Take Home Exam - Marketing Strategy

FALL

201

8

MAR 4804

/U0

1 (MON

)

Dr. B. Seaton

ABC

Door, Inc.

ANALYSI

S

#1

:

Growth Objective

(Solution)

A.

Industry

sales (residential garage doors):

i)

FY 2017

sales

(U. S.)

=

$

348.5M

ii)

FY 2018

(projected) sales

=

$

362.4M

I.E. PROJECTED SALES GROWTH

=

2.4%

ABC

Sales (

FY 2017

)

=

$

9.2M

Sales goal (

FY 2018

)

=

$

12.5M

I.E. DESIRED SALES GROWTH RATE

=

36%

(COMPARE WITH INDUSTRY GROWTH RATE OF 2.4%)

CURRENT MARKET SHARE =

2.6

%

(($9.2M/$348.5M)*100)%

If

ABC

is to meet objective

MARKET SIZE IN 2018 = $348.5 * 1.024 = $358.86

ABC’S

DESIRED

MARKET SHARE = ($12.5/ ($

358.86

))* 100 =

3.5%

I.E.

COMPETITIVE

GROWTH RATE

= ($(348.5*1.024

–

12.5)M

/

$(348.5

-

9.2)M)*100

-

100 =

1.7

%

Q1? WOULD THE ABOVE NECESSARILY

DIMINISHED

GROWTH RATE PROVOKE AN

ENHANCED

COMPETITIVE RESPONSE? DISCUSS!

Q2? WITHOUT FURTHER INFORMATION WHAT

PROBABILITY

WOULD YOU ASSIGN

TO

ABC

ACHIEVING THIS 36% SALES GROWTH? HOW WOULD YOUR RESPONSE TO

Q1 IMPACT YOUR ASSESSMENT?

FALL 2018 MAR 4804/U01 (MON) Dr. B. Seaton

ABC Door, Inc.

ANALYSIS#1: Growth Objective (Solution)

A. Industry sales (residential garage doors):

i) FY 2017 sales (U. S.) = $348.5M

ii) FY 2018 (projected) sales = $362.4M

I.E. PROJECTED SALES GROWTH = 2.4%

ABC

Sales (FY 2017) = $9.2M

Sales goal (FY 2018) = $12.5M

I.E. DESIRED SALES GROWTH RATE=36% (COMPARE WITH INDUSTRY GROWTH RATE OF 2.4%)

CURRENT MARKET SHARE =2.6% (($9.2M/$348.5M)*100)%

If ABC is to meet objective

MARKET SIZE IN 2018 = $348.5 * 1.024 = $358.86

ABC’S DESIRED MARKET SHARE = ($12.5/ ($358.86))* 100 = 3.5%

I.E. COMPETITIVE GROWTH RATE = ($(348.5*1.024 – 12.5)M / $(348.5-9.2)M)*100 - 100 = 1.7%

Q1? WOULD THE ABOVE NECESSARILY DIMINISHED GROWTH RATE PROVOKE AN

ENHANCED COMPETITIVE RESPONSE? DISCUSS!

Q2? WITHOUT FURTHER INFORMATION WHAT PROBABILITY WOULD YOU ASSIGN

TO ABC ACHIEVING THIS 36% SALES GROWTH? HOW WOULD YOUR RESPONSE TO

Q1 IMPACT YOUR ASSESSMENT?