You are selling a product in an area where 30 % of the people live in the city and the rest live in the suburbs. Currently 20 % of the city dwellers user your product and 10 % of the suburbanites use your product. You are presented with two new sales strategies the first will increase your market share in the suburbs to 15 %. The second will increase your market share in the city to 25 %. Which strategy should you adopt? What percentage of the people who own your product are city dwellers before your new sales drive
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Given You are selling a product in an area where 30 % of the people live in the city and the rest live in the suburbs. Currently 20 % of the city dwellers user your product and 10 % of the suburbanites use your product. You are presented with two new sales strategies the first will increase your market share in the suburbs to 15 %. The second will increase your market share in the city to 25 %. Which strategy should you adopt? What percentage of the people who own your product are city dwellers before your new sales drive
- Let the total population be p
- Now city population = 30% = 0.3 p
- Suburb population = 70% = 0.7 p
- According to the question 20% of city dwellers used the product.
- 20% = 0.2
- So 0.2 x 0.3 p
- = 0.06 p
- Also 10% of the suburb population will be
- 10% = 0.1
- So 0.1 x 0.7 p
- = 0.07 p
- Now consider the first strategy
- Increase the share market from 10% to 15% = 5% = 0.05
- So we have New users = 0.05 x 0.7 p
- = 0.035 p
- Now for the second strategy
- Increase the share market of city population from 20 to 25% = 5% = 0.05
- So we have New users = 0.05 x 0.3 p
- = 0.015 p
- Since the new users of first strategy is more, the first strategy will be adapted.
- Therefore percentage of city dwellers before new sales drive will be
- 0.06 p / 0.06 p + 0.07 p
- 0.06 p / 0.13 p
- 0.461
- = 46.1%
Reference link will be
https://brainly.in/question/26504871
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Answer:
46.1%
Isthe correct answer
hope it helps u
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