Aab Case Study Analysis

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ABUSINESS STUDIES: CASE STUDY ANALISYS Marketing: Objetives: To return the business to profitability in the next 12 months (short term) * Anything that helps to maximise profit and reduce costs will help to achieve this objective Continued growth in the UK (short term objective) * There are plans to open a store every month over the next year. These planned store openings should be based on the findings of market research, demonstrating the likely demand for AAB’s products To increase the proportion of sales that comes from abroad 12% to 20% over the next five years (long term objective) * If sales from abroad are maintained and sales within the UK fall this objective can be meet. (Which is unlikely) * Selling in the abroad can help to spread risks because it involves complications and costs. * AAB might have to adapt the marketing mix of products in order to take into account these differences and maximise sales * To extent to which demand will be affected by changes in exchange rate will depend upon the price elasticity for AAB’s in this markets * If customers in an export market where the rate of exchange changes negatively against pound sterling are price sensitive, then AAB might consider reducing prices in order to increase demand. Distribution of the products and implications for the marketing mix AAB currently sells to 200 independent and national retailers in the UK, over 30 franchises stores in Europe, the middle east and Japan; as well as through distribution partners in Russia, South Africa and China; and also direct to the consumer direct from internet AAB used to be purely an importing wholesaler operator, but the owners made the decision to become a retailer 15 years after starting the business Potential advantages and disadvantages arising from the move to become a

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