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Assignment: Marketing by The Numbers

Hanazla Khan submitted an assignment on June 11, 2020 to Rauza. The assignment answers two questions regarding brand development strategies and cannibalization analysis. For the first question, Hanzala explains that Mars is using a brand extension strategy where the brand name stays the same but is extended to different product categories. For the second question, Hanzala provides the financial details of expected sales, costs, and price to calculate that a new product would result in $725 million in profit, so it is deemed profitable.

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Farhana Aijaz
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43 views1 page

Assignment: Marketing by The Numbers

Hanazla Khan submitted an assignment on June 11, 2020 to Rauza. The assignment answers two questions regarding brand development strategies and cannibalization analysis. For the first question, Hanzala explains that Mars is using a brand extension strategy where the brand name stays the same but is extended to different product categories. For the second question, Hanzala provides the financial details of expected sales, costs, and price to calculate that a new product would result in $725 million in profit, so it is deemed profitable.

Uploaded by

Farhana Aijaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Name Hanzala khan

Roll no 9191104
Submitted to Rauza
Date 11-06-2020
Assignment

Marketing by the numbers

Q1. what brand development strategy is mars undertaking?


Answer. Brand extension strategy is used in which the brand name is same but having different
product category.
Q2. refer to the discussion of cannibalization in appendix 2: marketing by the number for an
explanation regarding how to conduct this analysis.
Answer. Expected ounces sold =150 million
Fixed cost = 250 million
Price per ounce =24 dollar
Variable = 17.50 dollar
Profit =?
As we know that product units = to fixed cost + profit divided by price – variable cost.
As per the given condition we have 725000000-dollar profit so new product is profitable.

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