Clover Valley Dairy Company Case

1. I definitely agree that the multipack carrier should be tested it seems that it is a crucial thing in this situation since we do not k now how the consumer is going to respond to the changes we are trying to make. The purpose of the test is to determine if it is profitable for Clover Valley to start producing the 6oz yogurt cups in a multipack which holds six yogurts together. Having this multipack is great because it makes it much easier for consumers to carry product home that is a convenience factor which people like. The test should be done in other outlets that are not competing with us, but also markets that are our competitors because our competitor's customer's views are needed to compare it with our customer's views. If we only use stores that are not competing with us, we will not get the full information that we will need to determine whether this is profitable or not.

2. The main factor that needs to be looked at is how sales are impacted from changing the package. Often sales can just be increased by how the package looks for an item. If the packaging has an appealing design customers will just buy by the look. There have been surveys done on appearance of products and consumer that should be targeted. It was discovered from the test that if the item is focused towards women and the packaging was nice, they would purchase the item. I feel there are five important factors that should be addressed to determine the success or failure of the product. Market share, cost, benefit and supplier. Our market share would definitely increase if our customer was satisfied. The cost of the package per unit decreases if the package is good and becomes successful. If a package is easy to handle, which we are trying to do by combining the six containers into one case, we should successful.

3. The test that is proposed is definitely useful in addressing the management problems because it addresses the customers concerns about the new packaging and be able to provide the best customer satisfaction and to find out if the customer would recommend when purchasing the product. The cost will decrease when the customer buys the multipack. I would recommend that if we want to go into larger chain of stores I would use larger boxes to hold six or twelve in large bulks which can contribute in cutting the cost because it could be produced in bulks.