All Over Shampoo is launching a new anti-dandruff, 2-in-1 conditioning product in a simulated test market within the Uni

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answerhappygod
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All Over Shampoo is launching a new anti-dandruff, 2-in-1 conditioning product in a simulated test market within the Uni

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All Over Shampoo is launching a new anti-dandruff, 2-in-1
conditioning product in a simulated test market within the United
States. The company expects to achieve strong distribution with an
ACV% of 84%. Market research shows that the marketing mix will
result in an awareness rate of 35%, a trial rate of 29%, and a
repeat purchase rate of 32%. The population for the test market is
estimated at 1,190,000 households.
If trial sales are made at prices that yield margins of $0.50
per 12oz bottle and repeat purchases yield margins of $1.00 per
12oz bottle what is the expected contribution of the new product if
households purchase two 12oz bottles at trial and one 12oz bottle 3
times per year as repeat?
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