Question
Please show all work for all parts! 2. Now assume that in 2015, Glenmeadie increased the advertising, newsletter, loyalty card program and other promotional events
Please show all work for all parts!
2. Now assume that in 2015, Glenmeadie increased the advertising, newsletter, loyalty card program and other promotional events (including tastemaker gatherings) budgets by 40% (from the 2014 expenditure levels) (10 Points)
a.How many 750 ml bottles would Glenmeadie have to sell in 2015 to breakeven?
b.How many 750 ml bottles would Glenmeadie have to sell in 2015, in order to achieve the same profit impact that it did in 2014?
c.What will Glenmeadies market share, in terms of revenue, have to be in 2015 for its profit impact to be the same as in 2014?
d.What will Glenmeadies market share have to be, in terms of volume, in 2015 to ensure a 45% increase in profit impact compared to 2014?
GLOBAL WHISKY MARKET VALUE Year Revenues in USD 2013 $58,750,000,000 2014 $64,250,000,000 2015 $77,500,000,000 2016 $80,225,000,000 GLOBAL WHISKY MARKET VOLUME Year Volume in Liters 2013 7,963,000,000 2014 8,921,461,000 2015 9,302,627,000 2016 10,114,438,000
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