Question

If the detergent market decreases by 18.75% in 1998 and Procter & Gamble takes over Spic Fine Chemicals (that is, the sales value of the brands Henko Stain Champion and White Giant gets added to the sales value of Procter & Gamble), what will be the percentage change in the total detergent sales of Procter & Gamble?(market share percentages in 1998 remain the same as in 1997)

• A. 16.5%
• B. 11.7%
• C. 8.4%
• D. 9%
• E. 18%

Answer 1

The correct option is B 11.7%

Ans. (b)

New detergent market = 1.3/16 * 3200 = 2600 Cr Rs.

Sales of P and G in 97 = (3% + 5%) of 3200 = 256 Cr.

Sales of P and G in 98 = (3% + 5% + 2% + 1%) of 2600 = 286 Cr.

Therefore, % change = 30/256 * 100 = 11.7%