Market Estimation, Positioning, Pricing, BEP Analysis - Case Study

Market Estimation

1. ?Estimating a potential market size 1) whole market, and 2) by segments. ?To get full credits you MUST include BOTH your calculation process (e.g., equations) and
answer. (Combining information of “Total Market” size and proportion of each market/segment. Please
use all detailed information in the case.)
Identify each segment and provide calculation for each segment sales.
Q2.
?Outline a positioning strategy of your focal brand in the case. 1) which segments would you
target? And 2) what is background evidences to support your strategy?
?To get full credits, your strategy should be LOGICALLY REASONABLE. Which segments would you target? What is your reason?
Q3.
?Suggesting a pricing strategy of your focal brand e.g., what price level would you suggest to
your focal brand? ?To get full credits, you should explain a rationale behind your decision.
What would be your suggestion on price for Happy Woof? You can suggest different price levels
with a rationale.
Q4.
?Do calculation, i.e., BEP analysis, for different marketing strategy options and choose the most
effective option.
?To get full credits, you MUST include BOTH your calculation process (e.g., equations) and
answer. Also, your marketing option suggestion should be CONSISTENT with results from the
BEP analysis.
a. ?What is “Fixed Costs”? What factors would be included in fixed cost calculation?
b. ?What is “Unit Contribution”? How would you calculate unit contribution?
c. ?How would you compute “BEP”? How would you interpret BEP? Do you need any
reference points to understand BEP? If so, what measures would be good reference
points to understand BEP?
d. ?To what extent do you think the market share or profit needed to break even is
achievable?
e. Given that contribution margin is 35%, calculate the sales volume (in dollars) needed to
break even on both proposed program budget.