Fiji
A. Ideal information required to make the “Go/No Go” Decision
The “Go/No Go” decision, in the Fiji Water case, requires the analysis of several pieces of information which when organized into a Break-Even Analysis, and a Customer Lifetime Value analysis would give an ideal solution. To create a Break-Even Analysis, the associated Fixed Costs and Variable costs of selling Fiji Water Bottles would be needed. Fixed costs should include all costs of long-term assets, equipment, utilities such as electricity, and Variable Costs should include cost of making each bottle, salary incentives, taxes per bottle and so on. Once this information is available, the break-even volume over the two years can be found out, to give the minimum required sales to make a no-loss operation. The estimated market share in terms of units of bottles sold is also required for comparison with the Break-Even Volume, to make the “Go/No Go” Decision.
In an ideal situation a Customer Lifetime Value analysis would have aided our decision for which one must know the costs for acquiring a retailer for stocking our products (Acquisition Costs) and the annual profits the retailer generates for the distributor (Revenue-Variable Costs/ Distributor Margin). The number of years the retailer is loyal to Fiji is also an important factor in conducting the analysis (The Retention Rate). Based on this information a Customer Lifetime Value over the two years can be conducted, to see whether it is worth it to acquire customers in the first place.
B. Decision for Market Research
The team did an individual analysis of the research that might be needed to make the “Go/No Go” decision and met up to discuss their analysis. Tables G and H provided surveys, which would have helped in estimating market, share of Fiji. However, more quantitative data was available in Table C and was much less expensive than Table G and H. Table D would help us estimate total gallons consumed in the two-county area, which would
The “Go/No Go” decision, in the Fiji Water case, requires the analysis of several pieces of information which when organized into a Break-Even Analysis, and a Customer Lifetime Value analysis would give an ideal solution. To create a Break-Even Analysis, the associated Fixed Costs and Variable costs of selling Fiji Water Bottles would be needed. Fixed costs should include all costs of long-term assets, equipment, utilities such as electricity, and Variable Costs should include cost of making each bottle, salary incentives, taxes per bottle and so on. Once this information is available, the break-even volume over the two years can be found out, to give the minimum required sales to make a no-loss operation. The estimated market share in terms of units of bottles sold is also required for comparison with the Break-Even Volume, to make the “Go/No Go” Decision.
In an ideal situation a Customer Lifetime Value analysis would have aided our decision for which one must know the costs for acquiring a retailer for stocking our products (Acquisition Costs) and the annual profits the retailer generates for the distributor (Revenue-Variable Costs/ Distributor Margin). The number of years the retailer is loyal to Fiji is also an important factor in conducting the analysis (The Retention Rate). Based on this information a Customer Lifetime Value over the two years can be conducted, to see whether it is worth it to acquire customers in the first place.
B. Decision for Market Research
The team did an individual analysis of the research that might be needed to make the “Go/No Go” decision and met up to discuss their analysis. Tables G and H provided surveys, which would have helped in estimating market, share of Fiji. However, more quantitative data was available in Table C and was much less expensive than Table G and H. Table D would help us estimate total gallons consumed in the two-county area, which would