Group Assignment Revenue Sharing with Distributors Wonderbar is a chocolate bar
ID: 396930 • Letter: G
Question
Group Assignment Revenue Sharing with Distributors Wonderbar is a chocolate bar that costs you 10 pesos to manufacture, its distinguishing trait is being made from the finest chocolate from Davao You want to make at least 100 percent margin over your cost and you want to motivate distributors to sell it for you. How would you propose to sell Wonderbars, assuming that your objective is to maximize your sales volume as quickly as possible? 1. Through what distribution channels would you want your customers to 2. How much would you set as your suggested retail price (SRP)? With this Presentation time: an estimate of 5 to 10 minutes per group. get these? SRP, how much will you offer to your distributor/s? Explain.Explanation / Answer
Answer:
Wonderbar is the chocolate bar
We are the chocolate manufacturer for Wonderbar.
The cost per piece = 10 peso.
The margin atleast 100% = thus minimum selling price = 20 peso, as 100 % margin of profit to Wonderbar.
Quality – The chocolate made form finest Chocolate from Davao.
We would propose to sell to Wonderbar with below approach to meet our objective of maximize sales volume as quickly as possible
We will ask Wonderbar to sell chocolates at the price above 25 peso. So that we can give 5 peso margin to Wonderbars and we can keep 20 peso margin with us.
We can launch some sale promotion scheme for Wonderbar so that they can influence for more sells in the region.
We can organize promotion and marketing at the Wonderbar for sale increase of this Chocolates.
We can organize some sell schemes at bar along with sell of other bar products.
Answer 1- With below distribution channel, we want our customer to get this as below
Sale through retail outlets so that it can easily reach to customers
Sale along with dealer channel so that dealers can distribute to key outlets in the market for easy reach to customers.
Sale through distribution network at key marts so that this can be reached to key customers.
Answer 2:
The SRP could be as below
Cost = 10 peso
Margin for manufacturer = 100% of 10 peso = 20 peso
Distributor Price (margin 30%)= 130% of 20 peso = 26 peso
Dealer Price (margin 20%) = 120% of 26 peso = 31.2 Peso
Retailer Price (margin 15%) = 15% of 31.2 = 35.88 Peso
So the suggested retail price for the Chocolates will be 35.88 peso.minimum
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