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Shoes for Moos

In:

Submitted By madz096
Words 2469
Pages 10
Case Title: Shoes for Moos
Name: Jesse Senst
Date: 3/6/14
Section number: 002
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A. Problem identification and justification.
After conducting an in-depth situational analysis and finding the target market and its size along with alternatives to pricing, product, channel, and promotion of Shoes for MOOs, Mr. Wells needs to find the best channel to market his product. With having such a low budget of $25,000 and being a start-up company, Mr. Wells needs to be very efficient with his money and his time since he is currently running another business. An additional challenge is the pairing of promotions that are best for each channel.
B. Alternative identification
1. Mr. Wells could pursue a direct channel strategy where he would use direct mail instead of using a middleman for distribution of his product. With this strategy, he would be able to have low variable costs of $2.67 and a total investment of $21.67 for each shoe. Since he says in the case that he would like the have the selling price above $39.99, but below $80.00, this approach would allow Mr. Wells to sell the shoe at a lower price to customers than if he involved retailers that demand margins which would in-turn make the customer pay a higher price and give him less profit. With this in mind, he could use more of his budget on promotions such as magazine advertisements, print flyers that would be mailed to farmers in Canada, radio ads, word of mouth, and tabling at conventions and farm shows. Other than controlling the price, he would have more of a one-to-one relationship with customers and would give him full control over the product and its advertising. One downside to this approach is that it will take longer to get the product to customers using the mail and would have less exposure since it would not be held in multiple retail stores.
2. Another option for Mr.

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