Quantitative Analysis Tutorial

Quantitative Analysis Tutorial - Quantitative Analysis...

Info icon This preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Quantitative Analysis MGCR-352
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Quantitative Analysis Tutorial Market Share Types of Costs and Margins Breakeven Analysis Price Elasticity Price Chains
Image of page 2
Market Share Market Share is the % of the total market that a brand or product controls: Market Share ($) = Brand A $ sales Total segment $ sales Market Share (units) = Brand A unit sales Total segment unit sales
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Example 1 Total coffee sales for 1996 = $800.5 million Maxwell House’s 1996 coffee sales = $105 million (a) What is Maxwell’s share of the market?
Image of page 4
Example 1 Total coffee sales for 1996 = $800.5 million Maxwell House’s 1996 coffee sales = $105 million (a) What is Maxwell’s share of the market? MS ($) = $105,000,000/$800,500,000 = 13.12% Note: Let’s say the average retail price of a 34oz can of Maxwell House coffee = 26.25$ In 1996, Maxwell House sold 4 million cans of coffee MS ($) = $4,000,000*26.25 /$800,500,000 = 13.12%
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Estimating Market Size: The Step Down Approach Total coffee sales for 1996 = $800.5 million Maxwell House’s 1996 coffee sales = $105 million Suppose there are two unique segments in the coffee market: percolated coffee drinkers and instant coffee drinkers. Percolated coffee drinkers make up 86.5% of the coffee market and instant coffee drinkers 13.5%. (b) Assuming Maxwell House targets percolated coffee drinkers, calculate the target market share.
Image of page 6
Example 1 Total coffee sales for 1996 = $800.5 million Maxwell House’s 1996 coffee sales = $105 million Suppose there are two unique segments in the coffee market: percolated coffee drinkers and instant coffee drinkers. Percolated coffee drinkers make up 86.5% of the coffee market and instant coffee drinkers 13.5%. (b) Assuming Maxwell House targets percolated coffee drinkers, calculate the target market share. Total Percolated coffee drinkers segment sales = 0.865 *800.5M = $692,432,500 Maxwell’s MS of percolated coffee drinkers segment = $105,000,000/ $692,432,500 = 15.16%
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Types of Costs and Margins 1) Fixed Costs (FC) do not fluctuate with changes in volume of production (i.e. advertising, public relations, fixed salaries, administration and overhead, rent, utilities, research and development…) 2) Variable Costs (VC) are directly
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern