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Essay on Sorrell Ridge

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Case: Sorrell Ridge a. What are Sorrell Ridge's sources of negotiating power and weaknesses? What about Bromar’s?
This case is about the slotting allowance when Allied Old English Company wants to introduce the Sorrell Ridge spreadable fruit product into the California market. Considering the factors including product itself, market, distribution channels, consumers’ needs& demand, competitor’s profiles, we analyzed the negotiating power and weakness of Sorrel Ridge and Bromar.
Sorrell Ridge’s power:
1) Uniqueness of product itself: Comparing to its competitors’ products, Sorrel Ridge could be a diabetic diet.
2) Volume of the Product itself: it holds 60% of retail sales in the all-fruit segment.
3) Consumers’ …show more content…

In sum, the total cost for Sorrel Ridge in California in 1987 will be expected to be 565,110+250,000+77,000+200,000+150,000+35,000+67,500 = $ 1164610.
Thus, the estimated profit for Sorrel Ridge in California in 1987 will be 1418400-1164610= 253,790.
In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.
Consider both assumption, we still recommend Pressman agree to the first year program. They will have a optimistic profit under the first assumption and even the case is worse than that, they won’t lose too much. The Slotting fee is one-time and it’s important to step into the empty market in California with a little risk. c. What should Sorrell Ridge's push and pull strategy be? How does the first year marketing program you recommend fit into this push-pull strategy? (the push-pull model will be helpful in this thought process). What market share are you trying to

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