Longchamp’s iconic merchandise, Le Pillage is a range of
foldable, leather-trimmed nylon bags. The huge success is labelled as
“eternal”. Le Pillage’s achievement can be regarded as a perfect practice of
marketing mix. Part of 4P model can be used to analyze this case.
Product
Le Pillage’s successful product positioning is “Quality”. Intended
as a functional bag, Le Pillage accepted one of the most practical and unusual
materials, nylon which is durable, sturdy, light as well as cheap.
Price
Le Pillage’s price plan, that average price is €90, made
this sequence of bags reasonable to most of the consumers.
Promotion
In 2006, Le Pliage sprang its first marketing campaign with
Kate Moss. Even in this campaign, model didn’t carry Le Pliage, halo effect of
Longchamp brand has enthused its trades.
Place
Longchamp brand as the strongest support plays the crucial
role in Le Pliage’s successful distribution.
Answer:
C. Company A is not bound by the contract because of illegality
Answer:
37 F
Explanation:
Direct materials Quantity variance 597 F
Less: Direct materials Price variance 560 U
Direct materials Flexible Budget variance 37 F
Answer:
25.3%
Explanation:
The expected return can be determined using the capital asset pricing model
The expected return = risk free return + (risk premium x beta)
11.5% + (1.15 x 12%) = 25.3%
Answer:
100
Explanation:
The market capitalization rate is 12%
= 12\100
= 0.12
Its expected ROE is 14%
= 14/100
= 0.14
The expected EPS is $3
The Plow back ratio is 80%
= 80/100
= 0.8
The first step is to calculate the dividend payout ratio
= 1-0.8
= 0.2
The expected dividend can be calculated as follows
=0.8×3
= $2.4
The growth rate can be calculated as
follows
= 0.8×0.14
= 0.112×100
= 112%
The value can be calculated as follows
= 2.4/0.12-0.112
= 2.4/0.008
= 300%
Therefore, the P/E ratio can be calculated as follows
= 300/3
= 100
