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QUESTION

Your family built a successful water bottle company from scratch beginning in 1977 as Americans were embracing healthier lifestyles, especially the...

Your family built a successful water bottle company from scratch beginning in 1977 as Americans were embracing healthier lifestyles, especially the consumption of water. The company was modeled after Poland Springs, and was named Springfield Springs after their hometown. Members of your family have decided to retire, and they promoted you to CEO of Springfield Springs.

Since your tenure began, you have expanded the company's national profile (using the slogan, "There's a Springfield Springs near you!"), and you and your company were recently featured on a major network reality television show that offers venture capitalist money to expanding businesses. Your ideas for geographic expansion were generally well received, however, the funders raised numerous questions about unexplored product expansion opportunities in addition to geographic expansion. Specifically, they asked the following questions: 

  • Identify three existing key customer constituents of Springfield Springs bottled water and perform a profitability analysis on each. (Feel free to be creative and explore the customers of your hypothetical company. Remember, Springfield Springs was originally based on Poland Springs.)
  • If the company does move forward with its international expansion, what types of new customer categories will be created? Will the new customer constituents resemble the existing ones? Perform a hypothetical customer profitability model analysis on the new customers. This analysis may be included in your final presentation.
  • If the company expands its product selection further, what types of new customer categories will be created? Will the new customer constituents resemble the existing ones? Perform a hypothetical customer profitability model analysis on the new customers. This analysis may be included in your final presentation. 
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