5.3 Segment Profitability

Analysis Scale
Thousands
Marketing Strategy
Mass Market Strategy
Segment Strategy
Segment Strategy
Quality Segment
Price Segment
Market Demand
3000
1000
2000
3000
Market Share
2.0
%
2.0
%
2.0
%
5.0
Unit Volume
150
50
100
150
Average Price (*)
$1350
$
$2500
$
$1250
$
1666.67
Sales Revenue
202500
125000
125000
250000
Unit Cost (*)
$1000
$
$1500
$
$1000
$
1235
Percent Margin
25.9
40.0
20.0
25.9
Gross Profit
52500
50000
25000
75000
Marketing & Sales (% sales)
10.0
%
10.0
%
5.0
%
10.0
Marketing & Sales Expenses
20250
18750
6250
2500
Net Marketing Contribution
32250
31250
18750
50000
Marketing ROS
15.9
25.0
15.0
20.0
Marketing ROI
159
167
300
200

(*) Not Scaled

Starting Data Scale
Thousands
Marketing Strategy
Mass Market Strategy
Segment Strategy
Segment Strategy
Quality Segment
Price Segment
Market Demand
3000
1000
2000
3000
Market Share
2.0
%
2.0
%
2.0
%
5.0
Unit Volume
150
50
100
150
Average Price (*)
$1350
$
$2500
$
$1250
$
1666.67
Sales Revenue
202500
125000
125000
250000
Unit Cost (*)
$1000
$
$1500
$
$1000
$
1235
Percent Margin
25.9
40.0
20.0
25.9
Gross Profit
52500
50000
25000
75000
Marketing & Sales (% sales)
10.0
%
10.0
%
5.0
%
10.0
Marketing & Sales Expenses
20250
18750
6250
2500
Net Marketing Contribution
32250
31250
18750
50000
Marketing ROS
15.9
25.0
15.0
20.0
Net Marketing Contribution
159
167
300
200

(*) Not Scaled

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