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Untitled Prezi

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Sara Shishani Ghalghai

on 19 June 2013

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2- Packaging and price:
$15.00 for a 5-count Package.

3- Sales Personnel:
Limited input to sell the product.

4-Reorder Rate:
only 10.3% of the total units sold are recorded.

5- The targeted Segments

Factual Summary

-Expected channels of Nundies.

6-Profit Margin

Stephen Abel
Sara Shishani
Mmodi Alenezi
Andrew Weinfurtner

Case Problem/Opportunity
Are Nundies being sold in the correct marketing channel and what type of advertising should Nundies do when they have a marketing budget of $300,000?

AMI should distribute Nundies through the boutique stores
-Offers the cheapest entry into the distribution channel.
-Offers high margins.
-Is more compatible with production limits.

Selected Solution

Almost acts as a test market.
-Allows AMI time to determine how to manage a Nundies type product without a huge additional investment.

The retail sales volume has been significantly lower than the wholesale volume.

Other considerations

Make the display slightly more attention getting.
Provide sales tips to retailers
Include samples with each retailer order
Offer discounts on larger reorders

Marketing Plan (cont.)

-Utilize newspaper editors and columnists for free advertising.

-Advertise using kiosks.

-Send free samples to popular bloggers.

-Introduce instructional videos on the product website and on Youtube.

-Include pamphlets with each order.

Marketing Plan

The boutique distribution model is the only solution that is feasible without requiring large expansion.
The mid-range department stores would require 54 times the liner sales to break even
The upscale department stores would require 13 times the liner sales to break even
Both of these models would require large amount of capital

The Real Why

Alternative Solutions

A combination of channels.

-Ability to produce and deliver at the right quantities.
-Increased advertising.

-Higher costs and fees.

Alternative Solution #4

Expand in the midscale department stores.
-Lower cost of goods sold per unit.
-Huge market size.

-Different packaging sizes
-Lower profit margin.
-Increase the fees.

Alternative Solution #3

Pursue upscale department stores.

-More exposure for the target market.
-Lower profit.
- Higher cost of goods sold perunit.

Alternative Solution #2

Continue the development of the product through boutiques.

-Cost saving.

-Reliance on Manufacturers Agents to
recruit shops via show rooms.
-High comission rate.
-Minimum Order quantities.
Alternative Solution #1

If goal is reached: we can revisit the idea of expansion; most likely into Upscale

If sales drop below 2007 level: Shut down or sell.

In between: continue to monitor while developing alternate ideas/products

Contingency Plan

After 6 months our goal is to have sold 8,500 units and to have a reorder rate of at least 8%.

Year End Goal: reach 95% capacity (19,000 units).

Our goal is to have a reorder rate of 10% or better and have this make up at least 20% of our sales.

We expect selling to improve at the retail level due to increased knowledge of boutique employees and enhanced displays. We fully expect to reach our goal.

2008 Net Profit Goal: $37,090


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