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Markstrat (A): Budget Marketing Case Solution


In the next exercise, they must choose one of the brands that your company currently markets and predict the Income Statement (Contribution by Brand) for period 2.

We evaluate them based on two elements:

  1. The accuracy of their estimates. (How are close estimates real?) values, and
  2. The justification of their predictions. (What arguments used to justify predictions?)




They should add all the assumptions and arguments that have been estimating relevant values. In particular, it is very important to explain how they arrived at the units sold for period 2.  We ask you to use the spreadsheet that is in the Global Campus or that was previously sent to them by e-mail. Please do not forget include the name of the company (industry and signature) to which they belong in the file they deliver.  Next, an example of the Income Statement to be presented delivers:



Brand APPLE quarter 3 2016    
I phones    
units sold 54507  
average retail price 833 per unit
average selling price 835 per unit
revenues 45513345  
units produced 54507  
current unit cost 700 per unit
average unit transfer cost 0  
cost of goods sold 38154900  
units in inventory 54507 same as sold
inventory holding cost 0  
inventory disposal loss 0  
contribution before marketing 7358445  
advertising expenditure 1000000  
advertising research expenditure 3000000  
sales force 0  
contribution after marketing 3358445  


I have taken Apple Company to establish the cost and revenue, some of the value are based on my best estimate.

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