BUA417 Marketing Management Dermavescent Laboratories Case Study

Dragon Soup should increase the regular price of soup. The sales team is confident they will be able to sell soup at any price due to the cult-like following of The Clangers. Dragon Soup then just needs to find the optimal price per can for their purposes of maximizing income. Based on the spreadsheet, a price of $1.99 per can maximizes Gross Profit at $547,298 (Net Income of $207,354). On the other hand, Net Income is maximized at a regular price of $2.15 per can, producing Net Income of $226,740 (Gross Profit falls to $516,783).

| ▪ increase more women patients; additional 2000 visits per year▪ increase profit, net profit is $62,400(See Exhibit 3)

II.|Connie has an investment portfolio in excess of $450,000. She pays Chris $350 to do an analysis of her investments and make recommendations on restructuring the portfolio.|

1. Using the historical data as a guide (Exhibit 6.1), construct a pro forma (forecasted) profit and loss statement for the clinic's average month for all of 2010 assuming the status quo. With no change in volume (utilization), is the clinic projected to make a profit?

2. Considering your answer to item 1, the first three exhibits, and related introductory discussion, is it likely that the accounting system may distort product profit significantly? Why? (Ignore general, selling, and admin expense.)

b) Additional sales dollars must be produced to cover each $1.00 of incremental advertising for Rash-Away

If Marlene Herbert were to discontinue place mats, he would miss $270,000 that will go toward Mendel paper company fixed cost. The company currently has a plant overhead that is estimated at $420,000 for the quarter. In addition to the fixed plant overhead, the plant incurs fixed selling and administrative expenses per quarter of $118,000. This draws the company to a total fixed cost of $538,000. If Marlene Herbert were to discontinue the second highest contributor to the fixed cost, he would need to increase the volume of computer paper and lower material cost to help pull the contribution margin of the lowest product up to help support the lost of a whole product line.

4. Using the following information for individuals and their willingness to pay for a bottle of ginger ale, calculate the total consumer surplus at a market price of $5.

Cranfield Inc. is a leading producer of juices for range of cranberry cocktails. After a market research experiment Cranfield Inc. has many different business decisions to make. One to introduce a new line called lite cocktail which requires space and machinery and will eat into sales of currently offered products. Or not to introduce the new product and lease out it’s space, or do nothing to save the space until it’s needed for its current product line.

d) What additional information would you like before making a decision about adding these new products?

9. (Ignore income taxes in this problem.) The Crawford Company is pondering an investment in a machine that

To perform a break-even analysis, we have made the following assumptions: (a) retail margin= 60%, (b) the additional fixed cost of production per flavor, including advertising, bottling run and sundries, is $10 million and this is assumed to be an annual cost, except the bottling run, (c) a conservative estimate of percentage share of market figure is derived by multiplying the market segment percentages, as well as the age segment percentage for the category > 40 yrs. The percentage = 74% x 62% x 85% x 40% = 16%. We first determine the retail

• Be the preferred company to meet the health and personal grooming needs of target consumers with safe, efficacious, natural solutions by synthesising deep knowledge of ayurveda and herbs with modern science.

5. In your own words, what is your recommendation? First, what reason(s) do you have to choose this alternative? Second, how will it be implemented? Use the marketing mix elements and research components as implementation guidelines. The previous sections can be duplicated within your group, but this part should be individual effort. The best strategy would be to concentrate on the new product line and promote it heavily with a competitive

In conclusion, it is true that when launching a new product, it is better to pursue a brand extension strategy, than to develop a new brand. Brand extension is more likely to be succeeding as it provides many advantages which describes above and also many researches found that it is easier for company to use brand extension rather than creating a new brand.