The below data comes from the in class slides $($ABC Classificaiton Cont$$d$)$

Please segment the customers $($currently listed alphabetically into: A$,$ B$,$ and C$.$ I hope that you see some $$alarming$$ trends, in that the biggest customers $($in terms of spend$)$ are not the most profitable.

Answer the following questions

$1.$ How would you segment these customers?

a$.$ You may considering either using A$,$ B$,$ and C classifications or a $2$x$2$ classifications

$2.$ What rules did you apply to get there?

$3.$ Please articulate a concise message $(3-5$ sentences$)$ to your leaders with a plan on which customers should receive much of your attention. Your plan should include an idea of why the biggest spend customers are NOT the highest profit customers, and what you should do about that $($if anything$).$

Customer Spend Profit Margin Profits

$1$ Abbott Laboratories $$100,40016\%$ $$16,064$

$2$ Actavis Inc $$548,80012\%$ $$65,856$

$3$ Agilent $$19,60014\%$ $$2,744$

$4$ Allergan Inc $$29,57017\%$ $$5,027$

$5$ Amgen Inc $$16512\%$ $$20$

$6$ Baxter International $$4,37314\%$ $$612$

$7$ BIOGEN IDEC Inc. $$2,291,0003\%$ $$68,730$

$8$ Bristol$-$Myers Squibb $$25,9109\%$ $$2,332$

$9$ Carefusion $$27,11015\%$ $$4,067$

$10$ Cerner $$83,74016\%$ $$13,398$

$11$ Covidien plc $$281,40016\%$ $$45,024$

$12$ Dentsply International $$1,46725\%$ $$367$

$13$ Express Scripts $$79,97015\%$ $$11,996$

$14$ Gilead Sciences $$12,37014\%$ $$1,732$

$15$ Humana Inc. $$6,25630\%$ $$1,877$

$16$ Johnson & Johnson $$38,42010\%$ $$3,842$

$17$ Life Technologies $$198,80017\%$ $$33,796$

$18$ McKesson Corp. $$1,237,000-1\%-$$$12,370$

$19$ Merck & Co$.$ $$242,50016\%$ $$38,800$

$20$ Patterson Companies $$4,07625\%$ $$1,019$

$21$ Perrigo $$1,863,00015\%$ $$279,450$

$22$ Quest Diagnostics $$4,704,0001\%$ $$47,040$

$23$ St Jude Medical $$39,29015\%$ $$5,894$

$24$ Tenet Healthcare $$77,14016\%$ $$12,342$

$25$ United Health Group $$40,00014\%$ $$5,600$

$26$ Waters Corporation $$13,59018\%$ $$2,446$

$27$ Zimmer Holdings $$13,50019\%$ $$2,565$

$$11,983,4476\%$ $$660,269$