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Omega Paw Case

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Submitted By robertson18
Words 2171
Pages 9
Omega Paw Incorporated
Lucas Robertson
Comm 1006
Austin Davey

Executive Summary

Omega Paw Inc. is facing a decision of how to grow their company in the

future. Their president and inventor of their keynote product, the “Self Cleaning

litter box”, Michael Ebert, knows that with the company’s success in the last year

there is room for expansion. The company reached sales of $1 million last year by

selling its products to pet stores across North America through manufacturer

representatives, and now has a marketing budget of $100,000, which Mr. Ebert

wants to use to grow the company. The current method of distribution has worked

well for them, but Mr. Ebert wonders whether the company should expand its

distribution into other markets. He knows that the company could revisit its old

methods, a T.V. campaign in the U.S. and selling the products directly to its

customers via mail order. The company would run a trial in the U.S. for two weeks

and monitor the customer response, costing roughly $20,000. The cost comes from

the producing of a T.V. commercial, a 1-800 number, and two companies to take the

calls and collect the money. The company could also simply continue selling to pet

stores through manufacturer representatives, and try to grow the number of

distributors they have, which is currently over 60. They would achieve this growth

by investing in advertisements in trade magazines for $3-4,000 per issue. The

magazines could provide them with more attention from distributors and secure

more customers. The third option for growth is expanding into mass distribution

centres such as Wal-Mart. The decision would have to be made between opening a

small account or a large account if this method was chosen. If they opened a small

account, they could continue using their manufacturer

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