Lancer Galley Case

A. If selling on low price, what is the implication for decisions you will make on spending (Advertising, PR, Branding, Channel Support, Quality, Efficiency, etc.)?

c. Did anything surprise you about the company's values? Why or why not? (1-3 sentences. 1.0 points)

2. In your opinion, which of the three approaches to accounting for extended warranty and service contracts is most consistent with the actual substance of a sales transaction involving equipment and an extended warranty contract? Explain your selection and your reasoning fully.

Cost – HD’s cost of goods sold has increased from 1991 to 1995 due to expansion of production. Similarly, the cost of selling, admin and engineering has also increased.

a. This option would also be with Bar Maisse, but the two companies would share

Lancer is currently a limited distribution company who sell to specialty dealers and department stores. Due to larger acceptance in return creating higher demand they added three new buyers in the last couple years. Lancer Gallery’s relationship with their existing distributors is not currently strained, but they notice that some retailers are carrying other brands at lower prices. It is not to say that the quality is comparable, but it gives Lancer something to think about as far as whether or not that want to compete more closely to some of these other brands. Should they stand out above the crowd or conform?

Currently Lancer seems to have had a solid relationship with their dealers, from a credibility perspective. Over a period of time, they have built their reputation by providing authentic products, due to their core competency – procurement. One can argue that the increase of competitors, has also added a strain to the relationship with distributors because of the battle for business.

c. How might you adjust the assortments in your department to “pounce” on the misfortunes at Thomas & Blake? Be very specific.

Pros – If Lancer were to decline this offer from the mass department store the advantage lies in their brand and the image that they maintain in the market. If they were to accept all terms of the offer that pertain to the contract it means that the gallery would have to start sourcing and selling products that are not up to the usual standard that they are known for. So if the company decide to decline the contract they would remain at the top of the market in terms of quality and brand identity.

b. National branded chain of retail food outlets that was soliciting bids from dairy suppliers

2. There would be a substantial increase in demand of vinyl stickers in the near future that could absorb the available supply

It would only make sense that the company is paying attention to what their customers need, want, and think. If the company is up for it, they will create a loyal customer and a good sector in the marketplace in regards to their products.

Should Fe’nix accept the contract to broaden its position and potentially add $4million in additional sales, given the constraints of dedicating a large percent of their business to replicas – which may have an effect on their relationship with current dealers?

on the one hand. This leads to a gain in brand equity, brand awareness and global efficiency.

He had a large amount of financial investment in an innovation to be sold and the first time around he did not succeed or come anywhere close to the prelaunch boast found in Time magazine. The magazine has a quote claiming the SHT would be the quickest product to reach $1 billion in sales after its launch. Mr. Kamen has begun to make moves with new hires, but he needs to step away and let professionals sell his product at a successful rate, as he has done with previous inventions. The value of professional marketers adjusting the marketing mix variables of price, promotion, place and product, for the SHT will surely be realized quickly with a noticeable boost in sales. One example of adjusting the marketing mix by these executives would be with price. The SHT could be “relaunched” at a new lower price (i.e.: $2,200). This new strategy would make the SHT a more attractive and realistic buy to the average consumer.