Chantale and Clinton: Call for Service Case Analysis
Janmar Case Analysis
Janmar executives are in a disagreement on where the company should focus its’ marketing efforts. VP of Advertising suggests the company should increase advertising by $350,000, with most of the efforts targeted only towards the Dallas/Fort-Worth area. VP of Operations would like to decrease prices by 20%, to make the product more competitive. VP of Sales would like to add one sales rep whose only focus is finding new retail accounts, whom would cost $60,000 plus commissions. And the VP of Finance would like to maintain the company’s current approach and continue to be profitable by protecting margins and cutting cost.
An Increase in advertising very helpful for this company in terms of promotion. Because the company produces a high quality product in a highly competitive market, where there is a decline in the industry by 2-3% each year, Janmar must be able to differentiate its’ product from the lost cost alternatives. The best way to differentiate the product for Janmar is to educate their consumers, which are largely do-it-yourselfers, making advertising through television a perfect channel of advertising. Also because the company is still growing, it would be better to focus most of its’ efforts in the DFW are, which the VP of Advertising already stated. The only flaw to the VP of Advertisings argument is he does not state the current advertising budget and the increase in sales from that advertising. Without this information it is impossible to judge the effectiveness of $350,000 in advertising.
Cuttings cost seems like a reasonable option in order to pierce the product into the market. The VP of Operations would also like to spend the $350,000 in order to advertise for the price cut. This idea would without a doubt increase sales and awareness of the product, the profitability is the question. The VP of Operations does not explain the expected increase in revenue from the price cuts, and whether the company can afford to still cover
Janmar executives are in a disagreement on where the company should focus its’ marketing efforts. VP of Advertising suggests the company should increase advertising by $350,000, with most of the efforts targeted only towards the Dallas/Fort-Worth area. VP of Operations would like to decrease prices by 20%, to make the product more competitive. VP of Sales would like to add one sales rep whose only focus is finding new retail accounts, whom would cost $60,000 plus commissions. And the VP of Finance would like to maintain the company’s current approach and continue to be profitable by protecting margins and cutting cost.
An Increase in advertising very helpful for this company in terms of promotion. Because the company produces a high quality product in a highly competitive market, where there is a decline in the industry by 2-3% each year, Janmar must be able to differentiate its’ product from the lost cost alternatives. The best way to differentiate the product for Janmar is to educate their consumers, which are largely do-it-yourselfers, making advertising through television a perfect channel of advertising. Also because the company is still growing, it would be better to focus most of its’ efforts in the DFW are, which the VP of Advertising already stated. The only flaw to the VP of Advertisings argument is he does not state the current advertising budget and the increase in sales from that advertising. Without this information it is impossible to judge the effectiveness of $350,000 in advertising.
Cuttings cost seems like a reasonable option in order to pierce the product into the market. The VP of Operations would also like to spend the $350,000 in order to advertise for the price cut. This idea would without a doubt increase sales and awareness of the product, the profitability is the question. The VP of Operations does not explain the expected increase in revenue from the price cuts, and whether the company can afford to still cover