Organickidz: Marketing Strategy
A Report on
OrganicKidz: Marketing Strategy
LETTER OF TRANSMITTAL
From
Atul Kumar
To
Jane Walter
OrganicKidz
Calgary, Canada
Date: September 20, 2009
Subject: Regarding Costco’s offer to supply stainless steel baby bottles
Dear Ms Jane Walter,
With reference to the above mentioned subject, please find my report enclosed. The report contains an analysis of the situation, problem statement, a list of the options available, the criteria for evaluating these options and a final recommendation with the proposed plan of action. I recommend you to delay the Costco offer for now and prepare a new design for them.
Yours sincerely,
Atul Kumar
Enclosure: Report EXECUTIVE SUMMARY
Change in consumer preference away from polycarbonate baby bottles has opened an opportunity to create a market for stainless steel bottles. Having already seized the first mover advantage, OrganicKidz faces a dilemma to accept the proposal to sell bottles through Costco or not.
The options available are: to accept or reject the offer or to create a new design to be sold only to Costco. They are weighed against the possibility of backlash from existing customers, realization of higher sales growth and lesser future risk in terms of distribution. The option to create a new design scores high on all three criterions and hence has been recommended. (Word Count – 107)
Contents
SITUATIONAL ANALYSIS 5
THE PROBLEM/OBJECTIVE 6
OPTIONS 7
CRITERIA FOR EVALUATION 7
EVALUATION OF OPTIONS 7
RECOMMENDATION 9
ACTION PLAN 9
EXHIBITS 11
SITUATIONAL ANALYSIS
Popularity of a new product line always attracts many bidders and OrganicKidz has been approached by one such. Early success of stainless steel baby bottles as BPA-free and shatter proof alternative to polycarbonate (PCB) ones, which commanded a whopping 95% market share till early 2008, has prompted Costco to approach OrganicKidz to let it sell their product.
Even
OrganicKidz: Marketing Strategy
LETTER OF TRANSMITTAL
From
Atul Kumar
To
Jane Walter
OrganicKidz
Calgary, Canada
Date: September 20, 2009
Subject: Regarding Costco’s offer to supply stainless steel baby bottles
Dear Ms Jane Walter,
With reference to the above mentioned subject, please find my report enclosed. The report contains an analysis of the situation, problem statement, a list of the options available, the criteria for evaluating these options and a final recommendation with the proposed plan of action. I recommend you to delay the Costco offer for now and prepare a new design for them.
Yours sincerely,
Atul Kumar
Enclosure: Report EXECUTIVE SUMMARY
Change in consumer preference away from polycarbonate baby bottles has opened an opportunity to create a market for stainless steel bottles. Having already seized the first mover advantage, OrganicKidz faces a dilemma to accept the proposal to sell bottles through Costco or not.
The options available are: to accept or reject the offer or to create a new design to be sold only to Costco. They are weighed against the possibility of backlash from existing customers, realization of higher sales growth and lesser future risk in terms of distribution. The option to create a new design scores high on all three criterions and hence has been recommended. (Word Count – 107)
Contents
SITUATIONAL ANALYSIS 5
THE PROBLEM/OBJECTIVE 6
OPTIONS 7
CRITERIA FOR EVALUATION 7
EVALUATION OF OPTIONS 7
RECOMMENDATION 9
ACTION PLAN 9
EXHIBITS 11
SITUATIONAL ANALYSIS
Popularity of a new product line always attracts many bidders and OrganicKidz has been approached by one such. Early success of stainless steel baby bottles as BPA-free and shatter proof alternative to polycarbonate (PCB) ones, which commanded a whopping 95% market share till early 2008, has prompted Costco to approach OrganicKidz to let it sell their product.
Even