Question 1: What are the manufacturer’s dollar sales of canned dog food sold through supermarkets in the Boston Market? Answer: $12‚000‚000 Rationale: Supermarket sales of dog food will total $5 billion (at manufacturers’ prices) in 2011 (Pg. 115). Canned dog food accounts for 20% of dollar share total dog food (Exhibit 1). Additionally‚ the Boston Market represents 1.2% of both the U.S. and dog populations‚ since dog and human populations are highly correlated (Pg. 115). By multiplying
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refrigerated. Alternatives Alternative 1 - The first alternative is to spend $500‚000 on an ad campaign. This alternative will also add in the $50‚000 for slotting fees for the supermarkets. This gives us a total fixed costs of $550‚000. This alternative will use the higher $50‚000 slotting fee as opposed to the $30‚000 slotting fee because we are assuming that the additional $20‚000 will help convince the supermarkets to give our product premier space in their freezer section. We are also
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Case: Sorrell Ridge a. What are Sorrell Ridge’s sources of negotiating power and weaknesses? What about Bromar’s? This case is about the slotting allowance when Allied Old English Company wants to introduce the Sorrell Ridge spreadable fruit product into the California market. Considering the factors including product itself‚ market‚ distribution channels‚ consumers’ needs& demand‚ competitor’s profiles‚ we analyzed the negotiating power and weakness of Sorrel Ridge and Bromar
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PROBLEM STATEMENT Tyler Pet Foods‚ Inc. met with representatives of Marketing Ventures Unlimited to discuss possible entry into the household dog food market in the Boston Massachusetts metropolitan area. The meeting raised the question: "Is there a place for Show Circuit in the dog food market?" COURSES OF ACTION After the meeting‚ Tyler Pet Foods had several unanswered questions: 1. Was the market itself adequately defined and segmented? 2. What position would Show Circuit seek in the market? Should
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marketing decisions to grow revenues to $20‚000‚000 from their current $13‚000‚000 before the end of the 2001fiscal year. Channel Analyses Supermarket channel offers more potential for sales and revenue but also is very costly due to technologyand slotting fee requirements and is also risk filled due to many unknown variables. However despite the risk‚ thischannel provides the most exposure and market base. The Nature foods channel offers less risk‚ but only servesniche market of organic food purchasing
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1993‚ whereas the food industry spent only 0.7% of gross sales. It requires 2-4 years and $5-10 million to develop a new brand Distribution barrier New entrants need to pay ‘slotting allowance’ to most of the food stores to secure a shelf space for a new brand. Even large cereal firms were not exempt from paying the fee‚ they still have advantage on distribution. The large firms can shift brands among their own space‚ or sometimes replace a failed brand with a new one. High Advertising Cost
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pay a $10‚000 slotting fee for each stock keeping unit (SKU) per retailer chain‚ to contribute funds every 3 months for weekly trade promotions that average $8‚000 nationally per ad‚ per retailer chain. This fee is in addition to other advertising expenditures that the manufacture plans to incur. Secondly‚ if the manufacturer product continuously does not make a profit for the retailers‚ it can be pulled from the channel. The Manufacture would then have to repay the slotting fee when applying
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Current Situation Natureview Farms needs to grow revenue from $13 million to $20 million before the end of 2001‚ which is 22 months away. The company must reach this goal to attract new capital investments after the venture capital firm cashes out its investment. While revenue growth is the
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[pic] MARKETING II(post case analysis) Loyalty Program[pic] Sales Promotion is a key ingredient in marketing campaigns which consists of a collection of incentive tools‚ mostly short term that are designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Sales contests/incentives: Aims at including the sales force or dealers to increase their sales results over a stated
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Also the turn over rate would be higher. b. Aldi offers only one type‚ or at most two‚ of product. This would simplify the managing process. Also since the products it carries are usually private labeled‚ the cost is relatively lower. c. No slotting fee but only putting popular products. It makes sure the cash flow runs fast for
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