Glo-Bus Participant’s Guide

Topics: Camera, Digital cameras, Digital single-lens reflex camera Pages: 15 (3396 words) Published: September 27, 2011
GLO-BUS Participant’s Guide (somewhat) at a Glance

Company Operations:
• Main office: Taiwan
Regional Sales Offices in Milan, Brazil, Toronto, Singapore
Focus is company sales & promotion and support merchandising of retailers Retailers maintain ample inventories to satisfy demand

• Seasonal Production and Seasonal Demand
20% in each Q1-3
40% in Q4

• Retailers place orders 90 days in advance of expected sales. Assembly:
20% in Q4-1 &2
40% in Q3

• Assembly & Shipping
Assembly in just-in-time basis
4-person assembly teams (PATs) at well-equipped workstations. Delivery time 3 days – 3 weeks
Cost - $5 entry level
$10 multi-featured

Worldwide Market
• Market Growth Projections
• Years 6-10 = 8-10% annually
• Years 11-15 = 4-6%
• Growth can deviate as much as 1% in either direction, with different size deviations for each region.

P/Q Ratings
• World Digital Camera Federation (WDCF) assigns the P/Q ratings • Performance/Quality (P/Q) rating of ½ to 5 points
• Currently, both the entry-level and multi-featured have a 2 ½ P/Q rating

Digital Retailers
• 50,000 retailers
• Each of the four geographical regions has:
12,500 retailers:
Multi-store retail chains (100/region) – biggest % of entry -level
Online electronics retailers (400/region) - second for both entry–level & multi-featured
Local camera shops (12,000/region) – biggest % of multi-featured

• Retail markups over the wholesale price runs 50% to 100% • Retailers typically carry anywhere from 2-4 brands of digital cameras and stock only certain models of the brands they do carry. • Chain stores are drawn to carry the best-selling brands and mainly stock entry-level cameras • Local Camera shops and online retailers are more amenable 易控制的 to stocking and promoting low-volume brands, especially those with above-average P/Q ratings. • Local Camera shops and online retailers devote much of their merchandising to multi-featured camera because of their bigger profit margin.

Digital Camera Buyers
• Entry-level Camera (ELC) = more price sensitive and many do comparison-shopping on price in selecting brand. Wait to make a purchase until electronics retailers have special sales promotions

• Multi-featured Camera (MFC) = camera performance and picture quality important. Sales promotion on overstocked multi-featured models common. MFC - high end like to “touch and try out”

Quite knowledgeable
Extensive research on features, performance, and prices WDCF P/Q important

Competitive Factors – 11-Factors
1. Wholesale selling price
The more the price exceeds the industry average, the more camera shoppers in that region will be inclined to shift their purchase to lower-priced brands. Compensate with discounts, longer warranties and such but there is a relationship between the distance between average and the usefulness of these approaches. 2. P/Q Ratings

Separate ratings for ELC and MFC
P/Q ratings 2nd and 3rd most important factor for ELC
P/Q rating most import for MFC

P/Q based on:
a. Quality of core components
b. Color quality of pictures
c. Camera controls/menu software
d. Camera body ergonomics人类工程学/durability
e. Accompany camera accessories
f. Special utility features
g. Number of models
h. Cumulative累积的spending on R&D, engineering and design i. Spending on training of PATs and accuracy of assembly methods Greater # of models act to slightly weaken a company’s P/Q rating for ELC and MFC 3. The # of special promotions/quarter

Too many can be detrimental有害的
4. The length of the special quarterly promotion (in weeks) Longer is generally better
5. The size of the discounts....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Strategic Game Glo-Bus Essay
  • Glo Bus Essay
  • glo BUS Essay
  • Glo Bus Research Paper
  • Glo Bus Final Report Essay
  • Glo Bus Essay
  • Glo-Bus Reflection Essay
  • Essay on GLO-BUS simulation.

Become a StudyMode Member

Sign Up - It's Free