Case $3$: Alternative Distribution for Prestin Protein,Inc. $($PPI$)$

To respond to the changing business environment, PPI has determined that a new approach to marketing its products is necessary. In large part, the new approach consists of an expansion of retail targets to include outlets that enjoy high traffic volumes but rarely offer snack products. The new sales sites include dry cleaners, barber$/$beauty shops, hardware stores and drinking establishments. The case questions require the student to analyze the costs and benefits associated with the new distribution strategy.

Questions

Determine the total number of retailers in the program initially as well as after the trial period.

Determine what the average retailer will sell daily as well as annually. Provide sales in terms of unit and dollar amounts. $($Assume $260$ business days per year, with $5$ business days each week.$)$

Translate the annual sales for an average retailer into the number of large packs that retailers will order per year. Repeat for the small pack order. $($Round if necessary.$)$ Include the initial order in the calculation.

Performing retailers represent the remaining $40$ percent and will achieve half the sales$/$reorder expected on average. Calculate the orders $($separate initial and reorder quantities$)$ for the $6-$month trial period if $45$ percent of retailers exclusively order$/$reorder large packs and the remaining retailers exclusively order$/$reorder small packs. Calculate the second $6$ months accounting for the dropout. $($Round if necessary.$)$