Marketing Analysis Essay

613 Words May 17th, 2015 3 Pages
AAA Office World (AAA)

I. Key Facts
1. AAA Office World is a manufacturing company making office supplies.
2. Stasia Acosta must decide whether she should permit her largest customer to buy some of AAA’s commonly used file folders under the customer’s brand rather than AAA’s own FILEX brand. 3. If Stasia refuses, this customer BCI will go to another file folder producer and AAA will lose this business. 4. AAA’s refused this proposal twice in the past because of the company policy to avoid one company dependency and not to brand the product by customer name or logo. 5. BCI is a nationwide distributor of office supplies with 150 retail stores accounted for 30% of AAA’s business and its own brand on more
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2. Stasia must decide to allow a production of private label, and this encourages wholesalers/retailers to procure the items from AAA instead of getting their own branded products from different manufacturer. This will produce potential benefits to AAA. 3. The policy should be changed and this impact AAA to acquire more Wholesalers and grow their profit margin by allowing the label. 4. By expanding the distribution channel one single customer doesn’t dominates the market share, and limited distribution channels could affect company’s bottom line.

IV. Recommendations 1. Stasia needs to accept the offer with a condition by locking BCI into a long term contract. 2. By allowing a private label AAA may profit while holding the brand name, and she makes sure the company requesting the label would get for what they paid for across the board without any loyalty to one specific company. 3. The Policy must be changed to attract more customers and less dependency in one customer. In addition, the quality of the product is crucial in a sense that AAA needs to introduce or implement a policy pay for quality per customer provided specification. 4. She must be determining to expand the channels and able to supply to all distributor who are willing to pay for the commodity depends on the quality requirements paid for. And no single entity…

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