murmur
(b)
(i) Analyze, for each of in-branch and online bookings, the net operating profit and the net operating profit percentage for (i) Package, (ii) Adventure and (iii) Prestige Travel holiday products.
Net Operating Profit
Items
Package
Adventure
Prestige
Revenues:
Revenue from in-branch bookings
9,000,000
3,000,000
85,500,000
Revenue from online bookings
81,000,000
57,000,000
9,500,000
Total Revenues
90,000,000
60,000,000
95,000,000
Expenses:
Cost of sales
(54,000,000)
(39,000,000)
(71,250,000)
In-branch holiday order processing (SK$600)
(1,800,000)
(900,000)
(10,260,000)
Online holiday order processing (SK$200)
(6,000,000)
(6,000,000)
(380,000)
Late booking processing (SK$400)
(4,620,000)
(1,512,000)
(456,000)
After-sales queries/complaints processing (SK$550)
(4,900,500)
(1,732,500)
(7,837,500)
Total Expenses
(71,320,500)
(49,144,500)
(90,183,500)
Net Operating Profit
18,679,500
10,855,500
4,816,500
Number of bookings:
Package
Adventure
Prestige
In-branch bookings
3,000
1,500
17,100
Online bookings
30,000
30,000
1,900
TOTAL
33,000
31,500
19,000
Package
Adventure
Prestige
Late booking processing
11,550
3,780
1,140
After sales queries/complaints processing
8,910
3,150
14,250
Net Operating Profit Percentage
Package
Adventure
Prestige
(ii) Discuss how V could improve the product profitability of each of its three holiday product types.
Your answer should take into account the results of your analysis in (b) (i) and also consider any other information that would be relevant in helping V’s Board determine how it could improve its product profitability.
First ways that can V done to improve its product profitability is by introducing the relationship marketing strategy. This is function as the devoting strategy in all marketing resources to maintain and exploiting the firms existing customer base rather than to use the
(i) Analyze, for each of in-branch and online bookings, the net operating profit and the net operating profit percentage for (i) Package, (ii) Adventure and (iii) Prestige Travel holiday products.
Net Operating Profit
Items
Package
Adventure
Prestige
Revenues:
Revenue from in-branch bookings
9,000,000
3,000,000
85,500,000
Revenue from online bookings
81,000,000
57,000,000
9,500,000
Total Revenues
90,000,000
60,000,000
95,000,000
Expenses:
Cost of sales
(54,000,000)
(39,000,000)
(71,250,000)
In-branch holiday order processing (SK$600)
(1,800,000)
(900,000)
(10,260,000)
Online holiday order processing (SK$200)
(6,000,000)
(6,000,000)
(380,000)
Late booking processing (SK$400)
(4,620,000)
(1,512,000)
(456,000)
After-sales queries/complaints processing (SK$550)
(4,900,500)
(1,732,500)
(7,837,500)
Total Expenses
(71,320,500)
(49,144,500)
(90,183,500)
Net Operating Profit
18,679,500
10,855,500
4,816,500
Number of bookings:
Package
Adventure
Prestige
In-branch bookings
3,000
1,500
17,100
Online bookings
30,000
30,000
1,900
TOTAL
33,000
31,500
19,000
Package
Adventure
Prestige
Late booking processing
11,550
3,780
1,140
After sales queries/complaints processing
8,910
3,150
14,250
Net Operating Profit Percentage
Package
Adventure
Prestige
(ii) Discuss how V could improve the product profitability of each of its three holiday product types.
Your answer should take into account the results of your analysis in (b) (i) and also consider any other information that would be relevant in helping V’s Board determine how it could improve its product profitability.
First ways that can V done to improve its product profitability is by introducing the relationship marketing strategy. This is function as the devoting strategy in all marketing resources to maintain and exploiting the firms existing customer base rather than to use the