bba203 (1 Viewer)

[scarecrow_of_oz]

how's everyone going with the study? oh and does anyone know the format of the exam?

 

[~ForAGoodCause~]

hey did it last yr, pretty easy

know ur marketing game, and then theres a unseen case study that u have to analyse with all the swot n solution to problems (last yrs case study was on black and decker... so if ur lucky maybe u can go and find a case study on that and practice). Theres m/c's as well

they shouldve told u the format in the lectures ... but guess u didnt go, most people dont

 

[AcStyle*]

Part A - Mktg Game
Part B - Theory questions applied
Part C - Case studies

no MCs this yr...

 

[scarecrow_of_oz]

cheers guys. foragoodcause, what kind of q's did they ask u on the marketing game? is it about how you went wrong or whatever or your p's strategies...?

oh! and does anyone know the answers to that chapter 10 (handout) 'is chicken a good loss leader' question? i've spent hours on it and it's confusing the crap out of me

 

[AcStyle*]

Well a loss leader is an item that is sold below cost in an effort to stimulate other profitable sales. Its used to draw customers into a store where they are likely to buy other, usually higher margin goods.

 

[scarecrow_of_oz]

thanx man i get that - but it how to answer the tricky formula ridden question i don't get - the one on the back of this handout we got. so confusing

 

[gnrlies]

IM trying to work on the chicken problem as well..

its freaken weird.

Im stuck between ACCG200 and BBA203 as to how to answer this.

I can only come up with that no increase is profitable as it is a bad loss leader

 

[gnrlies]

How does this answer look to everyone???

If im wrong please tell us (Id love to know! haha)

Plus is this actually the question in the exam?


Loss Leader Question (From Handout)

Question 1

Step 1 – Find the contribution margin Per Pound added by complementary goods

Product Dollar Change $CM $___
Fruits and Vegetables +0.154 50% 0.0770
Packaged Groceries +0.692 20% 0.1384
Frozen Foods +0.114 33% 0.0376
Other Meat -0.250 40% -0.100
TOTAL 0.1530

Extra $CM From Other Sales = 0.1530

Step 2 – Add to total contribution per pound to find adjusted contribution margin

Contribution Margin Per Pound = 0.34

Adjusted $CM = 0.493

Step 3 – Find out the break even sales change

Break Even Sales Change:

Price Change / (Adjusted CM – Price Change) = Percentage increase in sales

0.3 / (0.493 – 0.3) = 155% increase in sales

Question 2

The company could employ a number of tactics:

• Advertise the chicken at the cheap price to get people into the store who will hence do all of their shopping for convenience reasons
• Place the chicken special towards areas where a customer must pass through other complementary products first
• Specifically place complementary products near where the chicken is, so that customers are more likely to buy a complementary product

Question 3

Yes the firm could have profitably promoted whole fryers at $0.49 a pound, however the percentage increase in sales would have been very high. It is unlikely that this would be profitable in any situation as sales increases that high aren’t likely for a single item (in a market such as chicken).