Question: please show step by step in excel Step 3. Calculating total contribution with and without cannibalization In the final step of your analysis, you will

 please show step by step in excel Step 3. Calculating total
please show step by step in excel

Step 3. Calculating total contribution with and without cannibalization In the final step of your analysis, you will determine what the total contribution will be with and without cannibalization. You have discussed the issue of cannibalization with others in the company and based on this input you think the cannibalization rate will be somewhere between 5 to 30 percent. For the final analysis you need to decide on a specific cannibalization rate within that range and explain your decision (1-2 sentences will be sufficient). I high cannibalization rate means that you think a lot of those customers who currently buy your original brand will switch to your new brand. The table below presents a model you can use for the cannibalization analysis. You will use the information from the steps above about the existing product as well as the price, contribution margin and sales forecast you calculated for the new product. Important, you will not use any of the numbers below - those do not correspond to the Granola example. * a cannibalization rate of 50% means that 50% of the sales of the new product, or 30 units in this case, will be taken from the existing brand. Based on your calculations you will comment on whether you think cannibalization will be a significant problem in this situation or not ( 23 sentences)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!