Market penetration ABC Corp is planning its market penetration strategy. ABC has
ID: 2557077 • Letter: M
Question
Market penetration ABC Corp is planning its market penetration strategy. ABC has 2 products: A &B.; A is geared towards a price sensitive market base while the target market for B is not as price sensitive. Find below the projected sales at each price level for A &HB; Product A: Designed for price sensitive consumer Estimated Sales in units Estimated Sales in $s Price point 5.00 6.00 7.00 Product B: Less price sensitive consumer 100,000.00 500,000.00 80,000.00 480,000.oo 70,000.00 490,000.00 Estimated Sales in units Estimated Sales in Ss Price point 5.00 6.00 7.00 100,000.00 500,000.00 100,000.00 600,000.00 100,000.00 700.000.00 What should the sales mix be for ABC Corp if the goal is to sell as many units as possible (penetrate the market)?Explanation / Answer
Answer
Product
Sale Price per unit
Estimated Sales in Units
Sales Revenue
A
$5
100,000
$500,000
B
$7
100,000
$700,000
Product
Sale Price per unit
Estimated Sales in Units
Sales Revenue
A
$5
100,000
$500,000
B
$7
100,000
$700,000
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