Tag Archive | "year one"

Need Help With Financial Analysis?


Can someone post solution so my group and I can compare and see if we did our calculations correctly. THANKS!
SmartestPharma™ is considering two marketing options for the Canadian launch of their Mouthx in 2012.
i. A “soft” launch using mainly public relations and some kickoff events at an estimated a cost of $500 000.
ii. A “full” launch, using a large number of multi-media communication vehicles, glossy, high-production creative and saturated frequency at a cost of $2.5 million.
Now that you know the contribution margin and have calculated how many consumers are likely to buy this product in Canada (as well as the likely rate they will buy it at, per year), determine and justify which approach SmartestPharma™ should take in launching this product in Canada (i.e. soft launch mostly PR for $500 000, or full out launch for $2.5 million).
Using the information in this background document and your own research, identify and discuss in sentence and paragraph form the key market and financial issues that are relevant to this launch.
————————————–… Soft Launch__________________ Full Launch
Retail Selling Price
Total Distribution Mark-up %
MouthX Selling Price
MouthX Contribution Margin %
MouthX Cost
MouthX Contribution Margin $
Marketing Campaign (Fixed Costs)
Break-Even in Units (bottles)
Break-Even in Customers
Target Segment Size
Required Market Share of Recommended Target Market to break-even
Additional information:
Suggested Retail Price (MSRP): 15$ per bottle of 150 mL
Suggested retail strategy (MSRS): Given its added medicinal ingredients and benefits, MouthX costs more to manufacturer (CM of only 15%, compared to typical CM=25%), and should command a price premium that should never be discounted or price promoted at-shelf. Manufacturer-led media behind the brand will be significant through year one of launch. BASES research indicates niche consumers will purchase this product consistently throughout the year. Actual usage and consumption patterns are yet to be observed.

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What Would You Make Of This [about A Library Storytime]…?


A library 15-20 minutes down the highway from us advertised a couple of storytimes this year. One toddler-friendly deal, parents stay, no registration; one for ages 4 and up, ‘parents are welcome to use this time to run errands,’ said the leaflet. Registration req’d, 45min, story, song, small craft.
I registered and brought my 4yo. A brisk lady was busy shooing the kids (3 others?) off into a separate room closed off from the rest of the library. We followed. I was asked to leave, without any lead-up or explanation or ‘Well, we don’t usually allow the parents to stay but you could take a seat there’ or anything, just: no parents.
I was not into leaving my kid with an unknown, unsupervised individual, and she had absolutely no interest in staying. We went home.
The room they’re using is a large rectangular thing with a rug &c at one end and a bunch of random chairs at the other; that parents couldn’t occupy the chairs and make sure their kids were happy and make sure the entertainment &c was something worth driving there for was, I thought, bizarre.
My instinct is to write a polite letter to the library telling them their policy is nutty. But. Is this at all common? Have you ever seen a library that kicks out the parents for a storytime? What would you say?
I don’t know how useful a letter might be as the beat-it-Mummy lady is the children’s librarian (!) and, I would assume, highly unlikely to renounce her storytime duties, and she was clearly not an empathetic caregiver of the sort I’m ever going to want to entertain my kid even if I’m ten feet away. OTOH our closer library, which is affiliated with this one, has a WONDERFUL storytime lady, and I almost want to say “Mrs Library #2 should consider attending storytime with Mrs Library #1 to see how it can work with parents in the room, etc” and generally hint that more training is req’d…
[suggested category –> Computers & Internet > Programming & Design ]

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