BU362 Lecture Notes - Lecture 3: Brand Awareness, Target Market, Private Label
Document Summary
David gordon the owner is deciding whether or not an advertising campaign would promote an increase in sales (sales growth) of his (cid:272)o(cid:373)pa(cid:374)y"s (cid:272)hai(cid:374)sa(cid:449)s. 59% of sales are not under their name: dependent on excelsior as they have 49% of their sales. Although this is not urgent; there is projected to be growth in the homeowner market allowing gordon to increase his 15% market share. Excelsior, homemart, major forestry companies, other companies and institutions: (retailers): benefit from advertising. Strengths: weight of their product: solid market share, good reputation, di(cid:448)erse (cid:449)ith chai(cid:374)sa(cid:449) (cid:271)usi(cid:374)ess o(cid:374)ly (cid:271)ei(cid:374)g (cid:1007)8% of the (cid:272)o(cid:373)pa(cid:374)y"s profit. Weaknesses: low brand awareness, dependent on excelsior, limited cash resources. Current financial position: revenue: (,233, cogs: (,141, other cost: (, profit: (, profit/ revenue= 4. 1, contribution margin per unit= [-(500*0. 3)]*(1-0. 7)= . Target market: ontario and quebec homeowners, loggers, farmers, large land owners (companies/ institutions)
