Northern Rush Case
In May 2014, Murray James, a lecturer at Western University in London, Ontario, Canada who taught a course in financial accounting and business analysis, had became interested to join in a new business venture, the Northern Rush (NR) developed by a group of students who took up his course the previous year. The project aims to provide starter kits to incoming freshmen university and college students that will move in to residences in Canada.
James wanted to make a further study on the product and its marketing strategies as well as prepare a three-year financial projection all of which he believed will help him decide on whether to join the new business venture or not.
The starter kit project had considered information that are deemed vital to the feasibility of the project such as: the current status of the home-furnishing industry in Canada, particularly bedding, bathroom and organizational items; the number of colleges and universities and their student populations, the number and shopping habits of major consumers of the products such as parents, students and others who would likely purchase the starter kit items as gifts to students and, the existing competition both in Canada and the US.
His major findings includes the following: annual drop in profits on home furnishings in Canada, the emergence of US competitors that were largely affected by the 2008 recession and were driven into the Canadian market, the status of the textile industry, the change in buying habits of home furnishing consumers who he found prefer shopping online and at discount stores, the size of the target market and the probable market share of Northern Rush.
James wanted to expedite doing his evaluation of the marketing plan identified in the business idea as well as the financial projections so that he could let the others know of his final decision whether he would put his investment to Northern Rush.
James may compare the NR kits against those offered by competitors in order to determine a competitive advantage. For example, what items do most college students need that is not offered by competitors? He may also consider the pricing. While bulk orders tend to be cheaper, the timing of the inventory is also significant as well as the source of the products.
While the NR kit may be priced higher because of add-on items, the convenience it gives to users who need not have to shop around for the additional items separately may be a good marketing strategy. Promotional kits such as sample products during marketing campaign may also be used other than paying for advertisements or costly websites. Personalized items e.g. monogrammed sheets may are also attractive to would-be consumers although again this would be pricier than the regular items.
For a start-up business, the best strategy is to come up with a unique offer that is not yet tried by competitors or has been tried but have to be improved by the new company. Other than price, most consumers value novelty and quality of the product they purchase.
All businesses entail risk but these risks can be managed. With proper planning, budgeting, targeting and sales forecasting a business will run smoothly. It is also necessary that those who handle vital positions in the business must be highly skilled and competent.
