Going Global with CAPABLE JUICE

You are the CMO (Chief Marketing Officer) for CAPABLE JUICE. CAPABLE JUICE is a company that sells a line of premium, all-natural juices. CAPABLE JUICE is marketed as a tasty beverage particularly well-suited for people who emphasize health and wellness in their lives. To date, your company has only sold in the Country C, but you are now preparing to make your first expansion into a foreign market.

Previous research has narrowed the candidate countries down to three. Regardless of which country is selected, it has already been determined that CAPABLE JUICE will be sold to local distributors who will then be responsible for selling to local retailers and, ultimately, consumers. Your Chief Financial Officer (CFO) has provided you some preliminary financial information, and you have also been handed a report created from the GfK Consumer Trends Global Consumer Survey. This survey reports information about each country. Importantly, it dives deeper and also segments consumers by their relative income and occupational status. In the Country C, income and occupation have been important characteristics to identify CAPABLE JUICE consumers.

Review the data from the CFO and from the GfK consumer report. Then, make some preliminary financial estimates about the likely financial performance of CAPABLE JUICE. Based on your estimates, make some preliminary recommendations for CAPABLE JUICE's future international expansion.

Please let me know solutions !

Country Country Country Country A B Income High Medium High Medium Group High Medium Occup. White Blue White Blue White Blue White Blue White Blue White Blue Group Collar Collar Collar Collar Collar Collar Collar Collar Collar Collar Collar Collar Est. Population of Country 80.9 (millions) 70.4 199.0 15+ years old Country Segment, % of % of 4.2 2.3 16.5 16.4 9.6 4.2 9.3 9.5 7.9 3.6 16.7 Country 7.2 Group Size of Group (000s) 2,956.8 1,619.2 11,616.0 11,545.6 7,766.4 3,397.8 7,523.7 7,685.5 15,721.0 7,164.0 33,233.0 14,328.0 Personal Values: Health % of 59.3 61.1 54.6 53.4 46.9 55.5 38.8 44.9 57.2 48.1 44.1 54.1 and Fitness Group Satisfaction with Primary Shopping Location: % of 69.9 66.7 70.2 70.0 73.2 74.4 73.8 75.2 78.1 75.9 72.6 65.9 Availability of healthy foods Group and beverages Drink fruit juice daily % of 16.9 20.7 16.1 17.4 32.5 34.9 22.1 24.8 30.8 18.8 19.9 26.9 Group % of Drink Fruit juice weekly 38.6 41.7 39.8 31.9 36.8 37.4 33.7 43.1 29.7 32.7 39.9 39.3 Group % of Drink fruit drinks daily 7.4 3.5 2.4 5.7 9.2 9.1 14.0 10.0 21.3 10.1 8.6 19.5 Group Drink fruit drinks weekly % of 28.8 30.8 25.3 23.7 26.6 35.4 31.1 32.9 29.6 31.3 28.8 34.9 Group Regularly eat healthy, % of nutritious foods for: physical 55.8 66.1 51.5 49.5 61.0 75.3 54.7 54.3 58.0 66.0 67.7 49.0 Group health Regularly eat healthy, % of nutritious foods for mental / 30.6 32.2 30.7 24.2 30.6 35.6 34.2 33.9 38.5 36.6 22.5 30.7 Group emotional health % of Group 41.1 33.5 37.3 35.6 31.9 42.1 45.1 38.2 44.1 31.7 40.5 34.7 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 630.4 Regularly eat healthy, nutritious foods for: appearance CFO Data: Price per bottle to local distributors (US$) Number of Daily Drinks in Segment (000s) Beverages sold per year to segment (millions) Estimated number of annual fruit juice / drink beverages consumed per year by segment member CFO Data: Estimated Market Share within 230.1 77.8 10% Segment $17.26 Estimated Annual Sales (millions) Estimated Sales per Consumer $5.84 Task 3: Estimating Sales The CFO is impressed with your initial estimates. She would like you to go even further and estimate the total sales expected within each segment after one year. Again, the CFO has provided you with some important estimates to help you make your calculations. Financial Assumptions: (1) The per unit price sold to distributors will be $0.75, regardless of country or quantity sold. (2) The estimated market share for sales depends on how much a segment sees health and wellness as being essential to their lives. If health and wellness is a priority for a segment, the CFO assumes a 10% market share in that segment during the