This kind of round we decided to give attention to the low end segment due to faster require growth by increasing the advertising cost for better reach. This round we maintain 2 products and chosen Avant Grade for the two markets. Avant Grade is made to cater to the two markets and help to increase the sales quantity. We added more features pertaining to both industry since Top end segments are able to pay for progressive model. The warranty period remained as 18 months as longer length of the guarantee will result in more demand around the products. No changes were created on the R& D even as we were afraid that it will end result more cost to be sustained. Round 4
In this round we did not make adequate profit to pay our price. Upon comparability, we noticed that Red and Pink clubs earnings had been ВЈ150 to ВЈ170 when we just made ВЈ85 for each product in the European countries market. For Asia marketplace Red and Pink clubs were making ВЈ130 every product and are only generating ВЈ60 for each and every product. In Asia marketplace, we have added additional unit as the population in Asia Household companies are growing. Identical to previous rounded, we decreased the unit cost of each version. Different design in the handsets have been created to cater the different requirements of the buyers. Advertising price was still increasing in Home and Businesses. Since there is also a vast populace in Asia, we decided to top up another ВЈ5000 in the R& D as compared to the previous rounded. Margin in repairs for both Asia and The european union market was up simply by 10% to 30%. This kind of increase in margin was to help in the unforeseen increase range of repair that will happen inside the both markets. We had the best selling product in Asia and second best in Europe marketplace. However it would still be not sufficient to gain more market share.
Our share cost for round 3 was 104. 16%. We decided to focus more on the low end segment as a result of faster require growth by increasing the advertising expense for greater reach. We all pumped much more advertising expense to target the reduced end segment since...