La Martina Case

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Views: 227

Words: 294

Pages: 2

Category: Business and Industry

Date Submitted: 12/26/2013 03:36 AM

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Solutions:

Taking our core problem into consideration,

to grow revenue by over 50% over the next two years in order to cash out VC,

and curent cappabilites of our manufacturing facilities the best option would be to introduce 2 flavors SKUs of children`s multi-pack (4 pcs) into the natural foods channel two new SKUs to break into the multi-pack childrens jhjgj. The new SKUs should be introduced through the Natrual food channels thus limiting costs and yielding a strong profit contribution.

Breaking into this segment through the natural foods channels will allow us to avoid additional costs in workforce, sales and marketing, costs and slotting fees ($10,000 per SKU) and keeps our reputation and relationships with retailers strong. The company has earned a position of a major brand in the natural foods channel and this position has helped the company to build strong and valuable relationships with leading natural foods retailers like the chains Whole Foods and Wild Oats.

--doesn`t have adequate resources and skills to sell effectively to and through supermarkets---

The relationship we have built with natural food channel retailers will put us in an excellent position to break into the market with this multi-pack product.

The fact that The natural food channel is growing almost 7 times faster than the supermarket channel gives us conidence in the long term sustainability for the company and presents the most feasable option with is relatively low total investment compared to options in the supermarket chains-- our resources are already familure with the market and channel thus a giving us substantial revenues with a gross profitability of 37.6%.

Projecttions sales for NV .. multipack… 1,800,000 units at a cost of 1.15 per

Average retail price is 3.35