Casablanca Kids Case Essay

1376 WordsJun 19, 20126 Pages
PROBLEM/OPPORTUNITY The most pressing issue facing Casablanca kids is a declining net income which has resulted from supply chain and production issues. Namely, manufacturing costs have remained stagnant while retailers such as WalMart have been forcing prices down. Casablanca Kids is confronted with the interesting opportunity of redesigning their distribution channels. Effective distribution channel restructuring will allow the company to overcome their issue of declining net sales and therefore lead to a sustainable business. By developing a solution in a timely manner, the company has real potential to thrive. DECISION CRITERIA The company’s main objective is to increase brand recognition in the domestic market as well as…show more content…
Due to the financial restraints, Casablanca Kids relied on public relations, to promote new releases of mid-range CDs, whenever possible. Casablanca did not use marketing as much to promote their products. Price was the driving factor for the sale of budget CDs. Casablanca did partake in the “front-end” marketing of children’s products. These front-end costs could not be recouped until two years after the expense was incurred. Around 10% of Casablanca Kids mid-range CD sales are attributed to front-end marketing initiatives. While Casablanca has been using these marketing initiatives, they are the wrong means of advertisement to reach their target market. Casablanca Kids’ also does not have any TV shows or airtime to promote their product to the kids. EXTERNAL ANALYSIS P.E.S.T. CONSUMER ANALYSIS Target market The primary target market of children’s music is “music enthusiasts” who were music lovers themselves and want to share their love of music with children. Parents come in this category as they want to purchase the same music that was purchased for them as a child. The secondary target market of children’s music are “gift givers” who purchase music CDs to give as a gift. Grandparents, other relatives and friends come under this category as they buy children’s music as a gift. Buyers who shopped at big box stores

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