I. Problem Statement
All Shave company sold a majority of interest of its company to Almin family in Saudi Arabia and from then, All Shave’s sales have dropped constantly.
II. Underlying Issue
Should Almin family accept the Mike Lacey’s aggressive promotional strategy or instead increase its products quality?
III. Relevant Facts
A.Company History: All Shave
1) Until three years ago, the company had been successfully exporting razors and blades to Saudi Arabia 2) The All Shave Company was sold to the Almin family due to possiblefuture import restrictions. 3) The contract with Almin family was specified that the Almin family would “actively promote All Shave products”. 4) Mike Lacey, All Shave’s Middle Eastern Manager, believes that Shave’s previous success has made by strong promotion. B.Company History: Almin Family
1) The Almin family is a one of leading company in Saudi Arabia’s steel industry. 2) The Almin family acquired the All Shave Company to expand their market field. 3) Mustafa Almin, the head of Almin family, believes that a good product was its own best advertisement. 4) The Almin family claimed that the company was still making reasonable profit. C.Marketing Mix:
1) The All Shave products were being sold from the Almin Warehouses.. 2)The advertisement was limited to a few newspaper and posters distributed by the industrial sales reps. 3)No additional salespeople had been added for All Shave promotion. D.Competitors:
1)Mike Lacey argues that the present results achieved by their competitions are made by strong promotion. 2)Mustafa Almin did not agree and claimed that the competitors’ achievement is made by high quality products. 3)Mustafa feels that to approach to the local market is the little advertising and long participation.
IV. Strategic Alternatives
A. The Almin family can accept Mike’s suggestion and increase promotional activity and...