Case Write-Up

Published: 2021-10-07 07:40:12
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An additional 80% of 220,000 would sell in the large mass merchant, like Wal-mart and Zeller and the rest of 20% of 220, 000 by department store, like the Bay and Sears. This Sales volume target would reach by only 2003 because the license will withdraw in 2002, and another a series of marketing activities would carry out in 2002, so it could be expected the sales increasing by the certain year of 2003. III. Impediment and Impediment Defense The most important impediment to reach the sales target is limited place to purchase the GWG Jeans.
As the survey, most of customers know about this brand, but they seldom find them in the place which they used to buy the apparel. Brand awareness would be another impediment to reach the target, the young generation is not much more impressed on this brand as it popular in 1960s, however, they may know about this brand from their parent or grandparent, so it’s less important than the place which dominates to creating the sales seriously. IV. Solution Defense As the GWG was license to Jack Sparatt, he didn’t try to spread the distribution channel for GWG, instead to selling in the smaller regional mass merchants only.
Therefore, taking back the license would be the first step to take. It’s affordable to withdraw the license and selling by their own after the analysis about the cost, please see exhibit 1. Base on the two assumption of no change on selling price and within one million decoration fee, Levi would still acquire the EBITDA triple higher than licensing. The second step would be contracted with the two target distribution channel to spread the GWG jean, one is the Large mass merchant, like Wal-mart and Zeller and department store, like the Bay and Sears.
By taking these two steps to solve the very critical problem by reaching the sales target, some following action would be taken as well. By the existing channel of advertisement by Levi, the TV advertisement would be take for GWG, as the customer of GWG is probably the psychographic segment of Elitists, they are the typical people who used to watch TV, the other advertisement would don’t need to take as the targeting customer would not much more touch with those media like music or film events, music and lifestyle magazine, etc.
Besides the promotion, to expend women segment would be the must action need to take to improve the product portfolio. The last solution of marking mix of price would keep no change about selling price to secure the selling volume which formed in the goal. V. Exhibit Exhibit 1

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