Please show all calculations to help me understand and learn the step-by-step process.

This is a marketing / financial analysis problem.

This problem involves the use of market analysis frameworks such as 1) break-even analysis, 2) Bass Model & Roger's Attributes, 3) brand architecture, 4) perceptual maps, 5) brand association maps, 6) perceptual maps, 7) the McKinsey Consumer Decision Journey, and 8) online media-mix prioritization.

Additionally, the ATAR forecasting model may be appropriate. The ATAR forecasting model is used in marketing to help assess the potential profitability of new products - and this financial evaluation will be used (in most cases) in the final decision on whether or not to develop and launch the proposed new product.

• A = Awareness= what proportion of the target market will becomeawareof the new product
• T = Trial= what proportion of the target market is likely totrial(either purchase or sample) the new product
• A= Availability= what proportion of consumers will be able tofind/accessthe product via retailers or by direct marketing channels
• R = Rebuy (or repeat)= what proportion of customers, who tried the product at least once, will repeat purchase (rebuy) the product on a regular or occasional basis

The 2020 Coronavirus pandemic has increased the demand for disinfectant products in the U.S. More and more customers are seeking disinfectant products for personal care as well as for their household needs. Responding to the growing demand in the category, theMarketing Director at ABC companyhas proposed launching a new disinfectant product. The proposal is to launch a new handsanitizing gel that promises to kill 99% of germs while keeping the skin soft and protected.

A BASES-like concept test revealed that the ABCbrand users and non-users of the brand will respond differently to the new hand sanitizing gel. Among the users of the ABCbrand, 30% of the surveyed respondents said that they will definitely try the new product and another 60% said that they will probably try it. In contrast, among the non-users of the ABCbrand, 20% said they will definitely buy and 30% said they will probably buy. Because brand users are more likely to pay attention to ads for the new product, the brand users and non-users are also expected to have different awareness rates. While 50% of the brand users are expected to be aware of the new product after the launch campaign, only 15% of the non-users are expected to be aware of the new product. These two groups also differ in repeat purchase rates and quantities. 70% of brand users are expected to keep buying the product after the initial trial, and they are likely to buy it 3 more times in a year (i.e., a total of 4 times a year). Only 50% of the brand non-users are expected to continue buying the product after the initial trial, and they are likely to buy it 2 more times (i.e., a total of 3 times a year).

The proposal is to launch only one pack, a 3 oz gel tube at a retail selling price of $4.79 per tube (i.e., the price paid by customers in retail stores). The average retail margin for the product is 35%.

The company expects the market potential for this product to be about 90 million people. That is, about 90 million people could potentially buy this new product in the long run. About 20% of them are existing ABCbrand users; the remaining are non-users of the brand. The new product is expected to have a strong distribution with an availability rate of about 75% of the market potential, the same for users and non-users of the ABC brand.

The team estimates that the annual fixed cost for the launch would be around $19 million. This included all the fixed costs associated with this new product, including the advertising and promotional costs for launching the product. The team expects the variable cost of each 3 oz tube to be $1.85.

a) The brand team is debating two different types of marketing activities for the launch. One manager proposed that the company can improve sales and profits by spending an extra $500,000 (on top of the $19 million in the baseline plan) on free trial packs. The trial packsfree single-use sachets handed out in storeswould increase the definitely-purchase responses to 30% and the probably-buy response to 58% for brand non-users. Trial rates for brand users will not change. None of the other metrics in the decision funnel would change. Based on your analysis, do you support spending an additional $500,000 on trial generation?

b) Another manager proposed that the company can improve sales and profits by spending an extra $1 million (on top of the $19 million in the baseline plan) to increase the reach and frequency of advertisements among non-users of the brand. This is expected the increase the awareness rate among non-users to 25%. Awareness rates for brand users will not change. None of the other metrics in the decision funnel would change. Based on your analysis, do you support spending an additional $1 million on focused advertising?

Again, please show all calculations and explain your reasoning to help me understand and learn.