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Mandatory Question 2 You are the marketing manager of a 100-year-old organization called Cannuck Ltd who manufactures a wide variety of sporting goods ranging from

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Mandatory Question 2 You are the marketing manager of a 100-year-old organization called "Cannuck Ltd" who manufactures a wide variety of sporting goods ranging from precision manufactured rugby balls to sports clothes and accessories. Currently, you are developing the marketing plan for one rugby ball, which exploits latest developments in manufacturing technology. This plan focuses on a new market for the organization - namely France. There is intense competition in the rugby ball market for distribution space in sports retailers. Consequently, you are planning to devote significant promotional spend to advertising and sales promotion to generate awareness of the new rugby ball among retailers and the rugby sporting community. You accept that the introduction costs will be high, but you are also aware that potential financial returns are also high. The size of the market is 17,000 units. Each box of balls (or unit), costs $28 to manufacture, and will retail at $200 in France. In addition, the raw material cost $15 to Cannuck Ltd. The retailer retains a 20% margin (of the retail price). The wholesaler retains a margin equivalence of 20% of the retail price. "Cannuck Ltd" has decided to allocate $20000 for trade magazine advertising directed to the sports wholesalers. There are also two trade shows, which the organization plans to attend. Each trade show costs $3000. In addition to this, you are planning to instigate a direct mail campaign targeted at the 1500 sports retailers throughout France at 1.58 per direct mail piece. End-user advertising has also been budgeted at $30000. A part-time agent has also been appointed and earns $11 for each box pf balls sold to the sports wholesalers. Questions: a) What required level of sales (RLS) in units and dollar sales (revenue) required to achieve a target profit of $36,000? b) What market share in units can be achieved? c) What required level of sales (RLS) in units and dollar sales (revenue) required to break even? d) What are any 2 factors (market analyses) that you, as the marketing manager would look at to judge whether the target profit (TP) of $36,000 is achievable? (1.5-2 pages maximum)

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