OMEGA PAW INC.
OMEGA PAW INC.
COMM 1006E-02
November 30, 2012
Executive Summary
Omega Paw Inc. (Omega) has been in the business of selling the “Self-Cleaning Litter Box” since August 1995. The company has reached a sales level of $1 million for one year. Michael Ebert, the president of Omega, wants to expand the current market and boosts sales to grow the business quickly. However, how to expand marketing initiatives and which channels of distribution should be used to increase sales are the main issues. Ebert also should consider which advertising medium is the most effective way to promote the “Self-Cleaning Litter Box”.
There are several alternatives for the issues:
Which the channel of distribution should be chosen to increase sales: to continue to sell in the pet stores (no changes), to increase penetration into pet stores, to sell directly to customers, to pursue mass markets, or to expand into grocery stores.
Which advertising mediums should be used by Omega Paw: trade shows, trade magazines, a mail order/TV campaign, point-of-purchase displays, flyers, and the Internet. The decision to be made is to penetrate into pet stores in the short time and to introduce Omega Paw’s self cleaning litter box into grocery stores in the next two years. The company should improve the litter box and the retail price is no more than $50 which will be more competitive. Omega can use flyers, point-of-purchase displays, and Internet to promote the litter box.
Problem statement
How to expand marketing initiatives and which channels of distribution to choose in order to grow the business quickly?
Subproblems
Which advertising mediums should be used to promote the product?
What is the retail price of the “Self-Cleaning Litter Box” via different channel of distribution?
Objectives
Personal: Ebert’s goal is to grow the business quickly. He aspires to reach goals of future sales of $1.7 million by December
COMM 1006E-02
November 30, 2012
Executive Summary
Omega Paw Inc. (Omega) has been in the business of selling the “Self-Cleaning Litter Box” since August 1995. The company has reached a sales level of $1 million for one year. Michael Ebert, the president of Omega, wants to expand the current market and boosts sales to grow the business quickly. However, how to expand marketing initiatives and which channels of distribution should be used to increase sales are the main issues. Ebert also should consider which advertising medium is the most effective way to promote the “Self-Cleaning Litter Box”.
There are several alternatives for the issues:
Which the channel of distribution should be chosen to increase sales: to continue to sell in the pet stores (no changes), to increase penetration into pet stores, to sell directly to customers, to pursue mass markets, or to expand into grocery stores.
Which advertising mediums should be used by Omega Paw: trade shows, trade magazines, a mail order/TV campaign, point-of-purchase displays, flyers, and the Internet. The decision to be made is to penetrate into pet stores in the short time and to introduce Omega Paw’s self cleaning litter box into grocery stores in the next two years. The company should improve the litter box and the retail price is no more than $50 which will be more competitive. Omega can use flyers, point-of-purchase displays, and Internet to promote the litter box.
Problem statement
How to expand marketing initiatives and which channels of distribution to choose in order to grow the business quickly?
Subproblems
Which advertising mediums should be used to promote the product?
What is the retail price of the “Self-Cleaning Litter Box” via different channel of distribution?
Objectives
Personal: Ebert’s goal is to grow the business quickly. He aspires to reach goals of future sales of $1.7 million by December