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Sally Hansen wants to launch an exciting new nail polish next season. This launch will replace an existing Sally Hansen product and we are responsible
Sally Hansen wants to launch an exciting new nail polish next season. This launch will replace an existing Sally Hansen product and we are responsible to pay for retailer inventory. Please use the assumptions to the right to fill in the 3 year Incremental P\&L below and conclude whether you would or would not move forward with this project and why. \begin{tabular}{|l|lr|} \hline \multicolumn{1}{|l|}{ Innovation Assumptions } \\ \hline Net Price & $ & 6.50 \\ \hline Standard Cost & $ & 1.30 \\ \hline SRP & $ & 9.99 \\ \hline Year 1 Replenishment Units & & 105,000 \\ \hline Doors & & 10,000 \\ \hline Pipe & & 3 \\ \hline Decay Rate & 25% & \\ \hline Trade Rate & 20% & \\ \hline \end{tabular} \begin{tabular}{|l|lr|} \hline \multicolumn{3}{|c|}{ Deletes Assumptions } \\ \hline Net Price & $ & 6.50 \\ \hline Standard Cost & $ & 1.10 \\ \hline SRP & $ & 9.99 \\ \hline Year 1 Units & & 95,000 \\ \hline Doors & & 10,000 \\ \hline Inventory (Units) & & 30,000 \\ \hline Decay Rate & 25% & \\ \hline Trade Rate & 20% & \\ \hline \end{tabular} \begin{tabular}{l|l} \hline \multicolumn{1}{|c}{ TERM } & \multicolumn{1}{c}{ DEFINITION } \\ \hline Net Price & Price Coty Receives \\ \hline Standard Cost & Cost of producing item \\ \hline SRP & Retail Price (end consumer) \\ \hline Doors & Amount of Locations selling the product \\ \hline Pipe & Units initially sold to each door to fill the wall \\ \hline Wall & Shelves at the store \\ \hline Decay Rate & Year over year drop off in expected sales \\ \hline Trade Rate & Gross to Net rate for overall trade spend \\ \hline \end{tabular} Sally Hansen wants to launch an exciting new nail polish next season. This launch will replace an existing Sally Hansen product and we are responsible to pay for retailer inventory. Please use the assumptions to the right to fill in the 3 year Incremental P\&L below and conclude whether you would or would not move forward with this project and why. \begin{tabular}{|l|lr|} \hline \multicolumn{1}{|l|}{ Innovation Assumptions } \\ \hline Net Price & $ & 6.50 \\ \hline Standard Cost & $ & 1.30 \\ \hline SRP & $ & 9.99 \\ \hline Year 1 Replenishment Units & & 105,000 \\ \hline Doors & & 10,000 \\ \hline Pipe & & 3 \\ \hline Decay Rate & 25% & \\ \hline Trade Rate & 20% & \\ \hline \end{tabular} \begin{tabular}{|l|lr|} \hline \multicolumn{3}{|c|}{ Deletes Assumptions } \\ \hline Net Price & $ & 6.50 \\ \hline Standard Cost & $ & 1.10 \\ \hline SRP & $ & 9.99 \\ \hline Year 1 Units & & 95,000 \\ \hline Doors & & 10,000 \\ \hline Inventory (Units) & & 30,000 \\ \hline Decay Rate & 25% & \\ \hline Trade Rate & 20% & \\ \hline \end{tabular} \begin{tabular}{l|l} \hline \multicolumn{1}{|c}{ TERM } & \multicolumn{1}{c}{ DEFINITION } \\ \hline Net Price & Price Coty Receives \\ \hline Standard Cost & Cost of producing item \\ \hline SRP & Retail Price (end consumer) \\ \hline Doors & Amount of Locations selling the product \\ \hline Pipe & Units initially sold to each door to fill the wall \\ \hline Wall & Shelves at the store \\ \hline Decay Rate & Year over year drop off in expected sales \\ \hline Trade Rate & Gross to Net rate for overall trade spend \\ \hline \end{tabular}
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