Introduction
The Clipboard Tablet Company is an organization that designs and manufactures tablets. The Chief Executive Officer (CEO) for this organization is looking to move the organization to the next level. In making the decision to take the organization to the next level, the CEO believed that the organization needed a change in marketing department. The Vice President (VP) of Market was released and I was hired to move the marketing department into the future based on the CEO’s vision. The CEO asked me to conduct an analysis of the last four years. The organization has three product on the market right now and they are as follows X5, X6 and X7 model tablets.
As the new VP of Market, I am devoted to getting the maximum profit from all three models over five years. The X5 model looks to be performing at a competitive level for having been of the market for three years. The X6 model was the next product produced by the Clipboard Tablet Company on the market for 2 years during a time when customers care about performance and not price, this tablet is a step above its competitors. The X7 model comes out during a time when customer are more concerned with price than performance, it has been on the market for one year.
Price, Sales, Revenue, Cost and Profit for year 2011
The Clipboard Tablet Company productive in 2011, the company sold 968,979 of X5 tablets at $285 per tablet that resulted in $276,159,015 of revenue minus the total cost of manufacturing $232,167,777 that resulted in a $43,991,238 profit. The profitability percentage was 16% and contributed margin ratio was at 47%. The profit margin per tablet is $45.40.
During the same year, the organization sold 562,961 of X6 tablets at $430 per tablet that resulted in...
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...nce to development of new products to continue profitability. The graph below shows the profit generated by each model per year.
Conclusion
Overall, when compared to Joe Scheme cumulative profit of $1,513,237,527 by not changing the prices or R&D. “Based on the simulation there was an opportunity to make an additional profit of $586,762,473, so the best cumulative profit would be $2,100,000,000” (Elson, n.d.). Marketing managers have to understanding the financial status of the organization, market share, pricing and importance of R&D impact that it has on future profitability. As the VP of Marketing for the Clipboard Tablet Company, we will make every effort to maximum our products potential to make a profit.
Works Cited
Elson, J. (n.d.). Tablet Development Sim. Retrieved from http://forio.com/simulate/jelson/tablet-development-sim-1/simulation/#p=page0
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