Assignment:
A. Dermavescent Labs Case
The information below is transcribed from WS#1 of the above case:
Unit contribution margin = 78.9%
Brand contribution margin = 36.6%
a) Briefly discuss each of the above 2 CM's. Include your assessment of the information each CM provides, and to whom in the company. Suggest a specific decision for which each metric, respectively, provides important input.
b) Carefully distinguish between "initial purchase" and "repeat purchase" in evaluating the results of a Test Market. Use the Dermavescent case to illustrate your answer
B. a) In the MARKETPLACE simulation we have used "market share' extensively as an aid to strategy development.
i) Discuss the issues involved in computing a measure of "market share". Explicitly identify the method employed in the simulation and provide a critique which addresses both strengths and weaknesses of the calculations provided in the Market Performance Folder. Use the simulation output of Quarter#8 to illustrate your answer.
ii) In the simulation we are using "Creation of Wealth" as our criterion of success. Do you believe that this is the optimal criterion? How would you evaluate "Market Share" as a criterion of success? Carefully explain.
b) Specifically review the impact of the "ideal point model of consumer response" in the design of effective advertising.