Essay on The S'No Risk Program

1851 Words Jul 4th, 2013 8 Pages
Justin Girouard
Module 3 Assignment 2

Sn'o Risk Too Big Of A Risk

Toro was a company that was built on residual lawn care products and in the past couple years prior to 1983, Toro had begun to emerge into the winter care products such as snow throwers. Loss of sales in the previous years led unhappy retailers with a lot of left over inventory that Toro bought back in attempt to keep them happy. This brought about the Sn'o Risk campaign.

The SN'o Risk campaign was a huge success resulting in dramatic growth in sales and profit for Toro. American Home insurance company raised their interest rate in the Toro's snow thrower products was because they saw that the annual potential liabilities of the Toro's snow blower reached a
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The statistics were suitable for the Toro's. They gambled on the weather that could not be controlled and thus to seek the claim they got confidence from the insurance company who looked to the make them confident enough about their product. The past few years average snowfall was above the historical average and if by any chance it would have been below with the same they were still under the claim, by then they made enough profit as many people went out in the market in search of the product being produced by Toro's.

The program was also attractive and slightly risky for the customers because they were not able to predict the weather conditions for the next year. The people were interested in the product and campaign because if by chance any two weather forecast channels said that the snowfall was below 50% of the average of the actual snowfall then people would be entertained with the straight 50% refund and if the average snow fall was less than the 20% of the historical snowfall the Toro's snow blower would be refunded at 100%. The product was essential for customer due to past experiences from the bad weather condition in the past year. The benefit for Toro and American Home as the snowfall was enough and people were not able to claim the refund. To entice the refund structure to continue to lower the
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