Marketing exercise. Exercise 3 Product Strategy. Coursework

please see the attached file, use simple grammar and words to answer.

Date: April 3, 2020
To: MKT 301
RE: Exercise 3 Product Strategy
_________________________________________________________________________You have just been hired as manager of the marketing department for a medium-sizemanufacturing company. On day one, you have a meeting with the management team of thecompany. The executives have assured you that the company is doing quite well, and theyhave supplied you with sales figures for the past five years which, in fact, have been steadilyincreasing.
Your first task for the company is to analyze the information and make recommendations.You are given the following data:
Table 1: Annual Sales
Annual Sales (in thousands of U.S. Dollars)
2015 2016 2017 2018 2019
Product Profit Margin
A 10% $120,000 $120,000 $96,000 $80,000 $40,000
B 6% 80,000 104,000 136,000 176,000 240,000
C 7% 56,000 80,000 104,000 144,000 160,000
D 10% N/A N/A N/A 56,000 120,000
E 9% 160,000 152,000 176,000 112,000 80,000
Total $416,000 $456,000 $512,000 $568,000 $640,000
The new product, Product D, was introduced in 2018. All of the products, A, B, C, D, andE, are related.
Please submit a memo to the CEO of the company (200-400 words, single-spaced),answering the following questions:
1. Over the five-year period, how has the company done in sales and in profits? Whyhave these changes occurred?
2. What has been the impact of introducing the new product D?
3. What recommendations would you make (i.e., hold, invest, discontinue)?
HOLD INVEST DISCONTINUE (Explain)
A
B
C
D
E
You are expected to email me your memo by 10:00 am, April 10th (Friday). Lateassignments within 24 hours will receive partial credits only and not accepted after that time.Table 2: Annual Profit
Annual Profit (in thousands of dollars)
Product 2015 2016 2017 2018 2019
A $ 12,000 $ 12,000 $ 9,600 $8,000 $4,000
B 4,800 6,240 8,160 10,560 14,400
C 3,920 5,600 7,280 10,080 11,200
D N/A N/A N/A 5,600 12,000
E 14,400 13,680 15,840 10,080 7,200
Total $35,120 $37,520 $40,880 $44,320 $48,800
Table 3: Change in Sales
Percentage Change in Sales
Product 2015 2016 2017 2018 2019
A N/A 0.00% -20.00% -16.67% -50.00%
B N/A 30.00% 30.77% 29.41% 36.36%
C N/A 42.86% 30.00% 38.46% 11.11%
D N/A N/A N/A N/A 114.29%
E N/A -5.00% 15.79% -36.36% -28.57%
Table 4: Product Contribution to Sales
Percentage of Product Contribution to Sales
Product 2015 2016 2017 2018 2019
A 28.85% 26.32% 18.75 14.08% 6.25%
B 19.23% 22.81% 26.56% 30.99% 37.50%
C 13.46% 17.54% 20.31% 25.35% 25.00%
D N/A N/A N/A 9.86% 18.75%
E 38.46% 33.33% 34.38% 19.72% 12.50%
100.00% 100.00% 100.00% 100.00% 100.00%
Table 5: Product Contribution to Profit
Percentage of Product Contribution to Profits
Product 2015 2016 2017 2018 2019
A 34.17% 31.98% 23.48% 18.05% 8.20%
B 13.67% 16.63% 19.96% 23.83% 29.51%
C 11.16% 14.93% 17.81% 22.74% 22.95%
D N/A N/A N/A 12.64% 24.59%
E 41.00% 36.46% 38.75% 22.74% 14.75%
100.00% 100.00% 100.00% 100.00% 100.00%
Table 6: Percentage Return on Sales
Percentage Return on Sales
2015 2016 2017 2018 2019
8.44% 8.23% 7.98% 7.80% 7.63%