3261 Plastics 28 118,352 24 500 6 $4,083,333 product mfg. 327 Non Metallic 95 196,372 26 450 24 $1,018,750 Minerals Total 162 $1,031,987 (000's) $112,316 47 $2,389,702 (000's) ANS: 4. What is your firm's market share by number of accounts for NAICS 3261? What is your firm's market share by total sales potential for NAICS 3261? MKT SHARE (ACCTS): 21% MKT SHARE (SALES)| What conclusions can you draw based on the % calculated above? What marketing actions should you take, if any? 5. Finally, let's say that you are evaluating the NPV of 2 firm customers over the last 5 years and wish to find out which is the most valuable. Compute the totals using r = 5%: AVG COGS for A1-.75 (profit margin is therefore .25) Customer A spends: x (1+.05)5 2015: $7,500,000 (25)-( 2016: $6,550,000 (.25)-C x (1+.05)41 2017: $3,550,000 (.25)-( x (1+.05)31 2018: $7,450,000 (.25)=( x (1+.05)2- 2019: $9,500,000 (.25)=( x (1+.05) Total NPV for Company A1: $ AVG COGS for B2 .65 (profit margin is therefore .35) Customer B spends: 2015: $3,115,000 (.35)=( x (1+.05)5- 2016: $5,750,000 (.35)-( x (1+.05) 2015: $7,500,000 (.25)=( 2016: $6,550,000 (.25)=( 2017: $3,550,000 (.25)=( 2018: $7,450,000 (.25)=( x (1+.05)5- x (1+.05)4- x (1+.05)- x (1+.05)2 2019: $9,500,000 (.25)=( x (1+.05)1 Total NPV for Company A1: S AVG COGS for B2.65 (profit margin is therefore .35) Customer B spends: 2015: $3,115,000 (.35)-( x (1+.05)5= 2016: $5,750,000 (.35)=( x (1+.05)4- 2017: $6,500,000 (.35)-( x (1+.05) 2018: $5,500,000 (.35)-C 2019: $8,150,000 (.35)-( x (1+.05)2 x (1+.05) Total NPV for Company B2: S Hint: CM (1+r) (1.05)=1.05 (1.05)2 1.103 (1.05)-1.157 (1.05)4-1.215 (1.05)5 = 1.276 Which of the above firms is the most valuable based on the NPV? 8 If you wished to devote more of your resources to developing relationships and keeping your most valuable customers, what would say about either of these firms in terms of how much time and effort and attention you'd allocate? ANS