First Class Trading Corporation must use a concentrated segmentation approach to forge a strategic alliance with Private Elementary Schools and their respective uniform suppliers. This can be accomplished through an intensive personal selling campaign to facilitate growth and minimize risk. This will allow them to narrowly segment and position themselves to meet neglected consumer needs (Exhibit 5). Analysis
(See Exhibit 6)
Product: Pre-packaged knapsack with teacher approved, required school supplies inside. Knapsack comes embroidered with school logo, student initials and is available in school colours. Saves consumers time spent searching for specific materials, increases school brand awareness and guarantees quality. Price: Value Based pricing to appeal to Uniform Stores, who in turn, serve price inelastic consumers. This allows First Class, Schools and Uniform stores to maintain attractive profit margins. Price is added onto student tuition, collected by the school, then remitted to Uniform stores and First Class Place: Backpacks are sold exclusively through Uniform stores. Uniform stores ship to customers for an additional fee. This strategy allows conservation of valuable resources. Promotion: High degree of personal selling with two critical stages. First, must target Schools BOD, through individualized, bilingual brochures that convey USP about how it supports and fosters school culture while differentiating them from other schools. Must have schools ‘push’ Uniform suppliers to carry product. Management can use alumni network from prominent post-secondary school to easily network and obtain contacts on the board of directors. This will lead to a greater receptiveness in adopting a contract. Break even analysis (Exhibit 1)
Declining enrollment in schools bring into question the feasibility of the market. After conducting a feasibility analysis (Exhibit 1-4), it was determined that the decline in...