- Profit Plan for Private Brand
- Cash Analysis for Private Brand Only
It is required to analyze the Private Brand only in particular. According to the case study, the actual capacity of Private Brand Only is 6,000,000 while the Production of the Private Coffee was 5,826,000. The amount is not guaranteed they’re every of the unit of the coffee would have been consumed by the company accordingly. The net profit would not be as high as the actual and current net profit of the company after the taxation. For the cash basis of accounting, emphasizing on the private Brand only would not be effective for Cafes Monte Bianco and the company should not continue in its consideration and utilization.
It is extremely important to assume things before its physical and actual implementation, and it is not an easy task. Both the analysis defined in the first and 2nd part of the assignment had an assumption that the company became able to sale out all of their private brand equity to its end users in particular. The assumptions are critical in terms that the amount of sales and net income would decrease considerably by emphasizing on a single thing in particular. These assumptions have been perfect for the company in the future as it would not be effective in terms of generating net income and net revenue of the company in particular, because the higher amount of revenue of the company has been expected to come directly from the selling of a premium brand of coffee.
- List of Additional Info
There is certain information that has been regarded as additional information that is indeed important to further improve the quality of the analysis in particular. The additional information that is required by the analyst to further improve the analytical procedure is the choice of the people in terms of consuming the private brand coffee. Apart from this, there is another information as well that deems positive and effective in this particular thing that is to mention the only cost of private brand coffee. A list of the people who consumed only private brand coffee from last 3 to 4 years would be effective to enhance and improves the quality of the analysis bit further.
- Recommendation to Giacomo Salvetti
- Selling of Grade A Brand
There are numerous brands associated with the company. The Volume that would be sold by the company would be 1,103,000 for Product A, with the Advertising Expense of 7%.
The proposal would be effective and worthwhile for the company in particular, and it would be perfect for a company to become economically perfect. Cafes Monte Bianco has to adopt this particular strategy of selling branded “A coffee” with premium brands.