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Show Circuit's Scenario, Questions And Answers

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1. What is the total and category dog food supermarket sales potential in Boston at manufacturing prices? | (1) | (2) | (3)=(1) x (2) | (4) | (5)=(3) x (4) | Dog Food Category | Share of Total Dog Food | % of Dogs in Boston Area | Estimated Dog Food Category Sales | Super Market % | Estimated Dog Food Super Market Sales | Dry | 65% x $10 billion= $6.5 billion | 1.2% | $78 million | 36% | $28,080,000 | Canned | 15% x $10 billion= $1.5 billion | 1.2% | $18 million | 36% | $6,480,000 | Treats | 20% x $10 billion= $2 billion | 1.2% | $24 million | 36% | $8,640,000 | Total | $10 Billion | | | | | | | Total Dog Food Category Sales Potential in Boston Area | $120 million | Total Dog Food Super Market Sales Potential | …show more content…

Based on Show Circuit’s positioning strategy, provide a recommendation for a price point for a case of the produce and calculate the company’s contribution per case. Show Circuit’s position strategy is as follows: Positioned as a high quality dog food Positioned at a premium price Positioned to be perceived by buyer as the only dog food that they would want to purchase for a dog that is considered part of the family Based on competitor price points in number three and the positioning strategy of Show Circuit , the recommended price point for a case of Show Circuit would be $12.00. This is a recommended price point because it is aligns with Show Circuit’s position strategy and it is just slightly higher than the highest competitor price. Also, the contribution to fixed cost is higher than its competitors. . Unit COGS Unit Selling Price GrossMargin as a % of SP Manufacturing $8.70 15% (First In Show Pet Foods) Wholesaler ( 9.36-.6552) $8.70 $9.36 7% (Food Broker Commission fee) .07 x

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