Essay on Lancer Gallery

786 Words Sep 15th, 2014 4 Pages
MKT – 420 / / / / Case Study 2 / / 09-30-2014

Lancer Gallery Case
Lancer Gallery started in the 1900s. Their headquarters are based in 4 major US cities but they consider Phoenix, Arizona home. They are a large company that have a well-respected reputation for sourcing and selling African and South American artefacts and replicas, along with Native American pottery and jewellery.
Problem Definition
Lancers current problem as a company is deciding whether they want to reposition themselves. Being a part of such a specialised and particular market makes repositioning a higher risk for them. A department store has approached Lancer with an offer that would increase annual revenues by $4m but would require the organisation to mass
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They would essentially be repositioning their brand image in the market. Lancer currently have a well-respected and well regarded brand image and they do not focus on sourcing and selling replicas and in turn they have maintained this strong brand identity. Though this may not be reflected in their sales and by repositioning they would increase both sales and profit but the company would certainly decrease their image and their standards would undoubtedly have to lower with this decrease in brand identity.

B. Decline the contract from the mass department store;
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.

Cons – The contract with the department store would increase annual revenue by $4m and from Lancer’s current sales number this is a number that cannot be ignored. The company would continue with decreasing sales and profits if they do not