Post on 29-Jun-2015
description
JUSTINDIAL
A MARKETING ANALYSIS
ASHLEYFARNSLEY
TONYHINKEL
NICOLEMALOTT
SUMMARY
POSSIBLE OPTIONS
COMPANY DECISION
SENIOR MANAGEMENT
VP OF ADVERTISING
VP OF SALES
VP OF OPERATIONS
VP OF FINANCE
HIRE AN EXTRA SALES REPRESENTATIVE FOR AN
ADDITIONAL COST OF 60,000
INCREASE ADVERTISING BUDGET BY 350,000
CUT PRICES BY 20% ON ALL PAINT PRODUCTS
MAINTAIN CURRENT OPERATION BEHAVIOR
VP OF ADVERTISING
INCREASE ADVERTISING BUDGET BY 350,000
SALESCOG
ADVERTISINGCOMMISSION
OTHER
12,480,000
7,488,000
4,992,000
724,400
124,800
3,307,200
835,600
13,480,000
8,088,000
5,392,000
724,400
134,800
3,572,200
960,600
BASE ADJUSTED SALES
VP OF OPERATIONS
SALESCOG
ADVERTISINGCOMMISSION
OTHER
9,984,000
7,488,000
2,496,000
374,400
124,800
3,307,200
- 1,310,400
22,880,000
13,728,000
9,152,000
686,400
228,800
6,063,200
2,173,600
BASE ADJUSTED SALES
CUT PRICES BY 20% ON ALL PAINT PRODUCTS
VP OF SALES
SALESCOG
ADVERTISINGCOMMISSION
OTHER
12,480,000
7,488,000
4,992,000
374,400
124,800
3,367,200
1,125,600
14,040,000
8,424,000
5,616,000
421,200
140,400
3,720,600
1,333,800
BASE ADJUSTED SALES
HIRE AN EXTRA SALES REPRESENTATIVE FOR AN
ADDITIONAL COST OF 60,000
WEIGHING IN
CAPABILITY
Are we meeting a goal that is appropriate and in line with company’s capacity?
PROFIT
Does the option provide enough initiative to invest time/money in to?
QUESTION: WHICH MARKETING EFFORT DO WE NEED TO PURSUE IN ORDER TO GET CLOSER TO OUR COMPANY’S OVERALL GOAL?
NO ADDITIONAL ADVERTISING
SALESCOG
ADVERTISINGCOMMISSION
OTHER
12,480,000
7,488,000
4,992,000
374,400
124,800
3,307,200
1,185,600
CURRENTWITH
ADVERTISING
13,480,000
8,088,000
5,392,000
724,400
134,800
3,572,200
960,600
NO PRICE CUTS
$0.00
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
$14,000,000.00
$16,000,000.00
$18,000,000.00
$20,000,000.00
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
Sales Growth$22,880,000
MARKET GROWTH AVERAGING 1 TO 2% EACH YEAR
HIGHEST PAYOUT
LOWEST PAYOUT
-$1,310,400 $2,173,600
ADDING A REP
SALES REPS9
$1,050,000.00
$1,100,000.00
$1,150,000.00
$1,200,000.00
2005 2006
Percentage Lowered
$1,100,000.00
$1,200,000.00
$1,300,000.00
$1,400,000.00
2005 2006
Percentage Raised
-5.06% 12.5%
JONES BLAIR DECISION
GROUP A
THANK YOUJUSTINDIAL
ASHLEYFARNSLEY
TONYHINKEL
NICOLEMALOTT