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Presentation/PPT
27/08/2022
Questions:1.Ready Set Go, is an established snack food manufacturing company getting ready to offer a new snack food product. After six months and $250,000 spent on research and development costs, you are ready to launch the new snack food called Select Grains. It will be packaged in an eight ounce bag and will be introduced to the snack food market which is estimated to be about 15 million units nationally. Ready Set Go will introduce the product slowly into this market the first year by starting with select major metropolitan markets in only certain geographic locations that account for approximately 55% of the total market. The suggested retail price for consumers will be $1.20 per bag. Coupons will be distributed to allow for $.10 cents off and the expected coupon redemption rate is 10%. The retailer will receive a 20% margin off the suggested retail price. The materials costs are estimated at $0.22 and labor costs at $0.04. The advertising campaign is expected to cost $75,000 and other additional continued overhead expenses are estimated at $40,000. (Show all work and estimate to the highest cent). a. At what price will Ready Set Go sell to retailers? b. What is the contribution per bag? c. What is the breakeven volume in units in the first year? d. What is the breakeven volume in dollars in the first year? e. What is the breakeven market share in the first year? f. If you desire a 20% return on investment, what is your breakeven dollar now? 2.Apply the elements from Porter’s five forces to the cases we have studied. Which of the forces are likely to be a primary major influence on the company’s decisions and why? Explain. 3.Discuss market segmentation in general and the bases on which markets are segmented. Choose one of the cases discussed in class and discuss how the markets are segmented using the two criteria given in the lecture for segmentation. What kind of segmentation strategy (there were five in the lecture) are they using and how do you know? 5.Explain the concept of Positioning and how a firm uses positioning to understand market structure, market segments, and consumer preferences? Relate position to the Jones Blair Case or First in Show Case and draw a map that might reflect how they might be positioned. Case is attached. I have solutions to the cases also, seperatly
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