Ms. Capital

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Week 10 Case Study - Group J
Catfish Creek Canoe Company Problem/Analysis:
Issues
From the case’s description of Steve Davidson’s plans and goals, he is trying to accomplish opening a canoe manufacturing shop that will produce 30 handcrafted, high-quality canoes per year; advertise with a Web site, magazine ads and press releases; and retail at a premium, yet at a competitive price which will maximize his profits. However, it is poorly mentioned how he plans on achieving some of these accomplishments. Using a Web site or the Internet to reach out to customers is a very effective and cost-efficient technique to promote the product, although Davidson might not have considered the costs associated with magazine ads that might not be
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Focus on how CCC crafts very unique high quality canoes
Large. Focus on how each CCC makes the best performing canoes

Implications:

Segment 1
Segment 2
Product
Peterborough canoe model (16ft.)
Peterborough canoe model (16ft.)
Price
Higher price range as this population segment tends to be wealthier
Lower price range
Place
Canoe magazines, CCC website
Social media, CCC website
Promo
Five-year warrantee, each canoe is unique and made by hand
Five-year warrantee, agile, highest performing canoes

Steve Davidson wants to produce 30 canoes in his first year in business.

I. Production

Davidson decided to use a direct sales approach in which CCC will engage with its customers by directly marketing and selling to them. Using a direct approach rather than a business to customer approach is more realistic for CCC. With a business to customer approach, the company will retain all ownership of its products. CCC would be responsible for distributing, servicing, and collecting payments for the canoes that they sell. A business-to-customer approach would be too costly.
Furthermore, by being the only employee (it hasn’t been mentioned whether he is hiring others) he is able to keep a larger profit for himself. This also means that his schedule will be more grueling, and the work slightly more taxing on him.

Therefore, a direct sales
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