Leaf's Paper Company is planning to launch a new notebook product that is water resis company wants to sell 30,000,000 of the new notebooks next year and wants to know what trial rate is required to achieve this goal. The market research group forecasts an awareness rate of 73% and an ACV % of 59%. Of those that try the product by purchasing 1 notebook, 29% will repurchase 5 notebooks per year. There are 180,000,000 notebook consumers in the target market. Total fixed costs to Leaf Paper Company to manufacture this new notebook are $9,400,000, with variable costs of $3.90 per notebook

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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Leaf's Paper Company is planning to launch a new notebook product that is water resistant. The
company wants to sell 30,000,000 of the new notebooks next year and wants to know what trial rate
is required to achieve this goal. The market research group forecasts an awareness rate of 73% and
an ACV % of 59%. Of those that try the product by purchasing 1 notebook, 29% will repurchase 5
notebooks per year. There are 180,000,000 notebook consumers in the target market. Total fixed
costs to Leaf Paper Company to manufacture this new notebook are $9,400,000, with variable costs
of $2.90 per notebook.
In order to achieve the original sales goal of 30,000,000 notebooks, what ACV % will be required if
Leaf instead achieves a 10% repeat purchase rate and a trial rate of 20%?
PS2 1
2 3
percent
4 5
SUBMIT ANSWER EXIT
Transcribed Image Text:Leaf's Paper Company is planning to launch a new notebook product that is water resistant. The company wants to sell 30,000,000 of the new notebooks next year and wants to know what trial rate is required to achieve this goal. The market research group forecasts an awareness rate of 73% and an ACV % of 59%. Of those that try the product by purchasing 1 notebook, 29% will repurchase 5 notebooks per year. There are 180,000,000 notebook consumers in the target market. Total fixed costs to Leaf Paper Company to manufacture this new notebook are $9,400,000, with variable costs of $2.90 per notebook. In order to achieve the original sales goal of 30,000,000 notebooks, what ACV % will be required if Leaf instead achieves a 10% repeat purchase rate and a trial rate of 20%? PS2 1 2 3 percent 4 5 SUBMIT ANSWER EXIT
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