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Increasing Sales of Jeans — Michelle Anguisaca

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For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix? Do you agree with their decision?

  1. The main reason being as to why they decided to reverse their decision was because they noticed that there wasn’t much of a difference compared to their usual methods. Sure, their brand going to discount stores and if a lesser price may sell a lot but usually jeans could be from 30 dollars and more. If their jeans were placed in discount stores it will be a less price but a different amount when it comes to how many jeans are being bought of equal value. In other words, If i were to get jeans from Levis that are $59.50 only for one style and at a discount store it’s 20 or 25, one may buy another one for the equal or less price of 59 yet won’t be as effective.

  2.  Personally, i do agree with their decision only because if we continue with what we discussed above, one usually does not get more than 2 jeans even for a lower price unless they decide to givr them as gifts which again is rather doubtful since it’s JEANS and you could wear the same JEANS you bought like 3-5 years ago again

New Ideas, New Channels

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  1. For the first example, what were the main reasons that the firm reversed its decision and returned to its initial channel mix?
  • The firm reversed its decision because they thought that selling the jeans discounted wouldn’t only bump sales but help bring in new consumers who would love to purchase the jeans but at a discounted price. After a while and with little no change the film realized that it wasn’t their best idea and decided to return to their traditional channel, in the way of marketing their product. I believe that every company does this in the sense of seeing what works or what doesn’t work, and it’s not a bad thing.
  1. Do you agree with their decision?
  • I do agree because enow going back to their traditional ways will allow them to still have sales coming in and making profit while revising and creating a new plan to market and launch another way to market and promote their products to increase sales profit
  1. In the second example, do you agree with their choice of channel for their new watches? Why?
  • Yes, I agree because it’s a channel that is already made and established. The brand is using a different name, yes but having the watch connected to the original brand is amazing. Using the traditional method isn’t a bad idea and with many people knowing that the new watches are somewhat connected to the Swiss brand may have a ripple effect and bring in more sales because of brand loyalty but also the price.

 

  1. Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?
  • Yes, indeed but they have more potential of selling the watches to discount stores and retail places that many consumers look for the best deal in a great product. Everyone loves a discounted watch that Is very well connected to a brand but more importantly good quality. I see Swiss ideas and strategies as a new way to bring in cash but also a new product line added to their product mix.
  1. What other channels (retailers) should they also consider?
  • They should consider, Walmart, TJMaxx, Amazon, JCPenney, and there are so much more to add to the list, but this Is a great start. They have a great market to vendors too and it’s incredible.

 

Place

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1)For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?

For the first example, the reason why the firm reversed their decision and returned to their initial channel mix is that the moment they expanded their distribution mix to target a new type of customer and increase their profit, this didn’t come out with the result that the company set for since it doesn’t add any value to the company and might lead the brand to a risk of its reputation since it will be produced at a low cost. It’s like selling a Ferrari at the price of a Ford.

2)Do you agree with their decision?

I totally agree with them. The manufacturer produces jeans of high quality and sells them to discount stores. This will decrease the value of the brand and will impact the profit of the company.

3)In the second example, do you agree with their choice of channel for their new watches? Why?

For the second example, I would agree if it was another brand of watch and not one of the Swiss watches, since we all know that those manufacturers produce a high-quality watch for a specific customer and that is what makes the brand special compared to the others.

4)Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?

I don’t think so, because their segmentation is based on specific customers that will just buy good quality watches, so when the customer notices that, they will think that those jewelry stores sell fake products at a high price.

5)What other channels (retailers) should they also consider?

Amazon, Shopify, Alibaba, Costco,

 

Place

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Marketing homework

For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?

  •  They had to reverse their decision because it did prove to increase sales but at a lower margin.
  •  It could have possibly hurt there brand as they produced low costing jeans so it was smart to revert back to the traditional way.

2- Do you agree with their decision?

  • I agree, brand integrity is important and lowering your cost could really turn away majority of their customers.
  • Having to expand their channels would have hurt them in the long run.

3- In the second example, do you agree with their choice of channel for their new watches? Why?

  • I don’t agree with their choice of channel because even though it might be cheaper to distribute to their existing traditional channels, the overall profit won’t be as much as it would have been if they distributed to convivence stores.

4- Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?

  • I think that they won’t because in the long run they will see a decrease of there premium watches being sold.

5- What other channels (retailers) should they also consider?

  • For their watches they could consider agents, retailers and wholesalers. This could prove to increase sales not only in their existing jewelry but also the new watches.

place

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1:For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?

the main reasons for why the firm reversed their decision and returned to the initial channel mix was because the firm didn’t see any change or growth on profitability and also because of the decline brand integrity.

2:Do you agree with their decision?

Yes! I totally agree with their decision because if they realized that their new idea wasn’t generating more profits as the previous one, going back would be the right thing to do. Also, brand integrity is very important ,if they market their high-quality jeans in  discount stores it can cause for customers to loose trust on the brand.

3:In the second example, do you agree with their choice of channel for their new watches? Why?

In the second scenario, I don’t agree because customers look for high quality luxury watches.

4:Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?

I don’t think that most existing jewelry stores will be willing to stick and sell these new watches because in the the long run they will start to see a decrease in sales which results in a decrease in profit.

5:What other channels (retailers) should they also consider?

eCommerce-( amazon) and department stores such as Macy’s,Bloomingdale’s and jcPenny.

