$1$ Before providing recommendations to the CFO, make sure you understand how to interpret the information presented in the table.

$2$ Which country has the segment with the fewest consumers in it$?$

$3$ Which country has the largest total number of potential consumers in it$?$

$4$ Find the country that has the consumer segment that makes up the largest percentage of its total amount of consumers. What is that percentage?

$5$ Which segment prioritizes physical appearance as a motivation for eating$/$drinking healthy?

$6$ Which segment prioritizes mental$/$emotional health as a motivation for eating$/$drinking healthy?

Task $2$: Estimating Sales

Using some assumptions provided by the CFO, you are tasked with estimating the annual sales $($in $$)$ for each segment in each country. To do so$,$ you will need to make the following assumptions:

Actual consumption:

When someone says they drink juice or drinks fruit drinks $$daily$,$ we assume they actually have $0\mathrm{.}7$ of that drink on a typical day.

When someone says they drink juice or drinks fruit drinks $$weekly$,$ we assume they actually have $0\mathrm{.}1$ of that drink on a typical day.

For all other answers, we assume that they don$$t drink the beverage at all.

There are $365$ days in a year.

Using the data provided by GfK and the assumptions above, what are total estimated number of fruit drinks & juices $($combined$)$ that are estimated to be sold to consumers of each segment in a typical year $(365$ days$)?$ The answers have been provided to you for the first column.

CALCULATION:

Estimated Units Sold Per Segment per Year $=[($Segment Total Size$)\backslash$times $(\%$ daily drink$)\backslash$times

$($assumed daily consumption$)\backslash$times $($Segment Total Size$)\backslash$times

$(\%$ weekly drink$)\backslash$times $($assumed daily consumption$)+$

$($Segment Total Size$)\backslash$times $(\%$ daily drink$)\backslash$times $($assumed

daily consumption$)\backslash$times $($Segment Total Size$)\backslash$times

$(\%$ weekly drink$)\backslash$times $($assumed daily consumption$)]\backslash$times $365$

According to these estimates, how many beverages would we assume a typical person in each segment consumes per year?

CALCULATION:

Average yearly consumption per consumer $=[$For each segment, take the answers immediately above$]/[$total size of segment$]$

Task $3$: Estimating Sales

The CFO is impressed with your initial estimates. She would like you to go even further and estimate the total sales expected within each segment after one year. Again, the CFO has provided you with some important estimates to help you make your calculations.

Financial Assumptions:

$(1)$ The per unit price sold to distributors will be $$0\mathrm{.}80,$ regardless of country or quantity sold.

$(2)$ The estimated market share for sales depends on how much a segment sees health and wellness as being essential to their lives. If healthy and wellness is a priority for a segment, the CFO assumes a $10\%$ market share in that segment during the first year is reasonable. If health and wellness is not a major priority, the market share is assumed to only be $5\%.$ Health and wellness is considered to not be a priority for a segment if less than $50\%$ of the members of that segment identify it as a priority.

Question $1$: Using the GfK data and the information provided by the CFO, what is the estimated annual sales for each segment?

CALCULATION:

Annual Sales $ estimated per segment $=[($Original Estimated Units Sold Per Segment per Year$)\backslash$times $($Assumed Market Share, per CFO$$s rules$)\backslash$times $($Price per unit to distributors$)]$

Question $2$: Which country, overall, has the highest estimated annual sales? Which country has the lowest estimated annual sales?

Question $3$: Based on these estimates, how much money per consumer would we expect for each segment?

Discussion and Debate

Based solely on the information that was analyzed, which country do you think your juice company should expand to$?$ Why?

While making its financial estimates, your juice company did not consider the impact of every GfK survey question reported in the table above. For example, your juice company did not consider if each segments$$ satisfaction with the availability of healthy foods and beverages at grocery stores might impact their market share within a given segment. From your perspective, how might your juice company incorporate the rest of the GfK information into their estimates? Which questions do you think may lead to you increasing or decreasing different estimates?

Think about other important consumer behavior factors that might impact the success of your juice company in a foreign market. What other important information do you think is pertinent for your juice company to know but was not present in the table above? Why?Apply What You Learn #$4$