Case Wireco Essay

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CASE STUDY WIRECO LTD. John Bent, marketing manager of consumer products for Wireco. Ltd, is trying to set a price for his most promising new product - a kitchen flower pot holder. Wireco. Ltd - located in the Midlands, UK - is a custom producer of industrial wire products. The company has a lot of experience bending wire into many shapes - and it can also chrome- or gold - plate finished products. The company was started I0 years ago and has slowly built its sales volume to £1.5 million a year. Just one year ago, John Bent was appointed marketing manager of the consumer products division. It is his responsibility to develop this division as a producer and marketer of the companies' own branded products - as distinguished from custom orders, which the industrial division produces for others. John Bent has been working on a number of different product ideas for almost a year now and has developed several designs for letter holders, message holders, towel holders, key and pencil holders, and other novelties. His most promising product is a flower pot holder that can stand over kitchen sinks. It is very similar to one the industrial division produced for a number of years for another company. In fact, it was experience with the sales volume of that product that interested Wireco, Ltd, in the market - and led to the development of the consumer product division. John has sold hundreds of units of his products to various local food and general merchandise stores and wholesalers on a trial basis, but each time the price has been negotiated, and no firm policy has been set. Now he must determine what price to set on the flower pot holder - which he plans to push aggressively wherever he can. Actually, he hasn't decided on exactly which channels of distribution to use. But trials in the local area have been encouraging, and, as noted above the experience in the

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