Case Title: Shoes for Moos
Name: Jesse Senst
Section number: 002
TurnItIn.com receipt number:
A. Problem identification and justification.
After conducting an in-depth situational analysis and finding the target market and its size along with alternatives to pricing, product, channel, and promotion of Shoes for MOOs, Mr. Wells needs to find the best channel to market his product. With having such a low budget of $25,000 and being a start-up company, Mr. Wells needs to be very efficient with his money and his time since he is currently running another business. An additional challenge is the pairing of promotions that are best for each channel.
B. Alternative identification
1. Mr. Wells could pursue a direct channel
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These may include farm supply stores, veterinarian offices, milking equipment suppliers, and farm equipment dealership. With this approach, Mr. Wells could acquire a mailing list of potential dealers for a price of $0.10 per name. With this list, he would mail out informational fliers and give the dealers a strong promotional support and possibly protected territories depending on the response of dealers. He would also offer them a high margin (around 40%) to make the dealers more inclined to carrying his product. If he would pursue this option, giving the dealers a 40% margin, he would need to sell shoes to dealers at $40.00 each with a suggested retail price of $66.00 which is in the middle of his estimate of between $39.99 and $80.00. He would then net a profit of $21.00 per shoe. This would also get the product a wider geographical spread and gain exposure faster. However, Mr. Wells would need someone to follow up on sales calls and travel to dealers to talk with head offices. He would most likely have to hire a professional salesman for this position which would cost $100,000 for all salary and expenses. Mr. Wells could take the sales calls himself, but since he is already running his own store, this may take over all of his time and hurt his current business. Some of the promotional activities that would be involved would be tabling at farm shows around Canada along with the printed fliers and promotional video. He could also advertise in magazines and large