Joggers Universe
Case Study: Joggers Universe
Executive Summary
The objective of this case summary is to provide Sue Koenig, who runs Joggers Universe with an objective analysis of several alternatives that she is considering, with the end goal of increasing sales at her retail shoe store. The alternatives that were under consideration were to either A) change her product line to offer made-to-order high-performance athletic shoes, or B) incorporate Women’s fashionable athletic, casual wear and dress shoes. The conclusion that was reached was to follow the sales strategy outlined in Alternative A, and offers steps to pursue this course of action.
Introduction
Sue Koenig opened the Joggers Universe retail store in 1987 at the age of 24. For the last 10 years she has mainly offered the sale of high-end running shoes, walking shoes, shoes for aerobic exercise, basketball shoes, tennis shoes, and crosstrainers, with the emphasis on Nike brands. Nike’s superior promotion strategy and name brand recognition has allowed her to maintain good steady sales, with a $5 to $7 premium on every pair of shoes sold. She also has offered the sale of sportswear with the focus on fashion as well as function. As a formerly nationally ranked runner, her passion for running and fitness has allowed her to stay abreast of exercise trends and allowed her to stay competitive in her chosen market.
Issue
The issue facing Sue Koenig and Joggers Universe is that despite her on-hand knowledge of running and exercise trends, access to superior name brand products and fashions, and her healthy profit margins, her overall sales have flattened out. She appears to have been able to capitalize on the jogging and fitness trends in the market growth stage, when there were relatively few competitors, and total industry profits were at their peak. Now that the fitness industry as a whole has entered the market maturity stage with the maximum amount of direct competitors, her business has begun to suffer.
Root Cause
Executive Summary
The objective of this case summary is to provide Sue Koenig, who runs Joggers Universe with an objective analysis of several alternatives that she is considering, with the end goal of increasing sales at her retail shoe store. The alternatives that were under consideration were to either A) change her product line to offer made-to-order high-performance athletic shoes, or B) incorporate Women’s fashionable athletic, casual wear and dress shoes. The conclusion that was reached was to follow the sales strategy outlined in Alternative A, and offers steps to pursue this course of action.
Introduction
Sue Koenig opened the Joggers Universe retail store in 1987 at the age of 24. For the last 10 years she has mainly offered the sale of high-end running shoes, walking shoes, shoes for aerobic exercise, basketball shoes, tennis shoes, and crosstrainers, with the emphasis on Nike brands. Nike’s superior promotion strategy and name brand recognition has allowed her to maintain good steady sales, with a $5 to $7 premium on every pair of shoes sold. She also has offered the sale of sportswear with the focus on fashion as well as function. As a formerly nationally ranked runner, her passion for running and fitness has allowed her to stay abreast of exercise trends and allowed her to stay competitive in her chosen market.
Issue
The issue facing Sue Koenig and Joggers Universe is that despite her on-hand knowledge of running and exercise trends, access to superior name brand products and fashions, and her healthy profit margins, her overall sales have flattened out. She appears to have been able to capitalize on the jogging and fitness trends in the market growth stage, when there were relatively few competitors, and total industry profits were at their peak. Now that the fitness industry as a whole has entered the market maturity stage with the maximum amount of direct competitors, her business has begun to suffer.
Root Cause
References: [1] https://buy.garmin.com/shop/shop.do?pID=270 [2] http://www.timex.com/gp/product/B001RQ97LY/sr=1-5/qid=1236908887/ref=sr_1_5/185-1096156-0163011?ie=UTF8&m=A1S5XB33AHYRMX&n=238503011&timexBrand=core