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MKT 291- Snapple MKT Plan- Specific

MKT 291- Snapple MKT Plan- Specific - F INANCIAL...

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FINANCIAL POSITIONING AND PROJECTIONS Break-Even Analysis and Sales Forecast We based our break-even analysis and sales forecasts numbers after collecting data from Dr. Pepper Snapple Group’s 2009 Full Report. Breaking even and having no losses is always the number one goal when launching a new and innovative product such as Snapple Organic. By launching Snapple Organic, many expenses occur quickly, which include advertisements, the overall cost to produce the product, and paying our distributors and retailers. This will end up costing $1,000,000 on advertisement ($400,000,000/29products of Dr. Pepper Snapple which is again divided among other Snapple products), $.30 for the overall cost to produce one bottle of Snapple Organic (including the stevia), $.10 per bottle to the distributors, and $.10 per bottle to the retailers. By selling Snapple Organic for $2.45 per bottle (17.5 oz), we will break even if we sold 606,061 bottles of Snapple Organic per year, which is a high but very possible number to reach. For our sales forecast, we also looked at the Dr. Pepper Snapple Group’s 2009 Full Report. We saw that last year their net sales were $46,758,621 (Note: Dr. Pepper Snapple
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