Rumstad Report

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MARKETING RESEARCH CASE ANALYSIS ON RUMSTAD DECORATING CENTRES SUBMITTED TO: Prof. SUBMITTED BY: Anshul Goel – 14020 Roumit Roy – 14127 Sampreeta M. Bhat – 14136 Sangeet Baladevan – 14137 Satish K. Ponaganti - 14139 CASE OVERVIEW Rumstad Decorating Centres, a small paint and wallpaper supply store was founded in 1929 by Joseph Rumstad. In 1970, his son Jack Rumstad took over the store. In 1974, the original store was closed and a new outlet was opened at the west side. In 1996, he opened another store at `the east side of the city. In 1997, he suffered losses. The West side store got affected the most. Some research found that the problem at the west side might be due to the location or its advertisement. Some questions arises. Was the location perceived as convenient? Were potential customers aware of Rumstad Decorating centres, the product they carried and their location? Did people have favourable impressions of Rumstad? How attitudes towards Rumstad did compares with its major competitors? Jack Rumstad gave the Marketing Research work to Sandra Parrett, who handled all liason work with the client and assisted in the research design. They introduced Rumstad’s Main competitors, the Nina Decorating Centre and the Wallpaper Shop in their Research. Because of the cost constraints, they had to confine the research in the west side store only. The marketing strategy of Rumstad’s competitors were different. Emerson advertised in the Shopper’s World, Rockford and in daily Radio Commercials. Wallpaper shop also advertised in Shoppers World and ran small ads in Morning star. But Rumstad only advertised in the Morning Star. ORGANIZATIONAL CONTEXT To improve sales and understand the customer’s attitude towards Rumstad Decorating Center RESEARCH OBJECTIVE To understand the reason why the west-side store is running into losses from the perspective

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