Omnichannel Analytic Exercise

determine three price points in this business. The most profitable price point, the price point that maximizes dollar sales to retail, and the price point that maximizes unit sales. You must include all 3 price points (maximized profit, maximized sales to retail, and maximizes unit sales) in order to receive credit.

For each of the price points you must also provide a brief description to your CMO/executive team that provides an overall assessment of what each of these prices will mean to the business. I would expect these assessments to provide detail of channel trends and image implications to the brand.

There is also an expectation that you are making sound business recommendations. Stating that selling the product at $1 will maximize unit sales may be accurate.but would also bankrupt the company. With all three of your price recommendations make sure you are not just blindly looking at the numbers but thinking about it in the context of a real business.

You must also provide a recommendation on which price to implement going forward. Hint: stating that you would pick the most profitable price point because it is simply the most profitable is ignoring many other factors such as market share and sales growth and an answer like this will result in no points for this portion of the exercise. I expect to receive good recommendations with sound and thoughtful strategy and business reasoning behind the decision.

Most Profitable Price Point is: $42.85

Price Point that Maximizes Sales to Retail is: $37.84

Price Point that Maximizes Unit to Sales is: $18.91