ANSWER SHEET A: Question 1 - What marketing mix and ‘other’ key issues need to be addressed? Complete using charts below, please.

Marketing Mix Issues | Proof/evidence from case | Product | Value Added Product * Client turnover and loss related to Canadix Convenience service support and intranet system – This support system is only offered to SME and larger businesses, nothing similar and customized is offered to large retail chains that may benefit from an easier way to order PDA systems to better suit the needs of customers locally therefore increasing sales * Service for PDA systems is provided by CCC certified technician from a third-party service partner that typically provided service for several manufacturers products – These technicians are not loyal to the CCC brand and may not uphold the same quality level of service that an employee working directly for CCC will provide (First time fix 30% below industry average). They may also be working on other repair processes for other manufacturers and the CCC PDA system may not be priority and therefore lengthening repair time. Technicians may have a personal opinion on PDA products and pitch another product to the customer * Average time of 240 hour fix time is much above the industry average of 144 hours – PDA systems are a hefty investment and needed daily, a fix time so much above the industry average will result in frustrated and negative customer feedback and negative word of mouth in the industry the customer is in preventing future sales. | Price | Low Price and High Costs mean Low Margins * Contribution Margin Decreasing – Costs make up for 85% of the contribution margin (Exhibit 4). Although still making a profit, a low cost product with superior service brings in high revenue but a high cost resulting in a low margin. * On site visit by a rep costs $1700 yet only a 1/8 chance of closing