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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#54651 | Written in 18-Jul-2015

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