Case 12: Rocky Mountain House Co-Op Essay

2321 Words Jul 5th, 2009 10 Pages
Case 12: Rocky Mountain House Co-op

June 4, 2009

Critical Issue / Challenge Identification

o In Petroleum division, its cardlock system is out-of-date and has no capability to sell marked gasoline with the old system, should the company invest in new facilities?

o The competitor-UFA is going to launch an outlet in this area, should the company consider going into the fertilizer and ag chemical business to fulfill customers’ needs?

o RMHC has approximately $1 million of funding; is the budget sufficient for expanding the business?

o RMHC does not have a proper marketing and advertising program to promote their business; what strategy should the company apply?

Current Marketing Strategies
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The reason is that RMHC already has an excellent Customer Relationship Management system (CRM) within the business which helps the company to maintain the quality of services. Therefore, adding new promotional programs and advertisements not only retain existing customers, but also attract more new customers.

|Pros |Cons |
|Good CRM system |RMHC does not know exactly what is the promotional budget of UFA |
|Good reputation /brand royalty with existing customers |It is not comparative because petroleum |
|Good retention rate |UFA has better/new facilities (competitive

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