Mem Case Study
Summary: MEM (the Company) is a small, publicly-traded company which specializes in the production of toiletries for men, women, and teenagers. It's most visible product is English Leather, a men's fragrance which has been in existence since the 1930's. The Company's was founded in the late 1800's by Mark Edward Mayer and has been run by a member of the Mayer family ever since.
Environment Conclusions: The fragrance market is challenging in general because marketers must sell an "image" in addition to a fragrance. The market playing field is very competitive and the margins are low.
The Company's internal structure is somewhat antiquated they recently reorganized the sales and marketing functions, but the Company continues to run with an organizational structure better suited for a much smaller company. The sales reps compensation package is not competitive with other firms and does not provide sales quotas for financial incentive.
Other Analytical Conclusions: The Company operates in the second tier market, which is mid-priced and focuses on mass distribution channels such as department stores, mass merchandisers, and independent drugstores. These distribution channels present unique challenges as the sales reps to not have ample opportunity to influence product placement and promotion.
Problem/Decision Statement: How should MEM revitalize the English Leather product line to appeal to the shifting demographics of the male fragrance market while addressing the challenges of distributing fragrance products to consumers?
Recommendations:
MEM should continue with the marketing and sales reorganization and reorganize sales teams along product lines. Currently, each sales rep is responsible for products in the man, woman, and teenager market the sales and marketing strategies for each of these markets are very different. Sales reps should work closely with the marketing managers to become subject matter experts on how consumers in
Environment Conclusions: The fragrance market is challenging in general because marketers must sell an "image" in addition to a fragrance. The market playing field is very competitive and the margins are low.
The Company's internal structure is somewhat antiquated they recently reorganized the sales and marketing functions, but the Company continues to run with an organizational structure better suited for a much smaller company. The sales reps compensation package is not competitive with other firms and does not provide sales quotas for financial incentive.
Other Analytical Conclusions: The Company operates in the second tier market, which is mid-priced and focuses on mass distribution channels such as department stores, mass merchandisers, and independent drugstores. These distribution channels present unique challenges as the sales reps to not have ample opportunity to influence product placement and promotion.
Problem/Decision Statement: How should MEM revitalize the English Leather product line to appeal to the shifting demographics of the male fragrance market while addressing the challenges of distributing fragrance products to consumers?
Recommendations:
MEM should continue with the marketing and sales reorganization and reorganize sales teams along product lines. Currently, each sales rep is responsible for products in the man, woman, and teenager market the sales and marketing strategies for each of these markets are very different. Sales reps should work closely with the marketing managers to become subject matter experts on how consumers in