Sales & Distribution Management

Group Assignment

PGP 2022-24 Batch, Term III

Group-8 , Section-SDM M(ABCD)

Natureview Farm

Prof. Manoj Motiani

Akhil Viswatmula 2022PGP620

Aditi Sisodia 2022PGP019

Shagun 2022PGP582

Tanay Ashutosh Karnik 2022PGP414

Simran Shah 2022PGP558

Sumit Jethwa 2022PGP567

Compare the three options given in the case (‘The senior management team’s three options) and
give your recommendation to Natureview. (Use the attached excel sheet to come to a logical
conclusion, but you do not have to submit the excel sheet) Max word limit: 150 words

ANALYSIS

On evaluations and calculations of all the three options, the following are our observations:

The first option is to expand into the supermarkets with 6 SKUs of 8 oz size. We get the benefit
of first mover’s advantage and these cups have the maximum demand. The target revenue of 20
million dollars is met convincingly. Even after adding up the total costs, the net profit is the
highest for Option 1.

Although the other costs seem lower for option 2, due to there being 64 retailers, the slotting
costs are very high and that has an affect on the net profits.

For option 3, the sales revenue is the highest but the production costs, the marketing expenses
and the cost of complementary cases bring the net profit down. Thus, this option is also not
viable.

Hence, looking at the calculations, option 1 is the most profitable.