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| *Ostroff, Fair and Company>>>Other - Advertising & Marketing |
Need help with homework please help!!!!? |
The case is that an industry has 10 products and 5 of them are doing fine, 3 of them arent doing that well and two of them are doing really badly. How can an industry solve this situation and how can it increase their market share in a 15%? Thank you for your help in advance!!! The standard answer is to drop the two bad products, and promote the heck out of the five winners. Sometimes, that's the right answer - but not always. And it's pretty easy to increase market share by 15%, in most cases. Just sell cheaper - possibly selling below cost. In the real world, you need to be looking at the products that are doing poorly. What would it take to turn those losers into winners? If they are new products that haven't found a market yet, you may want to go back to the drawing board and turn them into winners. If they are old products that are dying, you may want to discontinue them. However, remember that in the 1950s, one of the big auto makers realized that something like 20% of their advertising was for convertibles, yet convertibles only amounted to 2% of their sales. It was only after they dropped convertibles from their line that their dealers told them that people came into the showrooms to look at convertibles, and stay to buy a sedan, a station wagon, a hardtop, or something else. It really cost the company a bundle when they stopped making convertibles. In a related strategy, WalMart tries to turn their stock about 8 times a year. The problem is that by keeping their inventories lean, they are often out of something I need, when I try to shop there. I don't have the energy to shop WalMart, then go to another supermarket to get what WalMart was out of stock on. I simply go to the other supermarket in the first place. If you've paid attention to WalMart lately, they aren't doing nearly so well as when Sam was alive, and this is part of it. What I'd suggest as the best answer is to look at each of the products, to see whether it needs additional R&D, whether it needs additional promotion, whether the product can support a higher price, or whether it would be more profitable to reduce prices in order to increase market share. eliminate the 2 poor performers and concentrate more on improving the other 3 products. Keep doing what is being done on the good performers. That should increase market share |
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