21 May WHAT IS PLEASINGLY’S CURRENT SHARE OF THE MASSACHUSETTS JUICE/JUICE DRINKS MARKET?
Pleasingly Punch is a tropical fruit drink consisting of 100% pineapple, mango, and papaya juices, sold in industry standard 16-ounce bottles, 12 to a case (also the industry standard). The producers, who started and have been in business in Massachusetts for over ten years, are considering expanding to Rhode Island. Last year’s sales were about 180,000 cases. While Pleasingly does not have juice consumption data for the New England area, they do have some national data which includes share data for the four varieties in the juice/juice drinks category, based on their fruit content: 100% juice (54.9%), nectars containing 25% to 99% juice (6.1%), juice drinks with up to 25% juice (33.7), and fruit-flavored drinks with no juice (5.3%). They have also learned that annual juice consumption is about 8.6 gallons per person. A check of census data reveals that there are a total of 14,681 million people in New England, with 6.745 million of them residing in Massachusetts and 1.055 million of them in RI. Based on the information you have:
What is Pleasingly’s current share of the Massachusetts juice/juice drinks market?
How many total cases will Pleasingly sell if they add Rhode Island at the current share rate?
Does this seem reasonable? Why or why not?
A major juice drink company is considering purchasing Pleasingly and considering expanding distribution to all of New England. This company will not invest unless they can achieve at least a 1.5% market share of the segment they’re investing in. How many cases would this mean for Pleasingly?
Worldwide Wire makes specialized wire and cable for the high speed data transmission industry. Worldwide has about 1000 customers and currently uses its own sales force. Sales force members are paid a base salary of $40,000 plus a commission of 4% on their individual sales. Each salesperson currently spends about two hours, including travel time, once a quarter with each customer. In between visits, salespeople spend an additional three hours per quarter on phone calls and emails for each customer. The remaining 40% of their time is spent on non-customer specific matters (expense reports, internal meetings, product training, general sales analysis and forecasting, etc.).
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