Manufacturing Budget
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Expanded marketing resources may be required for enhanced activities such as: continually developing new product variations and technologies to displace current product offerings and 710 Pursuing share growth opportunities related to: IS (1) Market share and revenue projections Full-term market share projections Full-term market share increase 1.30 Resultant timing variance in market share increase from each strategy New market share from each strategy in Year 1 0.08 New market share from each strategy in Year 2 0.39 New market share from each strategy in Year 3 0.78 New market share from each strategy in Year 4 1.04 New market share from each strategy in Year 5 1.30 Converting projected market share increases into incremental revenue flows New sales volume flows from each strategy IS Year 1: 425 0.33 IS Year 2: 450 1.75 IS Year 3: 475 3.70 IS Year 4: 500 5.19 IS Year 5: 525 6.81 New sales dollar flows from each strategy (in US M), assuming a price of US 100/unit (in constant Year 1 dollars) (except for Low Price Strategy—US 80) Year 1 US 33 Year 2 US 175 Year 3 US 370 Year 4 US 519 Year 5 US 681 Five-year sales US 1777 Five-year present value incremental revenue flow from each strategy (assuming discount rate of 8 ) US 1319 Captive sales (2) Missing colors (3) Service (4) Low price (5) Price quality (6) Distribution (7) Promotion (8) 0.72 1.80 2.25 2.81 2.48 5.52 1.64 0.03 0.18 0.38 0.65 0.72 0.22 0.81 1.35 1.80 1.80 0.14 0.49 1.15 2.25 2.25 0.18 0.79 2.11 2.81 2.81 0.02 0.20 0.67 1.59 2.48 0.35 1.19 2.65 4.41 5.52 0.13 0.44 0.98 1.64 1.64 0.14 0.81 1.80 3.24 3.78 0.92 3.65 6.42 9.01 9.46 0.61 2.19 5.48 11.26 11.82 0.75 3.56 10.03 14.07 14.77 0.11 0.89 3.18 7.95 13.04 1.50 5.36 12.58 22.07 28.97 0.56 1.99 4.68 8.20 8.61 US 14 US 81 US 180 US 324 US 378 US 977 US 92 US 365 US 642 US 901 US 946 US 2944 US 61 US 219 US 548 US 1126 US 1182 US 3135 US 60 US 285 US 802 US 1126 US 1182 US 3454 US 11 US 89 US 318 US 795 US 1304 US 2517 US 150 US 536 US 1258 US 2207 US
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