Group Assignment Revenue Sharing with Distributors Wonderbar is a chocolate bar
ID: 397288 • 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
How to propose to sell Wonder bars:
In order to sell the wonder bars, following can be done to increase its sale:
Choice of the distribution channel:
The choice of the distribution channel is very important for proper sales of the product. The channel through which the product will be made available to the customers is through departmental stores, convenience stores and super markets.
Through these distribution channels, the product will be available to the market on regular basis and at every possible location.
What could be the suggested retail price and how much to offer to the distributers:
Since the company wishes to keep certain profit margin for themselves, and the cost of manufacturing one wonder bar is 10 pesos. Therefore, the suggested retail price that can be set for the bar could be 18 pesos.
This would be 8 pesos more than the actual cost incurred on the manufacturing. It means that the profit so generated would be 8 pesos. So the portion of the profit margin that could be given out to the distributers could be 5 pesos per bar. Doing this the profits available to the company would be 3 pesos per bar.
It is important to note that the suggested retail price can change from time to time and also the amount to be offered to the distributers.
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