Kristin Hall
ECO 201
October 10 - 2014
Section : 1427
Team member Names
Executive Summary
Crystal Clear Manufacturers is a manufacturing company that makes products named Aldo, Braco, Creo, and Dwat. These products are categorised as Legacy or New. There is a large market that has not been tapped by other manufacturing companies in the region. To explore the potential of this untapped market, Crystal Clear is conducting a sales and marketing analysis for its new and legacy products. A marketing and price communications team is tasked with ensuring that it perform a market analysis of the potential sales of Legacy and New products.
A task team named Crystal Clear Manufacturers High Impact (CCMHI) is formed to be placed in charge of all analysis and operations. The CCMH task team leader, Mr. XXX YYY, is a veteran at CCM with over eight years experience in the sales and marketing. His leadership will ensure that the CCM Company will achieve its target market and sales by 2025. The achievement of our goal is realistic and highly given that size and scope of the new market region. The analysis will explore the structure of prices and potential sales for products Aldo, Braco, Creo, and Dwat.
Analysis of the data was done and the results were put on a report. It was revealed that the new products would have great impact on the market and its sales would increase steadily. However, Legacy products will not have enough customers, as the prices would be too high for the clients to afford.
After a close analysis of all the data presented, some recommendations were made, such as reducing the cost of the products to meet client’s pockets. There should be employee lay off and finally, the management need to ensure efficiency is achieved.
Following the identification of a large market untapped by the competitors, the CCM Company formed a task team to explore the matter in detail. The CCM Company has been on the rush to introduce its products to the untapped market and attract more customers. Understanding the significance of the new markets and the urgency with which the task has to be completed, the task team began its work immediately and in earnest. A marketing and price communications team is tasked with ensuring that it performs a market analysis of the potential sales of Legacy and New products. The teams stipulated approach defines the respective tasks that need to be completed. To meet the organizational requirement there is a need to conduct a detailed analysis on some of these tasks to ensure the market is reviewed and the organization can pick a stand on the sales of the products (McVae, 21).
The name of the task team “Crystal Clear Manufacturers High Impact” signifies the potential high impact it could have towards the success of CCH Company if the new products could penetrate the large untapped new markets following the market analysis. It is the only team with such a name in the whole company.
After the analysis, the team needs to produce a descriptive summary report of the sales potential of the traditional (Legacy) and newly designed (New) products. This will be done by considering the data region where all the manufactured products are supplied, as well as it will look at prices, sales, items and sales potentials for products Aldo, Braco, Creo, and Dwat. After all this done, the team has the responsibility of drawing recommendations as to which product the firm should vigorously pursue in its marketing program in the region of the Americas. The analogy attached to the critical path idea is aimed at aligning the sales of the products in relation to the market (Kerzne, 37).
In this team, Mr XXX YYY ensures that all the day-to-day marketing and sales programs are a success. It is therefore, upon him to ensure that the new task given to the team is carried out and feedback sent to the relevant stakeholders. The team will be honoured when the company achieves this strategy. It will increase the gross margin, which means that the company will have bigger profits, as the operating costs are expected to remain the same. It will also mean that the directors get more in terms of compensation. The new merchandise will generate revenue when the staffs are their best on duty. This will help them get better pay as a result of increased profits (Schill, 77). The team is also rewarded with equity an instrument, which makes them to get better compensation for executing such marketing and sales plan when the customers embrace such approaches.
The data collected for analysis will be looking at price change communication needed, the percentage increase of the prices per year, as well as projected sales in thousands at a period of five years from the year 2015 to 2025. All these years will have projections of the expected sales amount. The date is presented in form of the types of products, Aldo, Braco, Creo, and Dwat, which looks at Americas Legacy and New products (McVae, 33). The data will be used to venture into new markets and introduce the new products to the customers, which will help in promoting customer loyalty. The company will have the highest rate of productivity and the lowest labour cost. The data is presented in two different perspectives, the legacy products and the new products. This makes it easier for the team to make its analysis and come up with a conclusive report.
