Case Study
system. This selective distribution can be aimed at the normal household or little shop. If the customer feels special or advantaged for going to a special store, the customer will buy more. Whereas if it seems as only a cheap, the image will go down. We must maintain the image of a quality producer yet affordable.
PROMOTION
Advertisement is the main strategy needed here. Advertise on TV, in papers and magazines. In advertising reflect the image of a quality produced not a cheap, nasty dealer. Look to glossy pages in magazines, fun-loving ads for teenagers on TV or sophisticated ads for those affluent customers.
FALLING MARKET SHARE SINCE ITS RELOCATION
v Relocation has not been informed
v ‘No Sign?about it was moving to
v It is a competitive market
Reduce prices can boost market share and also increase sales revenue.
It will boost company confidence. A marketing plan is beneficial as it maps out strengths, weaknesses, opportunities, threats on the industry it is in. it also puts ideas on paper makes it clearer to understand and implement. It can also provide a control, evaluation of performance along the marketing plan. Benefits of a successful marketing plan include a greater share of market, more profits, quality of product and so on.
Provides a direction, a goal a business should be aiming for.
SWOT ANALYSIS
1) Maximise strengths
2) Minimise weaknesses
3) Exploit opportunities
4) Neutralise of get rid of threats
Strengths:
-Good reputation.
-Good relationship with distributors, suppliers and customers.
-Capitalise on fashion and also keep prices affordable, as there are plenty of other cheap ones.
-Popular products, very good sale for 7 years until 1998. The sales expanded by word of mouth, local marketing ads, effective local marketing, and samples; sell to school canteens and sales increasing.
Weaknesses:
-Equipment outdated.
-While the company have a good reputation there are still many customers who do not know of their services.
-Problems with some of the trade debtor in collecting accounts receivable.
-Make sure price does not become stagnant and make sure price does change however according to necessary levels.
-Cash flow problems prevent the early payments of invoices to obtain a discount.
Opportunities:
-Flexible product, new line, individual ideas.
-Cheaper, low quality imitations.
-Open new market by sample distribution (offering free samples) attracting customers.
Threats
-Competition from a new company start advertising the similar products.
-The rival company is signing contracts with restaurants and sporting venues to only sell their brand.
-Increasing number of competitors.
-Cheaper, low quality imitations.
FINANCIAL PROBLEMS OCCURING AND LAST MONTH A LARGE CREDITOR DEMANDED PAYMENT ON AN OVERDUE LOAN
-Keep the shop in ‘GOOD REPUTATION?position.
-Negotiate an extension of the loan.
-Refinance the loan.
-Keep monthly sales graph various other records i.e. cash flow reports
-Profit and loss statements
-Cost benefit analysis etc