Question 1 - How do you address the problem at hand?
Our group identified the main areas of concern for Comp-Data as such:
CONSIDERATION OF COMPETITORS STRATEGIES
PROMOTION AT THE POINT OF SALE
RELATIONSHIPS BETWEEN VENDOR AND DEALER, AND DEALER AND CONSUMER
HIGH INVENTORY CARRYING COSTS
FORECASTING CONSUMER NEEDS AND WANTS
After accurate analysis of all of these concerns, it is our feeling that we can establish the best course of action for Comp-Data to utilize in the distribution of their new microcomputers.
Question 2 - Whose position do you support? Why?
We identified mostly with the complications raised by Joe DiMaio in that our marketing strategy has to place us over and above our competitors in our customers' view. That being said, it would be difficult to achieve such a status if the leading retailers are using this same small retailer approach. This is a new product for us; the inventory carrying costs associated with it are high, and as such we definitely need to focus our product into a retailer that can give us the exposure we need in order to compete with the leading names.
We did not necessarily agree with Ed McHugh's belief in relation to consumer confidence being linked to the smaller electronic stores, mainly because today's consumers are willing to purchase computers virtually anywhere, as long as the price and warranties meet their expectations. We acknowledge the need for consumer confidence, yet believe we will be able to achieve it using a larger retailer.
Question 3 - What are your recommendations? Why do you feel they will be more successful?
We believe that a large retail distribution will be the most efficient and effective in moving our computers from warehousing to point of sale. At a larger retailer, the product...