Reference no: EM132923983

Mini-Case Good Bites

GoodBite is interested in selling a new form of teeth-whitening strips. They dissolve in your mouth and leave less of a gunky residue feeling that current competitors. Whitening strips seem to appeal to people 20-29 years old. Competitors' data on existing strips suggest they appeal to women slightly more than men, but for the moment, GoodBite is not planning on differentiating on gender in the advertising. So, let's ignore gender and just consider the 20-29-year-old age category. Say the U.S. population is 301,000,000 with 41.1 million in the target age bracket. About 7.5 million people have tried competitors' whitening strips (GoodBite aren't on the market yet) and roughly 3 million of them are semi-serious, frequent users. GoodBite is trying to guesstimate the size of its target market, and its likely profitability. The GoodBite product is sold in packages of 14 sets of strips (each set is an upper and lower pair) in each box. GoodBite isn't sure of the frequency with a typical purchaser will buy a set yet, as the product category is still relatively new. However, they reason that an upper bound would be about 26 boxes bought by a consumer a year (52 weeks in a year, divided by the 2 weeks supply that is sold in each box). A more conservative estimate would halve that (13 boxes; roughly 1 brought each month). A more conservative estimate still would be that a customer buys "a few" (2 or 3) boxes a year. GoodBite expects to charge $25 per box.

Mini case solution must follow the following formatting guidelines:

Three sections consisting of 1) Problem Identification 2) Quantitative Reasoning and Analysis 3) Recommendations

Problem Identification 

• Identify the major problems found in the case. Ensure that you distinguish between causes and symptoms. Causes may include changing customer preferences, increased competition, etc. Symptoms include declining revenues, loss of brand equity, increased customer churn, etc.
• Please support your problem identification by relevant case facts along with the associated theory and concepts.

Quantitative Reasoning and Analysis

• Conduct research to identify data (e.g., obtain data in the form of trends, statistics, ratings, etc. from the library and other sources) that can be utilized to provide additional insight into the case.
• Draw appropriate conclusions based on the quantitative analysis of data, while recognizing the limits of this analysis.

Discussion and Recommendation

• Identify and recommend a solution to the major problem in the case (there is likely to be more than one solution).
• Briefly outline your solution and evaluate it in terms of its pros and cons.
• Always ensure that your recommendations are supported by statistical evidence and provide spreadsheets as necessary.

Appendix and References

• Please include any tables or figures that are not included but are referenced in your report.
• Make sure all references are cited correctly.