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Route 11 Potato Chips
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Reference: DARDEN-M-0810-E
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Number of pages: 8
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Publication Date: Feb 8, 2011
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Fecha de edición: Jan 19, 2012
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Source: Darden University of Virginia (USA)
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Type of Document: Case
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Industry Setting: Consumer Goods
Description
Route 11 Chips, a regional potato chip company, is struggling with whether to reduce the number of flavors it markets. Additional flavors add operational cost, but management believes that some of the flavors are important to Route 11's brand image and that trimming the line might damage the brand. Route 11 has also taken a price increase recently and management is interested in finding out if there is additional room to raise prices. To analyze these issues in the case, students have access to five years of data on sales by flavor and package size as well as actual price and margin information (in a supplemental Excel spreadsheet).