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Andrea is planning to open a fresh-pressed bottled juice business. There are 1,500 households in her community, and she estimates that 30% will...
1. Andrea is planning to open a fresh-pressed bottled juice business. There are 1,500 households in
her community, and she estimates that 30% will sign-up for the juice delivery service. She will
charge $60 for monthly juice delivery service, and does not expect anyone who signs up for the
service to cancel it for 12 months. The profit margin percentage for Andrea is 50% and the fixed
cost to set up the juice business is $29,000. Answer the following questions and show your
calculations. You will not receive full credit if you do not show your work.
a) What is the segment profitability for one year (12 months)?
b) What price does she need to charge to cover all costs and make $160,000 in segment profit?
2. Go to the TapestryTM Segmentation website (http://www.esri.com/landing-pages/tapestry). Scroll
down to the ZIP Lookup area and enter your ZIP code(30096) to learn which segments are the top three
in your area. Read the detailed segment descriptions to learn more about them. (Limit your
answer to this question to one page.)
a) Summarize each of the three top Tapestry segments in your area.
b) Discuss the extent to which you believe these segments are accurate descriptions of the
people who reside in your zip code.
zip code is 30096
