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Time

            Based on Soft & Silky's sales performance through 1999, results from the focus group studies, and the performance of analogous products, should the aerosol container concept be pursued further? .
             Arguments in favor of pursuing the concept futher.
             Arguments against pursuing the concept.
             Issues to be considered in the pros and cons include the validity of the focus group studies as well as S&S's past history with innovations and product changes.
             What is your decision? Go futher or no-go?.
             What are the economics of the 5 1/2 ounce tube container, 5 1/2 ounce aerosol container, and the 10 ounce aersol container? .
             The calculations required here are very straight foward given the information provided in the case. You need simply to build a basic accounting chain model that inludes both the retailers and the jobbers within the established channel. The only unusual component is the cannibalization that occurs within the various packages. This calculation is simplified if you find the lowest common unit of measure and go from there.
             "Assuming" that the research firm's four forecasts for the combined products shown in Exhibit 5 are reasonable, what incremental contribution can be expected in 2000 for each forecast?.
             This is simply an extension of the information and calculations that you developed above. But the wording of the question provides you with a basic structure of this problem. Look closely for a decision matrix.
             What are the pros and cons of commissioning the test market recommended by the research firm and Heather Courtwright? .
             What is the expected value of perfect information?.
             Arguments in favor of the test market.
             Arguments in opposition.
             What action would you take in this situation? .
            


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