Peter Pap Oriental Rugs

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Case 5, page 575, “Essentials of Entrepreneurship and Small Business Management” Peter Pap Oriental Rugs -------------------------------------------------
On a Magic Carpet Ride With a Good Marketing Plan
Lawrence Ayer
Instructor Corrine Lord
MN 371
May 24, 2012

Case 5, page 575, “Essentials of Entrepreneurship and Small Business Management” Peter Pap Oriental Rugs -------------------------------------------------
On a Magic Carpet Ride With a Good Marketing Plan
Lawrence Ayer
Instructor Corrine Lord
MN 371
May 24, 2012

Summary

Peter Pap is known as an expert and a celebrity in the field of vintage Oriental rugs. He has showrooms on each side of the United States, one in Dublin, N.H. and one in San Francisco, CA., where his wares can be seen and purchased. His celebrity status is assisted by his frequent appearances on the well-liked PBS series, Antiques Roadshow. There are only a few Oriental rug dealers in the United States of his caliber who have the knowledge, proficiency, and expertise to deal in the world’s most valuable rugs. His clients are mostly wealthy individuals. Pap started dealing in Oriental rugs in the early 70’s and has been doing it continuously since then. His first job after high school was at a rug store in Boston. After about two years he branched out on his own. He currently runs a profitable business but sales have been stuck at a certain level for a while. The reason for his plateau in sales is because Pap needs help with administrative, technological, and financial aspects of his company. He is basically a one-man show who spends 80% of his time dealing with things he should be delegating to other experts. His expertise is buying, appraising, and educating people on Oriental rugs but most of his time is spent on administrative and technological tasks. The company has a web presence but it is slow and outdated and in dire need of improvement. Most people would not buy an expensive Oriental rug without looking at it first but a web site could be a starting point. Pictures of his wares download too slow on his current site, which is frustrating to potential customers. The site isn’t big enough or fast enough to display most of his inventory. Pap could use his site for educational value and news as well. Even though Pap spends 80% of his time bogged down in administrative and technological tasks, he uses no customer relationship management software. He is not taking advantage of his most valuable asset, which is his list of wealthy clients. He doesn’t even have their email addresses and lacks the time to contact them on an ongoing basis. Peter Pap would like to expand his business and now is an ideal time to buy valuable Oriental Rugs. He would like to borrow several million dollars to expand and address his need to hire some experts to run the back office part of his show. His value is as the marketing front man who buys, appraises, and gives educational seminars on Oriental rugs. Banks are reluctant to take his extensive inventory as collateral for a loan because it is so hard to value and sell easily compared to other assets. It seems Pap needs help in fine-tuning a business plan in order to get financing as well.

Outline

I. How can Peter Pap Manage the Administration Tasks of his Company? 1. Hire and train an office manager
II. What Guerilla marketing Techniques can be used to Promote the Business? 1. Cooperate with other businesses selling complimentary products and services. a. Share mailing lists
b. Work together on special promotions
c. Share advertising campaigns, time, and space
2. Create tip sheets to pass out to customers or potential customers 3. Collect customer testimonials and use them in ads, advertisements and...
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