Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

All Over Shampoo is launching a new anti-dandruff, 2-in-1 conditioning product in a simulated test market within the United States. The company expects to achieve

image text in transcribed

All Over Shampoo is launching a new anti-dandruff, 2-in-1 conditioning product in a simulated test market within the United States. The company expects to achieve strong distribution with an ACV% of 84%. Market research shows that the marketing mix will result in an awareness rate of 35%, a trial rate of 29%, and a repeat purchase rate of 32%. The population for the test market is estimated at 1,190,000 households. If trial sales are made at prices that yield margins of $0.50 per 12oz bottle and repeat purchases yield margins of $1.00 per 12oz bottle what is the expected contribution of the new product if households purchase two 12oz bottles at trial and one 12oz bottle 3 times per year as repeat? 0 dollars PS1 1 2 3 4 6 7 SUBMIT ANSWER EXIT 5 CALCULATED VARIABLES: trialv = 202,918 triers = 101,459 repeat = 0.027 (2.7%) All Over Shampoo is launching a new anti-dandruff, 2-in-1 conditioning product in a simulated test market within the United States. The company expects to achieve strong distribution with an ACV% of 84%. Market research shows that the marketing mix will result in an awareness rate of 35%, a trial rate of 29%, and a repeat purchase rate of 32%. The population for the test market is estimated at 1,190,000 households. If trial sales are made at prices that yield margins of $0.50 per 12oz bottle and repeat purchases yield margins of $1.00 per 12oz bottle what is the expected contribution of the new product if households purchase two 12oz bottles at trial and one 12oz bottle 3 times per year as repeat? 0 dollars PS1 1 2 3 4 6 7 SUBMIT ANSWER EXIT 5 CALCULATED VARIABLES: trialv = 202,918 triers = 101,459 repeat = 0.027 (2.7%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions