Marketing manager received the reports on the profitability

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Reference no: EM131990383

The marketing manager received the reports on the profitability of the company and wondered whether the business is on the right direction. The manager was happy that the company generated a record 100M EGP in revenues in 2015; but found a net profit of 5M EGP quite low (just 5% net profit margin).

Below are important input data to guide the analysis:

Market Size = 1M units in 2015

Market is expected to remain constant with possible limited growth in 2016

Market Share = 80% with stable and relatively weak competition

Revenues = 100M EGP

Variable Costs (COGS) = 90M EGP

Overheads = 3M EGP

Marketing Expenses = 2M EGP

You have been appointed by the manager to analyze the situation and recommend actions for the future.

Reference no: EM131990383

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