preview

Apollo Foods Case Analysis Essay

Decent Essays

After a thorough analysis of Apollo Foods business situation, a decision plan regarding the launch of a new chocolate product for its new branch acquisition Montreaux Chocolate USA has become clear. This decision plan is based on the following key challenges and marketing issues that need to be addressed. These challenges and marketing issues can be best summed up by a decision on what brand the product will be home to, whom the product will be marketed to, the ingredients and formulation of the product, the packaging of the product, can the product perform well enough in a sales forecast plan to exceed a $30 million dollar hurdle rate, and finally to launch or to test market the product. After reviewing Apollo Food’s data, their market research findings, and sales forecasts. A decision plan that addresses all of the key issues and marketing points has been created and will be …show more content…

Referring to Exhibit 1 below, the low sales volume forecast would not meet the hurdle rate of $30 million and landed at a little more than half at $17 million. These calculations were calculated through the numbers provided in Apollo Foods files under their Exhibit 5 as well as the methodology for calculations they provided. This chart and methodologies can be referenced below in Exhibit 4. The medium sales volume test fell short of $30 million but was much closer sitting at $25 million and the high sales volume test exceeds the hurdle rate and sits at $39 million. Because of Apollo Foods long standing business and industry success coupled with Montreaux Chocolate branding it is not out of reach to see a new product land between medium and high ACV. With all the information and data suggesting that this new product launch could be a large success that builds on the growing chocolate market trends identified in 2011 moving forward with launch is the right

Get Access