Engagement Proposal

DATE: January 14, 2004

TO:Atkins Sheep Ranch, Inc

FROM:Stig Lanesskog

RE:OSBI Consulting Proposal for Atkins Sheep Ranch, Inc.

  1. Company Needs
  2. Project Approach
  3. Client and OSBI Roles and Responsibilities
  4. Key Assumptions
  5. Deliverables
  6. Staffing
  7. Timelines and Expenses

Company Needs

Atkins Sheep Ranch Inc. is evaluating opportunities to expand its distribution into other geographies within the United States of America. The organization currently provides fresh lamb into the San Francisco bay area and is considering the Northwest and other regions. To better understand Atkins Ranch’s and other lamb producers opportunities in these markets, the organization is seeking assistance to conduct primary and secondary research into the buying behaviors of food retailers, distributors and consumers to determine the fit of Atkins Ranch’s food offerings into these markets.

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Project Approach

To achieve the objectives of this project the following approach will be used.

Conduct Secondary Research to Understand Overall Market Dynamics

The OSBI Consulting team will identify and evaluate the retail distribution opportunities and potential competitors and partners for Atkins Ranch. These findings will provide a context for evaluating the primary analysis and help determine particular individuals to interview as part of the primary research activities. In summary the team will:

  • Identify and evaluate the capabilities of any existing lamb distributors in the region(s) selected for analysis
  • Identify and assess the different types of retail distribution channels for Atkins Ranch’s product(s), including grocery stores, food distribution companies, restaurants, etc.
  • Identify and assess any current and potential competitors to Atkins Ranch
  • Review and industry and/or market trends that may impact the potential opportunity
  • Determine the overall attractiveness of the overall market region and the channels of distribution

Conduct Primary Research to Evaluate Customer Buying Behaviors

The initial secondary research will serve as a basis for developing the questionnaire that will be used during the primary research activities. These primary research activities will involve customer intercepts at selected stores in the region(s) selected and interviews with relevant individuals in the food industry that influence the purchasing of wholesale and retail outlets (e.g., Chef’s, Purchasing Agents and other Buyers, etc.). In summary the team will:

  • Identify potential retail locations to conduct customer intercepts
  • Identify potential individuals to interview based on their influence on purchasing in the retail and wholesale markets in the selected region(s)
  • Develop questionnaire and interview guides
  • Complete customer intercepts and other interviews
  • Analyze results of the data gathering activities
  • Compile and synthesize the results of the primary and secondary research activities
  • Develop conclusions and next steps for Atkins Sheep Ranch, Inc.

Client and OSBI Roles and Responsibilities

To ensure that the goals of this project are achieved, both OSBI Consulting and the client must be actively involved in the process. Listed below is a summary of the specific responsibility of both parties.

OSBI Responsibilities

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Client Responsibilities

  • Conduct outlined secondary research
  • Identify potential interviewees and retail outlets to target for primary research
  • Develop and administer questionnaires
  • Synthesize results of research and develop recommendations
  • Keep the client informed of project progress through weekly status reports, meetings, and email.
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  • Gain approval from retail locations to conduct customer intercepts
  • Assist with securing interviews of influencers within the region(s)
  • Provide timely input on the recommended analysis to be conducted
  • Review and approve all OSBI Consulting team deliverables

The primary OSBI Consulting contact is:

Stig Lanesskog

217.244.8890

The primary client contact is:

John Atkins

Key Assumptions

The OSBIConsulting Team’s approach, staffing and fees are based on the following key assumptions:

  • The ability to conduct the customer intercept interviews will be based on obtaining approval from the retailers, which the client will obtain
  • The estimated range of customer intercepts to be completed for the region is 75-100
  • Four students will be used to perform the customer intercepts
  • At least 2 retail locations in the region will be used
  • 8-10 additional interviews will be conducted with other individuals influencing the lamb purchasing decision in the retail or wholesale market within the selected region
  • The fees and expenses are based on one region within the United States

Deliverables

At the conclusion of the project, Atkins Sheep Ranch, Inc. will be provided the following deliverables:

  • An analysis of the market environment within the fresh lamb segment in the select region(s)
  • A summary of the purchasing behaviors of consumers and other influencers in the fresh lamb market
  • An assessment of the attractiveness of the region
  • High-level next steps for Atkins Sheep Ranch, Inc. based on the recommendations

Staffing

The OSBI Consulting team will consist of 4-6 members. The team will consist of University of Illinois MBA students and a graduate student from Agriculture, Consumer and Environment Sciences. Faculty and other subject matter expertise will be identified and provided as necessary. The team will work under the supervision of OSBI Consulting’s Associate Director, Stig Lanesskog and Hamish Gow will act as an advisor to the team.

Timelines and Expenses

All work will be completed on a best effort basis. The timeline is subject to change should the scope of the project be significantly modified. Any significant change in scope needs to be agreed to, in writing by both the client and OSBI. The timeline is also subject to the timely delivery of required or requested client information, if applicable.

Activity

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Deadline

Final presentations completed / 4/30/04

The following table provides an estimate of direct costs. Costs estimates will not be exceeded without the written prior consent of the client. All travel must be pre-approved by the client.

Expenses / Activity / Total by Item
Item 1 / Flights to region ($300 for 4 people) / $1,200
Item 2 / Hotel ($125 per night for 2 rooms) / $750
Item 3 / Rental cars ($45 per day for 2 cars) / $360
Item 4 / Per diem/ food ($40 per day for 4 days for 4 people) / $640
Item 5 / Copying and printing / $250

Total Expenses

/ $3,200

In closing we would like to thank you for the opportunity to propose on this project. Should you have any questions, please to not hesitate to call Stig Lanesskog at 217.244.8890 or .

This document is to be signed and returned to:

OSBI Consulting

College Of Business

Room 420, David Kinley Hall

1407 W. Gregory

Urbana, IL61801

Attn: Stig Lanesskog

______, John Atkins, Atkins Sheep Ranch, Inc.

______, Stig Lanesskog, OSBI Consulting

Standard Form Approved by Legal Counsel (MAR) 5/30/02. APPROVED FOR OSBI Consulting USE ONLY.1 of 6