Business free essay: Marketplace Live
Marketplace Live – Report #2
The level of performance of Zodiac Computers Inc. in Quarter-3 was far below that of the major competitors. The balanced scorecard of the company weak compared to that of the main competitors in terms of marketing effectiveness, market performance, financial performance and total performance. Zodiac made a gross profit of $12.909 after selling its products. After deducting expenses of $136,824, the total brand profit in the book of accounts was -$308,915 and the profit per unit was -$13,768. The net profit for the division was -$308915.Thus, the company made a loss after selling its products.
The target market for Zodiac during the 3rd quarter was the local market. The company targeted customers of Traveler, Workhorse and Mercedes. The primary competitors in that market were Strategic Computers, Shark Computers, Galileo Computers, Synergy Technologies and Castellation PC. The performance of the products for Zodiac’s brand was comparable to that of Strategic Computers, called strategic. However, the performance of Zodiac’s brand was far much below the performance of the brands for the other four competitors mentioned above. Zodiac and Strategic Computers have a market of approximately 1 percent each. Castellation PC and synergy technologies had a market share of approximately 26 percent each. Galileo Computers had 31 percent, which was the highest, and Shark Computers had 16 percent.
Synergy Technologies’ Nadamo brand had the required minimum standards as rated by the customers of Mercedes. Except that brand, no other brand met the minimum requirements, based on the assessment of the customers of all the three targeted companies. In Quarter-4, Zodiac will focus on improving the quality of its products and engaging in a more innovative marketing campaign.
In Quarter-4, Zodiac will increase the prices of its products slightly after improving their quality. The customers in the targeted market seem to be price-conscious given that they purchase products of the major competitors in large amounts even though they do not meet the minimum requirements. Thus, Zodiac will adopt strategies that will enable its prices to be comparable to those of the competitors.
In Quarter-3, the positive response of the targeted customers indicated that the target marked perceived the ads for Zodiac to be ineffective. The company used $30,000 to create ads and $46,824 incurred advertising expenses, yet the company made sales worth $34,875. Except Galileo Technologies that inserted 13 ads in the local media, the others inserted 5 or 6 ads, just as Zodiac did. Despite this, the ads for Zodiac and Strategic Computers were ineffective.
To make the ads more effective, Zodiac needs describe more about the value that the customers will derive from its brands. Importantly, the company will explain in the ads that its products have the desired quality and are affordable and quote prices that can attract the targeted customers. The company will increase the number of ads inserts from 5 in the last quarter to 10 since they have been found to be effective in attracting customers when they are more than those of the competitors, as noted in the case of Galileo Technologies.
In Quartr-5, Zodiac had employed eight sales persons. In quarter-4 the company will reduce the number of sales persons to five. The reason for reducing the number of sales persons is to reduce sales costs. The gap will be replaced through adopting alternative marketing strategies that are more effective, such as adding more ads and establishing a website and referring the targeted customers to view the company’s products from there.
The cheapest essay writing service is here at scholarlywriters.com . we offer free essays like