Breadmaster produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.00 p
er pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months: July: 1,540 loaves August: 1,820 loaves September: 1,660 loaves October: 1,460 loaves The bakery has a policy that it will have 20% of the following month's flour needs on hand at the end of each month. At the end of June, there were 154 pounds of flour on hand. How much flour should Breadmaster purchase in August
2 answers:
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Answer:
C. I would only need to create 33% new awareness to maintain 100% this year.
Explanation:
Each product’s promotion budget determines its level of awareness. A product’s awareness percentage reflects the number of customers who know about the product. An awareness of 50% indicates half of the potential customers know it exists. From one year to the next, a third (33%) of those who knew about a product forget about it.
Last Year’s Awareness - (33% * Last Year’s Awareness) = Starting Awareness
If a product ended last year with an awareness of 50%, this year it will start with an awareness of approximately 33%. This year’s promotion budget would build from a starting awareness of approximately 33%.
Starting Awareness + Additional Awareness = New Awareness
You lose about 1/3rd each year as customers forget the product.
