Organickidz: Marketing Strategy

But there is always a fear that what happens next. How would be the response from the consumer and stakeholders? Since now the company has become dependent, what would be the level of trust?

The strategic objective of Costco is based on the concept of offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories while producing high sales volumes and rapid inventory turnover. This rapid inventory turnover, when combined with the operating efficiencies achieved by volume purchasing, efficient distribution and reduced handling of merchandise in no-frills, self service warehouse facilities, enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets. (1)

With the shift in the end customers demographics, it would be wise for Stihl to consider alternative strategies to supplement their current reliance on independent specialty dealers. A company must always address who the end customer is, when you forget or choose to ignore who the customer is, then you tend to not be able to reach them. The marketing mix (product, price, placement, and promotion) has to be in tune with who the end customer is and what their economic situation might be. The case breaks down the changes or shift in demographics in the form of predictables and unpredictibles.

The Kool-Aid brand has faded as the market has become flooded with various choices of sodas, waters, energy drinks, packaged and powdered sports drinks, and a myriad of other options. Our goal is to bring back this brand which was once at the heart of teen popular culture.

Distributors will respond to their decisions. Neptune cannot afford to start a price war with its competitors

Since the early 1990s, the players in the market have copied each other's innovations and this has led to very little differentiation of products in the market. Customers in this industry are very price sensitive and little differentiation allows them to shop around for the best deal. In businesses, there was also a trend towards contracts with multiple suppliers and this further increased customer power. These factors combined have led to lower industry attractiveness since 1990.

Customers make demands on the market by routinely expressing their desire for “more”. This has been called “seeking a bigger and better deal”. The demand is for more value, and more options. As they search the marketplace for its offerings, customers are often pleased to see new suppliers. They consider the new offerings, and make decisions about changing their purchasing habits.

Zumiez Inc. history started off with the owner of the business wanting to do anything he could do to give back to his community. When Zumiez was first created their target market was in action sports retailing, when they really started making more money they started giving back in an even bigger way to 13 charity organizations in Snohomish County, Washington by purchasing jackets, flannels shirts and blankets to give away to those who couldn’t afford it. Up until that point Zumiez was a private company until their launch in the spring of 2005. By the time we hit 2012 Zumiez had already donated over 180,000 items to over 180 organizations in 21 states helping more than 60,000 men, women, and children. Tom’s philosophy of business and life has been there motto since day one. “We help our employees to become successful, which makes the company successful. This in turn allows us to use that success to help others and to develop our employees into community leaders on issues that matter to them”. As Tom always says, “it’s about the leverage- creating it and using it for the benefit of others, and in the process, of ourselves”

Company Q has had a large demand from their customers to provide healthy and organic foods over the last few years. They recently started offering a small variety of health and organic food items, which is a step in the right direction toward being socially responsible. They need to be more attentive to the needs and wants of their customers as it shouldn’t have taken years to bring in these demanded products. When there is a demand for products and the company doesn’t respond to that demand, it’s perceived by the consumers that the company simply doesn’t care about their needs and wants. Bringing in a selection of these products was a good start in satisfying their customers. However, with such a demand for these items, having a small and limited selection is just not enough. Expanding the line of health and organic food items will accomplish two things. First and foremost it will appease the current customers and bring in a new clientele that is health conscious, thus helping to create a healthier community and at the same time increasing sales. The higher margin on the health and organic items coupled with the increase in sales will really boost the overall profit margin of the company. Company Q does need to be sure that they don’t over price these products so as to not push away business due to overpricing.

Costco’s business model is appealing because they are able to continually sell to a niche market. This niche market has

| Not being able to respond to consumer wants/demands quickly enough, leading to short-term revenue loss

Moreover, the price level will always compete one to another. As a result, there is a strong barrier for other companies to enter the same market. Which ultimately it will only encourage those three companies to continue their dominance of the market share of spreads.

Costco’s business model focuses on selling limited selection of products at low prices, often at very high volume and rapid inventory turnover. These goods are bulk-packaged and marketed primarily to large families and businesses. Costco does not carry multiple brands or varieties where the item is essentially the same. It provides members with a selection of only about 4000 items, this results in a high volume of sales from a single vendor, allowing further reductions in price, and reducing marketing costs. Costco also saves money by not stocking extra bags or packing materials; to carry out their goods, customers must bring their own

But in the long term the distribution channels would be clear and without interferences again. Also it would be possible to have a clear marketing direction and therefore planning is possible again in the future without interferences of the different distributors with each others. That would practicably mean that Vreni should decide to get out of the contract of Asal Products, Inc. even when there would be legal problems. Moreover, the business relationships to this company could be worsened in the long run.

(Lewicki, 2010, p. 585) Fontaine and Gaudin did not prepared to negotiate the full contract. They did not anticipate nor prepare to resolve additional issues. Due to their inexperience, Fontaine and Gaudin were not the correct pairing to conduct the renegotiation, as well, they did not have decision making authority. They had to contact senior level management in order to reach a final agreement. This delay extended the negotiation timeline. Adding to the already stressful situation, the prospect of losing Reliant as a consistent client prosed a potential major issue, especially relating to supply as it would be difficult to identify another client to fill the former demand level. Also, Pacific senior leaders delayed their decision to expand into PVC products, over a year. This delay created uncertainty with the forecast for VCM and derivate products, which had a negative marketing impact for one of the top essential products. Also, contributing to the list of weaknesses, Fontaine’s definition of a successful negotiation differed from the corporate office, in that, he linked a successful negotiation outcome to keeping Reliant as a client by extending the current terms of the contract, solely. However, just as important, Fontaine neglected to take into account all the other potential issues or points of