2. The Kenya Tea Development Authority (KTDA) sells three brands of tea, Gold label (G), Quality label (Q) and National

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2. The Kenya Tea Development Authority (KTDA) sells three brands of tea, Gold label (G), Quality label (Q) and National

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2. The Kenya Tea Development Authority (KTDA) sells three brands
of tea, Gold label (G), Quality label (Q) and National label
(N).The company’s marketing specialist has analyzed the switching
habits of their customers from month to month. Her study reveals
that Q and N each gain 15% of G’s customers. Q will lose 10% each
to G and N while N will lose 10% to G and 15% to Q. Suppose the
company made sales of sh. 8 million, sh. 5million and sh. 4 million
shillings for Gold, Quality and National labels respectively in the
month of May 20XX. How much sales would KTDA expect to make in the;
a) Month of August 20XX b) Month of September 20XX c) In the long –
run If sales contribution per unit is the same for the three brands
and the customer base remains constant.
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