Q1. Davis Cosmetics Company (DCC) has been working with UCDavis Health Center Lab, and developed a special formula to prevent aging signs, wrinkles, and folds in this area of knees. The term Kninkles was born recently, but there is no market/industry, thus no product to treat this special body area existed yet. As a pioneer in this not-yet-born market/industry, you, a senior marketing manager at DCC, are estimating Market Sales Potential (= Effective Demand) for the U.S. mature female consumers, and conducting Sales and Profit Forecasting on DCCs new anti-Kninkle cream. The information given is: - Group 1: The U.S. female population aged between 45~64 years: See the modified Census table below - Group 2: The U.S. female population aged 65 years and over: See the modified Census table below - Your research data show that 10% of Group 1 are willing to try and use anti-Kninkle products, and when they use, they plan to use 1.2 units (per person per year). - Your research data show that 30% of Group 2 are willing to try and use anti-Kninkle products, and when they use, they plan to use 2 units (per person per year). - Average price and size of wrinkle treatment products in the existing market are $50 and 50 grams. The price of anti-Kninkle product will be 20% higher and still accepted by the potential consumers based on the focus group interview results. - Davis Cosmetics Companys info: Target market: 30%, Distribution/Communication coverage: 70% a) Use chain ratio method (See Kerins Ch. 4) and your logics/rationales to calculate Market Sales Potential (both in units and $) of this not-yet-born anti-Kninkle market in 2025. (5pts.) Tip: If any information you think needed is not provided, use rational/logical estimates. b) Conduct Sales and Profit Forecasting on DCCs new anti-Kninkle cream (in units and $) in 2025. (5pts.) c) Would you launch the product in 2025? Answer Yes or No and explain why. (5pts.) Tip: No information related to variable costs or product unit selling price is given. Do the simple numeric value analysis. Table 1. Population by Age Groups: 2010 and 2015 (For information on confidentiality protection, nonsampling error, and definitions see www.census.gov/prod/cen2010/doc/sf1.pdf)