1. You are a salesperson for Bottoms Up Beverage Company and are introducing a new bottled water product called Fresh-is-Best Sweetwater, sourced from the natural springs of the Great Lakes near Flint, Michigan. You are preparing to call on the GO GO! Convenience store chain in an attempt to gain authorization for Fresh-is-Best Sweetwater distribution and floor displays in all 85 of the chains outlets. Your regular wholesale price (to the retailer) is $16.80 per case of twenty-four 20 oz. bottles. a. In order for GO GO! to obtain its standard margin of 44%, it would need to establish a price to consumer of ____________per 20 oz. bottle.

The chain estimates that it will sell 10 cases per store (240 bottles) each week at this price. However, to generate strong consumer trial of your new product, you would like to convince the chain to authorize large Fresh-is-Best Sweetwater displays in each store and offer an introductory price to consumer of 99 cents. To facilitate this, Bottoms Up Beverage is offering a Get Rolling promotional $12.00 per case cost to the retailer when the store buys 50 cases or more at a time and fulfills certain merchandising requirements (e.g., displays and advertising). b. How many cases per week would the chain have to sell in each store to break even and make this proposition viable for GO GO!? ____________

Although you hope to sell GO GO! on this program, Bottoms Up also offers a slightly less attractive deal of $14.40/case (Get Started promotion) with a 20-case minimum per store purchase and less aggressive merchandising requirements. c. How many cases would each store have to sell to break even in this scenario if it still ran a 99 cent introductory price to consumer? _________________. What about if it ran a 1.09 sale price instead? __________________

In test markets, Bottoms Up found that retailers that took advantage of Bottoms Ups $12.00/case Get Rolling deal and merchandised Fresh-is-Best Sweetwater 20 oz bottles as per the requirements with a 99 cent price to consumer generated on average a 75% increase in sales over those stores that just priced the product at the regular price to consumer of $1.25. d. Assuming GO GO! experiences similar results, what would the total incremental profit impact be to the GO GO! chain if it chooses to take advantage of the Get Rolling promotion and offer a consumer price of 99 cents versus agreeing to the Get Rolling promotion but offering a consumer price of $1.25? ___________ What would the total profit impact be to the GO GO! chain if it chooses to not take advantage of the Get Rolling promotion and instead buy Fresh-is-Best Sweetwater at the regular price of $16.80/case and sell it to consumers for $1.25/bottle? ____________