Clover Valley Dairy Case study - Letter to Charles Krieger
Dear Charles Krieger
Your valuable suggestions are much appreciated and are really very helpful in what we are trying to do here. I want to share my thoughts about the market testing we want to conduct and also discuss with you the ideas you have proposed, with the objective of finalizing them and ensuring we have the right approach for this initiative. I have outlined below my thinking on key aspects for your consideration, with the objective of ensuring the right strategy for this key initiative at Clover Valley.
Before getting into the actual market test, I wanted to define and clarify on what is the actual purpose of this research. We have spent considerable time and effort in coming up with the new multi pack carriers, for the new 6-oz product. The 6-oz product is a very successful product that has helped us increase our sales, and hence we want to ensure that all activities with this product are done with the intention of taking this forward and not risking our position due to any improperly thought out activities. Therefore the main purpose of the research that we are undertaking is to ensure that the new multi packs that we are introducing will be a good move on part of the company, boost existing sales while bringing down the costs of packaging, and ensure that company objectives in terms of revenue and margins are effectively achieved. The test should also be done with a subset of our target customer, so that risk of failure is minimized and any corrections or feedback from customers can be addressed and incorporated before rolling out the product to the entire customer group.
Coming to the next key items for the market test, we have to have a clear definition o...
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...sistants right from week two, or even possibly week one so that we can have feedback early and throughout the process that would help us get a much better idea on aspects that are being tested.
From a financial standpoint, it is always important that a cost benefit analysis is done to ensure that it makes business sense. This market testing may cost us about forty to fifty thousand dollars, but in my opinion I feel this is money well spent as this is about getting our best product right and ensuring a successful future for the company. The value of the research far exceeds the costs and hence we should go ahead with the market testing.
I have outlined my thoughts above for your consideration. Look forward to discussing with you more on this and taking this initiative forward, that would be a key decision point in the future of the company.
With Regards
Yash Jagad
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