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  • Ulee Balang - Clique Pen

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    Dina Rizkia Rachmah
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    Chen calculates that employing a consumer-oriented marketing strategy could increase Clique's sales by 5% and profits by $9.74 million based on a 38% gross profit margin. McMillan calculates that the same strategy could decrease sales by 9% and profits by $9.94 million. McMillan also calculates that a retail-oriented strategy could increase market share by 0.4% and sales by $22 million with a 3.5% change in gross profit. The document then provides details on a test conducted with Staples of a consumer-oriented strategy, showing potential sales increases for Clique but profit losses for Staples.

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    Chen calculates that employing a consumer-oriented marketing strategy could increase Clique's sales by 5% and profits by $9.74 million based on a 38% gross profit margin. McMillan calculates that the same strategy could decrease sales by 9% and profits by $9.94 million. McMillan also calculates that a retail-oriented strategy could increase market share by 0.4% and sales by $22 million with a 3.5% change in gross profit. The document then provides details on a test conducted with Staples of a consumer-oriented strategy, showing potential sales increases for Clique but profit losses for Staples.

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    25 views4 pages

    Ulee Balang - Clique Pen

    Uploaded by

    Dina Rizkia Rachmah
    Chen calculates that employing a consumer-oriented marketing strategy could increase Clique's sales by 5% and profits by $9.74 million based on a 38% gross profit margin. McMillan calculates that the same strategy could decrease sales by 9% and profits by $9.94 million. McMillan also calculates that a retail-oriented strategy could increase market share by 0.4% and sales by $22 million with a 3.5% change in gross profit. The document then provides details on a test conducted with Staples of a consumer-oriented strategy, showing potential sales increases for Clique but profit losses for Staples.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Group Ulee Balang

    Group Member :
    Abshar Naufan (29120365)
    Arif Indrapratama (29120530)
    Damarikhsan Rahadian (29120539)
    Desman Hansen Sagala (29120481)
    Dina Rizkia Rachmah (29120431)
    Mochamad Rizki Firdaus (29120597)
    Muhammad Ariefrahman Dzaki (29120345)
    Clique Pen Debate, Marketing vs Sales View
    (Case page 6-7)

    Chen’s calculation of sales and profit increase if consumer-oriented MDF is employed:


    5% increase in retail sales - assume 5% increase
    2013 Sales in Clique 2014
    in 5% increase, sales
    Millions estimation
    Gross Profit Margin from 187 196.35
    36% to 38% 38%
    Gross Profit 74.61

    McMillan’s calculations of sales and profit decreases if consumer-oriented MDF is employed:


    9% sales decrease 2013 Sales in 9% decrease,
    Millions 2014 estimation
    Gross Profit Margin from 187 170.17
    36% to 38% 38%
    Gross Profit 64.66

    McMillan’s calculation of sales and profit increases if retail-oriented MDF is employed:


    Market share increase of .4%

    Overall market (Page 3) 5.5 billions 5500000000


    2013 Sales 187 millions
    2013 Market Share 3.40% 187000000

    Market share estimate


    with RO MDF  (3.4% +
    0.4%) x 5.5 billion 209 millions 209000000
    Gross Profit change of +/-
    3.5% 35.34% 60.775 or 73.865
    Clique Pen Debate, Staples Test
    Consumer-Oriented MDF Test at Staples versus Present Pricing with Discount Structure
    (Case page 7)

    Staples regular retail price and present discount structure from Clique:

    Retail selling price 1.97 $


    Wholesale price from Clique 0.94 $
    Discounts and allowances
    Volume discount 0.055
    Warehaouse discount 0.03
    Stocking allowance 0.015
    0.1
    Net wholesale price 0.846

    Staples normal gross profit 1.12


    Staples normal gross profit margin 0.57

    Test retail selling price 1.78 $


    Wholesale price from Clique 10% off 0.846

    Staples gross profit from test pricing 0.934


    Staples gross profit margin from test 52.5% 0.5247191011

    StapStaples test passing a 10% discount through to the consumer:


    less loss of gross profit 10% 0.197
    Staple gross profit loss to normal 0.175892857 17%

    Clique’s variable cost 0.46


    Clique gross profit after 10% discount 0.386
    Clique’s sales increase 0.07 7%

    If Staples has no unit increase, then Clique has to provide additional discount .12 to .19
    Reducing Clique selling price to .85 to .66
    Clique gross profit would then be .66 to .46, GPM around 21%

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