Reference no: EM132853216

A well-established fashion retail company is planning a new product launch. At the same time, the company is in negotiations for a potential buy-out, which is progressing well. They are therefore under pressure to make sure the product launch is successful since that would boost the buy-out negotiations; on the other hand, if the product flops, that would be catastrophic and the buyer could walkout. To are trying to refine their strategy and decide whether to launch the product or not by looking at previous product launch flops and comparing them to the economic climate (using economic growth rate as a proxy for economic climate and consumer confidence).

They have gathered the following data:

Economic growth rate Product flops

1.75% 3

1.88% 1

1.92% 1

2.08% 1

2.33% 1

2.33% 1

2.50% 2

Focusing only on economic climate (and not other possible parameters that may affect the launch, such as product quality etc.), what would you advise the company to do? Do you think the above data set is sufficient or would you advise them to gather additional data and if so, what type?