Business & Finance - Marketing Zoëcon Corporation Case Assignment

CG Table 2

CG Table 2. Sales Data From The Test Market   1. [BLANK] % of the households in the test market were aware of the product at the end of the test. 2. [BLANK] % of households tried the product; [BLANK] % of trial households repurchased during the test period. 3. Average trial households purchased [BLANK] units; repeat households purchased [BLANK] units. 4. [BLANK] % of purchases were aerosol sprays; [BLANK] % foggers. Assume the same breakdown for trial and repeat households. 5. [BLANK] cases (12/case) of aerosol sprays shipped; 6. [BLANK] cases (12/case) of foggers shipped.

Transfer data from the case to the cells highlighted in yellow. These data points will automatically be used by some entries in subsequent worksheets.

CG Table 3

Enter price and COGS data from Case Exhibit 4 into the yellow highlighted cells in column E. This worksheet parallels CG Table 3. Sales proportions data (cells D3 & D7) are taken from CG Table 2 cells C11 and C 12.

CG Table 4

Break-even computations rely on data from CG Table 5. Complete CG Table 5 prior to completing this table.

Cells highlighted in blue are automatically populated by data contained in prior worksheets.

CG Table 5

This worksheet allows you to estimate the overall size of the 4-city test market area and the overall size of the total 19-city area of commercialization. Enter data from the case into the yellow highlighted cells. Data in cell E9 are taken directly from CG Table 2 worksheet.

CG Table 6

Data in this worksheet are automatically generated from entries in prior worksheets (blue cells) or computed based on other worksheet cells. No manual entry should be required. However, changes are needed to "annualize" sales estimates (see below).

Since the TM data were collected over a six-month period, data must be adjusted for extrapolating to the 12-month commercialization.  The assumption is that sales will continue for the full year, and this could change the trial rate and number of units purchased during repeat.  The simplest adjustment is to divide the sales projected based on the test market by .75. Alternatively, adjustments can be made to the trial rate and number of repeat units purchased.  The rationale is that sales over the entire year, rather than the six-month period May to October, will likely result in a higher trial rate and will a higher number of repeat purchases.  Thus, the .75 adjustment can be applied to both estimates.  No adjustments probably are needed for the percentage of customers who were repeat buyers or the number of units purchased on the initial trial.

Case Exhibit 4

Version

CG Table 6a