Decision Sheet

Problem Statement:
The sales of CleanSpritz has been declining from the past 5 years while the company believes that it is
declining due to the fact of increased consumer awareness about environmentally friendly products.
Therefore, the management is hopeful that they can increase their revenues by choosing amongst four
options. The first option includes re-launching the current brand, the second option includes developing a
4:1 concentration with a recyclable pouch or shall develop the same concentration with a dissolvable
packet. Lastly, the company has the option to follow a business status-quo option. Therefore, the company
is in a paradox situation to select amongst the three options.

Decision taken:
The company should start add to product line a stronger, 4:1 concentrate in a lightweight, recyclable pouch
for 32 oz. bottle refill.

Why the decision was taken:

● By using the 4:1 concentrate in recyclable pouch variant, we will be able to save 14% on packaging
and delivery, and the same amount could be used by us on given higher margins to the retailers
and also on advertising. Our main customer is the retailer. It is with the retailer to decide which
products to keep in the store and which not to.

● The Customers in our category are not brand loyal, they are more inclined towards the various
offers that that available at the retail shops and also the positioning in the retail stores play a major
role. Moreover, when a customer buys the product he/she does not compare the ingredients or
the composition of various chemicals. When 2 products are having the same packaging and same
usage, customers prefer to buy it by comparing the price of both. Since our customers are price-
sensitive, the price for 4:1 concentrate pack will be $5.69 which is comparatively low as compared
to the 3:1 variant.

● The cost per unit of the standard unit(SU) is around $2.28, and the project units are 6.195 million
units which will lead to revenue of $14.125 million, which is quite high when we compare with other
options provided.

● There will be 14% cost saving as compared to diluted spray in packing and delivery which is quite
higher than that of other alternatives.

● The company has started producing environment friendly product by introducing the recyclable
pouch and water-soluble packets in their product lines. This step will help the company to cater to
the emerging market of minimizing packaging waste and carbon footprint and also the handling
cost would be reduced.

● The concentrate price would be low enough to compel loyal diluted spray customers to switch to
concentrate. The customers will be looking for a good product at an affordable price.