Calculate the long-run market share that the company

Assignment Help Operation Management

Reference no: EM131039403

For the market share model in Problem 5 Chapter 11, suppose that the estimate of the percentage of new purchasers who will ultimately try the brand is uncertain and assumed to be normally distributed with a mean of 35% and a standard deviation of 4%. Use the NORM.INV function and a one way data table to conduct a Monte Carlo simulation with 25 trials to find the distribution of the long run market share.

A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 35% of new purchasers in the market will ultimately try this brand. They believe that customers will purchase their brand about 40% of the time in the future. Preliminary data also suggest that the brand will attract heavier-than-average buyers, such as those who exercise frequently and participate in sports, and that they will purchase about 15% more than the average buyer.

a. Calculate the long-run market share that the company can anticipate under these assumptions.

b. Develop a general model for predicting long-run market share.

Reference no: EM131039403

Questions Cloud

How do behavioral competencies impact the organization : From your perspective with your current employer, how do behavioral competencies impact the organization? What are two or three positions that exist in the organization and what are the behavioral competencies that people need in order to be successf..

Environmental and organizational factors : Describe "enterprise environmental factors" that must be understood to ensure that a project is successful and stays on schedule. Explain the organizational influences that might impact a project. Suggest possible strategies to make sure that these "..

Considering the use of a new predictor : Your boss is considering the use of a new predictor. The base rate is high, the selection ratio is low, and the validity coefficient is high for the current predictor. What would you advise your boss and why?

Examining business strategy and the five forces model : Examining Business Strategy and the Five Forces Model: The Challenges Facing eBay; Time for Changes in Strategy? This week we look at strategic thinking in the business environment. What does your five forces analysis reveal about the nature and stre..

Calculate the long-run market share that the company : Suppose that the estimate of the percentage of new purchasers who will ultimately try the brand is uncertain and assumed to be normally distributed with a mean of 35% and a standard deviation of 4%. Calculate the long-run market share that the compan..

Stiff pushback and negative feedback from employees : SCENARIO: Your boss has sent you to McAllen to a small company that wants to incorporate the use of teams in projects and activities. Their ideas have been met with "stiff" pushback and negative feedback from employees. You're to present a presentati..

Customers who face the same general needs of the marketplace : Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the rest of the market and stand to benefit disproportionately from solutions to those needs are referred to as

Purpose of reviewing lessons learned at the end of phase : The purpose of reviewing lessons learned at the end of a phase is all of the following except:

List and describe some examples of behaviors : List and describe some examples of behaviors, the type of work ethics some employees represent and the impact they are likely to have in the work place.

User Account

All Pages