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Importadores Quetzal Case

Q: To decide which product line to pursue? Importradores Quetzal (Quetzal Importers, in English) is an importer and distributor of a wider variety of South American and African artifacts. It is also a major source of southwestern Indian especially Hopi and Navajo authentic jewelry, pottery and replicas of authentic artifacts. Quetzal distributes its products exclusively through specialty shops (including interior decorators), firm sponsored showings, and a few exclusive department stores. Rangard, the firms national sales manager was contacted by a mass merchandise department store to carry Quetzals product line of replicas at 10 % below current price, with initial buy of no less than $250,000 and future purchases were estimated to $1 million annually. The figures above are quite tempting but if quetzal pursues with this offer than this will affect it as below: 1) Mission 2) Distinctive competency 3) Distributors relationship

1) Mission The mission of Quetzal is to supply authentic artifacts to collectors and pursuing this non-collector market will require redefining its company mission and image.

2) Distinctive competency Quetzal is known for its authenticity of item through specialized buying skills which virtually guarantee the authenticity of its items and provides a wide array of artifacts so that it can be the sole source of supply and by this as a result Quetzal has acquired a national reputation. If quetzal accepts the offer of the mass merchandise which is inconsistent with these skills, than this will degrade the image and reputation of the company.

3) Distributor relationship The relationship with the distributors is based on the distinctive competencies of quetzal. Major threats to continue relation with distributors exist if quetzal enters the mass merchandise market.

Supplies of replicas Currently using native craftsmen meaning that replicas are semi-authentic Would have to triple replica production to satisfy contract

Changes to Imporatores Quetzal from acquirer of artifacts to a producer of replicas Inconsistent with Imporatores Quetzals mission Originally replicas is only a very small portion of total quetzal sales Requires additional expertise, costs, resources Impact on profits not entirely known

Recommendation: Do not accept the offer for distribution via mass merchandising retailer Not consistent with mission, image, & distinctive competencies The sales of quetzal is increasing at a constant rate of 20% per year with artifacts Replicas do not affect the market of original artifacts Replicas is only a very small portion of total quetzal sales Additional sources of production of replicas to meet the contract demand will be problematic Market for artifacts and high quality replicas is not important in mass merchandise area as a whole Prospect for additional outlets of is questionable

Q: How to overcome decline in sales? To overcome the decline in sales of Imporatores Quetzal are as under; Use of information technology to reach and target prospect customers Time to time marketing for awareness To increase availability of artifacts in more specialty shops across the globe