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CASE MARKETING BY THE NUMBERS BEAUTY BALM CANNIBALIZATION

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Question;CASE MARKETING BY THE NUMBERS BEAUTY BALM CANNIBALIZATION;WHAT BRAND DEVELOPMENT STRATEGY IS CLINIQUE UNDERTAKING?;ASSUME CLINIQUE EXPECTS TO SELL 3 MILLION OUNCES OF BB CREAM WITHIN THE FRIST YEAR AFTER INTRODUCTION BUT EXPECTS THAT HALF OF THOSE SALES WILL COME FROM BUYERS WHO WOULD OTHERWISE PURCHASE CLINIQUES MOISTURIZER THAT IS CANNIBALIZED SALES. ASSUMEING THAT CLINIQUE NORMALLY SELLS 10 MILLION OUNCES OF MOISTURIZER PER YEAR AND THE COMPANY WILL INCUR AN INCREASE IN FIXED COSTS OF 2MILLION DURING THE FIRST YEAR OF PRPODUCTION FOR THE BB CREAM WILL THE NEW PRODUCT BE PROFITABLE FOR THE COMPANY

 

Paper#54518 | Written in 18-Jul-2015

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