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2 1 = SKU number (1, 2, 3, or 4) Sit Sales of SKU i in week t P Price of SKU i in week

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2 1 = SKU number (1, 2, 3, or 4) Sit Sales of SKU i in week t P Price of SKU i in week t = Feature intensity of SKU i in week t PayMY = parameters of the model Note that this model is a Log-Log model. The own-price elasticity for Brand i is and cross-price elasticities are ;. (d) Prepare a 12x12 matrix of own and cross-price elasticities. Enter in the 12x12 matrix only coefficients that are statistically significant. 1. Using this matrix, identify which SKU(s) is (are) most vulnerable to promotion activities. Also identify which SKU(s) has (have) most promotional clout in the market. Competitive Vulnerability of SKU i = _ A Competitive Clout of SKU i = P, In other words, consider arranging the beta coefficients from the regression analysis done for each brand in one row after another. Then the row total of the beta coefficients (other than own-price coefficient ) gives the vulnerability of the row SKU to the SKUs listed in the column. On the other hand, a column total of the coefficients (other than own-price coefficient .) gives the column SKU's clout in the market. Create a scatter plot of clout by vulnerability and interpret the graph. 2. Tropicana Real was a new product-line extension introduced by Tropicana. Discuss the impact of this new line extension on its "sister" brands. 3. If you were the store manager and wanted to increase unit sales in the OJ category, which SKU (brand) would you choose to promote (assuming the margins are the same for all the brands. (Hint: Note that when the cross-price elasticites , are multiplied by sales of the affected brand i it provides an estimate of the expected change in the sales of brand i in response to a percentage change in the price by brand j

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