Outline
Introduction
1. Company * Lifefont was found in 1907, and its business is Wonder Home Product, a manufacturer of consumer products. * And then, Wonder Home Product was established itself as a leading manufacturer of customer packaged goods. * In 21th century, Lifefont has 2 divisions: Life Sciences, which contributed 72% of sales / 80% of operating profit and Consumer Product, which contributed 28% of sales / 20% of operating profit * Five distinct franchises under Consumer: Breakfast Foods, Bath & Beauty, Skin Care, Energy Drinks, and Nutritional Bars. * Consumer segment faced with challenge of competing with consumer packaged goods (CPG)
2. Industry * Lifefont’s CPG industry is highly competitive * In 1800s, there were a lot competitors * Beginning in 1970’s, the product innovations is very slowly. * In 1990s, the product differentiation among the remaining manufacturers is littler. * In the final decades of 20th century, Retail has a significant development to whom CPG manufacturers sold their products. * In 2003, consumer packaged goods end market was fully penetrated in the U.S and Western Europe.
3. The problem * The company made a decision to focus on sales promotions to improve the income. The sale promotion cost more than $200 MM per year * It is $70 MM difference between the gain form the sales increased and cost of the sale promotion. * Despite the five sale organizations have lot of similar facts, business were run in a specific manner, and processes differed from one operating company to another
4. Project * The objective of Retail Driver was to develop a common sales promotion to tool for use across the five customer organizations. * To obtain a profitable investment with 57% internal rate of return and a payback period of 2.1 years. * What’s more, the project want to