My Shoe Company For This Simulation Project Is Bauer, Inc.
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My shoe company for this simulation project is Bauer, Inc. In this paper we will go over multiple aspects of my company. We will go over a situational analysis (SWOT analysis) of my company, the design of my strategic marketing mix (product, place, price and promotion strategies), my company’s mission statement, the target market, and my marketing objectives.
First, let us look at my situational analysis of Bauer Inc. A strength of
Bauer Inc. is that we’ve been growing. From period’s -1 to 0, we were able to increase our net profit by 50%. Another strength is that in period 0 we were able to enter into the domestic market. This step helped our company sales from periods -1 to 0. Some weaknesses of Bauer Inc. is that we have been losing money the last two periods. In period -1 our net profit was -2.4 million dollars and in period 0 it was -1.2 million dollars. A second weakness is Bauer Inc.’s product is currently a base version model. Consumers will not want to buy a low quality shoe. An opportunity of Bauer Inc. is that the athletic shoe industry is a huge industry. The industry is made up of over $70 billion dollars worldwide and Bauer Inc. can tap into that. An additional opportunity is there are multiple markets in enter into. This will allow Bauer Inc. to sell our shoes to multiple and larger markets in increase our sales. A threat of Bauer Inc. is that there are 10 other companies in the athletic shoe industry that we are competing against. That is a lot of competition that we are going to be fighting against. Another threat is that at the current moment, Bauer Inc. and the competition are selling the same version shoe, so our product isn’t different from the competition (excluding price).
Next, let us look at the strateg...
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...ion. The second objective is by period 7, to have 14% of the foreign market share. Our mission statement says that we have the best athletic shoes anywhere, which would include the foreign market and having the most of the foreign market share would show that our shoes are the best anywhere. The third objective is by period 6 to reach a customer satisfaction of. We want customers to be satisfied with our shoes and the best way to know our shoes are up to their standards is by knowing customers satisfaction level of our shoes. The fourth objective is by period 7 to have our return on sales to be over 25%. One of Bauer Inc.’s weakness is that are return on sales have been negative through periods -1 and 0 and I want to turn that weakness into a strength in the future. In period -1 are return on sales was -26% and I believe by period 7 we can turn it around to over 25%.