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Market Analysis and Logic

 

1. Contribution After Marketing

Assume that the sales forecast for brand TOJO is 160,000 units, and that you expect to sell 50% of these units through mass merchandisers, 25% via specialty stores, and 25% through online stores.  As the brand manager, you have specified a retail price of $300. The unit transfer cost is $109. You plan to spend $2.2 million on media placement and advertising research, and another $1.8 million on the commercial team.

Based on the information provided calculate the anticipated "contribution after marketing" next period for brand TOJO.  Show your work.

2. Market Analysis and Logic:

The following table displays key information for three brands, each of which targets Hi Earners.  The bottom row displays Hi Earners' shopping habits and ideal values for economy, performance, convenience.  Please note that each brand was introduced to the market at the same time.  Based on this information, explain why brands SUPER and TITANIUM have less market share than brand MARVEL.  Provide a well-reasoned and insightful answer.

Hi Earners Market Segment

 

Market

Share

Aware

%

Distribution Coverage

Retail

Price

Brand Perceptions

 

SS

MM

Online

E

P

C

SUPER

25%

79%

42%

18%

42%

$420

-2

0

6

MARVEL

55%

75%

43%

21%

39%

$549

-12

2

4

TITANIUM

20%

73%

31%

16%

33%

$500

-10

3

3

 

 

 

 

H/E Shopping Habits

 

H/E Ideal Values

 

 

 

40%

20%

40%

 

-10

1

5

3. R&D for New Product Development:

Assume that the brand manager of MOJO Inc. wants to develop a new brand that will be perceived as having performance of 0, convenience of 0, and economy of 0.  Using the following information (regarding brand characteristics, ideal values, perceptual maps), design a new Sonite - named MIDI - with the appropriate characteristics.  Use the table on the last page to specify its attributes.  Importantly, explain and discuss why you choose these physical attributes.  Also specify the retail price (MSRP), and explain why you choose this price.

Provide your answer to #3 here.  Use the following table to specify the level of each attribute, and then provide your reasoning, using as much space as needed.

 

Features

Design

Battery

Display

Power

Retail Price

MIDI

 

 

 

 

 

 

 

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