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  • Maruti Has Planned A Product Promotion Strategy For One of Its Popular Car Variants For The Current Festival Month

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    Maruti plans to promote one of its popular car models during the festival month. The car normally sells 10,000 units per month at Rs. 3 lakh per unit. Maruti will offer a 15.9% discount and expects sales to double to 20,000 units for the month. The promotion will require an additional Rs. 10 crore spend on sales activities. Maruti's contribution margin on the car is 45.6%.

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    Maruti Has Planned a Product Promotion Strategy for One of Its Popular Car Variants for the Current Festival Month

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    Maruti plans to promote one of its popular car models during the festival month. The car normally sells 10,000 units per month at Rs. 3 lakh per unit. Maruti will offer a 15.9% discount and expects sales to double to 20,000 units for the month. The promotion will require an additional Rs. 10 crore spend on sales activities. Maruti's contribution margin on the car is 45.6%.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    11 views1 page

    Maruti Has Planned A Product Promotion Strategy For One of Its Popular Car Variants For The Current Festival Month

    Uploaded by

    gopi11789
    Maruti plans to promote one of its popular car models during the festival month. The car normally sells 10,000 units per month at Rs. 3 lakh per unit. Maruti will offer a 15.9% discount and expects sales to double to 20,000 units for the month. The promotion will require an additional Rs. 10 crore spend on sales activities. Maruti's contribution margin on the car is 45.6%.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Maruti has planned a product promotion strategy for one of its popular car variants for the

    current festival month. The model being considered for one month promotion, usually sales
    10,000 units per month at the ex-factory price of Rs. 3 lakh. By offering festival discount of
    15.9%, they believe that the sales will increase to two times of normal sales (i.e. 20,000 cars
    for the month). For execution of this offer, they need to spend an additional amount of Rs. 10
    Crore on various sales promotion activities. Maruti’s contribution margin for this car is 45.6%.
    What will be the additional profit/loss (in Rs. Lakh) from this activity?

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