I Gde Nyoman Aditya wibisana K9FuelBar

Based on case, list of distribution method as below:

Method of
Allowance Margin
Distribution
Website - -
Outdoor Sport Stores $5,000 40%
Veterinarians - 40%
Pet Supply Stores $1,000 40%
Online Retails $7,500 40%
Tradeshow $2,495 -

Then we need to calculate the units from revenue divided price, we have 3 options for price
there is $2.99; $2.79; $2.59.

Revenue cost/unit total cost year 1

15000 0.85 6000

price unit production cost cost available

$ 2.99 5017 $ 4,264 $ 1,736
$ 2.79 5376 $ 4,570 $ 1,430
$ 2.59 5792 $ 4,923 $ 1,077

In the first year, the possible distributor is website, veterinarians, and pet supply store. Because
this product is a new product, I’ll choose $2.59 for the most suitable price. Hopefully, that price
can build brand equity.

February 6th, 2018 1

I Gde Nyoman Aditya wibisana K9FuelBar

Revenue cost/unit total cost year 2

75000 0.85 30000

cost
price unit production cost
available
$ 3 25084 $ 21,321 $ 8,679
$ 3 26882 $ 22,849 $ 7,151
$ 3 28958 $ 24,614 $ 5,386

In the second year, the possible distributor is website, outdoor sport store, veterinarians, pet
supply store, and trade show. I’ll choose $2.79 for the most suitable price to increase awareness
and knowledge.

Revenue cost/unit total cost year 3

150000 0.85 60000

price unit production cost cost available

$ 2.99 50167 $ 42,642 $ 17,358
$ 2.79 53763 $ 45,699 $ 14,301
$ 2.59 57915 $ 49,228 $ 10,772

In the third year, the possible distributor is website, outdoor sport store, veterinarians, pet
supply store, online retail, and trade show. I’ll choose $2.99 for the most suitable price to
expand the product line into new.

The promotion could be supported with social media, such as Facebook, Twitter, and Instagram
and via dog-lover community. It can be easily and cheaper, because the budget limitation.
Hutchinson don’t need more money for promotion media at the first year.

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