Imagine that you are a marketing manager in charge of developing a marketing campaign for Lenovo Computers (www.lenovo.com). Your company is currently selling products in fifty (50) different countries around the world. Lenovo just launched a new notebook. One (1) of the issues that you face is whether Lenovo should employ a multicountry strategy or a global strategy for the new notebook. Your job as a marketing manager requires you to first use an analytical tool to forecast Expected Commercial Value - Net Present Value (NPV) over the next ten (10) years. NPV is used to determine the value of future cash in today's dollars. NPV is simply the value of the expected future returns of an investment minus the value of expected future cost expressed in today's dollars.
Section 1: Expected Commercial Value Forcast
1. Utilize the Expected Commercial Value Excel Calculator to estimate the potential commercial success of the new notebook. Note: The Expected Commercial Value Excel Calculator can be found in the online course shell.
a. Fill in the Cashflows section ( column FY 13 through FY 23) found in the MS Excel sheet to project an NPV of above $10,000,000.
Development Costs
Launch and Marketing Costs
Forecasted Units Sold
Assuming the following parameters remain the same in the Excel calculator.
Probability of Commercial Success 0.8
Probability of Technical Success 1
Unit Sales Price $400
Discount Rate 0.06
b. Estimate the commercial success of the new notebook, based on your quantitative analysis from 1a of this assignment.