Reed Growth

Morrisey’s goal of 16% is not unachievable but it is highly unlikely that Reed will be able to achieve such expectations by 2011. Reed is an established company in Columbus with the strongest market share already, and its position is being attacked on multiple fronts. On one end, the company is losing some price sensitive customers to supercenters, warehouse clubs, and most recently dollar stores and Aldi. On the other end, Whole Foods has three stores in the metro area, two of which were opened in the last five years and any further expansion could steal market share from Reed directly (though expansion had slowed so this was not an immediate

Probably increase marketing, promotional and expenses related to discounts in the subsequent year due to “Premier Vision” plan.

Low product differentiation and economies of scale: There isn’t much product differentiation at play in the retail industry as there are well known manufacturers whose products are offered for sale, which leaves price to compete on. Current well established retailers with thousands of stores enjoy the economies of scale to control their cost that a new entrant might not be able to replicate after immediately entering the industry.

Probably increase marketing, promotional and expenses related to discounts in the subsequent year due to “Premier Vision” plan.

Price Strategy: The current pricing is set in place to make it easy to know how much our footwear is going to be based on the performance level the customer has chosen. By only having 6 total prices it makes it very easy to keep sticker shock to a minimum and our customers can feel comfortable

The focused differentiation strategy largely depends on a buyer segment that seeks special product attributes (i.e. healthier food, lower comparative cost, quick service) and on the company's ability to stand apart from its rivals (Thompson et. al, 153). In its uniqueness, Zoës Kitchen has the ability to be different and had no national rivals emulating its format or menu.

The strong competition among rivals pursuing a similar strategy is vastly based on product differentiation and a niche market attraction, as companies are constantly working to surpass their competitors and seek to provide just what certain consumers want.

Amanda Brown was employed in September 2016 by retail organization JCPenney to conduct marketing research where she would examine opportunities for enhancement to the retailer’s current seasonal pricing and discounts. In particular, I conducted research (1) to discover customer satisfaction with promotions and discounts and (2) to investigate JCPenney customer’s most preferred method for being informed of upcoming promotions. The purpose of the research is to provide JCPenney managers with insights about how satisfied customers are with the promotions, and a valid understanding of how they can build awareness through identifying customer’s most preferred methods of notification for upcoming promotions. In addition, I conducted research to gain a deeper understanding of the influence seasonal promotions and discounts had toward the customer’s decision to shop at JCPenney.

In September there was another offer of a $1.00 cash refund, with the proof of purchase for two 5 lb. boxes, which lead to an increase in gross sales of RBS, too. The $2 cash refund for the purchase of RBS plus four additional Household Division brands in January 2006 increased the gross sales even by more than 100% from $9.3mio to $20.6mio, a total net incremental contribution of $619,562. These coupons were advertised in women’s magazines, in a Sunday newspaper supplement, on the company website, and in point-of- purchase material the latter of which has a relatively high response rate of 2%. The event in June, that included a shrink wrapped twin pack of the 1 lb. boxes and a $1.00 cash refund inside the pack with proof of purchase from two 1 lb. boxes encouraged consumers to keep one box in the fridge and one in the bathroom, so that most of them bought two boxes of RBS which led to rising sales volumes Considering the significant increase in sales, RBS should focus on investing in print and online advertisement by increasing their budgets by 10% in this sector. To conclude and thinking long-term, budgets for consumer promotion should be raised by 10% to ensure that RBS continues selling high volumes. Due to missing information of the response rate of advertising in TV, RBS should maintain the budget in this sector constant.

Similarly, both companies had a product differentiation strategy, with the aim of being distinctly set apart from their competitors by the viewing market. However, different elements of this strategy were focused on by the firms. For instance,

The differentiation strategy focuses on developing a unique product or a perception of a unique product that customers are willing to pay a premium for. If a firm is not receiving a premium price for its goods or services it is not a differentiator. A firm seeking to follow a differentiation strategy should attempt to develop and enhance its resources that promote customer responsiveness, quality, and/or innovation. Note that costs are still important to a differentiator because it is possible that the costs of making the product unique will be greater than the premium consumers are

Differentiation can be achieved in a variety of ways: unusual features, responsive customer service, rapid product innovations, technological leadership, perceived prestige and status, appeal to different tastes, and engineering design and performance. Methods of controlling costs, however, may be limited. The ability to price differentiated products competitively will be important for reducing upward pressure on customer prices so that they do not exceed the level customers are willing to

There are five generic business strategies that companies choose from when trying to successfully compete within their respective industries. This is the first choice a company must make, even before deciding an overall strategy. These generic business strategies include low-cost provider strategy, broad differentiation strategy, best-cost provider strategy; focused strategy based on low costs, and focused strategy based on differentiation. These strategies have many advantages as well as disadvantages. Choosing which one to use depends on what market position a company wants to pursue. Deciding to be more offensive or defensive also plays a role in choosing a

Price interacts with all other elements of the marketing mix to determine the effectiveness of each and of the whole. The objectives that guide pricing strategy should be a subset of the objectives that guide overall marketing strategy. Thus, it is probably wrong to view price as an independent element of marketing strategy or to assert that price, by itself, is a central element in the marketing mix.” (Webster, 1979)

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).