Application B. You are the brand manager for your company. Your boss has passed on to you the following information. The date is January 1, 2018. As brand manager, he asks you to use Product Portfolio Analysis to evaluate the following product mix. Your Tax Rate = 40%. Sales 2017 2017 Sales (000s) 2017 $ Investment (000s) Total Total Cash Major Mkt. Share per 1% Mkt. Item 2016 2017 Assets (000) Flow (000) Depreciation Industry Competitor Target Share Gain 1 80.0 104.0 600.0 (10.0) 40 425.0 125.0 28.0 12.0 2 100.0 112.0 550.0 25.0 20 300.0 55.0 37.0 8.0 3 2.0 10.0 50.0 (2.0) 10 125.0 80.0 50.0 2.0 4 400.0 425.0 1200.0 200.0 80 800.0 125.0 6.0 10.0 5 125.0 127.0 600.0 50.0 25 2200.0 800.0 4.0 5.0 a. Identify and classify each of the products above. (Show all calculations that were necessary to evaluate the product mix. b. Assume that one of the products above reflects market information that consumers are insensitive to price, the product concept is new to the market, and the item is a high technology product. Given this information, which of the following marketing tactics would be appropriate to manage the item/ a. Product Development Strategy d. Market Penetration b. High Profile e. Diversification c. Trade Down Application B. You are the brand manager for your company. Your boss has passed on to you the following information. The date is January 1, 2018. As brand manager, he asks you to use Product Portfolio Analysis to evaluate the following product mix. Your Tax Rate = 40%. Sales 2017 2017 Sales (000s) 2017 $ Investment (000s) Total Total Cash Major Mkt. Share per 1% Mkt. Item 2016 2017 Assets (000) Flow (000) Depreciation Industry Competitor Target Share Gain 1 80.0 104.0 600.0 (10.0) 40 425.0 125.0 28.0 12.0 2 100.0 112.0 550.0 25.0 20 300.0 55.0 37.0 8.0 3 2.0 10.0 50.0 (2.0) 10 125.0 80.0 50.0 2.0 4 400.0 425.0 1200.0 200.0 80 800.0 125.0 6.0 10.0 5 125.0 127.0 600.0 50.0 25 2200.0 800.0 4.0 5.0 a. Identify and classify each of the products above. (Show all calculations that were necessary to evaluate the product mix. b. Assume that one of the products above reflects market information that consumers are insensitive to price, the product concept is new to the market, and the item is a high technology product. Given this information, which of the following marketing tactics would be appropriate to manage the item/ a. Product Development Strategy d. Market Penetration b. High Profile e. Diversification c. Trade Down
