1) Compute the market potential (SAM) for this new product based on the information provided in the case.

2) Apply the ATAR model to determine the sales revenue from the Trial

3) Apply the ATAR model to determine the sales revenue from repeat customers in the first two months4)Apply the ATAR model to determine sales revenue in the first year.

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In late 2014, SC Johnson developed a new product. OFF! Clip-onTM mosquito repellent is an innovative technology with proven protection (97% effectiveness rating) against mosquitoes. OFF! Clip-on mosquito repellent is a personal, odorless mosquito repellent device that you can clip onto your belt, purse or pants, providing head-to-toe protection from mosquitoes without spraying anything on your skin. It's the perfect way to enjoy personal time outside, such as hiking, gardening, reading or watching a sporting event. Each unit of OFF! Clip-on TM currently sells for $7.99 at retail outlets. SC Johnson's marginal cost is $2.07 and they sell to retailers such as Walmart and Home Depot for $4.00. For 2020, the company needed to establish a sales forecast for Ottawa region market. There are 1,323,783 people currently living in the Ottawa region, with 58% of these people live in suburban and rural areas. 60% of these suburban and rural dwellers are active outdoors. These are the market sizing and profile characteristics of the target market for this sales forecast. Prior to the product's introduction, SC Johnson completed a survey of buyer intentions within their target market and the results were: 30% would definitely buy, 40% would probably buy, 20% might buy, 8% will probably not, and 2% will definitely not buy. The company research also confirmed that 72% of initial buyers are projected to repeat their purchase within 6 months. When the product was launched SC Johnson spent significant promotional funds to ensure consumer awareness rate of 60% of target market. They also ensured that their distribution system would be able to ensure an 80% availability rate. In late 2014, SC Johnson developed a new product. OFF! Clip-onTM mosquito repellent is an innovative technology with proven protection (97% effectiveness rating) against mosquitoes. OFF! Clip-on mosquito repellent is a personal, odorless mosquito repellent device that you can clip onto your belt, purse or pants, providing head-to-toe protection from mosquitoes without spraying anything on your skin. It's the perfect way to enjoy personal time outside, such as hiking, gardening, reading or watching a sporting event. Each unit of OFF! Clip-on TM currently sells for $7.99 at retail outlets. SC Johnson's marginal cost is $2.07 and they sell to retailers such as Walmart and Home Depot for $4.00. For 2020, the company needed to establish a sales forecast for Ottawa region market. There are 1,323,783 people currently living in the Ottawa region, with 58% of these people live in suburban and rural areas. 60% of these suburban and rural dwellers are active outdoors. These are the market sizing and profile characteristics of the target market for this sales forecast. Prior to the product's introduction, SC Johnson completed a survey of buyer intentions within their target market and the results were: 30% would definitely buy, 40% would probably buy, 20% might buy, 8% will probably not, and 2% will definitely not buy. The company research also confirmed that 72% of initial buyers are projected to repeat their purchase within 6 months. When the product was launched SC Johnson spent significant promotional funds to ensure consumer awareness rate of 60% of target market. They also ensured that their distribution system would be able to ensure an 80% availability rate.

Answer rating: 100% (QA)

Solution a Let us assume a market size of 100 people ... View the full answer