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Marketing Strategy
Strategy Rationale
Widening product range To build image as full
through Diversification. service manufacturer
To meet customer
expectations
To increase market share.
Growth expected from
bedroom and Upholstered
segments
Securing future market Improve visibility among
outlets esp. furniture the general public.
galleries Total segment sales are
large
Ensure homogeneous
marketing
Lower customer Pressure
Limited number of
galleries available in the
future
Marketing Strategy
Strategy Rationale
Limited sales to mass To spread the risk
merchandiser involved
High sales
20005636
volume
20000000 19417109 contributor Continuous
18162589 increase-
High Focus
area
15000000
Reducin
g
volume-
10307532 Current year-2
10000000 Low Current year-1
8534630
7655279
focus Current year
6813000
6242400
5576000
5285000
4921200
5000000 4288000
1841000
1742000
1504000
1468848
1389077
1188189
Microsoft Excel
Refer Excel sheet for calculations Worksheet
Contribution Margin for Products
Defects
Average
per Contribut Produc Produc
Item Wholes Average Unit Average Sales Contributi
1000 ion tion tion
Numb ale List Selling Varible Inventory Order on
units Margin/U Units / Units/
er Price Price cost (Units) Backlog Margin/Hr
Shipee nit 8 Hr Hr
(Units)
d
B2089 $419 $384 $267 74 349 69 $117 133 16.63 $1,945.13
B2126 $100 $96 $60 18 735 179 $36 675 84.38 $3,037.50
B2241 $356 $357 $178 140 12 21 $179 190 23.75 $4,251.25
C2313 $494 $485 $378 11 20 53 $107 145 18.13 $1,939.38
B2474 $219 $202 $126 283 65 36 $76 130 16.25 $1,235.00
A1073 $418 $384 $138 19 23 11 $246 126 15.75 $3,874.50
A1085 $272 $198 $113 8 29 345 $85 222 27.75 $2,358.75
A1106 $66 $51 $23 0 73 1806 $28 1400 175.00 $4,900.00
A1024 $209 $144 $87 15 459 824 $57 281 35.13 $2,002.13
A1145 $119 $102 $69 0 30 14 $33 30 3.75 $123.75
A1126 $99 $74 $43 2 1078 11132 $31 1100 137.50 $4,262.50
C2201 $159 $159 $130 0 476 370 $29 300 37.50 $1,087.50
C1221 $359 $346 $210 0 66 100 $136 160 20.00 $2,720.00
C1424 $279 $239 $135 0 29 1 $104 165 20.63 $2,145.00
C1544 $190 $170 $98 0 38 2 $72 175 21.88 $1,575.00
C1457 $303 $250 $119 0 29 1 $131 90 11.25 $1,473.75
C1567 $192 $158 $105 0 31 1 $53 115 14.38 $761.88
Product A1106 and A1126 are chairs having highest CM/hr. So we need to
focus on improving the production of these items
Volume Variety Matrix
A110
6, Chair Marketing Initiative is
s
A112 to target this segment
AA
6 -2 A108
5, Table
A102 s,
Volum
Efficient 6,
C231 s,
Production Chest
3,
B-
A114
5 B224
5, 1,
C122 Table, B247
1 Chest, 4,
Sales Backlog SALES Headboar
Case 1590 A107
Case 585 d, 3,
4659
Chair 13231 Chair 5 Footboar C142
Table 1249 Table 3489 d 4,
C
C154-
Variety 7
4,
C145
CEO Recommendations
Manufacturing :
Increase the capacity of chair plant or work
towards increasing the productivity of chair plant.
Top line is affected by restricted production
capacity of chair, which is not addressed by any
production initiatives.( Lead time 44 days, Highest
Contribution margin/ HR, highest sales backlog)
Reduce lead time for all products. This is Order
loosing criteria (QQ) for most of the products with
all most all customers.
Focus on utilizing existing capacity for high CM
products .
CEO Recommendations
Marketing :
Marketing should focus on volume growth
rather than variety growth as automation in
plants does not suit the marketing initiatives
involving newer variety.
Need to focus on customer relationship
building, as it is a order loosing criteria. (QQ)
Explore better selling channels (Galleries) for
high CM products
Introduce new products carefully as higher
batches will results in higher lead time
THANK YOU