Western Governors University JET 2 Task #2 May 11, 2014 A1: Budget Planning Areas of Concern Sales Budget: 1. Competition Bikes, Inc., has budgeted a conservative increase in sales in units. In 2008, they sold 3,400 units and in 2009 they are budgeted for 3,510 units to be sold, a modest 3% increase. In addition, they have kept their price per unit the same at $1,495, with overall expenses increasing 5%. This is a concern, if it is costing more to manufacture the bikes, then the price of the bike should increase and the company should also consider a more aggressive “sales in units” budget.
Hybrids have become very popular and more and more people are converting to them each day. Though the hybrids name, and sales rates are growing, there is always much controversy over the cost and maintenance on the hybrid vehicles. Aside from the controversy and opinions, even though hybrid vehicles have a slightly higher purchasing and maintenance cost, they are still much more efficient and will be cheaper on the owner throughout the vehicles life expectancy. The hybrid has made a name for itself, and when buying a new car, why not get one that will benefit for you most? The problem some people face though when looking for new vehicles is the fact that they don’t know much about the hybrid or electric vehicle, and they will pass by them without any knowledge of what they are.
For expanding company’s publicity and popularity, MMG could find a young guitar player with excellent playing skills to endorse the new guitar model. The endorsement contract would have positive effects on company’s future sales. Oppositely, selling accessories would not help company reach the sales goal because it would increase the cost on inventory and transportation. The appropriate price on the new guitar model would be $699.99. The monthly promotional budget was planned to be $4,000.
The distribution networks of the new companies are high and tends to affect the operations of JCP. Therefore, the company should build a strong distribution network so as to counter significantly the operations of the new companies that produce similar products. The “mom and pop” stores have been reported to resort in selling products online, otherwise they become obsolete. J. C. Penny’s SWOT analysis The strengths of the company are: * The existence of more than 1100 locations worldwide * Their quality products such as clothing, jewellery, beauty products and even footwear and furniture * The company also offers shipment of their goods for customers, which gives their customers the best experience in the end, hence attracts more customers. * The company also offers free haircuts for the children The weaknesses of JCP Since its competitors give similar products, the company is faced with limited market share 2. International business operations have also challenged the services of JCP due to the current emerging economies worldwide.
Management feels that staffing changes and investing in new technology can increase production to 50,000 a year. Competitive pricing and maintaining high production standards is paramount to keeping ahead of the competition, particularly since 80% of bikes bicycles are outsourced. BB’s unwillingness to relocate leaves them at a disadvantage on keeping costs low (wages and overheads). However they outsource non-core elements of the manufacture and developing internal staff to carry out the skilled tasks i.e. machining and complex engineering locally which allows for consistency in quality.
Operation Decision for Company A Dr. E. T. Faux ECO 550 Strayer University Quinton Fuller Brief Business Description Company A is based in Ohio and it manufactures headphones. Since the plant is based in the U.S., it encounters higher cost than its peers. The headphone is sold for $32 each and the firm only makes $2 per headphone or 6.25% gross margin. Company A is employing 100 workers, including both administration personnel and production line workers. Currently, the firm’s total costs exceed its total revenue and needs to make a decision as to whether it should shut down completely or continue its operations.
The have a method of researching, developing, testing, and updating. They are continuously researching and testing their products to keep up with the volatile fashion industry. Since Coach’s prices allow for greater volumes of sales, which might have lower profit margins than it’s competitors, they are apparently doing things right. They have about 70% of their US sales coming from direct-to-customer sales. They sought after full-price stores, and ways to attract
Mercedes would pay $4000 and the Traveler would pay $3200. I included a rebate for both brands in the third quarter so the sales would increase and they did. The Speed computer included engineering applications, office applications; ability to link with other computers and a fast and powerful machine these features met all the needs of the Mercedes customer. The Aloha included office applications, portability, ease of use ability and ability to link with other computers; these features met the needs of the traveler population. I chose to place offices in NY - North America and Tokyo- Asia because both brands had the greatest demand in both of these locations.
In the marketing industry there are many ways for marketing teams to introduce new products and have the products become successful in the market. After reviewing the marketing simulation the writer understands the situation the organization is facing with the motorcycles they produce for consumers. The recommendations the writer purposes in order for this organization to stay successful and the future results that could be accomplished by the marketing strategy. The Situation The Cruiser Thorr organization has been face with a downslide of sales of their motorcycle cruisers due to the targeted consumers who happen to be in their mid 30’s to early 50’s. Since many consumers are growing older and do not follow the same lifestyle that they
This is clearly shown in the variation of sales in its two major markets, one at home in the U.S and the other in Europe. As shown in the in the graph chart in 2006, Custom models accounted for 47.4% in the U.S while only 13.4% in the European market. Other sales based on style of bikes are in the U.S performance 15.1%, touring 35.5%, and standard 2.1% while its other market sales in Europe were performance 41.4%, touring 26.1%, and standard 19.2%. The reason Harley faces such diversification is clearly due to consumer preferences. The European markets desires performance bikes made for the open roads and high speed demands.