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The Situation

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by

Janice Ha

on 5 March 2015

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Transcript of The Situation

The Situation
Current ACZ Issues
The Problem
Customers don’t share the same values as the company.
Guiding Policy
You provide T’s to save Seas.
Coherent Actions
1. Get Bluesign certified
Coherent Actions
2. Expand to the online market
3. Raise the prices
95% of companies see an ROI within 3-9 months of becoming bluesign certified.

ACZ is a t-shirt company with a mission.
ACZ sells t-shirts that are organic, gender neutral and graphically designed.
Your t-shirts are made of high-quality slub cotton.
Your t-shirts are sold in 175 retail stores.
Your t-shirts sell for $29.50 retail and $14.50 wholesale.
The t-shirts are packaged in banana-fiber bags which use 80% less plastic.
For every t-shirt sold, you clean-up one pound of trash.
Cost of banana-fiber bags.
Expense of clean up efforts.
Ill-timed cotton purchases during record high prices.
45% decrease in wholesale margins.
Faced with losing 25% of revenue if prices increase.
If this continues, you’ll be out of money in less than 6 months.
Bluesign
Risks
Feasibility
Why it will work, despite the risks
Shared values
Builds trust and an improved image at the consumer level
Adds value by using bluesign label
Expansion of business via bluesign network


Online
Risks
Legal issues
Fraud
Start up cost
Internet security

Feasibility
Vendors that can help you create your online store quickly for $10 - $700/mo.

Online
Why it will work, despite the risks
Price increase
Risks
Loss of accounts
Feasibility
Your finance group has already done the analysis
Why it will work, despite the risks
Offer larger discounts to 2 largest accounts.
With attracting the right consumers, raising prices to $34 MSRP and $16.50 will be supported.
The customers you gain will outweigh the customers you lose.
Lose less by making the cause more clear.
Key Points
Q
A
Lower marketing costs
Being open for business 24/7
Greater flexibility
Broader potential customer base
Improved customer profiling
Increased visibility for your business
The ability to tell people about your business
Another marketing channel
Clearly differentiates the product
Emphasizes the cause
Significantly increase the number of potential consumers
Makes your product available to consumers who share your values
Immediate increases to profit margins
Accurate reflection of product value
Allows you to continue clean-ups

Process time frame
Competitor imitation
Annual membership fee and certification costs
Minimal changes needed
Make it easy for customers who share your values to find your product
The right customers will pay the right price
You sell t-shirts with a mission - the more you sell, the more you help
Full transcript