Market Research
Case Study
DeVry University
Dear Charles,
We appreciate your helping us out with the moving forward with the testing of the new cups and carriers. Your feedback was invaluable!
Since Clover Valley Dairy has been operating, we have always tried be proactive in our approach to business. With all the recent competitiveness, we’re watching the business trends more closely as we have always operated under.
We’ve changed things dramatically with our products and have risen above our product flaws. After changing the ounces the cups hold from 9 to 6, our sales tripled. But the new cup design had our costs rise significantly.
I was happy with the changes that we made that did result in increased sales, however, the high packaging costs still needed serious attention. By packaging several of the 6 oz. containers together, I felt we would be able to reduce our packaging costs while possibly increasing sales as consumers would be able to carry more containers home at one time.
Based upon that, we should expand our product development and check into other markets where we may succeed. The competition is doing more and more to expand and we should as well. I don’t think we are on the wrong track, so moving forward, we should stay in line with this current course of action. As our Vice-President once said, “If it ain’t broken, don’t fix it”!
We do need to make some changes, however. While we are doing well, we need to stay competitive. With the recession, we were lucky to manage to keep our head above water, but future years may not find us so lucky. Before that happens, we need to find a solution to the shrinking sales. I think doing so is key to our continued growth and earning potential. Otherwise, we may not survive.
With the ounces change to our cups in place, I suggest we stay the course with that and continue to develop product in that same line. Our unit sales have...