Natasha a Case Analysis

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NATASHA (B)
CASE ANALYSIS

SUBMITTED BY:
REGINE CHARMAINE ANTONIO

SUBMITTED TO:
PROF. ROSALINDA LACERONA

NATASHA (B)

Time Context
July 1999

SUMMARY

In 1993, Victoria Jardiolin established a retail store “Natasha” and located it at a mall along a main thorough fare to attract more of the C and D crowd. However, this move was not successful because it happened at the time when the greater Manila area was plagued with 6-hour power outages, which created fear for personal safety in dimly lighted shopping malls. People that used to shop at the malls stopped going to the malls, a major contributing factor to sales of Natasha stores plummeting to their lowest. Jardiolin then decided to do focus Natasha in wholesale instead of retailing. By wholesaling, Natasha would sell to dealers who would then resell the products to their end users. Initially, she gave a few dealers about a dozen pairs of shoes. This was when the idea of network marketing came about. At first, network marketing was not easy. She invited her children to help her think about direct selling of shoes. She would be the first to venture into direct selling of shoes. The members of her family attended to all the details: Moyeen, the daughter took charge of selecting the merchandise, while the younger son, Mahar, took pictures of the products for the catalogues. Even the layout of the catalogues had to be done by the members of the family. The other son, Tweed, worked on developing the dealer network. So, from the crisis in the early 1990s, Natasha emerged stronger and bigger company. And by 1998, the entrepreneurial spirit of the new owners turned crisis to opportunity. The networking operation is turning her dealers into entrepreneurs. Her dealers are taught how to nurture their business, by developing and teaching them a set of values that Natasha shows by example. Today, Natasha’s direct selling is through over 200,000 dealers, 80% of which are active. The dealers earn income in two ways: by direct or personal selling where the dealers receive 22% discount off catalog price, and by recruiting new dealers. A dealer earns a graduated rebate based on a scheme that rewards the recruiting dealer a rebate computed on the combined direct sales of the group. In July 1999, the Executive Committee of Natasha was studying alternative strategies for the expansion. There are issues as to whether the company should expand its branches to some provinces or expand in Metro Manila first. There are many factors to be considered in making a decision.

MISSION

Gain - long term relationship with our customer-members and non-members.

CORE VALUES

1.Customer Service
2.Discipline
3.Constant Improvement
4.Respect for each other
5.Honesty

I.STATEMENT OF THE OBJECTIVE

To formulate strategies in expanding the company
To sustain Natasha’s growth even if it is no longer new to the public •To increase the number of Natasha’s dealers

II.CENTRAL PROBLEM

Would the company expand its branches to Rizal (Region IV), Cebu (Region VII), Davao (Region XI), Iloilo (Region VI), and Dagupan (Region I) or expand in Metro Manila (NCR) first?


III.AREAS OF CONSIDERATION

1.STRENGTHS

High discounts on members and numerous incentives
Affordability of the products due to comfortable credit terms •Availability of high quality products
Convenience of shopping at home

2.WEAKNESSES

Difficulty in selling and delivering products as well as collecting payments •Costly collection and delivery of products

3.OPPORTUNITIES

Attract customers due to instalment basis of payment
Natasha uses Catalogues and delivers the product to the customers, it helps people to shop and buy latest products despite of their busy schedules. •It provides big discounts and incentives on its dealers

4.THREATS

Increasing number of competitors
Calamities
Economic crisis


IV.ALTERNATIVE COURSES OF ACTION

(1)The...
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