Answer Happy

Sharpie® has five major corporate customers and the Vice President of Supply Chain would like you to tell her where these customers fall in the four segmentation quadrants. Analyze the cost to serve factors of these five customers (below) and select the appropriate quadrant for each customer. Use the diagram (4 quadrants below) from class to indicate the customer type and where each belongs to indicate why using the information from the chart: For example, Customer A is a "core" customer because they meet all four criteria. 2 3 4 10 45 1 60 Prepaid + Add 30 5 90 Prepaid + Add Pickup Prepaid Prepaid Category Factor Average day to Pay Freight cost by Finance customer Customer-specific inventory requirement Average order size Operations C&D items accessed No Yes No No $15,009 Yes Yes $10,525 No 1 mil $29,891 No 11 mil 19% 12 Smil $6,000 $1,799 Yes Yes 1.2 mil 1.6 mil 26% 29% Internet Internet Only Only 21% 15% Annual Volume (8) Gross Margin (%) Number of sales calls Time Spent with customer (each call) Direct sales expense by customer 2 Sales 8 hours 3 hours 5 hours $90,000 $30,000 $125,000 i. ii. iii. Customer 1 Customer 2- Customer 3 Customer 4 - Customer 5 - iv. V.
Sharpie has five major corporate customers and the Vice President of Supply Chain would like you to tell her where these customers fall in the four segmentation quadrants. Analyze the cost to serve factors of these five customers (below) and select the appropriate quadrant for each customer. Use the diagram (4 quadrants below) from class to indicate the customer type and where each belongs to indicate why using the information from the chart: For example. Cestomer Absa corectomer bome they meet all four criteria Category 2 3 4 5 Average day to Pay 30 45 10 90 Finance Freight cost by Prepaid customer Pickup - Add Prepaid Prepaid Prepaid Add Customer-specific No Yes No No inventory requirement Yes Average andere 56.000 $1,799 $29.91 $15,009 $10.325 Operations CAD items accessed Yes Yes No No 12 mil 16 mil 11 mil Smil Annual Volume (5) I mil Gross Margin() 20% 29% 19% 21% 15% Number of sales calls Internet Internet 12 2 Only 4 Time Spent with customer (cach call) 8 hours 3 hours 5 hours Direct sales expense by 590,000 $30,000 $125.000 customer Yes Only Sales 1. Customer ii. Customer 2- ini. Customer 3 - iv. Customer 4 - V. Customer 5- Customer Loyalty (Lite) OPPORTUNISTIC CUSTOMERS CORE CUSTOMERS High profitability High profitability Sustained No relationship relationship Low cost to serve Low volume Low cost to serve High volume MARGINAL SERVICE DRAIN CUSTOMERS CUSTOMERS Low profitability • Low profitability Sustained No relationship High cost to serve relationship High cost to serve Low volume High volume Customer Buying Power