Joggers Universe

1878 Words Aug 19th, 2012 8 Pages
Case Study: Joggers Universe

Executive Summary

The objective of this case summary is to provide Sue Koenig, who runs Joggers Universe with an objective analysis of several alternatives that she is considering, with the end goal of increasing sales at her retail shoe store. The alternatives that were under consideration were to either A) change her product line to offer made-to-order high-performance athletic shoes, or B) incorporate Women’s fashionable athletic, casual wear and dress shoes. The conclusion that was reached was to follow the sales strategy outlined in Alternative A, and offers steps to pursue this course of action.

Introduction

Sue Koenig opened the Joggers Universe retail store in 1987 at the age of 24. For the last 10
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The main advantage and disadvantage of this alternative is that this will require Sue to change which market segment that she will be promoting to. The segment of customers that Joggers Universe will be focusing on will be serious exercise enthusiasts, who are also more affluent in their spending habits. The downside of this is that it will require Sue to discover how to find and market to this new clientele. It will also require her to abandon a large percentage of her current customer base. Since these customers are mostly abandoning high-impact exercise programs and their product needs are changing, this is an acceptable tradeoff.

Although it seems that the runners market seems to be shrinking, this problem can be addressed with the addition of more expensive ancillary products that these more affluent customers will be interested in buying in addition to these expensive, premium shoes. Stocking accessories such as heart rate monitors, like the Forerunner 301 [1] which retails for $199.99, and runners watches like the Ironman Race Trainer [2] which retails for $150.00 will appeal to the elite athlete that Joggers Universe will hope to attract. She could also stock expensive, high quality running outfits. Since these customers are generally interested in their health and wish to stay in peak condition, Sue should consider aligning herself with a multilevel marketing

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