The decrease in the number of customers of Rest assured stores calls for attention with respect to the sales volumes which affects the general profitability and productivity of this company. The decline in the number of customers have led to a decrease in its sales turnover thereby affecting the profitability levels of the business. This business therefore needs several measures and strategies in order to improve the profitability levels through retention of customers as well as attracting the prospective customers. The strategies to be adopted by this business should ensure that the welfare of the business is improved in order to improve the levels of revenues and profits generated by this business. The options to be taken into consideration by this business need to scrutinize all aspects of this business including products and staff of the business in order to identify the potential pitfalls leading to decline in performance of the entity.
Marketing and promotion of the products:
Rest assured can improve its profits and revenue levels through marketing strategies which are unique and have a competitive edge in the market. This business should take into consideration the expansive growth of social networks in order to market its products to customers both the residents of the town and those who visits the town. The social networks like twitter and Facebook are very instrumental in promotion of the products of the company. This will help the business to create customer awareness in the social media thereby boosting the revenues and profitability of the business entity. This will give the business entity an edge towards promotion of products. Promotion in the social media can therefore be a suitable alternative in boosting customer awareness therefore leading to greater profitability levels against their competitors in the market (Bolland, 2012pg18). The promotion of products in the billboards is also essential in increasing awareness of the products available in the stores will help boost the revenues and profitability of the business. The improvement in advertisement strategies will help the business convince many customers to buy the products in the market.
Expansion of business:
The business entity may also improve its financial status through expansion of the store into several parts of the town in order to ensure that there is a wide scope of customers. The increased customer base will therefore help to increase the market share which in turn boost the revenues and profitability of the business entity. Expansion of the business will also help in diversification of the risks of loss of customers in the town. This will also improve the aggregate volumes of sales and revenues of the business which in turn increase profitability (Griffiths, 2011 pg22). The expansion strategy will therefore give the business a competitive edge in the market. This expansion of the business will help in driving out the competitors out of the market due to low sales turnover.
Improving the quality of the products:
The business may also improve its products by supplying those mattresses and sleeping materials which provides much comfort to the customers. The improvement in quality of the products will therefore help to maintain the customers through customer loyalty. The improved quality of the products will therefore help in improving the satisfaction of the customers giving it a competitive edge in the market. The satisfaction is therefore an essential component in increasing the sales and revenue volumes. The customers will therefore be driven towards products of high quality at fair prices.
The company may also increase the variety of products available to the company in order to increase the sales volume by attracting many customers. This will help to increase the general sales and revenues thereby higher profitability and financial status of the company. The sales from the variety of products will boost the average sells of the business leading to an improved financial position of this business entity.
Motivation of the staff:
The business entity may also motivate its staff and workers in order to give them morale in convincing the customers to buy their products. The workers should also be given proper remuneration and bonuses based on their tasks so as to motivate them increase the sales of the products of the business. The workers should also be trained about the customer relations so as to help in retaining the customers. The motivation of workers is therefore an essential factor in improving the performance of the company as well as its profitability (Smith, 2012 pg26).
Recommendation:
Rest Assured business should therefore consider the alternative which improves the quality and diversification of the products. This alternative will help in boosting the sales volumes and revenues thereby leading to higher levels of profitability. This strategy will help the business entity to widen its scope in the market. This strategy will help Rest Assured entity to improve the satisfaction of the customers in the market which in turn ensures customer retention and loyalty. The business entity will therefore get a competitive edge in the market thereby attracting most of the customers to buy its products. The owners of this Rest Assured business should consult their staff and all workers in implementation of this business so as to facilitate participation of the workers in implementing this strategy. The workers of this business should participate in the implementation of this strategy because they are well informed about the needs of the customers. This will therefore help improve the quality of products in order to suit and fit the satisfaction levels of the customers.
References
Bolland, E. J., & Fletcher, F. (2012). Solutions: Business problem solving. Farnham: Gower.
Griffiths, A., & Wall, S. (2011). Economics for business and management. Harlow: Pearson Education Limited.
Smith, T. (2012). Data driven decision making for small businesses: Unleashing the power of information to drive business growth. Scotts Valley, CA: CreateSpace.
