Marketing Analytics: Branding Decision Instructions: Read the problem below and refer to the spreadsheet provided. The spreadsheet values highlighted in yellow can be manipulated in order to determine possible outcomes and answer the questions. You must answer the follow-up questions (a-e) correctly to receive full credit. Problem: Wholesteen Dairy, Inc., produces and sells Wholesteen brand condensed milk to grocery retailers. The overall market for condensed milk is fairly mature, and there's sharp competition among dairies for retailers' business. Wholesteen's regular price to retailers is $8.88 a case (24 cans). FoodWorld-a fast-growing supermarket chain and Wholesteen's largest customer-buys 20,000 cases of Wholesteen's condensed milk a year. That's 20 percent of Wholesteen's total sales volume of 100,000 cases per year. FoodWorld is proposing that Wholesteen produce private-label condensed milk to be sold with the FoodWorld brand name. FoodWorld proposes to buy the same total quantity as it does now, but it wants half (10,000 cases) with the Wholesteen brand and half with the FoodWorld brand. FoodWorld wants Wholesteen to reduce costs by using a lower-quality can for the FoodWorld brand. That change will cost Wholesteen $.01 less per can than it costs for the cans that Wholesteen uses for its own brand. FoodWorld will also provide preprinted labels with its brand name-which will save Wholesteen an additional $.02 a can. Wholesteen spends $70,000 a year on promotion to increase familiarity with the Wholesteen brand. In addition, Wholesteen gives retailers an allowance of $.25 per case for their local advertising, which features the Wholesteen brand. FoodWorld has agreed to give up the advertising allowance for its own brand, but it is only willing to pay $7.40 a case for the milk that will be sold with the FoodWorld brand name. It will continue under the old terms for the rest of its purchases. Sue Glick, Wholesteen's marketing manager, is considering the FoodWorld proposal. She has entered cost and revenue data on a spreadsheet-so she can see more clearly how the proposal might affect revenue and profits. Spreadsheet The spreadsheet values outlined in yellow can be changed in order to determine possible outcomes. You can find the initial values in < Prev 12 of 12 Next