Plae

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  1. For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?
    1. The strategy shift resulted in more sales, but at a substantially lower profit margin. As a result, overall profitability did not alter much and they were also worried about their image.
  2. Do you agree with their decision?
    1. Yes, if the quality of the jeans was not good quality or making more profit then before the strategy needs to be evaluated. 
  3. In the second example, do you agree with their choice of channel for their new watches? Why?
    1. I disagree because it shows consumers and even investors where their morals and ethics are and how they view their consumers. Many are looking for good quality watches.
  4. Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?
    1. They might but there is a good chance they won’t as jewelry stores care about being honest and truthful about their products and only sell quality jewelry.
  5. What other channels (retailers) should they also consider?
    1.  Amazon, Alibaba, Shopee

Place

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1.For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?

The major reasons why the business reconsidered its choice in the first scenario were that their profitability had not changed much. They were also concerned about the impact their new distribution strategy was having on the integrity of their brands. The stores must be located in areas with a large concentration of consumers interested in high-quality jeans.

2. Do you agree with their decision?

I agree with their choice since their profitability was stagnant and they were concerned about the influence of their distribution mix on the integrity of their brand.

3. In the second example, do you agree with their choice of channel for their new watches? Why?

In the second case, I disagree with their channel choice for their new timepieces, which are their own low-cost digital watches, because they wish to sell them at premium rates through jewelry stores. They should instead place their new low-cost digital clocks on convenience shop shelves.

4. Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?

Because of the disparity between high and low costs, I believe that most of their existing jewelry retailers will be unwilling to remain around and offer the new watches. It will seem horrible if you go into the store expecting to see just premium pricing but instead see low prices, which will make you wonder why they are offering such disparate things. Instead, low-cost digital timepieces should be sold in convenience stores.

5. What other channels (retailers) should they also consider?

Given that these are new low-cost digital timepieces, I believe that additional routes (retailers) should be considered. And their profits might skyrocket.

Place Assignment.

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  1. For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?

 The firm didn’t see any change in profitability. The point of the move made by the company was to boost sales, and this didn’t happen. So they switched back to their traditional channels only. Also, the jeans were marketed as high-quality jeans. Having the jeans in discount stores may have an impact on their brand integrity. 

2. Do you agree with their decision?

Yes!, if the new idea wasn’t working, or at least was not more profitable than the previous one, going back is not a bad idea. And besides, marketing your as high-quality jeans and having them in discount stores is not a good idea. In my opinion, it can really hurt the brand to a point where it can be hard to recover from. 

3. In the second example, do you agree with their choice of channel for their new watches? Why?

Even though that the idea is wonderful, I would disagree with the selection of the channel. Most people that attend Jewelry stores are looking for something a little fancier, very high-quality products. 

4. Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?

I don’t think they would. They won’t make a lot of profit since the customer who attends this kind of store it’s not looking for a $10 watch, and it can also damage their reputation as a jewelry store. 

5. What other channels (retailers) should they also consider?

 Macy’s, Amazon, Costco, Walmart are some good examples, I’d say. 

Place

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For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?

The main reasons the firm reverses their decision were profitability and brand integrity. The firm began to sell their jeans in discount stores. They sold more. However, at a lower price. So their profit did not increase that much. Because they were at discount stores, they lost their exclusiveness because a lot more people were able to afford them. This might upset loyal customers and cause them to purchase jeans elsewhere.

 

Do you agree with their decision?

I agree with their decision. It protects brand integrity. I love fashion. However, I don’t want something that many people will have. Although I love a good discount ( TJmaxx, Marshalls, Nordstrom Rack), I also want to feel exclusive. I believe this is why brands like Louis Vuitton and Hermes don’t sale their merchandise at discount stores or outlets.

In the second example, do you agree with their choice of channel for their new watches? Why?

I agree with the the second firm’s choice for their new watches. They are able to reach more consumers with a lower price and and generate more sales without altering their original brand’s integrity because the newer watches are under a different name. Companies to this a lot. Some examples  are: Armani & Armani Exchange, Ralph Lauren & Polo by Ralph Lauren, and   Versace and  Versus by Versace.

Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?

I think that many of the existing jewelry stores will sell the new watches because it would bring the stores more sales. Because they are cheaper, the store can sell more of them and the the watches would be associated with its parent company. However, high-end jewelry  stores who sell other brands such as Rolex and Cartier may not want to sell the cheaper watches do to their  clientele.

What other channels (retailers) should they also consider?

For the cheaper watches the firm should consider department stores such as Macys and Bloomingdales. They could also consider discount stores such as tj maxx.

Place Assignment

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1. In mini-case #1, the firm decided to reverse back to their previous channel mix because of the lack of change in overall profitability when expanding their distribution mix and the perceived decline in brand integrity. The firm originally decided to expand its distribution mix to generate additional sales. The firm was able to successfully generate more sales, but because they expanded into discount stores; this decision did not produce greater profitability. 
2. Yes, I agree with the firm. Though the firm did reap any losses based on this new strategy, the firm was not able to gain any additional revenue from this strategy. In general, I believe it is very risky for well-known brands to expand into the discount store market, as it will have a declining impact on brand integrity. Thus, because this channel mix did not increase profitability, the firm made the right decision. 
3. Yes, I would agree with the Swiss watch manufacturers’ decision to produce a new range of cheap, digital watches under a new name. With this choice of channel, they are able to participate in a growing market while still protecting their brand integrity. Also, by placing them in their traditional distribution channels, the manufacturers are able to undercut other watch brands within jewelry stores. 
4. No, because the jewelry stores will want to protect their brand integrity. I believe it will depend mostly on the types of customers these jewelry stores attract and, more importantly, the physical location of these jewelry stores. 
5. The watch manufacturers should also consider selling to discount stores, e-commerce platforms, and local boutiques. With these channels, they can reach a greater audience that can expand profitability.