Shoes for Moos

2469 WordsApr 24, 201410 Pages
Case Title: Shoes for Moos Name: Jesse Senst Date: 3/6/14 Section number: 002 TurnItIn.com receipt number: A. Problem identification and justification. After conducting an in-depth situational analysis and finding the target market and its size along with alternatives to pricing, product, channel, and promotion of Shoes for MOOs, Mr. Wells needs to find the best channel to market his product. With having such a low budget of $25,000 and being a start-up company, Mr. Wells needs to be very efficient with his money and his time since he is currently running another business. An additional challenge is the pairing of promotions that are best for each channel. B. Alternative identification 1. Mr. Wells could pursue a direct channel…show more content…
In this partnership, it is estimated that the distributor would want an 18% margin on top of the dealers or retailers 33% margin. With this information, Mr. Wells could sell the shoes at $40.00 each to distributors that then send them out to dealers with a suggested retail price of $65.00 (middle of Mr. Well’s price spectrum) which would net Mr. Wells $21.00 per shoe. Since the distributor would be in contact with the dealers, this would leave Mr. Wells with more free time to focus on the types of promotion of his product and his current store than sales calls that he would need to make if he went directly through dealers. 4. A fourth alternative that is similar to the third would also deal with partnering with a distributor, but instead of retailers and dealers, the distributor would work primarily with veterinarians. With this approach, there would be a 55% margin that is split between the veterinarians and the distributor. If Mr. Wells chose this option and went with a suggested retail price of about $66.00, he would net $11.00 per shoe sold. This approach would also give him more time to focus on his current business and the promotion of Shoes for MOOs. C. Evaluative criteria. Profit: Mr. Wells does not state how much profit that he is looking to make in the case. We do know that each shoe will cost $19.00 from the manufacturer and depending on the channel,

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