The Kenya Tea Development Authority (KTDA) sells three brands of tea, Gold label (G), Quality label (Q)
Question:
The Kenya Tea Development Authority (KTDA) sells three brands of tea, Gold label (G), Quality label (Q) and National label (N).The company’s marketing specialist has analyzed the switching habits of their customers from month to month. Her study reveals that Q and N each gain 15% of G’s customers. Q will lose 10% each to G and N while N will lose 10% to G and 15% to Q. Suppose the company made sales of sh. 8 million, sh. 5 million and sh. 4 million shillings for Gold, Quality and National labels respectively in the month of May 20XX. How much sales would KTDA expect to make in the;
a) Month of August 20XX
b) Month of September 20XX
c) In the long – run If sales contribution per unit is the same for the three brands and the customer base remains constant.
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair