Decision 2

Negotiations

Decision 3

Feedback on Decision 3

Decision 4

Final Feedback, program summary

Day 1 Day 2 Day 3

Decision 1

Lunch

Feedbackon Decision 1

Negotiations

Introduction, Q&A

Group analysysin teams

LunchLunch

Lecture

Negotiations

Pre-Day

Trial decision

E-learning

Webinar

STOREWARS BUSINESS SIMULATION

Corporate CoursesAll participants on Storewars Corporate Courses will be drawn from the same company. And whilst participants may well come from one discipline in one market segment, Storewars also works well as a cross-functional development tool, where delegates come from different disciplines such as sales, marketing, commercial or logistics. Many companies also use Storewars as an international development tool, with participants coming together from several markets and market locations.

Open CoursesHere, participants come from a variety of companies and mix with peers across the industry. Open Courses run regularly throughout the year in a number of international locations.

Business School and University CoursesFor a number of years, Storewars has been used by a number of business schools and universities around the world. It can form an integral part of an MBA, or a Masters Degree in Management, Retail, Leadership or Marketing. Storewars Simulations provide students with a unique opportunity to put into practice the theoretical skills they acquire during their studies, thus deriving real insights into the way modern businesses run. They can make huge virtual losses without losing their jobs. Sadly, of course, huge profits do not mean real promotion.

can be custom designed to your organisational needs….

Setting your goalsThere are various formats available. They will depend both upon the number of people you wish to train and/or your development objectives. Before the programme runs, we explore with you specific issues relevant to your business, establish your key learning objectives, and identify the shifts in behaviour needed to achieve them. The course agenda and content is then tailored to meet these goals.

WHICH COMPANIES USE STOREWARS?What do they say about storewars courses?

«The interactive sessions with retailers….prepared me for real-life negotiations» Noman Ali, Country Manager, Philip Morris

«Very close to real life; competition between participants makes decision-making exciting and challenging» Tony Ghattas, Head of Trade Marketing, Reckitt Benckiser

«Best learning for me (was) how to critically evaluate vast amounts of data and filter out information really needed to make important decisions» Aamir Aitjaz, Strategic Planning & Insights Manager, Coca-Cola

«Interactive and hands-on session from Day 1. This ensured 100% participation. Best part: learning by doing» Akriti Vora, Marketing Manager, Carrefour

«It is real time and a very practical programto be implemented in our real business scenario» Shishir Joshi, Assistant Manager Activation, Pernod Ricard India

Greg Thain has been Chairman/CEO of marketing, trade marketing, internet, consultancy, PR and research companies in the UK and emerging markets.

Greg is currently Adjunct Professor of Marketing and E-commerce at the International University of Monaco (IUM) and Chairman of Storewars International. He works and lives in Monaco and Moscow.

He is also co-author with John Bradley of Store Wars: The Worldwide Battle for Mindspace and Shelfspace, Online and In-Store, the completely revised and updated sequel to the highly successful 1995 edition, which brings up to date the struggle between manufacturers and retailers for control of “mind space” and “shelf space” in developed markets, emerging markets and the internet.

To discuss further how Storewars can benefit your organisation, please contact us at sw@storewars.net

Storewars Main Offices: Dubai, UAE – dubai@storewars.netManila, Philippines – manila@storewars.netMonte Carlo, Monaco – monaco@storewars.netMoscow, Russia – moscow@storewars.net

GREG THAINCHAIRMAN OF STOREWARS