Question

Walmart recently asked Mondelez, owner of Oreos to bring back a new-and-improved version of its 1990's cereal, Oreo O's. By studying social media comments, Walmart discovered a preference for cereal to address late-night snacking. What should Walmart measure during the initial 90-day relaunch, exclusive to its stores? At what level should it measure, and why?

Answer 1

Walmart should measure consumer response during the first 90 days of launching the product . Consumer response can be measured by amount of sales per day , particular consumer group who the purchasing maximum can be estimated by survey and consumer reviews .

Walmart should measure amount of sales and consumer reviews that should cover its total costs atleast or at the break even point . At the break even point there is zero profit but not loss . Then Walmart should see the response of consumers by increasing the price slightly , if demand is not affected much then the product has inelastic demand to some extent and Walmart can make profits out of it in long run .