What is the best marketing strategy for Rose Partyware?
In both options - becoming a manufacturer for Party! private label line of party goods or launching of a branded line of party ware - Rose company will face some issues and will embraced some opportunities.
In my opinion, there are pros and cons for each alternative:
1. Becoming a manufacturer for Party!
•The possibility to become the manufacturer for one of the biggest retail chain in the field with 300 stores •Access granted to a huge market having in mind that retail chains are more and more developing in to the first choice of customers in terms of shopping •The sales of Rose Company made through Party! represent 20% of total sales. • Rose products will have a very good exposure on the shelves of Party!, along with merchandising support and sharply reducing the number of competitors. •Eliminating the advertising costs
•Risk of product’s cannibalization
•Losing brand personality - Having no decision capacity regarding the design of the products. •35% of total sale are coming from independent shops. Moreover, Tom consider that this type of partners were always a great source of good ideas and encouragement and he felt that he owns them a part of his company success. By accepting Party’s! proposal Rose company assumes the risk of losing the partnership with independent shops. •Rose brand is a strong one in this field. Their products are the best in terms of quality and customers appreciation. If they accept Party! proposal it occur the risk of losing brand awareness among the customers •Lack of trust in retail chains policy regarding the amount of payment for the manufactured products. •Losing the opportunity to take advantage of a next-generation technology. •Lack of pride among the employees
2. Implement the new technology
•Increase brand power which allow Rose to stay ahead of its rivals. •This next...