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
Sales:
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....
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