Assume that you are the product manager for “Snickers” chocolate bars. You sell these to retailers for $ 0.50 each. Retailers sell these bars to…

Assume that you are the product manager for “Snickers” chocolate bars. You sell these to retailers for $ 0.50 each. Retailers sell these bars to consumers for $ 1.00 each. Each Snickers bar package contains a $ 0.10 coupon that consumers can redeem by returning it to the manufacturer (i.e., you). Based on historical data, you expect 10% of the consumers to redeem their coupons. It costs you $ 0.09 to manufacture each bar. In a normal year, you sell 30 million bars, and spend $ 10 million on marketing campaigns.
a. In order to boost sales in 2019, you are planning to launch an additional campaign involving TV advertising and in-store displays. This additional campaign will cost you $ 2 million. How many additional Snickers bars will you need to sell to break-even on the additional marketing spending/investment of $ 2 million?
b. If you eventually end up selling a total of 40 million bars during the year, what would be your ROMI (return on the additional marketing spending/investment of $ 2 million)?
c. Trend research indicates that more and more consumers care about health and wellness. Accordingly, in 2019 Snickers is looking into launching a low-calorie version made with the natural sweetener, Stevia. The new bar will be called “Snickers Lite,” and will be available for sale to consumers at the same $1.00 price point as regular Snickers. Retailers have agreed to work on the same margins as the regular Snickers bars. However, it will cost the company $0.14 to manufacture each bar of “Snickers Lite” due to the more costly natural ingredients. The company will offer a $.10 coupon on the “Lite” bars, similar to that offered with regular Snickers bars and expects similar redemption rates. Preliminary forecasts indicate that the “Snickers Lite” bar will generate annual sales of 4 million bars, but that 40% of those sales will come directly from the regular Snickers brand. Incremental advertising to drive awareness and purchase of “Snickers Lite” is expected to be $1.5 million over the normal annual $10 million spending. Based purely on the
, would you advise management to launch the new “Snickers Lite” bar? Please show your step-by-step calculations clearly.

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10