Question 1

Based on the analysis of a household panel data of 500 customers in a metropolitan area X in Southeast of US, we obtained the following statistics for Emergen-C over a year period. Based on these statistics, please calculate the percentage of penetration, buying rate, purchase frequency and purchase size for Emergen-C.

	Emergen-C in Metropolitan Area X
Total revenue	$ 3,670
Total households buying	112
Total purchase occasions	564

1. Penetration (%): _______________________________ (5 points)

2. Buying rate: ___________________________________ (5 points)

3. Purchase frequency: ____________________________ (5 points)

4. Purchase size: _________________________________ (5 points)

Compare Emergen-Cs performance in this local market with its national performance, and answer question 7(e) and 7(f).

	Emergen-C in US
Penetration	18%
Buying rate	44.44
Purchase frequency	7.22
Purchase size	6.15

5. What are the strengthens and weaknesses of Emergen-C in this market compared to its overall performance in US market? (15 points)

6. What are the actions that Emergen-C can take to improve the areas of weakness that you identified? (15 points)