L'oreal case points and computation tips
...oing this is the tables on page 7 of the case. Now, here is a formula that I would not expect you to come up with on your own, although I wouldn’t be surprised if many of you do. For any given brand, if: M = $ sales of moisturizers T% = Treatment moisturizers unit sales as a % of all moisturizer sales Ť = Average treatment moisturizer price Ď = Average Daily moisturizer price T = % of moisturizer sales that are treatment D = % of moisturizer sales that are daily Percent of moisturizer sales that are treatment equals T x Ť ÷ (T x Ť) + (D x Ď) = (T x Ť) ÷ (T x Ť) ) + ( 1-T) x D = T x (Ť/ Ď) [T x (Ť / Ď)] + (1-T) Situation: After a disappointing year in 1998, Callaway Golf Company (CGC) is reanalyzing how it is competing in the market place. For years CGC has dominating the golf club market both in total dollar share and unit share. CGC has competed on the strategy of producing a better club than the competition and has been charging a premium price for its products. With competition beco...