Marketing Management [with Indian Case Study]

by Gupta Prachi

users located in Venice. The extensive product testing by a wide variety of users provided Pegasus with valuable product feedback and has led to several design improvements. Table 2.5 Break-Even Analysis Monthly Units Break-Even 62 Monthly Sales Break-Even $ 7,760 Assumptions: Average Per-Unit Revenue $125.62 Average Per-Unit Variable Cost $ 22.61 Estimated Monthly Fixed Cost $ 6,363 5.0 Financials This section will offer the financial overview of Pegasus related to marketing activities. Pegasus will address break-even analysis, sales forecasts, and expense forecast and indicate how these activities link to the marketing strategy. 5.1 Break-Even Analysis The break-even analysis (Table 2.5) indicates that $7,760 will be required in monthly sales revenue to reach the break-even point. 5.2 Sales Forecast Pegasus feels that the sales forecast figures are conservative. It will steadily increase sales as the advertising budget allows. Although the target market forecast (Table 2.4) listed all of the potential customers divided into separate groups, the sales forecast (Table 2.6) groups customers into two categories: recreational and competitive. Reducing the number of categories allows the reader to quickly discern information, making the chart more functional. Table 2.6 Monthly Sales Forecast Sales 2015 2016 2017 Recreational $455,740 $598,877 $687,765 Competitive $ 72,918 $ 95,820 $110,042 Total Sales $528,658 $694,697 $797,807 Direct Cost of Sales 2015 2016 2017 Recreational ...