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Clique Pens: The Writing Implements Division of U.S. Home: Consumer-Oriented MDF

Chen calculated that adopting a consumer-oriented marketing strategy could increase Clique Pen's 2014 sales by 5% to $196 million and gross profit by 5% to $74.6 million, assuming gross profit margins increase from 36% to 38%. Meanwhile, McMillan estimated the same strategy could decrease sales by 9% to $170 million and gross profit by 9% to $64.6 million. McMillan also projected that a retail-oriented strategy could increase sales to $209 million and gross profit by 3.5% to $69.3 million with gross profit margins of 33%.

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68 views1 page

Clique Pens: The Writing Implements Division of U.S. Home: Consumer-Oriented MDF

Chen calculated that adopting a consumer-oriented marketing strategy could increase Clique Pen's 2014 sales by 5% to $196 million and gross profit by 5% to $74.6 million, assuming gross profit margins increase from 36% to 38%. Meanwhile, McMillan estimated the same strategy could decrease sales by 9% to $170 million and gross profit by 9% to $64.6 million. McMillan also projected that a retail-oriented strategy could increase sales to $209 million and gross profit by 3.5% to $69.3 million with gross profit margins of 33%.

Uploaded by

Kushagra Varma
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Clique Pens: The Writing Implements Division of U.S.

Home
from Chen and McMillan discussion in case page 6

Chen's calculation of sales and profit increases if consumer-oriented MDF is employed


5% increase in retail sales - assume 5% increase in Clique sales
($millions) 5% increase
2013 Sales 2014 est.
$187 *5% $196.35
GPM of 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
2014 est
$187 * -9% $170.17
GPM of 36% to 38% 38%
Gross Profit $64.66
McMillan's calculations of sales and profit increases if retail-oriented MDF is employed
Market share increase of .4%
Overall market (case page 3) $5.5 billion (Assume 2% increase) $5.6 billion
Sales estimate with RO MDF $209
Gross profit increase - 3.5% 69.3
Gross Profit Margin 33%

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