Help with my marketing assignment, PLEASE!?

Question

recieved this assignment and we just began this class and have not discussed anything like this. I am so lost! ANY help would be appreciated.... Below is the assignment:

MARKETING MANAGEMENT

CASE: Advanced Furniture Systems

Advanced Furniture Systems (AFS), a division of Conglomerated Diversified Industries (CDI), produces and sells a complete line of office furniture, equipment, and related products. Large organizations represent major potential customers and are served by a direct sales force. A separate sales force calls on a selected group of distributors who serve smaller organizations' needs. AFS sales for the current year are expected to reach $700 million, with direct marketing expenses budgeted for $100 million. Variable contribution margin for the product line is 20%.

CDI has distributed a corporate planning memo suggesting that increases of up to 15% in divisional marketing budgets might be possible in the next fiscal year. Industry s Industry sales for office furniture in the U.S. are expected to reach $13 billion in the current year with a ten percent increase next year*. These gains follow industry sales decreases in three of the preceding four years.

If AFS were to plan for a 15% increase in its marketing budget, what sales volume would be required to cover this increase? What would be the required sales volume, if an additional $3 million in total contribution was required for the 15% budget increase? What impact would these increases have on AFS needed market share?

Prepare a memo to AFS Executive Management Team (EMT) which answers the above questions. Include in this memo your recommendation for next year's marketing budget.

Answer 1

Memo:
TO: AFS--- EMT
Taking into consideration the growth and sales projections for the coming year it is felt that an increase of 15% in sales revenue is possible. Marketing expenses will be increased to $141,000,000. to ensure increased sales. To achieve a 15% increase in sales a gross sales revenue of $946,000,000.must be reached. Our current market share of approx 5.4% would need to increase to 7.3% to achieve our goal. I am confident that your sales team will be successful.

Answer 2

Memo

To: AFS Executive Management Team

From: Marketing Research Group

Re: Marketing and Budget Options for FY 2008


Sirs,

I am completely out of my depth. I therefore tender my resignation.

Regards,

Sally Strunglemeyer

Answer 3

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Answer 4

I can help you, when is this due? E-mail me or IM me directly.