Lesson 8 Sales and Marketing Multi-Player Round 4

Lesson 8 Sales and Marketing Multi-Player Round 4

On my first product Sonic 1, I increased the price from $110 to $115. I decreased the retailer margin from 35% to 30% which increased the wholesale price from $74.75 to $80.50. My forecast sales for Sonic 1 for 2022 was 1,307,115 and I only sold 759,820, which made me have an inventory holding cost of $198,130 for the product that I did not sell. So I being that I had so many in inventory I only forecasted 999,996 of sales since I had over 500,000 left in inventory. For Product Management Advertising I lowered the budget from 4millionto 2.5 million to conserve money being that my product is already known, and for Product Management Sales I lowered the budget from 4 million to 3.1 million for the same reasons, but I did change how it was distributed. I put trade shows back at 17%, sales force training is back to 17%, premiums is back to 17%, website/social media is back to 17%, pt-of-purchase displays is 17%, and rebates is 15%. I changed it because it seems to be the better way of distributing the money to increase sales as my other product is doing well with it this way.

On my second product the Sound Wave I kept the price the same at $65, but decreased the retailer margin from 35% to 30% to increase the whole sale price. That increased from $42.40 to $45.50.Last year when I launched my new product I did a forecast sales of 900,498 and I actually sold them all, but being that I wasn’t aggressive enough and not trying to lost any more money that I had already spent and wanted to see how the new product would sell I actually lost out on sales, 392,410 to be exact, and that is money that I could have made. So this year my forecast sales are 1.2 million since it’s a demand for it. For the Product Management Advertising I decreased the budget from 5 million to 2.5 million to save money, and the Project management Sales I decreased