Fresh Squeeze Business Report 3

FRESH SQUEEZE BUSINESS
REPORT
Student name: Nguyen Thi Hong Ngoc
Student ID: s3926294
Course name: Business Information System (ISYS2056)
Course tutor: Adebe Diro
Table of Contents
INTRODUCTION:................................................................................................................................................. 1
ANALYSIS & DISCUSSION..................................................................................................................................... 2
THE POPULARITY OF EACH NEW JUICE FLAVOR......................................................................................................................2
TOTAL JUICES SOLD PER REGION......................................................................................................................................3
PERFORMANCE OF RETAILERS............................................................................................................................................4
Total juice sold per store.......................................................................................................................................4
Variation of each retailer’s revenue by delivery fee.............................................................................................5
THE VIABILITY OF DISTRIBUTION BY EACH REGION...............................................................................................................6
PREDICTED GROWTH OF JUICES SOLD...............................................................................................................................7
CONCLUSIONS:................................................................................................................................................... 8
RECOMMENDATIONS.......................................................................................................................................... 9
APPENDICES...................................................................................................................................................... 10
Fresh Squeeze Business Report
Introduction:
As Fresh Squeeze business gained significant revenue of selling fresh juice products in
Melbourne in only one year, Colin Hammer – owner of this business saw potential for
business expansion and having launched new products on trial across Australia for 3
months. This experimental business strategy involved selling six different juice flavors in
four different regions throughout Australia through three major retailers.
The purpose of this report is to analyze the new juices’ consumption by flavor sold at
Woolworths, IGA, and 7 Eleven retailers in a trial period, to determine the impacts of
distribution cost on the total sales of the company as well as the practicability of
delivery by each region through statistics provided. The end result will provide
recommendations to integrate new business strategies and boost the overall
performance.
1
Analysis & Discussion

The popularity of each new juice flavor
Figure 1
As it has been shown in the figure 1, there was a large differences in the customers' preferred
flavors, as evidenced by the sales of each variety. In particular, the Tassie Apple And Rhubard
flavor had the highest turnover ($3,578,733) while the total earnings of Kiwi Squeeze and
Banana Rama were considerably lower ($1,928,410 and $1,120,953 respectively) during the
trial period. The Blueberry Juice, however, was the least favorite flavor ($457,710) compared to
the sales of other flavors.
2
Total juices sold per region
Figure 2
In the figure 2, Tassie Apple And Rhubarb and Kiwi Squeeze were still the 2 dominant juices sold
in 4 regions. Particularly, the number of Tassie Apple And Rhubarb Juices sold reached a peak of
593968 bottles, and the figure for Kiwi Squeeze flavor was at 343141 bottles in Queensland and
Northern Territory.
Meanwhile, there was a remarkable change in the consumption of Coconut Delight Juices.
Although Coconut Delight was not a favourite juice flavor in NSW, VIC&TAS and WA&SA as it
was sold only 13874 bottles, 14989 bottles and 94885 bottles respectively, this type of juice
flavor rised sharply to 227342 bottles in the number of Coconut Delight Juices sold in QLD&NT.
3
Performance of Retailers
Total juice sold per store
Figure 3
Figure 3 has depicted the retailers with the percentage of total bottles sold. It could be seen
that Woolworths was the most profitable retailer with 1637331 bottles sold during the trial
period while customers of 7-Eleven purchased 173228 bottles less than those of Woolworths.
These two retailers accounted for 42% and 37% respectively of the number of new juices sold.
IGA stores, in contrast, sold only 846605 bottles in 3 months and comprised 21% of grand total.
4
Variation of each retailer’s revenue by delivery fee
Figure 4
From figure 4, it could be seen that the delivery expenses did not have a great impact on stores’
sales rankings. Specifically, a retail chain named Woolworths still had the highest sales after
delivery cost deduction ($3,028,430) which significantly surpassed the figures for 7-Eleven and
IGA stores ($2,673,494 and $1,556,598 respectively) in the given period. It was also noticeable
that the distribution costs made the low revenue of IGA retailers even worse.
5
The viability of distribution by each region
Figure 5
The data shown in figure 5 has reflected how much transport expenses affected the profitability
of the company over a three month trial of new products. Moreover, there was a huge
differences in the delivery cost ratio as it was based on the shipping distance.
It could be seen that the delivery cost for WA&SA was the most expensive (30%) and it doubled
the shipping fee in QLD&NT (15%) which has created a huge gap in the profit of juices
consumption for 3 months. Particularly, the turnover of juices sold in WA&SA dropped sharply
of $685,368 after cost deduction while the Queensland and Northern Territory, the region
considered having the best revenue, got a minimal decline to $2,630,639.
Meanwhile, lower transport expenses in NSW and VIC&TAS made their final earning almost
unchanged. The number of juices sold in NSW brought Fresh Squeeze $2,202,535 in profit while
the revenue after shipping cost reduction in VIC&TAS still ranked at the bottom.
6
Predicted growth of juices sold
Figure 6
As it has been predicted in the figure 6, Tassie Apple And Rhubarb and Kiwi Squeeze was two
flavors expected to continue the increase trend while the total bottles of Blueberry, Banana
Rama, and Coconut Delight juices sold might not reach any peaks in the future. Nevertheless,
keeping selling Sour Citrus flavor would not bring any profit in coming years.
7
Conclusions:
Overall, Fresh Squeeze had conducted a well run plan, initially attracting some potential
customers and increasing brand awareness in four regions across Australia. The launch
of new products has been effective in diversifying types of juices and growing
profitability of the company.
The Tassie Apple And Rhubarb is the most favourite flavor and the best seller in 3
retailers. Additionally, Woolworths is the retailer having the best performance in the
total sales of new products. Despite being affected by shipping fees, OLD & NT has the
highest revenue over the given period.
Based on the study of the performance throughout the 3 month trial, Fresh Squeeze is
supposed to continue expanding and improving profitability, however there is room for
considerable improvement.
8
Recommendations
o Invest in pushing marketing strategies to two flavors: Tassie Apple And Rhubarb
and Kiwi Squeeze as they were the most profitable type of juices in 4 regions and
were predicted to grow dramatically in the future.
o Continue to selling products through Woolworths and 7-Eleven which are the
most popular retailers in overall. Thus, these stores will attract more customers
and bring in increase the profits in the long run.
o Larger stock split in NSW and QLD&NT to improve profitability as the sales in
these areas were superior and stable. Also, the delivery costs for these two
regions are medium which will not affect greatly the turnover of juices sold.
o Apply different price for each flavor to optimize the revenue since each type of
juices has a distinctive customer preference.
9
Appendices
10
Growth prediction of juices consumption per flavor
11

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FRESH SQUEEZE BUSINESS

Analysis & Discussion

Total juices sold per region

Variation of each retailer’s revenue by delivery fee

The viability of distribution by each region

Predicted growth of juices sold

Growth prediction of juices consumption per flavor

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