ÃÂ· What is the research/decision problem? If not stated clearly in the case tries to give a probable problem.
This case directs us towards the possibility of marketing a new highly nutritional food product with widely varied uses. This product could be used as a snack, camping and diet food and has no direct competition. The decision problem posed is that if it is viable to start commercializing this product. Adding the product has to have $.5 million profit per year.
The research problem is to better estimate first-year sales, to determine the best introductory plan and to estimate the potential of the product in long run terms.
ÃÂ· How is the data collected? Is this the only way the data could have been collected or could you think of an other strategy to answer the research/decision problem?
The data used for the test was collected trough the controlled introduction of the product in four markets, in order to set groundwork results.
The sales were measured with a store audit of a panel of stores, varied in each of the 4 markets. To control the test there was an effort to match the store sizes, number of checkout counters and the characteristics of the area with the four different cities and the stores, so that the markets could somehow be homogeneous.
The design of this study consisted on the gathering and analyses of controlled variables like the price (three prices were used, $24, $29 and $34) advertising expenditures (low with $3000000 and high with $6000000) and location of the product in store (bread section vs instant breakfast section)
This data was collected over a period of 6 months with a bimonthly analysis on the retrieved figures. There were three min variables gathered, the sales in the first period...