28 Jun Management estimates that the incremental promotion
Question
Let’s modify the scenario from Q1 and Q2 a bit. Management estimates that the incremental promotion program required to generate sufficient demand to boost sales by 20% will need to be:
Marketing Costs= $60,000 (exclusive of commissions)
Consumer Advertising= $57,194
Trade Promotion= $38,306
Sales Promotion= $25,000
The total market for craft beer sold in six packs is about 2,500,000 six packs per year. What additional market share will Shannon’s need to achieve in order to break-even on the incremental costs that are anticipated? Express your answer in percent format to two decimal places. For example, 5.00 for five percent or .50 for one-half of one percent. Do not include the percent sign.
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