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Unformatted text preview: Marketing Digital Pix Project Outline Prepared by: Ned Falkingham Eddie Ferraioli Eun-Jeong Lee Dr. Richard Thompson 11-30-2001 Sample pages from report. Background & Intro DDP Inc. has just developed and patented a new type of Personal Digital Camcorder, the Digital Pix. This new camcorder features reliability, compact size, and the ability to store 500 megabytes of pictures and video clips on the patented digital cassette. Under the conditions of our patent, DDP has the exclusive right to produce and market the new technology during the coming three years. This gives the company temporary monopolistic power. The management at DDP wants to know how to price the Digital Pix in such a way that it will produce the maximum profit during the coming year. We also need to know how many of the camcorders that we can expect to sell, and how much profit we will hope to generate from various price points. The Marketing Department at DDP estimates that there are 65 million potential customers in the national market for the coming year. We studied seven test markets to determine the fraction of the potential buyers who would actually purchase the Digital Pix , at various price levels. Past experience leads the Marketing Department to assume that the Digital Pix will have a quadratic demand function Summary of information is given below. Potential National Market 65 million customers # of Test market 7 Demand function: Second Degree Polynomial Fixed Overhead Cost: $40 mil Variable Cost: First 300k $700/unit Second 200k $500/unit Further $450/unit Adjusting the data into appropriate units 1) Demand • Prices for individual drives are given in dollars.Prices for individual drives are given in dollars....
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This note was uploaded on 04/03/2008 for the course MATH 115b taught by Professor All during the Spring '08 term at University of Arizona- Tucson.
- Spring '08