INTRODUCTIONMEM 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 ...view middle of the document...
In order to boost sales for Racquet Club, it is firstly important to create the awareness and separate it from the other product lines. Racquet Club can be sold at sports outlets, thus, strengthening its image.PLACEDue to the changes in consumer shopping patterns and broadening popularity of MEM products, it is essential to reach out to these consumers by ensuring that the products are widely available and in doing so, capturing more market share. This could be done through department stores, specialty stores, as well as food stores which is a channel MEM has yet to venture into.Furthermore, the different product lines and sales force of MEM would put them in a strong position to sell to major food chains with strong emphasis on assortment and service. With reference to Exhibit 6, English leather has lost more than 10% of the market shares to its competitors by not venturing into food stores. As English leather had entered into Kmart, dilution to its brand name would be less likely to take place. Food stores are where consumers most often frequent to pick up their regular toiletries. By entering into the food stores, MEM products would be widely available, thus reaching out to more consumers.Moreover, the fact that English Leather was the highest selling line of men's toiletries carried by general merchandise chains is a testament to the popularity of the products and would probably be high-turnover items. As a result, the sales volume of English Leather products would increase. On top of that, MEM could encourage more customers to try the less popular product-lines, such as Musk and Timberline, by allowing customers to purchase them at a discount of 20% with any 4oz. English Leather purchased. In addition, salespeople could also be assigned to these service-oriented food chains to provide merchandising assistance to these outlets, thereby boosting MEM's sales.So as to ensure the success of the launch in food stores, MEM could launch English Leather products in one major food store for market testing. The success in the market testing could help to boost the confidence level food stores owners have in English Leather products.BRANDINGAdvertising for MEM men's toiletries was targeted at the age group of 18 - 34 but according to the results of a focus group conducted in April 1979, men favorably remember English Leather as the fragrance...
