Swisher Mower

Topics: Marketing, Brand, Retailing Pages: 2 (352 words) Published: December 3, 2013
Short Case Brief #1
Swisher Mower and Machine Company
Major Issue: Swisher Mower and Machine Company must decide whether to maintain its current distribution practices or enter into a private-brand distribution arrangement for the riding mower line.   4 Ps and 3 Cs:

Product: SMC high quality riding mowers
Price: moderate to high
Promotion: Push –TV, radio, newspaper
Place: Push – Regional Distribution through wholesalers and direct dealers Company: Swisher Mower and Machine Company – small company image Competition: Competitive – ten manufacturers using varied distribution strategies  

Alternative 1 – Reject Proposal:
                Advantages:
-          Keep brand identity
- Increase advertising
- Predictability in financial statements
Disadvantages:
Opportunity costs distribution deal may offer
Quantitative:
               
Alternative 2 – Take Proposal As Is:
                Advantages:
-          Expanded production.
-          New market opportunities given location of chain stores (Metro areas) -          Increased sales of parts
-          Increased sales of complimentary product – Trail mower Disadvantages:
- Greater risk for product liability
- Risk of cannibalizing sales in overlapping areas
- Jeopardize brand identity
- Increase of costs: one-time costs, overtime labor, overhead, etc. Quantitative:
-          Increase in manufacturer price: 7.5%
-          One-time costs: $10K - $12K
- Projected cannibalized sales: 300 units of Ride King

Alternative 3 – Negotiate Proposal:
                Advantages:
-          Title transfer and payment dates
- SMC product quality offers some bargaining potential
Disadvantages:
Unit Price will probably be fixed
Cosmetic changes not negotiable
Quantitative:
Recommendation:
 I would recommend Alternative 2 to Larry Brownlow for the following reasons: -          This option would allow Mr. Brownlow to remain on budget, and actually save $6,000 -          As a...
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