ASPIRE BUSINESS CONSULTANTS
March 23, 2012
CanGo is looking at becoming more productive within their specific demographic. Before doing so they have to make the appropriate actions to encourage the customers to follow through with their orders and expanding to different demographics. Aspire Business Consultants has become aware of six key issues with recommendations that will help provide a solid foundation for future endeavors. These issues cover a range of concerns that ABC strongly suggests will need to be addressed before moving forward. Issue #1
It appears that CanGo ‘s luck is running on steam. The marketing group acts as if it were broadsided by Andrew’s statistic. Although 75% of consumer from online sources do not go through and purchase an item after placing it in their shopping cart, one could argue that 25% do. This number, be it small, should be looked at more maticulusly. It begs the question what is CanGo providing that is makes them follow through. After the marketing team can answer this question they should mass produce the model to open up more customer relations. Recommendation #1
Marketing strategy for this type would include a thorough research of marketing segments. Exactly who does CanGo appeal to? Segments could be divided into geographical, demographical, psychographical, benefit, and usage (McHugh, McHugh & Nickels, 2010). Pinpointing what the market brings to these segments may open more opportunity for CanGo to cater to a broader audience. Music ordered in the Northwest may not be as popular in the Southeast. You cannot sell your product when you do not have a clear picture of who wants your product. Issue #2
Gail’s shock that Andrew used another company to do research is not what I would have expected from a person who was put on a team to “research” why the consumers did not follow through more than ¾ of the time. Additionally, Andrew’s appearance as nervous and uneasy about letting Gail and Debbie see the document was unique. He did not want to leave the papers with them. Recommendation #2
Since CanGo is trying to improve their marketing the only way to do this is to research. I would not just go by the data of one company but numerous organizations as well as an in-house survey of customers and their buying habits. A consumer behavior study will need to be done to measure the marketing mix, sociocultural, psychological, and situational influences that make a customer buy. Pinpointing this behavior would be the golden ticket CanGo will need to stop relying on luck and start developing itself as a company that is responsible for their profit.
Not only does Jack want one ASRS but he wants two. What he doesn’t understand that it is rather expensive and would have to pull people from other projects to work on integrating this new system. Recommendation #3
I would recommend that they only start with one ASRS and see how well it works. If it proves to be beneficial and cuts the processing time by at least half, then they can look into purchasing another ASRS. For example, if CanGo was to purchase an ASRS and it costs $1,000.00. Most likely they would learn enough information needed to address those issues. Say the company decides that they are going to purchase two ASRS’s then that would be $2,000.00 and they receive similar information. CanGo could have used that extra money spent on the extra ASRS for other needs within the business. This will increase the overall profitability if they are spending less time searching for the titles of the books, CD’s and other items. Another recommendation would be to rearrange the book area. It may already be sorted out by genres but is it arranged alphabetically by title or author? If the books were alphabetized either by title or author in its proper genre, then picking time would be reduced. By rearranging the warehouse the right way, there may only be a need for one...