Calambra Olive Oil Case Study
I. Situation Analysis
A. Mission Statement: Calambra utilizes California’s Central Valley, Oroville olives coupled with seventh-generation expertise to produce hand-pressed, extra virgin olive oil, providing connoisseurs with the highest quality and best tasting olive oil in the world. B. Production Capacity: The year is 1993 and is the first year of operations for Calambra. Partnering with Gino Ambrano, a seventh-generation olive-oil presser of Sicilian descent, Calambra had purchased 800 gallons of Gino’s olive oil to test the market potential. Because the mission of the organization is to provide the highest quality, best tasting olive oil on the market, only Ambrano’s olive oil may be used for this venture. For personal reasons, Ambrano is only willing to press about 6000 gallons of olive oil for 1994. Of the 6000 gallons, 210 will be lost during the bottling process leaving 5790 gallons to be filled into 750-milliliter bottles. With 3.7853 liters to a gallon, production capacity for 1994 is 2435 twelve-bottle cases.
Financial Capacity: In 1993 Calambra was making a gross margin after brokerage of $59.16 on a twelve bottle case sold at $150.00 each. If a bottling company is utilized the gross margin will decrease around $4.00. Not much else is given.
Marketing Capacity: Promotion in 1993 consisted $1500 in advertising, organizing taste tests, and handing out giveaways as well as receiving free coverage in San Francisco Focus magazine and in an article of the Los Angeles Herald for winning a well know olive oil taste test competition. The primary costs of these efforts were Frank’s time and 25 cases of oil used in the taste tests and giveaways. More time and money can be spent. C. Competitive Environment: Calambra is in the olive oil business fit for consumption. There are several retail grades in this category, from highest to lowest quality: Extra Virgin olive oil, Virgin olive oil, Pure olive, and Olive Oil. Calambra specializes in the Extra
A. Mission Statement: Calambra utilizes California’s Central Valley, Oroville olives coupled with seventh-generation expertise to produce hand-pressed, extra virgin olive oil, providing connoisseurs with the highest quality and best tasting olive oil in the world. B. Production Capacity: The year is 1993 and is the first year of operations for Calambra. Partnering with Gino Ambrano, a seventh-generation olive-oil presser of Sicilian descent, Calambra had purchased 800 gallons of Gino’s olive oil to test the market potential. Because the mission of the organization is to provide the highest quality, best tasting olive oil on the market, only Ambrano’s olive oil may be used for this venture. For personal reasons, Ambrano is only willing to press about 6000 gallons of olive oil for 1994. Of the 6000 gallons, 210 will be lost during the bottling process leaving 5790 gallons to be filled into 750-milliliter bottles. With 3.7853 liters to a gallon, production capacity for 1994 is 2435 twelve-bottle cases.
Financial Capacity: In 1993 Calambra was making a gross margin after brokerage of $59.16 on a twelve bottle case sold at $150.00 each. If a bottling company is utilized the gross margin will decrease around $4.00. Not much else is given.
Marketing Capacity: Promotion in 1993 consisted $1500 in advertising, organizing taste tests, and handing out giveaways as well as receiving free coverage in San Francisco Focus magazine and in an article of the Los Angeles Herald for winning a well know olive oil taste test competition. The primary costs of these efforts were Frank’s time and 25 cases of oil used in the taste tests and giveaways. More time and money can be spent. C. Competitive Environment: Calambra is in the olive oil business fit for consumption. There are several retail grades in this category, from highest to lowest quality: Extra Virgin olive oil, Virgin olive oil, Pure olive, and Olive Oil. Calambra specializes in the Extra