Market metrics , forecast and analysis data using spss

Market Metrics

Initial Data Table
Hyster-Yale US Customer Segment Analysis based on 2014 data and estimates
	Large Customers 100 pieces of equipment or more	Mid-sized Customers 21 to 99 pieces of equipment	Small Customers 20 pieces of equipment or less	Total
Market demand (shipments)	76825	98775	43900	219500
Market share	0.090	0.115	0.040	0.091
Shipment volume	6,914.25	11,359.13	1,756.00	20,029.38
Average revenue per shipment	$ 64,487.47	$ 45,141.23	$ 19,346.24	$ 49,558.18
Sales revenue (millions)	$ 445.88	$ 512.76	$ 33.97	$ 992.62
Cost of goods sold per shipment (millions)	$ 51.59	$ 39.24	$ 17.98	$ 41.64
Cost of goods sold (millions)	$ 356.71	$ 445.73	$ 31.57	$ 834.01
Percent margin	0.20	0.13	0.07	0.16
Gross profit (millions)	$ 89.18	$ 67.03	$ 2.40	$ 158.61
Sales, general and administrative expenses (millions)	$ 66.88	$ 61.53	$ 2.04	$ 130.45
Marketing and sales expenses (millions)	$ 50.16	$ 46.15	$ 1.53	$ 97.84
Net marketing contribution (millions)	$ 39.02	$ 20.88	$ 0.87	$ 60.77
General, administrative and other operating expenses (millions)	$ 16.72	$ 15.38	$ 0.51	$ 32.61
Net profit (millions)	$ 22.30	$ 5.50	$ 0.36	$ 28.16
Marketing ROS	0.09	0.04	0.03	0.06
Marketing ROI	0.78	0.45	0.57	0.62
Scenario for Analysis
Scenario Data Table
Hyster-Yale US Customer Segment Analysis based on 2014 data and estimates
	Large Customers 100 pieces of equipment or more	Mid-sized Customers 21 to 99 pieces of equipment	Small Customers 20 pieces of equipment or less	Company Total
Market demand (shipments)	76825	98775	43900	219500
Market share	0.090	0.115	0.040	0.091
Shipment volume	6,914.25	11,359.13	1,756.00	20,029.38
Average revenue per shipment	$ 64,487.47	$ 45,141.23	$ 19,346.24	$ 49,558.18
Sales revenue (millions)	$ 445.88	$ 512.76	$ 33.97	$ 992.62
Cost of goods sold per shipment (millions)	$ 51.59	$ 39.24	$ 17.98	$ 41.64
Cost of goods sold (millions)	$ 356.71	$ 445.73	$ 31.57	$ 834.01
Percent margin	0.20	0.13	0.07	0.16
Gross profit (millions)	$ 89.18	$ 67.03	$ 2.40	$ 158.61
Sales, general and administrative expenses (millions)	$ 66.88	$ 61.53	$ 2.04	$ 130.45
Marketing and sales expenses (millions)	$ 50.16	$ 46.15	$ 1.53	$ 97.84
Net marketing contribution (millions)	$ 39.02	$ 20.88	$ 0.87	$ 60.77
General, administrative and other operating expenses (millions)	$ 16.72	$ 15.38	$ 0.51	$ 32.61
Net profit (millions)	$ 22.30	$ 5.50	$ 0.36	$ 28.16
Marketing ROS	0.09	0.04	0.03	0.06
Marketing ROI	0.78	0.45	0.57	0.62
Exam Question

Exam March 21 Section 1 Market Metrics Name:

Hyster-Yale and Crown Equipment compete in the material handling lift equipment manufactiuring industry, target all three major industry consumer segments (large, mid-sized, and small customers) , and have nearly the same market share. Like Crown, H-Y is assessing opportunities for growth through further penetration of the small customer segment. H-Y estimates that by doubling their investment in marketing and sales for the small customer segment, the company could increase their market share in this segment to 6 percent. This additional investment in the small customer segment requires the reallocation of sales personnel, reducing the investment in the mid-sized customer marketing and sales expense by .2 percent and the market share of mid-sized segment to 11.4 percent.

1. Use the Scenario Data Table above to analyze the impact of an increased investment in the small customer segment. Highlight the cells in which you made changes and the cells displaying the results of those changes. Given your analysis, should H-Y pursue this penetration strategy for the small customer segment or not? With reference to the specific results of your analysis, explain your response.