3. Quarter 1 – Initial market investment/sensitivity to determine consumer preference Revenue market share of 19% - 20% Return on Assets – 25% (based on +5% from last year) Return on Equity – 45% (based on +5% from last year) Constantly evaluate our product offerings Compete on margins Compete on analytics Business Goals
4. Product Strategy Offer 6 products to spread our risk Test market sensitivity in Q1 Introduce new product to market Only sell in distribution channels 10 and 12 Advertising Strategy No marketing expenses Pricing Strategy Specialize in DCs to learn the customer Monitor our prices relative to industry average Utilize Monopoly Index Marketing Strategy
7. Production lot size of 50,000 units per product to reduce down time Improve set up time from 12 hrs. to 8 hrs. by investing in production improvements Game time decisions each quarter Procure at day 20 of each quarter to be ready for production on day 1 of subsequent quarter Prevent stocks outs! – Continuous production initially Plan to have no finished products on Quarter 4 Day 30 Operations Strategy
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9. Keep prices relatively high on Strawberry/Blueberry in anticipation of other companies selling out
23. No stock outs Investment to our processes Specializing in distribution channels to learn the market Game-time decisions (Day 20) New product introduction Competitive Advantage
25. Continue to maximize shareholders wealth Further invest in our processes and equipment to improve efficiency Fix the Raw materials cost error Analyze distribution channel and regional opportunities Continue to compete on margins Looking Ahead
26. Outstanding Inventory – 39 days A/R Outstanding – 24 days Payables – 0 Cash-to-Cash Cycle – 63 days High A/R High raw materials inventory Inventory Turns – 9.4 Ratios (q2-q4)
