Lancer Gallery Case Study

719 Words May 11th, 2016 3 Pages
Lancer Gallery Case Analyis
By: DeMarcus Jordan

DeMarcus Jordan
Jackie Mitchell
Marketing Policy & Strategies
3/15/16

Lancer Galley Case Study

I. Problem Statement

Lancers present problem is figuring out if they should reposition themselves as a company. Repositioning the company is a risky move because Lancer deals with a distinct market. A large department store has contacted Lancer to start mass producing replicas which could ultimately result in a $4-million-dollar increase in annual revenue. Lancer which is mainly known for high quality merchandise now has to make the decision whether they should start mass producing like their competitors in the market. Lancer’s merchandise is known to be exclusive so mass
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On the other hand, the company’s products would be more seen by consumers, which means the demand for their products probably increase.

IV. Alternatives A. Accept the contract 1. Advantages a. Lancer accepting the contract from the department store would result in a $4-million-dollar increase in annual revenue. b. Lancers merchandise was limited before the contract, but now with mass production through the department store they will be able to fully compete with competitors in the market. The company would no longer have to worry about the scarcity of authentic artifacts because they would be mass producing.

2. Disadvantages a. Lancer accepting the contract from the department store will affect the brand image within the market, which is known to have a sense of exclusivity. This will change if they choose to mass produce. b. If Lancer were to mass produce replicas this could lead to upsetting customers and also dealers who will take their business elsewhere. The reason being that they were used to have exclusive artifacts and now they won’t because of mass production.

B. Reject Contract 1. Advantages a. The company wouldn’t produce replicas and change their business model (sales are still increasing roughly 20% each year) b. By declining the contract from the department store, it will allow the company to maintain its strong and well respected brand image it is known for. If Lancer was to accept the contract

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