Assignment
Hadsell Packing Company 4 USE OF SALES PLANNING
The Hadsell Packing Company is a medium-size canning organization that packs such vegetables as peas, carrots, beets, spinach, corn, and tomatoes, and such fruits as peaches, pears, apricots, prunes, figs, cherries, plums, apples, and grapefruit. The company followed a policy of selling its product to wholesalers and jobbers, who sold the various canned products under their own labels. The sales of one of the new products, a special "dieteticpack" that the company had recently begun to pack, were about 50 per cent below the volume that the company had forecast. As a result, Hadsell was faced with the problem of determining what policy the company should adopt to increase the sales. The dietetic-pack was developed by Hadsell's chemists to satisfy the demand for canned fruits without sugar and canned vegetables without salt, primarily for people with diabetic, dietary, and other health requirements. The executives of the company had decided to use the same channels of distribution for the dietetic products and therefore distributed them through the regular customers, who put their own labels on the products.
In analyzing the market, Hadsell found that because of the limited sales that the wholesalers were realizing on the dietetic-pack, they used a 20 per cent margin on the products and recommended a 50 per cent margin to the retail trade. The company executives believed that the high margin on the products was the main reason that the sales were unsatisfactory, and asked the wholesalers to use a lower margin. The wholesalers did not agree with the suggestion and indicated that the potential market for products of this nature was such tha
QUESTIONS
1. Indicate the reasons why you believe the sales of the dietetic-pack did not respond satisfactorily.
2. What procedure would you recommend to the executives for planning their sales policies?
3. In what ways would the short-range sales planning differ from the long-range sales planning?
4. How might the company determine whether it was advisable to sell the dietetic-pack under its own label? 5. Does this case illustrate the principle of elasticity of demand?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.