Marketing Evaluation of Jolson Automotive Hoist, Inc.
– Jolson Automotive Hoist
Problem: How should Jolson Automotive increase its sales.
Alternatives:
1. Do nothing.
2. Get U.S. Wholesalers to “push” the Jolson Lift and establish NY sales office.
3. Enter into a licensing option with French firm Bar Maisse.
4. Enter into a joint venture with Bar Maisse.
5. Directly invest in the German market without the help of Bar Maisse.
Recommendation:
Alt. 1 (Do nothing) --- REJECT: Mark Jolson wants to expand, he just doesn’t know where.
Alt. 2 (Wholesalers “push”/NY Office) --- ACCEPT: Personal selling has been the key aspect to the success of Jolson thus far, and they shouldn’t get away from that now. If they can incentivize U.S. wholesalers to “push” the Jolson Lift for its proven record of safety which is unmatched by their competitors, sales would increase. The establishment of a NY Sales office would also allow for the coverage of the eastern states in order to expand sales even further.
Alt. 3 (Licensing) --- REJECT: Mark wants the firm’s reputation of designing and manufacturing a quality product to be maintained, and entering a licensing agreement with a company they don’t really know could risk that. Bar Maisse would have manufacturing rights to the lift, and could potentially damage the company’s reputation if they do not stick to the same standards of safety Jolson Lift is known for.
Alt. 4 (Joint Venture) --- REJECT: At this point in time there is room for expansion in the U.S. market, and Jolson should focus on doing that. Jolson would also be dependent on the effort of Bar Maisse for the success of this venture, and at this point Jolson knows very little about them. It would be a large financial risk to break into this new market, and focusing on the U.S. is the better option.
Alt. 5 (Direct Investment) --- REJECT: Even though Jolson has the financial means for this option, it makes more sense to spread the risk out with another company such as Bar Maisse. Bar Maisse also has a
Problem: How should Jolson Automotive increase its sales.
Alternatives:
1. Do nothing.
2. Get U.S. Wholesalers to “push” the Jolson Lift and establish NY sales office.
3. Enter into a licensing option with French firm Bar Maisse.
4. Enter into a joint venture with Bar Maisse.
5. Directly invest in the German market without the help of Bar Maisse.
Recommendation:
Alt. 1 (Do nothing) --- REJECT: Mark Jolson wants to expand, he just doesn’t know where.
Alt. 2 (Wholesalers “push”/NY Office) --- ACCEPT: Personal selling has been the key aspect to the success of Jolson thus far, and they shouldn’t get away from that now. If they can incentivize U.S. wholesalers to “push” the Jolson Lift for its proven record of safety which is unmatched by their competitors, sales would increase. The establishment of a NY Sales office would also allow for the coverage of the eastern states in order to expand sales even further.
Alt. 3 (Licensing) --- REJECT: Mark wants the firm’s reputation of designing and manufacturing a quality product to be maintained, and entering a licensing agreement with a company they don’t really know could risk that. Bar Maisse would have manufacturing rights to the lift, and could potentially damage the company’s reputation if they do not stick to the same standards of safety Jolson Lift is known for.
Alt. 4 (Joint Venture) --- REJECT: At this point in time there is room for expansion in the U.S. market, and Jolson should focus on doing that. Jolson would also be dependent on the effort of Bar Maisse for the success of this venture, and at this point Jolson knows very little about them. It would be a large financial risk to break into this new market, and focusing on the U.S. is the better option.
Alt. 5 (Direct Investment) --- REJECT: Even though Jolson has the financial means for this option, it makes more sense to spread the risk out with another company such as Bar Maisse. Bar Maisse also has a