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Retail Business Analysis and Decision-Making
Finance & Accounting
Pages 5 (1255 words)
Name Retail Business Analysis and Decision-Making Instructor 11th November 2011 Team 10 Retail Management Simulation Report Introduction In any operations involving competition and business it is important to not only pay attention to market trends but also to devise a strategy…
The general strategy was low price but the price elasticity of the product and other factors were taken into consideration in terms of quantity purchased and price set. Product 1 An assessment of the historical trends along with pre-simulation market information revealed that the average demand for the product was 2,590,000 in year 1 and 2,680,000 in year 2. The growth in demand was expected to continue based on the trend in the graph. This was attributed to the fact that product is widely used by all age and income groups in the population. The demand is relatively price inelastic so the level of promotional expenses on the product was relatively less than on the other products. Our team ordered products for two periods in quarter 1 and three periods in quarter 2. This strategy worked fairly well as all inventories carried forward to quarter 3 were sold. Our team’s market share for this product was considered very low. Product 2 Although there is a general upward demand, the pre-simulation market report indicates that this is a discretionary product and that there is a higher level of brand awareness for the product when compared to Product 1. Therefore, demand for the product is based on promotions. ...
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