Casablanca Kids Case
PROBLEM/OPPORTUNITY
The most pressing issue facing Casablanca kids is a declining net income which has resulted from supply chain and production issues. Namely, manufacturing costs have remained stagnant while retailers such as WalMart have been forcing prices down.
Casablanca Kids is confronted with the interesting opportunity of redesigning their distribution channels. Effective distribution channel restructuring will allow the company to overcome their issue of declining net sales and therefore lead to a sustainable business. By developing a solution in a timely manner, the company has real potential to thrive.
DECISION CRITERIA The company’s main objective is to increase brand recognition in the domestic market as well as in the international market. 50% of the sales volume was due to three artists, famously known in the domestic market. In order for them to expand in the international market, they need to expose these singers in the international market and also bring in new artist who are known in the international market.
Casablanca Kids needs to increase revenue while decreasing operating cost effectively. They need to develop the presence of their artists in both domestic and international markets. This criterion speaks to long term growth in revenue. While Ricki is deciding on how to increase the brand recognition, she needs to be mindful of the stakeholder’s interests. Casablanca Kids need to maintain good working relationship with the stakeholders and make sure that the decision benefits the stakeholders.
INTERNAL ANALYSIS
Marketing Mix
Product:
Casablanca Kids is a private Canadian-based children’s music label. Casablanca Kids’ competitive advantage is derived from the well-established artists signed by the label. Most of these established artists have more than 20 years of experience in the industry.
Casablanca Kids has two types of product offerings which are distinguished as mid-range CDs and budget CDs. These two classes of
The most pressing issue facing Casablanca kids is a declining net income which has resulted from supply chain and production issues. Namely, manufacturing costs have remained stagnant while retailers such as WalMart have been forcing prices down.
Casablanca Kids is confronted with the interesting opportunity of redesigning their distribution channels. Effective distribution channel restructuring will allow the company to overcome their issue of declining net sales and therefore lead to a sustainable business. By developing a solution in a timely manner, the company has real potential to thrive.
DECISION CRITERIA The company’s main objective is to increase brand recognition in the domestic market as well as in the international market. 50% of the sales volume was due to three artists, famously known in the domestic market. In order for them to expand in the international market, they need to expose these singers in the international market and also bring in new artist who are known in the international market.
Casablanca Kids needs to increase revenue while decreasing operating cost effectively. They need to develop the presence of their artists in both domestic and international markets. This criterion speaks to long term growth in revenue. While Ricki is deciding on how to increase the brand recognition, she needs to be mindful of the stakeholder’s interests. Casablanca Kids need to maintain good working relationship with the stakeholders and make sure that the decision benefits the stakeholders.
INTERNAL ANALYSIS
Marketing Mix
Product:
Casablanca Kids is a private Canadian-based children’s music label. Casablanca Kids’ competitive advantage is derived from the well-established artists signed by the label. Most of these established artists have more than 20 years of experience in the industry.
Casablanca Kids has two types of product offerings which are distinguished as mid-range CDs and budget CDs. These two classes of