toms of mainstream

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Toms of Mainstream

The only source is the article by Sean Donahue . Its name is Toms mainstream . According to the article , the questions should be answered If we assume there are about 110 million households in the United States , approximately how many households currently buy Tom 's products

How big (in households ) does Tom 's believe their potential market is

If they managed to sell to every one of their potential target households , assuming each household buys about the same amount of

Tom 's products , how much growth would this represent ? Would this growth cause any conflict with Tom 's socially-conscious goals

How does the company avoid spending a lot of money on marketing ? What "currency " or value do they offer to retailers instead of money , in to get retailers to promote Tom 's products

According to the question , the US has 110 million households . Tom 's sales are 2 and this indicates that he has gained a 2 of the 110 million households , which gives him about 2 ,200 ,000 household customers or market

Tom believes that he can increase this market penetration from 2 to 13 , which means its market would increase from 2 ,200 ,000 to 14 ,300 ,000 households , assuming that each household purchases one product

Still assuming that each household purchases one product and the company manages to make the sales which is increased by 13 of sales as Tom has predicted , he is expecting that the sales in dollar value would be increased to 45 ,2 million . This number indicates the sales values in terms of cost of goods sold

However , this number does not picture the true number of the household-customers . The information does not mention about the number of households that purchase more than one of Tom 's product

Tom is assuming that each household purchase one product but Tom is selling 90 products . This means that the above expectation seems beyond the reality of financial gain

Tom also predicts that he is expecting 20 to 25 annual growth in sales before profits . This would give him to 50 million

At the same time , Tom 's idea is to donate 10 of its pretax income to charity . It would reduce his expected growth and hence his profits While expecting or predicting growth , Tom is giving away 10 of its income to charity and increasing his investment in Brooks company and paying his employees 15 higher than the local wage , an indication that he is stretching the resources thin . In addition , the company wants to stretch the resources thinner on massive marketing . Production enhancement itself has increase the cost by 25

While stretching the resources thin , Tom has to reduce the amount of the product to become less than the size of its current product and the same product in the market while keeping the price at its current level . This may eventually affect the company 's sales because customers...