Clients are the main bases of any business and their considerations ensure performance in these businesses. Crystal Clear Manufacturers has clients from different parts of the United States. These clients are from different social and ethnic backgrounds in the U.S. In addition, age is a major factor when looking at the new products because they are targeting the youth in the age bracket of 18 to 25 years. The target group is known to consume the new product at a high rate and thus would offer a large market for the company.
As part of the company’s business strategy, the company has continued to focus on customer service and satisfaction. It is expected that the CCM Company would continue with the same business strategy in the new markets currently under analysis and consideration. The customer is able to provide a service feedback through a text message, which helps the company analyse its performance in terms of customer service and satisfaction.
The company has continued to inspire and delight its customers with high quality services, as well as rewarding their loyalty. In fact, that is a major business strategy for the company. The company is currently working on starting to publish results from the customer satisfaction and feedback program (Kerzne, 41). The outcomes will be available online and will help the company focus on customer services and satisfaction. The company, in addition, seeks to reward its customers through a loyalty program that will be initiated soon. With a loyalty card, the customer gets such benefits as bonuses, discounts and points that can be redeemed for other goodies. The customers are the basis of existence for Crystal Clear Manufacturers, which makes it value it customers’ satisfaction.
In the presentation of the data collected, the team considered the clients and the company’s performance. Information is the way to the future and immense amount of data need to be compared and presented in the format, which can be used by the organization (Burn, 51). The data collected revealed that the price increase that would be made after every five years would affect the performance of the organization negatively. Most clients would not afford the price increase on Legacy products. The reason being that by 2025, the product would double in the price making it hard for the clients to buy them. However, the new products in Aldo and Creo, would pick up in the next years as the prices are slowly and steadily increased by a smaller margin and most of the clients are likely to shift from other products to these ones (Schill 83).
It is also demonstrated that one of the main reasons organizations use the strategy rests on the need to compete efficiently within existing or new markets. Similarly, organizations consider avenues to expand their product offering, realize operational synergies, besides enjoying other benefits associated with the strategy. It is based on the analysis presented above that the following recommendations are made;
- The management of the organization should create high level of effectiveness that will lead to high return on investments Crystal Clear Manufacturers.
- The Management of the company can lay off some staff due to the introduction of technology to easy the work, which will require fewer staff members. Such actions will require training for employee so that they can fit into the new System (Burn, 65).
- Price control should be affected on both New and Legacy product to safeguard the future of the organization. The price control will ensure that the increase in price in the next five years is not inflated but made to a reasonable amount.
In conclusion, Crystal Clear Manufacturers has a very big market to acquire and the marketing team is strategizing on how to capture this market through the introduction of new products. In addition, the team aims at having a better price in the market, which will promote customer satisfaction therefore increasing the performance of the organization, which will ultimately result in increased profits ceteris paribus.
APPENDICES
Appendix I
Snapshot of the Collected Data for Legacy Product
Appendix II
Snapshot of the Collected Data for New Product
Appendix III
Snapshot of the Descriptive Statistics Data for New Product
Appendix IV
Snapshot of the Prjected Sales of Legacy Products, Aldo, Braco, Creo, and Dwat,
Appendix V
Snapshot of the Prjected Sales of New Products, Aldo, Braco, Creo, and Dwat,
Work Cited
McVae, Freeman. A stakeholder approach to strategic management, in Hitt, M. A., Freeman, R. E., & Harrison, J. S., eds., Handbook of Strategic Management (Malden, MA: Blackwell), 189–207.2009.Print.
Kerzner, Hobson. Project Management: A systems approach to planning, scheduling and controlling (10th Ed.). New York, NY: Wiley. 2010.Print.
Schill, Eddy. “Case Studies in Finance: Managing for Corporate Value Creation (7th Ed.). New York: NY, McGraw-Hill/Irwin. 2005. Print.
Burn, Davis. A guide to project management body knowledge. Business Management Report. 2006;19:4-6.Print.
