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Cans ple is developing a new form of 'crinkly can' for soft drinks. The crinkly can 25 has grooves in the side which match the size of the fingers of a hand...

Explain the further information you would need in order to report on the benefits and problems for creating higher contribution margins and higher profit margins on the basis of the design manager's proposals.

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Final answer:

To assess the new 'crinkly can' design's impact on contribution and profit margins, information on manufacturing costs, market acceptance, competitive advantage, material usage, transport and storage feasibility, marketing strategies, and location effects on supply chains is needed.

Step-by-step explanation:

To report on the potential benefits and problems of creating higher contribution margins and higher profit margins based on the design manager's proposals for a new 'crinkly can' for soft drinks, further information would be required in several key areas:

  • Manufacturing costs: Would the new design increase production costs, and by how much?
  • Market acceptance: How likely are consumers to prefer the new design over traditional cans, and will this preference lead to increased sales?
  • Competitive advantage: Could the unique design provide a competitive edge in the marketplace, possibly justifying a higher price point?
  • Material usage: Does the new design use more or less material, affecting costs and environmental impact?
  • Transport and storage: Will the grooved design impact the efficiency of packaging, transport, and storage?
  • Marketing and advertising: How will the physical aspects of a product be communicated to the consumer, and what will be the cost of this marketing strategy?
  • Location: Is there any impact on the supply chain due to the location of manufacturing relative to suppliers and distribution networks?

By evaluating these factors, a comprehensive report can be made on the potential for higher contribution and profit margins through the new can design.

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