The local shampoo market is dominated by two brands: Clean Hair, which owns 53% of the market, and Sassy, which owns the remainder. A new brand, All-Over Shampoo, manufactured by the same makers of Sassy, is attempting to break into the shampoo market with an all-natural shampoo that they claim will strengthen hair as it is washed. The local shampoo market volume is 2,779 bottles per month. All-Over Natural
The local shampoo market is dominated by two brands: Clean Hair, which owns 53% of the market, and Sassy, which owns the remainder. A new brand, All-Over Shampoo, manufactured by the same makers of Sassy, is attempting to break into the shampoo market with an all-natural shampoo that they claim will strengthen hair as it is washed. The local shampoo market volume is 2,779 bottles per month. All-Over Natural Shampoo sells 460 bottles in their first month. The total market for shampoo is mature and no growth is expected to result from All-Over's entry. Variable costs for All-Over Shampoo are estimated at $2.86per bottle, with a selling price of $5.12.
What is All-Over Shampoo's market share in the first month of sales?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
