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Unformatted text preview: Since Diversified Citrus Industries is only using newspaper advertising, it will be very difficult to sell the 21 million eight-ounce cans of breakfast drinks that sells nationally. But after being advertised in the newspapers, there will be word-of-mouth advertisements that increase the number of sold cans, so instead of the 21 million, lets say 14 million cans are sold. The equation would be 395,349/14,000,000 = 2.8% 5. Based on the first year’s break-even market share that the company should achieve to reach break-even point, would you recommend them to introduce the new drink? Because the market share is 2.8%, it is a low enough goal for Diversified Citrus Industries to reach. In a field of breakfast drinks where competition is very high, I would say that for a company launching a new drink, anything less than 5% is a drink worth introducing....
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This note was uploaded on 04/08/2008 for the course MKTG 181 taught by Professor Rhee,su during the Fall '07 term at Santa Clara.
- Fall '07