Question

Home Meal Replacement (HMR) products also
known as 'meal solutions', appear to be the
latest trend in the food industry. In addition to
affordable prices, product characteristics such
as convenience, quality, quick and easy
availability are the salient features important to
consumers in a particular product market.
In February 1997, Crandon Farms introduced
Café CRANDON as its HMR product line for
retail consumers. As Crandon is known for its
fresh products, Café CRANDON HMRs were
developed to be fresh, never frozen. Café
CRANDON HMRs introduced three flqyois,
feltuccine Alfredo. Fajitas, and stir fry. Servings
per kit vary between three and four. Although
the United States Department of Agriculture
(USDA) originally wanted the package to state
that it contained between eight and nine
servings, Crandon successfully argued for the
package to be described as containing three
to four servings.
All the three Café CRANDON HMRs products
could have their costs reduced dramatically by
changing the form of the product from fresh to
frozen. By changing to a frozen product, the
company would save on product costs from
$.31 per unit for the Fajitas HMR to $1.47 for the
stir fry HMR, which is the maximum savings of
the three. The cost savings for the stir fry HMR
would be S120 and the shelf life of the​

Answer 1

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