Carl’s Container Corporation
Forecasting Sales for New Products in a New Markets
Carl’s Container Corporation (CCC) is a large company that molds plastic into containers for liquids of many types. CCC markets its products worldwide through a well-established set of industrial distributors. Recently, Mr. John Nelli, Vice President of Sales, returned for a vacation in St. Thomas with an idea for a new product. Mr. Nelli spent a week on the beach relaxing and sightseeing. John noticed that snorkelers would bring lots of equipment to the beach, but they had problems carrying the items. Snorkelers would carry their fins, goggles, masks and other items either loosely in their arms or in a mesh bag. Snorkelers carrying the items loosely frequently dropped items in the sand and had to clean the item before using it. Those who used a mesh bag often found the items tangled and disorganized, and they have no place to store the bag once the gear is removed.
John thinks there is a better way for snorkelers to carry their gear. He has envisioned a product he has named “Snork-All,” a lightweight plastic device that could carry the snorkeler’s gear and be snapped onto a standard diving belt. John believes the product is a way for CCC to diversify the customer and product bases.
Once back in the office, John pitched the Snork-All idea to a skeptical product development review team. While the team generally likes the idea, they are not sure what action to take as all of CCC’s experience is in a different industry. Most of the team’s concerns incorporate the sales potential of Snork-All. Without knowing market potential, and ultimately a sales forecast, the team is neutral on backing the new product.
Questions:
1- What is the sales management problem to be resolved?
2- What should the sales manager do to resolve the problem?