MEM Company, Inc., started up in 1883 by Mark Edward Mayer, produces an extensive range of colognes and toiletries. Sales had decreased over the year and MEM is now looking into several options to improve growth. After much extensive analysis, our team had decided to drop the option of launching Cambridge due to the stiff competition from Shulton's Blue Stratos which has a $12 million marketing budget with a fresh slogan, 'Unleash the Spirit', which we believe will differentiate Blue Stratos from the competition. Without the financial muscle and distinct product differentiation, Cambridge would languish in the shadow of Blue Stratos. Therefore, our team suggests that MEM should concentrate on repositioning itself in the market to retain and attract customers.
Based on the data given, we found out that there are multiple products that are targeted at the same group of consumers. We found that this problem might have been caused by the process in choosing fragrance from the manufacturer.
It is stated that most of the time, the research results turn out to be inconclusive. We feel that it is important to have a wider test market that does not belong to the employees of the company and that a clear guideline is given to them to ensure that they know what is the process about.
Another suggestion we have is to remove Lime from the product line as it targets at the same consumers as Musk. Furthermore, Lime only makes up for a 2.3% of total sales and most of it is from the sale of the gift sets. By eliminating Lime, there will be more shelf space freed to display other products. The withdraw production of product Lime will provide more cash available for advertising budget. Production efficiency can also be improved. It is...