AAA Office World (AAA)
I. Key Facts
1. AAA Office World is a manufacturing company making office supplies.
2. Stasia Acosta must decide whether she should permit her largest customer to buy some of AAA’s commonly used file folders under the customer’s brand rather than AAA’s own FILEX brand. 3. If Stasia refuses, this customer BCI will go to another file folder producer and AAA will lose this business. 4. AAA’s refused this proposal twice in the past because of the company policy to avoid one company dependency and not to brand the product by customer name or logo. 5. BCI is a nationwide distributor of office supplies with 150 retail stores accounted for 30% of AAA’s business and its own brand on more
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2. Stasia must decide to allow a production of private label, and this encourages wholesalers/retailers to procure the items from AAA instead of getting their own branded products from different manufacturer. This will produce potential benefits to AAA. 3. The policy should be changed and this impact AAA to acquire more Wholesalers and grow their profit margin by allowing the label. 4. By expanding the distribution channel one single customer doesn’t dominates the market share, and limited distribution channels could affect company’s bottom line.
IV. Recommendations 1. Stasia needs to accept the offer with a condition by locking BCI into a long term contract. 2. By allowing a private label AAA may profit while holding the brand name, and she makes sure the company requesting the label would get for what they paid for across the board without any loyalty to one specific company. 3. The Policy must be changed to attract more customers and less dependency in one customer. In addition, the quality of the product is crucial in a sense that AAA needs to introduce or implement a policy pay for quality per customer provided specification. 4. She must be determining to expand the channels and able to supply to all distributor who are willing to pay for the commodity depends on the quality requirements paid for. And no single entity
Low brand awareness -, Advanced Materials Inc. needs a strong financial effort to make prospective customers familiar with the brand
b. Does the issue of branded vs. private label enter into this consideration? Why or why not?
17. To persuade at least 15% of our main competitor’s customer base to switch brands.
As a result we can see that only one of the four above criteria is met and it is a fixed price. Based on these findings we can advise to change WAG’s policy on revenue recognition upon the delivery of the product. This will lower the sales revenue by $50,000, as well as cost of goods sold and net income.
As a manufacture of private label personal care products, Hansson Private Label, Inc. has a considerable amount (28%) of market share in its specific industry. However, private labels as a whole constitute less than 19% in the entire personal care industry. Therefore, growth of HPL depends on the growth of the industry and more importantly the growth of private label component within the industry. In terms of the personal care industry, market growth will not improve significantly in the future. As proven in the past four years, unit volumes in the industry increases less than 1% in each year and the dollar sales growth was only driven by modest price increases. Therefore, the opportunity for private labels
To understand the role of H-E-B’s Own Brands, we need to understand the role of private labels to a retail store. Retailers manufacture carry private brands since retail gross margins in the private labels are relatively high. Retailers are able to realize cost advantages since they do not have additional advertising and distribution costs associated with private labels. In addition to increasing profits, store brands help to attract and retain customers. Retailers however need the critical procurement revenue from national brands for ad space and displays on stores and hence need to maintain a balance between their Own Brands and national brands.
Now we are down to choosing the brand associations. Who will promote and what events or causes will be align our brand with? The focus groups chose Maria Switzer as the spokesperson. They also pointed to two functions of interest, Partner with GreenEco and providing grants to
Twenty plus years ago, the terms “private label” or “own brand” were usually synonymous with “cheap knock offs.” These products were viewed as inferior to the national brands and just a low cost alternative for the extremely price conscious. However, in the last 20 years, the paradigm has changed. As major retailers sought ways to expand their brand and entice customers to become loyal to their stores, private label (“PL”) and own brand (“OB”) products became a more viable and significant component of their marketing and brand strategy. However, this came with the caveat that their PL/OB offerings had to meet or exceed the quality of the national brands but at a price point of 10-20% less.
Question-4:Acqualisa currently has three brands Aqualisa, Gainsborough and ShowerMax. What is the rational behind this multiple brand strategy? Does it make sense?
The company was recently presented an opportunity by its largest retail customer to significantly increase its share in their private label manufacturing. The prospect of growth was risky, since it
Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.
It was recommended that BBC pursue the agreement with Hi-Valu. The deal was some sort of “A Good Deal on a Bad Deal”. It would be much better if BBC could re-negotiate an even shorter deal with Hi-Valu for a more favorable credit terms. This was a case of special order basis. Suppliers could consider entering into special order basis for retailers provided that it would not eat into their current market or would not after their market share in the industry. It is advantageous as long as it is still profitable even if retailers would negotiate the least among of price for the products. The retailers would carry a different label or perhaps a different packaging so as not to confuse consumers with regards with the prices of the products. In that way, the brand is still protected but they still generate incremental incomes. Another examples are the generic brands of products, it’s just a matter of comparing the quality of generic as against the branded. I give the group a grade of 4.0 for a very concise and direct approach on the
In addition to increased sales, the company sets out to enhance the number of the overall customer share that they have.
Brand security: This will help in making an impression available about its particular kind of item thus it will get the consideration of its clients prompting them having a upper hand over others.