For years there has been a need for services and productions. Service has taken many names, styles, and forms. Production has also equipped itself with vast improvements. Manufacturers have produced goods to service the retailing life cycle for years. Ben Huang, owner of Leisure World, Inc. is struggling with a business that supplies goods and services to his customers. Leisure World is operating well; however, it 's not seeing a profitable increase. Now the company has been presented with an opportunity that could possibly add to their product line, increase return on investment, and create a more profitable business model.
In order to reach the right decision regarding this new strategy of increased products line. Ben Huang needs to conduct
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Location is of utmost importance to businesses that sell goods or services directly to customers at brick-and-mortar establishments. It influences a company’s ability to market itself. Retailing is a business that relies on traffic – a steady flow of potential customers into the store. The more convenient the location, the more likely shoppers will visit the store. The other side of the argument is probably more revealing, in that shoppers will be less motivated to visit if they find it difficult to get to the store, lack of visibility and convenience (Sullivan, 2002). Unfortunately, this presents a weakness for Leisure World. The location is not favorable considering Leisure World current product inventory. The assortment of products carried are seasonal;therefore, Leisure World run the risk of storing the items at a cost. Historically, inventory has been viewed by business and industry as both an asset and a liability. Inventory is an asset when the unsold product is waiting to be sold for a profit;whereas, it becomes a liability when it consumes physical space, creates a financial burden and increase the possibility of damage, spoilage and loss …show more content…
There are multiple retailers in the area that offer similar brands, which puts Huang in a pure competition market limiting his ability for growth and profitability despite his exclusive product line.
Even though the incentives to adding this product to their inventory is encouraging the product is in the market maturity stage. Where promotional cost rises and discounts are normally provided to continue to promote sales and product awareness. Adding the mountain bikes to the inventory could be risky due there is a current presence of distributors in the area and it also categorizes the company in scrambled merchandising. Currently Leisure World has no online presence. Most successful businesses current use of multichannel advertising helps them reach their targeted markets. By implementing a company website or using social media the company will be able reach a variety of people all at once; therefore, creating an opportunity for expansion and growth. As consumers, we can all appreciate the possibilities that come to life with a higher level of personalization. The data from our online profiles, shopping preferences and browsing habits, as well as other personal data we choose to share, makes way for a future where advertisers anticipate our needs before we even realize them. (Anderson,
Considering 4 elements of the marketing mix and the case discussion of the general trends in the industry, it seems that MCB is experiencing problem with place and determining its target market. The case provides many examples of the company's difficulties in gaining more retail locations, maintaining sufficient inventory level, and, the most important, improper positioning of its product, which impeded the MCB to reach its potential customers.
My own personal philosophy of leisure has been shaped by past and present activities I do for leisure and why I do them. To me, leisure is the sense of being free from external stressors that I face in my life such as school or work. The positive outcomes from partaking in leisure are generally overlooked and often underestimated. Leisure affects our emotions, our physical and mental health, and aids in the creation of relationships. In my own personal life, I have done and still participate in leisure as a way to sooth myself or unwind from the stress of school or work. The release of pent up emotions and energy for individuals helps their relationships with others and their overall health as well. When stress is released, an individual is
It is, therefore, more natural for a consumer to visit a Dick’s Sporting Goods outlet and get access to a wide range of products than visiting a Finish Line. The average revenue per store for Dick’s Sporting Goods in the footwear segment (2015) was more than that of Finish Line and was about USD 1 million. Hence, the alternative for Finish Line was to include a broad range of products. However, they had a high inventory turnover period of 100 days. Therefore, taking into account the space constraints, this was not a viable option for the company.
of product with the rest of the retailers may not be good idea. This kind of business most likely
Athletics Supremes store is located in an area that caters to a very active population. Because of this, the company has a competitive edge over its competitors due to their ability to purchase products directly from the manufacturer. This availability to the product allows the company the ability to receive the equipment in a shorter timeframe just in case they need to place a special order. Due to the company utilizing a warehouse to store additional inventory for the online community and to replenish the store shelve, their customers should not need to purchase any products
The management of a manufacturing company may receive a large order from a client. There may also be a situation where the Marketing department is positive in making a decision to enter into new market(s). It may also be possible that the organisation may have decided to exploit the potential of exporting products to market(s) overseas.
Internationalization Phase, during this phase Chinese companies focused on ‘building brand, localization of products and services for new markets, and differentiation of products to support higher margins’ they did what was ‘good enough’ for the market (Teagarden & Cai, 2009:78). An important issue during this phase was to research and develop the products, and to keep the key talent of the company, such as managers and engineers.
The prices of their products are at times considered high by some customers. This is an area that the company should focus on. The fact that the market is seasonal has also affected the performance of the company and they should, therefore, make plan to ensure that the demand of their products remains high throughout the year.
The Leisure and Recreation Industry The leisure and recreation industry is an industry, which has grown and affected the economy in a big way. The industry is one of the fastest growing industries in the UK. The leisure and recreation is defined in many ways for example leisure is referred to the time spent outside employment and other essential activities such as sleeping. Recreation, where as referred to the type of activities undertaken during leisure time? The leisure and recreation industry can be described as a whole range of activities taken in people's free time.
42% of all free time is now in the hands of adults who spend none of
Expansion in product line: diversifying its product line will open a new set of opportunities while at the same time it can differentiate itself from the competitors.
Since the case was published, Best Buy has continued to be innovative and creative in building its relationships with its consumers. Per Best Buy’s website (2013), they have added a Windows store that allows customers to gain knowledge and test out Window devices. This shows their increased dedication to building the customer experience. Even with all the changes and dedication they have to their consumers, Best Buy has already closed the nine Best Buy stores that it set up in China (CNBC, 2011). However, Lee (2013) mentions that the CEO of Best Buy says it will keep its business in China under the Five Star brand.
...site. This is great for the company because in this circumstance they act only as the store and once the sale is complete they are no longer responsible for getting the product to the consumer.
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach
The company experienced an immense development over the last year which is due to great sales and ...