BUS 302 Lecture Notes - Lecture 2: Trivet
Document Summary
This case is about chef marco"s choice, inc. produces and sells a line of ovenware (premium. Grade ovenware) that goes from oven (conventional or microwave) to the refrigerator without breaking. Due to an economic downturn, sales through gourmet shops and department stores have lagged expectations for the past two years. This has kept the product manager of the. Premium grade ovenware from meeting his required target of producing a 25% return on sales of product. In an effort to increase sales, design engineers modified the ovenware product slightly in 2006. They made it less expensive to produce (saving about 35 percent of variable production costs) but indistinguishable in looks and functionality from the original product. The modified product also resulted in increased product longevity of about ten percent. The product manager, excited about the modifications and cost savings, lowered the price by ten percent and presented the item at a national food industry show at the end of 2006.
