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Question no 2: (10+10 marks) a) Forecast the profit contribution for a new mobile phone, using A-T-A-R model. Clearly mentioning each step, based on the
Question no 2: (10+10 marks) a) Forecast the profit contribution for a new mobile phone, 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 product. 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 40% of the triers will buy one more mobile phone for family or friend. A typical user will buy 2 devices in the first year of ownership. Revenue per unit is RS:30,000. And unit cost is calculated to be Rs: 25,000 b) The marketing department has come up with a new Integrated Marketing Communication (IMC) plan, through which the awareness can be increased to 50% which will surely contribute positively to the total profit. Implementing the new IMC plan is costing company 90 Million Rupees. According to you what should be a viable decision for the firm at this point? Why
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