Russ Merz, Firm A CEO
November 25, 2011
Outcomes for the Followers Market Segment for P5 – P8
Firm Share (MSp)
Unit Sales (Volume)
Followers Sales Force
Firm A’s initial marketing plan actions for Period Five to Period Eight was to focus on investing money
into the Followers market segment in order to grow our Vodite brand – VAAV – within that specific
target market. The marketing action plans Firm A was going to implement to defend our position in the
Vodite market was to increase VAAV’s advertising, sales force, and production in accordance to the
growing Followers market segment.
Looking at the above table, to find the overall Followers market segment demand for Vodite products,
we multiplied the forecasted percent growth for the next period by the amount of units sold in the
previous period. However, this total was quite a significant increase, so we assumed that the Followers
market segment would sell approximately thirty to fifty thousand units less. The same production
concept was used to estimate how many units Firm A was to produce and how many we would sell.
Also, taken into consideration with the “units to produce” analysis was the fact that the production
department would adjust the firm’s units produced by either plus or minus twenty percent. Firm A felt
that this allowed for a larger “units to produce” cushion.
The above table shows that Firm A was planning on investing a significant amount of money in their