Question
Given in the attached presentation is the channel distribution structure of Lakme for selling Chilly Flavoured Lipstick. As shown in the slide, Lakme sells the
Given in the attached presentation is the channel distribution structure of Lakme for selling "Chilly Flavoured Lipstick". As shown in the slide, Lakme sells the Chilly Flavoured Lipstick through 6 different channels - Lakme Exclusive Stores, Urban Wholesale Channel, Urban Cosmetic Retailers, Urban Small Cosmetic Retailers, Rural Cosmetic Retailers, and Rural Stockists. For each of the transactions in the channel few Selling Prices and a few seller's margins are given. For example, the SP of the lipstick from distributor to wholesaler is given as Rs 50 and the distributor margin is given as N+8% where N = 10
One important thing to remember is that the selling price of Chilly Flavoured Lipstick to the end consumer must be the same irrespective of the channel through which the Chilly Flavoured Lipstic is sold.
To solve this you must calculate the following: (i) All the channel margin percentages that are not given and marked as 'question mark' in the slide. (ii) All the selling prices which are not given and marked as 'question mark' in the slide. (iii) Calculate the average unit margin and average margin % for the distributor given that the distributor sells 12 units from Lakme Exclusive Stores, 15 units from Urban Wholesalers, 50 units from Urban Cosmetic Retailers, 10 units from Urban Small Cosmetic Retailers, 5 units from Rural Cosmetic Retailers, and 8 units from Rural Stockists.
Distribution Channel - Members SP=?; Margin = (10+N)% Lakme Distributor SP=?; Margin = ?% SP=?; Margin = ?% SP=50-/-; Margin = (8+N)% SP=?; Margin = ?% SP=?; Margin = ?% Lakme Exclusive SP=?; Margin = ?% Retailer Urban Wholesaler Urban Cosmetic Urban Small Rural Cosmetic Rural Stockiest Retailer Cosmetic Retailer Retailer SP=?; Margin = (11+N)% SP=?; Margin = (18+N)% SP=?; Margin = (14+N)% SP=?; Margin = (10+N)% SP=?; Margin = (12+N)% Urban Small Cosmetic Retailer Rural Small Cosmetic SP=?; Margin = (10+N)% Retailer SP=?; Margin = (10+N)% SP=?; Margin = (8+N)% End ConsumerStep by Step Solution
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