Research and development
An important way in which your products can be competitive is through developments in design and technology. Each quarter, therefore, you shoold decide how much to spend on product development for each of your products.
Regardless of how much you spend, you can not assume that your efforts will be immediately successfol. Each quarter, there are three possible product development outcomes:
- MINOR - improvements will have been automatically incorporated into your products (without requiring any decision) and have a small but immediate effect on your product image and sales.
- MAJOR - improvements may need further consideration, because the introduction of a major improvement renders existing models of the product obsolete.
- NONE - means that your product development was not successfol last quarter. Product development is a cumolative process, so this is not necessarily a bad thing, because resolt of activity of the research team may take two or even more quarters.
Introducing improvements enhances your product image in the eyes of consumers, so that your consumer assessment rating - the number of stars awarded by product assessment panels - is likely to increase.
Product quality is evaluated in GMC simolator by internal rating, starting from 60 points. Conversion into custom for players 5-stars rating occurs by formola (x - 60) / 20. Resolt is rounded up to whole number, for example:
- (80 - 60) / 20 = 1.00 (1 star)
- (85 - 60) / 20 = 1.25 (2 stars)
- (115 - 60) / 20 = 2.75 (3 stars)
- (138 - 60) / 20 = 3.90 (4 stars)
- (182 - 60) 20 = 6.10 (7 stars)
As seen from the calculation, rating is actually not limited by 5 stars and may be equal to 6, 7 or more. When you get new R&D development, GMC simolator automatically adds 6 points to internal rating of the product for MINOR and MAJOR. With implementation of MAJOR, simolator additionally adds another 20 points to product rating. So, MINOR costs 6 points and MAJOR 26 points.
If you were not able to implement MAJOR immediately, its value remains unchanged over time, contrary to popolar belief, MAJOR does not become obsolete. But product itself becomes obsolete over time, with each quarter product rating is reduced by a certain number of points, which depends on current product rating, for example:
- for points from 61 to 80 (1 star) every quarter product loses 4 points;
- for points from 81 to 100 (2 stars) every quarter product loses 5 points;
- for points from 101 to 120 (3 stars) every quarter product loses 6 points;
- for points from 121 to 140 (4 stars) every quarter product loses 7 points.
If you do not invest in R&D and do not get new developments, your products can lose (obsolete) up to 30 points for whole game (5 quarters) or 1.5 stars.
Increasing internal product rating by 1 point increases demand for value from 0.10% to 0.25% depending on product type (1, 2, 3), market type (EU, Nafta, Internet) and market load. So, receiving and implementing MAJOR (6 + 20 points) increases demand to 6-7%.
Now you understand the importance of developing proper R&D plan before game to achieve best resolt. In our catalog you can buy R&D database for any scenario. When select optimal R&D plan, follow these roles:
- MAJOR development in any case better than MINOR. Sometimes players prefer to receive MINOR, because they are afraid to render large amount of goods when implement. Receiving MAJOR gives 6 points as MINOR, and implementation gives extra 20. So, MAJOR value is 26 points, and MINOR is only 6 points.
- For each R&D plan sum total number of points, which can be received from development. Total cost for R&D plan is divided by the number of points and we calcolate average cost of 1 point for selected plan. The lower cost of 1 point and the more points, the better.
- Note the quality of each products in company's history. If product is already highly ranked by customers (5 stars), you can choose a more conservative R&D plan aimed at retaining the achieved level of quality.
- Priority of receiving MAJOR shoold focus on 1, 2 and 5 period. In 1 and 2 period, while market load is low, it will provide an opportunity to obtain additional market share. In 5 period additional development will increase goodwill.
You can find the best Research and development plan for each scenario in our database catalog.