September 10, 1978 Camden, New Jersey Clover Valley Dairy Company Dear Charles, I am writing you in response to your concerns about the market test on the new cups and carriers Clover Valley Dairy Company is introducing to the consumer. I appreciate your suggestions and have definitely considered them. The purpose of the research is the see how the new packaging is accepted by the consumer and if it is worth it to move to the new six (6) container holder.
Number one, I definitely agree that the multipack carriers should be tested and should be tested in other outlets that are not competing with us, but also our markets that are our competitors. I say this because I feel that we should include our competitor’s customer’s views as well as our non-competitor customer views for comparison. If we only use non competing stores, we will not get a full picture of what will really sell well and what will not. I suggest that we limit I competitors so that we will not go over budget, but definitely include them.
If a test is judged necessary, what should be the criteria for success or failure? The main factor should be how sales are impacted. Often time’s sales can increase just by the look of a package for an item. If the packaging is appealing customers will buy just by the look. There have been surveys done on appearance of products and what target consumer. It was discovered from the test that if the item is geared towards women and the packaging was nice, they would be the customer who would purchase the item.
I feel there are five (5) important factors that should be addressed to determine the success or failure of the product. Market share, cost, supplier, handling and reusable. 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 looking to do with having combined the six (6) containers into one case, we should be able to have a successful product.
Most organizations are looking for products that have reusable packaging and are sustainability. The proposed test is definitely useful in addressing the management problems because it would address 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 making their lives easier when purchasing the product. The cost would decrease per unit if the customer accepts the multipack.
I think the product is very good as it stands right now. If I had to do any type of recommendations to change the carrier the only thing I would probably do is if we are going to see the product to a larger chain of stores or on the Naval Base. I would have a larger box made to hold the six (6) to either twelve (12) or twenty-four (24) case. It would definitely cut the cost down since it would be supplied in bulk. In conclusion, I would agree the doing the test with having a representative set up by the dairy case.
Once it has been observed whether they would chose the multipack or single cup. Once it is noticed, they representative would ask if they could do a quick survey on why they chose that particular packaging and why. I also think that we could offer a coupon for the multipacks just to see if that would have the customer purchase the item. As always we would definitely thank the customer for their time and help with us finding out what our customers want in our product. Sincerely, Vince Roth