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Proposed growth rate of 16% in lower, 120% in the middle and 25% in the higher segment.
20% percent increase in the price of goods in all the segments.
Less concentration on the lower segment who is the highest contributor of sales. (16%).
Profit of 17.58 million dollars
Recommendation higher advertising budget is a good sign which increases market penetration.
Revenue of 117.22 million Dollars.
I recommend Brindas plan is needed to be adopted.
As Brinda market penetration is less but the strategy is a steady
growth.
Brinda considered that the lower segment is price segment and
still increased the growth to 20% percent from18% which is
considerable. And this segment is largely untapped market . If
the slight variation has effect on sales this can be complimented
by giving small discounts.
Focusing on the lower segment increases the market base of the
company and majority of population come under this category.
The plan to The profit of Brinda is higher than Lang.
As Brinda knows the market of India which is high price
be adopted sensitive market a sudden increase in the price as well as volume
will not be good idea to purse. Even though the middle segment
is not as price sensitive but they are sensitive to an extent. The
targeted audience in the middle segment can perceive as premium
segment if there is 120% growth in this segment and it is
unrealistic.
However a third view can also be created in order to increase the
revenue in Brindas plan.
Patel Vs Lang Vs Third view
Profit and Loss statement