Case Study: Clover Valley Dairy Company

Case Study: Clover Valley Dairy Company

Rebeca Aquino

DeVry University

Case Study: Clover Valley Dairy Company

Statement of the Problem(s)

The main issue in this case study is weather a newly developed multipack carrier for yogurt was ready for market testing and, if so, how should Vince Roth, General Manager of the Clover Valley Dairy Company, should perform this testing.

Summary of the Facts

The Clover Valley Dairy Company had sold and produced milk derivate products including milk, ice cream, yogurt, cottage cheese, butter, skim milk, buttermilk and cream, since 1930.

Their sales had being successful and with an annual increase of sales of $3.75 million, Never the less after the next 4 years a serious of new competitors had started to come out and started to affect the Clover Valley Dairy Company’ sales is a manner that was worrying.

It was then when a series of changes needed to be done. Vince Roth thought that a good way of differentiate their brand from the brand of others would be to have a packaging change and he started to experiment with different ideas, some of which were rejected due to an unjustified increase of production cost.

It was while experimenting with different packaging that a new idea surged and was accepted. They changed their packaging of the small yogurts and they also reduced their size from 8oz to the new look of 6oz in a plastic container with an aluminum lid. The sales per item increased considerably however the total sale amount were not that great.

This was when a new idea was introduced in order to increase not only the sale amount of units but also the sale amount of money they should pack their 6oz yogurt in a multipack. This change would force the costumers to get the multipack instead of just the individual items.

New multi packaging started to be developed but some problems started to appear and this were that sometimes the multi packaging was too tight that caused...