Lee Valley Segmentation
Lee Valley Segmentation:
Gardening
Introduction
Background
Lee Valley——a family-owned business which has been providing customers of woodworking and gardening tools since 1978.Their reputation is based on three principles: 1. Customer satisfaction: Any product may be returned within 3 months and no cost to the customer (for shipments within North America, they will refund your return parcel post costs). 2. Integrity: Product descriptions are matched with the product——even if the product is roughly made, they will give you accurate descriptions. 3. Treat the customer like a friend.
“About one third of their total sales volume is in products of their own design. The vast majority of these are Veritas® brand products made by Veritas Tools Inc., their manufacturing arm. They have a research and development team of 11 people and 130 more in manufacturing. And, to reinforce the part about listening to customers, they have a number of customers earning royalties on products that they manufacture based on designs received from them” (Lee Valley).
Objective
Both woodworking and gardening must have a 2.5% increase in total sales in the next fiscal year. To achieve this goal, management has allocated a budget of $500,000—exclusive of the cost of printing and mailing the catalogues. This budget is intended to fund the prospecting activities of both product lines.
Current Situation Analysis
Since Lee Valley launched its e-Commerce site in 2000, internet sales have been an increasing percentage of total sales. When launched, the site generated about 20% of total sales, with phone sales being 70% and sales from mail at 10%.By 2010, Internet sales have reached 70% of total sales, which phone sales at 25% and mail at 5%.
[pic]Fig. 1. Percentage of total orders generated by e-commerce from Lee Valley Tools Ltd.
[pic] Fig. 2. Percentage of total orders generated by e-commerce from Lee Valley Tools Ltd.
Gardening
Introduction
Background
Lee Valley——a family-owned business which has been providing customers of woodworking and gardening tools since 1978.Their reputation is based on three principles: 1. Customer satisfaction: Any product may be returned within 3 months and no cost to the customer (for shipments within North America, they will refund your return parcel post costs). 2. Integrity: Product descriptions are matched with the product——even if the product is roughly made, they will give you accurate descriptions. 3. Treat the customer like a friend.
“About one third of their total sales volume is in products of their own design. The vast majority of these are Veritas® brand products made by Veritas Tools Inc., their manufacturing arm. They have a research and development team of 11 people and 130 more in manufacturing. And, to reinforce the part about listening to customers, they have a number of customers earning royalties on products that they manufacture based on designs received from them” (Lee Valley).
Objective
Both woodworking and gardening must have a 2.5% increase in total sales in the next fiscal year. To achieve this goal, management has allocated a budget of $500,000—exclusive of the cost of printing and mailing the catalogues. This budget is intended to fund the prospecting activities of both product lines.
Current Situation Analysis
Since Lee Valley launched its e-Commerce site in 2000, internet sales have been an increasing percentage of total sales. When launched, the site generated about 20% of total sales, with phone sales being 70% and sales from mail at 10%.By 2010, Internet sales have reached 70% of total sales, which phone sales at 25% and mail at 5%.
[pic]Fig. 1. Percentage of total orders generated by e-commerce from Lee Valley Tools Ltd.
[pic] Fig. 2. Percentage of total orders generated by e-commerce from Lee Valley Tools Ltd.
Cited: Datagraphics, Home and Garden. “Urban Countries Spend the Most in Home and Garden.” Euromonitor International. N.d. Web. 21 Sept. 2012. Khalid. “How Big is E-commerce Industry.” invesp Blog. Web. 21 Sept. 2012. Lee Valley. “About Us.” Lee Valley & Veritas. N.d. Web. 21 Sept. 2012. National Gardening Association. “Garden Market Research.” National Gardening Association. N.d. Web. 21 Sept. 2012. Pew Research Center. “Generations Online in 2009.” PewResearchCenter Publications. Pew Research Center, 2009. Web. 21 Sept. 2012.