Question
ABC.com wants to compare how their T-shirts are priced v. the market. After doing some industry research, they discover that the average selling price for
ABC.com wants to compare how their T-shirts are priced v. the market. After doing some industry research, they discover that the average selling price for branded T-shirts is $17. What is the price premium for ABC.coms T-shirts at the original price? At the new proposed price? ~ ~
ABC.com has decided to lower the price of their Ts, and now are deciding how to market to different segments of T-shirt buyers. They have 2 segments they have chosen to focus on; calculate the NMC, ROS, and ROI for each segment, then, using what you find as well as the segment descriptions, describe how you might target each segment effectively including how you might make changes to the given data to get better results.
Attribute Brand loyalty Demographics Purchase level Style focus Segment A High Male 18-25 Heavy Sayings, content Segment B Average Female 35-44 Average Style, fit Market Size (Units) 1,000,000,000 Segment A Total Segment Size= Potential Market Share= 45.00% 10.00% Selling price per T = Company Profit Margin Company sales = Marketing Expenditure $18.00 70.00% $ 45,000,000 $15,000,000 Segment B Total Segment Size 20.00% Potential Market 15.00% Share- Selling price per T = $18.00 Company Profit Margin 55.00% Company sales = $ 30,000,000 Marketing Expenditure $5,000,000 Attribute Brand loyalty Demographics Purchase level Style focus Segment A High Male 18-25 Heavy Sayings, content Segment B Average Female 35-44 Average Style, fit Market Size (Units) 1,000,000,000 Segment A Total Segment Size= Potential Market Share= 45.00% 10.00% Selling price per T = Company Profit Margin Company sales = Marketing Expenditure $18.00 70.00% $ 45,000,000 $15,000,000 Segment B Total Segment Size 20.00% Potential Market 15.00% Share- Selling price per T = $18.00 Company Profit Margin 55.00% Company sales = $ 30,000,000 Marketing Expenditure $5,000,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started