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Say you are doing an analysis of a company re-branding exercise. You calculate customer response using a pilot study - you estimate that the rebranding
Say you are doing an analysis of a company re-branding exercise. You calculate customer response using a pilot study - you estimate that the rebranding could capture you an extra 5% of the total market share of customers. The following are further details: An average product sells for a lifetime customer value of R2,000. There is an estimated TOTAL market of 15 million customers Currently - before the re-branding - you have 7 million customer. The rebranding will cost R700million in design, advertising, promotions, et1 New packaging is also more expensive to the tune of R13 per customer. Answer the following questions with regard to this scenario. 1.What percentage of market share will you have if you go through with the rebranding? (no decimals, include % symbol in your answer) 2. Calculate the mean estimated profit from this scenario, estimated to zero decimal places. 3.What is the breakeven market share gain needed to make zero profit
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