DUNCAN INDUSTRIES
Market Opportunities in the United States and the European Union
[pic]
David R. Cehelnik
MKT 601 – Marketing Management
Professor Robert Cutler
Cleveland State University
Table of Contents
Executive Summary 3
Problem Statement 4
Industry Analysis 5
Company Analysis 6
SWOT Analysis 9
Financial Analysis 11
Alternatives 16
Recommendation 18
Appendix 19
Executive Summary Duncan Industries has kept to a fast growth track with its signature product, the Duncan Lift. In order to keep growing, the company is presented with a couple options to increase its market share in the scissor type vehicle hoist market. One option
…show more content…
The Duncan Lift has a reputation of being superior to competitive offerings due to its design, quality of workmanship, safety features, ease of installation, and its five-year warranty. Many versions of the Duncan Lift exist to perform a variety of tasks. Duncan Industries though focuses on selling its Duncan Lift to specialty shops that focus on wheel alignment. In terms of pricing compared with Duncan Industries competitors, the Duncan Lift is priced 20% higher than the AHV scissor lift and 5% higher than the Mete lift. Duncan Industries focuses on distribution system which relies on personal selling. This is accomplished by the company sales force, Canadian distributors and a U.S. automotive wholesaler (Figure 1). Promotion of the Duncan Lift is accomplished by a catalog-type package, advertisements in trade publications and direct marketing at trade shows. Salespeople also show the benefits of the Duncan Lift over competing vehicle hoists. Duncan Industries has steadily increased its market share of total scissor lifts since 1991. In 1999, Duncan Industries’ market share of total scissor lifts sold increased by 8% from the previous year (Figure 2). In 1999, the average retail price of a Duncan Lift was $10,990 and Duncan Industries
The lift market in North America is divided into two main segments of In-ground and Surface. Surface lifts (two posts, four posts, scissor, and other) take up 79% of the total market in 1999, while In-ground (single post, and multiple post) occupied the rest with 21%. There were a total of 49272 lifts sold in North America and the U.S. market is 10 times larger than the Canadian market. Hoists ranged from $3,000 to $15,000, while Jolson Auto motive’s average retail price was in the upper middle at $10,990 (company received average of $9,210). Scissor lifts account for 4.7% of the total lift market with 2316.
3/ Prepare a decision tree to include the different possible delivery dates of the embroider. Interpret the results.
Wisher primarily distributes its mowers in farm supply stores and hardware stores located outside metropolitan areas. 75% of the company’s sales come from rural areas, while 30% of sales regenerated from wholesalers and 20% from dealer sales. Much of the company’s brand awareness comes from co-op advertising through all sources of media. Swisher’s target markets are the Midwest and Southeast, where the Ride King and their private label Big Mow are primarily distributed. The company focuses sales on consumers with over an acre of land, as well as farmers with several hundred acres. The Ride King has a distinct advantage over its competitors, since it is the only mower that has one front wheel that can turn the mower 360 degrees without shifting. As the economy improves, Swisher can take advantage of increasing sales by selling more of its mowers in large retailers. Its retail price would make it the cheapest product on the market. As other brands have distributed their mowers under private labels to the growing mass merchandisers, Swisher’s sales could be quickly depleted. In order for Swisher to fully compete, it must be able to gain market share on other private label brands. Many of its competitors have an advantage, because they use front engine mowers, while the Ride King does not. With other manufacturers selling their mowers in the same locations as Swisher, Swisher must create more brand awareness within urban areas by
The major issue is determining why Ferguson Foundry Limited’s (FFL) actual profit was $367,600 lower than budgeted, despite selling 2,000 more wood stoves (12,000 instead of 10,000 units). This will be explained using Variance Analysis to demonstrate the underlying reasons why the company failed to meet its president’s expectations. FFL profit for 2010 was below budget due to many factors both production and marketing related.
The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.
Please provide an articulate, concise, and theoretically sound answer. Answers need to be supported with examples from the texts and Exhibits. This may require some due diligence on your part. Please retype the question and your response.
The entire purpose of promoting products is to create awareness, persuade and inform customers about your product or service while identifying key features compared with competitive products. There are many benefits of performing successful promotion such as increasing sales and acquiring a greater market share, showing your products features and exposing competitive product’s flaws, teaching the market benefits of your product, explaining different usage of your product, conveying your brand image of your organisation and promoting new and improved features of your products.
The Clorox Company is about to enter a new product market by launching a faucet mounted filter system in order to maintain its dominance in the water filtration business. To do this in a successful way, Clorox has to conquer this market with the right entry strategy. Main goal is therefore to gain market share by targeting the right customer segment and make an appropriate marketing investment. Also the previous pitcher market leadership must be maintained.
Arnold and Kunzler will meet on August 4 to search for an agreement about the wage
Trinity Industries Inc. is a “diverse industrial company that has managed to tap a variety of market-leading businesses providing products and services to the energy, transportation, chemical, and construction sectors” (Trinity Industrial INC. – about us). Trinity’ 2015 10K annual report was used to derive the following information. Their main headquarters is located in Texas, their state of incorporation is Delaware, and they have been publicly traded since 1958 on the New York Stock Exchange, under the symbol “TRN”. Trinity employs over twenty thousand individuals primarily in the United States, and Mexico and maintains a distinct group of clients through their five segments. The first Rail Group, which is the heart of the company earned
1. How should Acorn organize now, considering both their commercial business and their growing government business?
Grommet Industries is facing some very tough business decisions to stabilize the company and restructure to stimulate growth. The HR issues that I am now asked to address in our meeting with Mr. Ramon include identifying the issues we are facing, the options we have to work with, and strategies to use for implementation.
We are still losing money after the second year. However, my group realized that new tooling was an important cost. Therefore, we start thinking how to reduce it. We find out that if the demand stays between 300,000 to 345,000 units, the supplier will not need new tools. Then, it will bring the cost of new tooling to 0 for the coming years. Let’s take the worst case scenario and try to compute the savings for year 3, if the pistons are outsourced.
Monmouth Inc. is a leading producer of engines and massive compressors used to force natural gas through pipelines and oil out of wells. It is has dependence on sales to the oil and gas industries, the earnings of which is fluctuated owing to cyclical nature of heavy machinery and equipment sales. Anyway, the company’s amount of earnings growth and sales are above average in long-term view. From the last three acquisitions the company adhered to only leading companies in their respective market segments. The fourth company on the list of acquisition was Robertson Tool Company.
Acorn Industries, in spite of being a small organization with a single product line had strong technical capabilities, and a compelling marketing division whose core philosophy heavily relied on the importance of Voice of the customer, market research and competitive benchmarking, which was used in creating and submitting contract proposals. During the 1990’s, most companies such as Apple, Nike, McDonalds etc. were substantially dependent on the marketing departments that emphasized on face to face meetings with the customers, and employees pushing their sales numbers to increase revenue and business profits, which is similar to Acorn Industries’