The local shampoo market is dominated by two brands: Clean Hair, which owns 59% of the market, and. Sassy, which owns the remainder. A new brand, All-Over Shamp00, manufactured by the same makers of Sassy, is attempting to break into the shampoo market with an all-natural shampoo that they claim will strengthen hair as it is washed. The local shampoo market volume is 2,900 bottles per month. All- Over Natural Shampoo sells 400 bottles in their first month. The total market for shampoo is mature and no growth is expected to result from All-Over's entry. Variable costs for All-Over Shampoo are estimated at $2.54 per bottle, with a selling price of $4.00. . IFAI-Over Shampoo continues selling at the same rate per month, what is the total yearly dollar contribution of the Natural launch? (Answer: $7,008) Calculate Unit Contribution (S) per bottle = Selling Price per unit - Variable Costs per unit; Then multiply by the number of bottles sold per month and the number of months in a year (12). b. What is All-Over Shampoo's market share in the first month of sales? (Answer: 13.8%) All-Over Market Share- All-Over unit sales /Total market unit saled e. Assuming fair share draw, what will Sassy's new monthly sales volume be after the launch of Al-Over I Natural shampoo? (Answer: 1,025) Monthly Sales Volume = Month Sales Volume (Category sales Sassy Market Share) - (AllOver Volume Shampoo expected volume Sassy falr share draw) d. What will be Sassy's new percent Market Share following the introduction of All-Over Natural? (Answer: 35.3%) New Sassy Market Share (Previous Sassy volume - Volume lost to All-Over Natural)/Total Market Size. Under fair share draw, Sassy and Clean Hair will both lose share to the new entrant, All-Over Natural, in proportion to their current Market Shares. Therefore, Sassy's new Market Share will be their previous units sold less their proportion of All-Over Natural's units, divided by the total Market Volume. . What is the cannibalization rate (the percentage of new product sales coming from an existing product) of All-Over Natural Shampoo on the Sassy brand? Cannibalization rate %- (Sales lost from existing products)/ (Sales of new product). Thus the formula is: (Sassy Old Sales-Sassy New Sales)/All-Over Natural Sales