Control Case

Control

In our marketing objective, we would like to get 20% market share in the first year. Assume achieving to increase 20% or above in first two seasons, we could increase the product price and allocate more resource to the new product line in the last two seasons. When we achieve the marketing objective, it means that the current customers are pleased with our product. So we can increase the product price reasonably. For example, one pack chewing gum sold $9 increase 20% to $10.9, one box teabag for united flavor sold $35 increase 20% to $42, and one mix box teabag for four flavors sold $42 increase 20% to $50.5. Therefore, we will increase 20% sales profit about $50,000 monthly. When we gain more money, we should allocate more resources to the product line. For example, we can add more flavors which customers are interested in our products, such as, rose tea flavor and jasmine tea flavor for chewing gum. The new flavors will attract more customers. It is good for increasing our market share in last two seasons.

In our marketing objective, we would like to get 20% market share in the first year. We should be attentive the sales report per month and analyze in time. Assume failing to increase at least 10% in first half year, it means that we could not increase at least 5% per season, we loss money in business, we will analyze the price and hold more promotional functions for current customers whether higher or not. If the price is too high, we should set the lower price to new products. And we can allocate more money to promote new products. For example, we can take a TV advertisement for new products to increase repution. And the products can be sales promotion. For example, one pack chewing gum sales $9 regularly, but 2 packs sales $15 reduced $3. A lot of promotion is a good way to attract new customers.