October 7, 2010
Problem: How can Lieber Light compete with the aggressive pricing of Vancouver Light and stay in the Skylight market? oVancouver Light (Canadian Company) is threatening to drive Lieber Light out of the skylight business by selling cheaper products.
•70% of the market was in home and office building, 25 percent in professional remodeling, and 5% in do it yourself •Lieber sold and shipped directly to dealers, who typically market up the product by 50% •Some home builders repackaged the product under their own brand name, and purchased only a few dozen or less •
•Has been Seattle’s leading manufacture of plastic molded skylights for almost 15 years •Skylight are quite favorable in the Seattle and surrounding area’s
•No sales have been made to the Canadian market
•Sales force of only three people
•Two mid sized builders recently switched all their business to Vancouver Light •Shipped only to builders who ordered at least 500 units (limiting potential clients)
•Could expand sales into the Canadian market and other parts of the U.S area
•Sales of skylights had leveled off in recent years
•Investigation revealed that Vancouver lights Specialized production facility provided 25-percent savings on Variable cost
1.Lieber Light should lower the sales price of their largest selling skylights 20% and decrease their manufacturing cost 2%. 2.They should as well strengthen their relationships with existing clients to lessen the possibilities of losing existing customers to Vancouver Light and other smaller competition 3.Lieber Light could spend the time and invest in its marketing and sales team and expand its area. This could also mean expanding business into parts of Western Canada and untapped parts of the United States, by doing some marketing research....