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A small factory was given to you by Para State. You made the following investment: Material: AED 240,000 Marketing campaign, paid ads and Website: AED
A small factory was given to you by Para State. You made the following investment: Material: AED 240,000 Marketing campaign, paid ads and Website: AED 45,000 (Fixed Costs) To produce 2kg of Acai pulp, you have to consider the following: - 2 people - 5 hours per person at the rate of AED 5 per hour Cost of recycled packaging required for the 2Kg of Acai: AED 5 per package 10 years later, Verdad successfully launched a total of 3 products. Here are the figures given in December 2031. Figures in AED Product name Sales in 2031 Annual Growth Acai Pulp 500,000 Acai Jam 300,000 Acai + Fruit Mix Pulp 1,750,000 -5% 1% 12% Advertising Budget for 2032 100,000 360,000 500,000 A. Determining the budget is a key step in your advertising decisions. What are the factors to consider in determining the budget? B. As per the above table, each product is in a specific stage in the product life cycle. Please provide the stage for each product, then for each product, explain the relationship between each stage in the life cycle and its respective advertising budget decision. C. Co-founder Karim strongly believed that the retail price of their Acai Pulp should have increased to AED 300 right at the beginning. What is (are) the risk(s) of such decision
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