Clover Valley Dairy Compan

1826 words 8 pages
The study data appear to support the notion that CFC grape juice is held in high esteem in Puerto Rico, yet a solution to CFC’s sales problem is needed. With this in mind, Ms. Verbrugge arranged a meeting with Jeff Hartman, Market Research Manager, to discuss and review the situation. Ms. Verbrugge wanted to examine the problem in more detail and was prepared to commit

additional funds for marketing research. Before making any decision, however, she wanted Mr. Hartman’s assessment of the situation. Source: This case was reprinted with permission from Subash C. Jain, International Marketing Management, CA: Southwestern Publishing Co., 1993.

Cases for Part I
Nature and Scope of Marketing Research

Clover Valley Dairy
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new 6-oz cup, while the price for the 1-lb tub remained at 75 cents. The increased sales then increased the total dollar contribution to fixed costs from yogurt by only 5 percent. (All dairies priced their yogurt to give retailers a 10 percent margin on the retail selling price. Competitor’s retail prices for their 8-oz tubs remained at 41 cents.) Mr. Roth felt that both the change to plastic and the convenience of the smaller size were responsible for the increased sales. However, he was disappointed with the high packaging costs and began to look at ways of reducing them, without changing the package much further. He felt another package change would be too confusing to consumers. Because of the economies of scale needed to produce plastic containers, costs could be reduced if more units were produced and sold. Mr. Roth felt that packaging a number of cups together would make the 6-oz cups easier to carry home, which might increase sales, and would certainly reduce packaging costs. By 1978, work had begun on developing a multipack holder to hold six cups together. A single strip of aluminized plastic would serve both as holder and as

the top for two rows of three yogurt cups. A single cup could be readily separated from the others in the pack. Dairy personnel constructed