Essay on Organickidz: Marketing Strategy

1689 Words Jan 24th, 2012 7 Pages
A Report on
OrganicKidz: Marketing Strategy

LETTER OF TRANSMITTAL
From
Atul Kumar

To
Jane Walter
OrganicKidz
Calgary, Canada
Date: September 20, 2009

Subject: Regarding Costco’s offer to supply stainless steel baby bottles
Dear Ms Jane Walter,
With reference to the above mentioned subject, please find my report enclosed. The report contains an analysis of the situation, problem statement, a list of the options available, the criteria for evaluating these options and a final recommendation with the proposed plan of action. I recommend you to delay the Costco offer for now and prepare a new design for them.
Yours sincerely,
Atul Kumar
Enclosure: Report EXECUTIVE SUMMARY

Change in consumer preference away from
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Criterion 3: Minimizing the risk
This option satisfies this criterion as there is no threat on the relationship with current customers. It may get strengthened given the high growth prospect.
Option 2: Delay Costco’s offer
Criterion 1: Growth in terms of sales
This option leads to sales revenue of $125,000 and $525,000 in events of only one order and more orders being received from Costco respectively. Both are highest amongst all the options considered [Exhibit-1].
Criterion 2: Reactions of existing customer base
The option satisfies this criterion as there will be minimum reaction from the existing customers if the offer is delayed and a new product line is offered to Costco exclusively.
Criterion 3: Minimizing the risk
This option satisfies this criterion as there is virtually no threat on the relationships with current customers because of introduction of new product line for a separate market segment.
Option 3: Accept Costco’s offer
Criterion 1: Growth in terms of sales
This option leads to sales revenue of $120,000 and $520,000 in events of only one order and more orders

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