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Q1: Forecast the profit contribution for a new 'Car air freshener', using A-T-A-R model. Clearly mentioning each step, based on the following assumptions: Number of

Q1: Forecast the profit contribution for a new 'Car air freshener', using A-T-A-R model. Clearly mentioning each step, based on the following assumptions:

Number of target audience is 4 million. In the first year the company can aware 40% of the target market about the new palmtop computer. Percentage of the aware market who will decide to try the device during the first year is 20%. Major retailers are convinced by the company to stock the product during the first year of launch to make it available to 50% of the target audience. It is also found that 20% of the triers will buy more products for family or friend. A typical repeater will buy 4 units in the first year of ownership. Revenue per unit is RS:2,000 And unit cost is calculated to be Rs: 1,600.

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