Assignment title: Information


Case Study Having conducted a successful trial of fruit juice products throughout regions in Australia, Colin wishes to further expand into the non-alcoholic beverage market and has conducted a four month trial of ‘mixer’ drinks. These drinks will be advertised as ‘adult’ mixers and sold with cocktail recipes printed directly onto the can. He envisages that these drinks will be sold alongside alcoholic beverages and thus also further improve sales of the alcoholic beverages. The new trial of the ‘mixer’ drinks was conducted in September to December 2015. Margaret Brand, the Director of Marketing at Hammer Wines, conducted the trial from retail liquor stores in each of Hammer Wines four sales regions. The ‘mixer’ drinks that have been trialled are LIME SODA, ALMOND PASSION, MANGO DELIGHT, RASPBERRY SODA, TRIPLE SHOT ESPRESSO and CRANBERRY WIZZ. All of the juices will only be available in 300 ml aluminium cans. The wholesale price for each can is $1.50. Colin has negotiated with a number of retail liquor stores. The trial was conducted in association with four retailers in Victoria & Tasmania, and three retailers in each of the other regions. Each retailer chose three stores in each region in which to conduct the trial (see the accompanying spreadsheet). The central distribution warehouse for the ‘mixer’ drinks is in Melbourne, Victoria. Colin realises that to calculate revenue to Hammer Wines for each sale to a distributer, the cost of delivering products around Australia must be deducted from his Total Sales in dollars. He has therefore worked out the cost of delivery for each sale as a percentage of the Total Sales ($) (see the accompanying spreadsheet ). Sales data (number of cans sold) for the 4 month trial period is provided in an accompanying spreadsheet. Colin wants you to analyse the results of the trial and, drawing on this analysis, to advise him on the marketing potential for each flavour, the different regions and the different retailers. He is also interested in the sales trends over the trial period, any other factors that need to be considered when interpreting the results, and finally your advice on any other factors that may need to be considered before final decisions are made concerning ongoing sales of the ‘mixer’ drinks.