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dixie.pptxExecutive Summary
Currently, Dixie lies on the high-performance end of the perceptual map.
Its market size is 12.0 while the mean time before failure (MBTF) is 23000.
The production is schedule at 410 with an automation rating at 3.0.
Its contribution margin to the company’s revenue is 34.4%.
For Dixie to maintain its position in the perceptual map, the company has to increase its expenditure on the product.
Summary
Among the products sold by Digby, Dixie is currently ranked among the top high-performance products. On the perceptual map, the product lies on the high-performance end. Its market size is 12.0 while the mean time before failure (MBTF) is 23000. The production is schedule at 410 with an automation rating at 3.0. Its contribution margin to the company’s revenue is 34.4%. For Dixie to maintain its position in the perceptual map, the company has to increase its expenditure on the product.
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Synopsis of the Key Decisions
Research and Development: the team decided to set performance at 8.0, market size at 12.0 and MBTF at 23000.
Marketing: the price was set at $38.0, promotional budget at $800 and sales budget of $800.
Production: the production schedule was set at 410 while the automation rate set at 3.0.
Summary
For Dixie, the team decided to set performance at 8.0, market size at 12.0 and MBTF at 23,000. This decision places the company at the high-performance end of the perceptual map. When it comes to marketing, the price was set at $38.0 while promotion and sales budget were set each at $800. Its production schedule was set at 410 and an automation rate of 3.0.
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Reasoning Leading to the Decisions
The performance was set at 8.0 because the company is targeting high-end market.
The target market prefers high performance and long-lasting products.
This explains why the mean time before failure (MBTF) was set at 23000.
It means that the product is likely to last longer because of the quality of materials used in the manufacturing process.
Its market size is likely to exceed 12.0 based on how the product is received in the market.
Summary
The performance was set at 8.0 because the company is targeting high-end market. Most consumers in the high-end market prefer high performance and long-lasting products. This explains why the mean time before failure (MBTF) was set at 23000. It means that the product is likely to last longer because of the quality of materials used in the manufacturing process. Its market size is likely to exceed 12.0 based on how the product is received in the market.
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Assessment Results of the Decision
The high-performance rates (8.0) has enabled the product to occupy the high-performance end of the perceptual map.
This implies that consumers perceive the product to be of high quality.
Increasing the MBTF to 23000 implies that the company has to increase the production budget in order to meet the high cost of materials.
Marketing cost is also high because the company has to spend in creating awareness.
Setting the price at $38.0 ensures that the product is more appealing to high-end markets as opposed to the traditional markets.
Summary
The high-performance rates (8.0) has enabled the product to occupy the high-performance end of the perceptual map. This implies that consumers perceive the product to be of high quality. Increasing the MBTF to 23000 implies that the company has to increase the production budget in order to meet the high cost of materials. Marketing cost is also high because the company has to spend in creating awareness. Setting the price at $38.0 ensures that the product is more appealing to high-end markets as opposed to the traditional markets.
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