first year is reasonable. If health and wellness is not a major priority, the market share is assumed to only be 5%. Health and wellness is considered to not be a priority for a segment if less than 50% of the members of that segment identify it as a priority. Using the GfK data and the information provided by the CFO, what is the estimated annual sales for each segment? Based on these estimates, how much money per consumer would we expect for each segment? Complete the table below. (Round to two decimal places.) CFO Data: Price per bottle to local distributors CFO Data: Estimated Market Share within Segment 10% Estimated Annual Sales (millions) Estimated Sales per Consumer Country A High $17.26 White Collar Blue Collar $0.75 $0.75 $5.84 $ $ Country Country Country Country A B Income High Medium High Medium Group High Medium Occup. White Blue White Blue White Blue White Blue White Blue White Blue Group Collar Collar Collar Collar Collar Collar Collar Collar Collar Collar Collar Collar Est. Population of Country 80.9 (millions) 70.4 199.0 15+ years old Country Segment, % of % of 4.2 2.3 16.5 16.4 9.6 4.2 9.3 9.5 7.9 3.6 16.7 Country 7.2 Group Size of Group (000s) 2,956.8 1,619.2 11,616.0 11,545.6 7,766.4 3,397.8 7,523.7 7,685.5 15,721.0 7,164.0 33,233.0 14,328.0 Personal Values: Health % of 59.3 61.1 54.6 53.4 46.9 55.5 38.8 44.9 57.2 48.1 44.1 54.1 and Fitness Group Satisfaction with Primary Shopping Location: % of 69.9 66.7 70.2 70.0 73.2 74.4 73.8 75.2 78.1 75.9 72.6 65.9 Availability of healthy foods Group and beverages Drink fruit juice daily % of 16.9 20.7 16.1 17.4 32.5 34.9 22.1 24.8 30.8 18.8 19.9 26.9 Group % of Drink Fruit juice weekly 38.6 41.7 39.8 31.9 36.8 37.4 33.7 43.1 29.7 32.7 39.9 39.3 Group % of Drink fruit drinks daily 7.4 3.5 2.4 5.7 9.2 9.1 14.0 10.0 21.3 10.1 8.6 19.5 Group Drink fruit drinks weekly % of 28.8 30.8 25.3 23.7 26.6 35.4 31.1 32.9 29.6 31.3 28.8 34.9 Group Regularly eat healthy, % of nutritious foods for: physical 55.8 66.1 51.5 49.5 61.0 75.3 54.7 54.3 58.0 66.0 67.7 49.0 Group health Regularly eat healthy, % of nutritious foods for mental / 30.6 32.2 30.7 24.2 30.6 35.6 34.2 33.9 38.5 36.6 22.5 30.7 Group emotional health % of Group 41.1 33.5 37.3 35.6 31.9 42.1 45.1 38.2 44.1 31.7 40.5 34.7 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 630.4 Regularly eat healthy, nutritious foods for: appearance CFO Data: Price per bottle to local distributors (US$) Number of Daily Drinks in Segment (000s) Beverages sold per year to segment (millions) Estimated number of annual fruit juice / drink beverages consumed per year by segment member CFO Data: Estimated Market Share within 230.1 77.8 10% Segment $17.26 Estimated Annual Sales (millions) Estimated Sales per Consumer $5.84 Task 3: Estimating Sales The CFO is impressed with your initial estimates. She would like you to go even further and estimate the total sales expected within each segment after one year. Again, the CFO has provided you with some important estimates to help you make your calculations. Financial Assumptions: (1) The per unit price sold to distributors will be $0.75, regardless of country or quantity sold. (2) The estimated market share for sales depends on how much a segment sees health and wellness as being essential to their lives. If health and wellness is a priority for a segment, the CFO assumes a 10% market share in that segment during the first year is reasonable. If health and wellness is not a major priority, the market share is assumed to only be 5%. Health and wellness is considered to not be a priority for a segment if less than 50% of the members of that segment identify it as a priority. Using the GfK data and the information provided by the CFO, what is the estimated annual sales for each segment? Based on these estimates, how much money per consumer would we expect for each segment? Complete the table below. (Round to two decimal places.) CFO Data: Price per bottle to local distributors CFO Data: Estimated Market Share within Segment 10% Estimated Annual Sales (millions) Estimated Sales per Consumer Country A High $17.26 White Collar Blue Collar $0.75 $0.75 $5.84 $ $