Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet. Never the less one of the biggest aspect for their sudden popularity was that celebrities where seen In superstyle cloths. Using famous people is one of the best marketing tools you can use, as potential consumers might be attracted by their appearance and style. Especially young people, which is superstyles target consumer, is attracted by
In a highly competitive business world, on a firm’s priority list is the subject of increasing profit and reducing cost. One might than pose the question, has this put them out of business (mom and pop store)? The answer is absolutely not, but rather, they too benefit from cheaper prices as they continue to buy in bulk and continue to operate as the name suggest, convenient
Judged by its revenues and valuation at that moment, it was the fastest-growing company in history. But as its board members had warned, it wasn’t ready for the spotlight!. 5. Suppose you think the market for group-based on-line coupons has great potential, and you desire to enter the competitive fray. What factors would you consider in deciding whether to become a Groupon competitor?
The company makes an effort to limit markups to 14% or less for brand-name products. These narrow-thin margins would be nearly impossible for the company to maintain a profit, which is why membership fees are so critical. Without them, the company would be operating at a loss. The second element is the product selection; Costco has made a strong effort to limit products to those of a high standard of quality and only products that will move quickly. Additionally, Costco limits the product selection to a very limited active selection (staples) of roughly 3,600 items.
There are several options available for customers to choose in this industry because the standard product and service are in this industry, so customers are more care about the price. And also the Internet makes customers research cheaper flight much easier than before and switching cost is low. The threat from substitute is high. Numerous options for customers can instead airlines, such as trains, buses, boats, and personal vehicles. Customers usually desire a cheaper way to travel if there are many options for them.
As delays will often frustrate travellers, this can make WestJet that traveller’s top choice. An order winner is the low price fares that WestJet is able to provide to customers in order to entice them to fly with them. Bargain-basement airfares may appeal to many travellers and the affordability of fares may be what drives that traveller’s decision on whether to drive, or purchase from another airline. 2. WestJet’s competitive priority relates to cost, quality and delivery.
These overall improvements have been a step in the right direction for Lowes’ future. These improvements however do cost money but like every good business man or woman knows to make money you sometimes have to spend it. So this can affect Lowes financial planning in the present and future, currently sales and profits have grown because of the new mobile devices therefore the risk factors are minimized due to the knowledge that these improvements are working but Lowes must continue to analyze the cost for these new improvements every year make sure these things do not become a financial burden. Therefore cost analysis is one factor that can affect the financial planning of the company also minimizing the use of these devices to only the stores is another factor that needs to be considered in the financial planning process. Spending money on training of these devices are also factors that must be considered this takes employees time and cost the company man hours and thus money that could be spent on other things.
PROBLEM STATEMENT Having proved successful, HubSpot has now reached crucial juncture, when in order to accelerate the growth rate and to increase their profitability, they need to decide: 1) which segment of their customers to target; 2) develop new pricing strategy; 3) determine whether they can still maintain their scale by using only inbound techniques or they will need to implement outbound techniques as well. SITUATION ANALYSIS Customers HubSpot’s customer base comprises of Owner Ollie (73%) and Marketer Mary (27%). | Pros | Cons | | Easy to sell to | Limited resources | Owner Ollie | Acquisition cost of 1000$ | High churn rate | | Simple sollutions | High macroeconomic risk | | Fast selling | Low revenue per customer | | Pros | Cons | | Higher revenue per customer | Harder to sell to | Marketer Mary | Lower churn rate | Acquisition cost of 5000$ | | More sophisticated analytics | Takes longer to sell to | | More resources | 2% CMS | For better understanding of the values that each of the segment represents, the Customer Lifetime Value (CLV) analysis is needed. | Owner Ollie | Marketer Mary | Acquisition Cost | 1000$ | 5000$ | Initial Fee | 500$ | 500$ | Current Revenue (per month) | 250$ | 500$ | Churn rate | 4,3% | 3,2% | Average lifetime(1/Churn rate) | 23,26 | 31,25 | CLV(Av. Lifetime x Cur.
Combining a demographic base units with a geographical one reduce our target market and allows us to put our emphasis in very specific segments. This has the advantage to allow us to put in the market a product that to have answers to consumer needs and wants. Choosing the aged people as one our focus target will enable us to reach a group with a strong economic power and help them gain independency and be more autonomous. This group is growing each year and could give to our product a brighter future. The U.S. economy is in a growth path and the many people are overwhelmed by their work, choosing this group of people allows us to benefit of their buying power and also to give the opportunity to spend their precious time with their love ones.