Swisher Mowers Case

Better Essays
Topics: Marketing, Brand, Revenue
Swisher Mower and Machine Company
Evaluating a Private Brand Distribution Opportunity

Define the Problem
Should Swisher Mower and Machine Company accept the private-brand distribution proposal made by a major national retail merchandise chain? If so, under what agreement conditions?
List the Alternatives
1. Accept the private-brand distribution proposal
2. Employ a more aggressive advertising and sales effort to enter new markets recruit new dealers and assist current dealers
3. Initiate an expanded line of “trailmowers”
Evaluate the Environment * Lawn and garden equipment is primarily for the consumer market * At manufacturer’s prices, the lawn and garden equipment industry produced sales of $5 billion in 1995, 74% for finished goods, 25% for engines and 1% for components * Riding unit sale volume is cyclical * Riding lawn mower industry is highly seasonal: 1/3 of sales occur in March, April and May * Private label mowers account for 65-75 percent of total industry sales * National retail merchandise chains account for the largest percentage of sales of outdoor power equipment * 90% of total industry sales occur at national retail merchandise chains, outdoor power equipment/ farm equipment and supply stores, lawn and garden stores, discount department stores, home centers, and hardware stores
SWOT Analysis

Qualitative Analysis 1. Accept private branding proposal
Pros
* Minimal marketing expenses (e.g., advertising, promotion, selling) incurred by the manufacturer since these expenses are incurred by the intermediary (e.g., retailer or wholesaler) * Provides access to distribution channels and/or consumers not presently carrying the manufacturer's brand * The opportunity to triple SMC riding mower unit volume from 4,100 units annually to 12,300 units since the annual order could be 8,200 units. * Ability to operate at full capacity; overtime affordable. * Further access to

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Swisher Mower

    • 352 Words
    • 2 Pages

    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…

    • 352 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Swisher Mower Case Summary

    • 3362 Words
    • 14 Pages

    Problem In 1996, Swisher Mower and Machine Company (SMC) was faced with a situation which would have the biggest impact on its company since founder Max Swisher received his patent on the gearbox drive assembly. A certified letter from a major national retail merchandise chain outlined a proposal for a two-year contract to provide a private branding business agreement with SMC and its line of riding lawn mowers. In recent years, SMC?s sales and profit figures had reached a plateau far below its all…

    • 3362 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Swisher Mower Case Study

    • 1267 Words
    • 6 Pages

    Swisher Mower and Machine Company Case Analysis Company History Swisher Mower and Machine Company is located in Warrensburg Missouri. Max Swisher founded Swisher Mowers in 1945. Max began manufacturing riding mowers in 1956.Max’s ingenuity in riding mowers has not been duplicated. Swisher Mowers was the first to introduce the zero turn radius mowers, the Ride King. Swisher has prided itself in a customer oriented philosophy, which has developed strong relationships with dealers and…

    • 1267 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Swisher Mower Case Study

    • 1187 Words
    • 5 Pages

    Swisher Mower and Machine Company Problem: Wayne Swisher the new president and CEO of Swisher Mower Company (SMC), is unsure of what the future holds for his firm. He was contacted by a major national retail merchandising chain about a private-brand distribution arrangement. Wayne Swisher needs to determine if he should accept the offer that was proposed by the national retail merchandising chain or reject it and continue on normal business. SWOT: Strengths: • Facilities have an annual production…

    • 1187 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    Swisher Mower and Machine Company Market and Marketing Mix Target Market Swisher Mower’s primary target market is industrial users located in the non-metropolitan areas. 75% of the company’s sales come from non-metropolitan areas, while 30% of sales are generated from wholesalers and 20% from dealer sales. Their target market is also in the Midwest and Southeast regions of the US. More specifically, Swisher targets consumers with over an acre of land and farmers with several hundred acres of…

    • 653 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Wayne Swisher, President and Chief Executive Office of Swisher Mower and Machine Company (SMC), was weighing the proposal of a private branding arrangement for SMC’s line of riding mowers. He thought the inquiry presented an opportunity but details should be studied more closely. Situation Analysis: Company Background: Established in 1945 by Max Swisher, SMC grew steadily with unit volume for SMC riding mowers peaking at 10,000 units with sales of $2 million in 1966. In the 1990s, the unit volume…

    • 4058 Words
    • 17 Pages
    Powerful Essays
  • Satisfactory Essays

    RECOMMENDATION: Swisher Mower and Machine Company should reject the offer to produce the Private-Label brand. RATIONALE: • Standard Riding Mower contribution per unit would drop from $97 to $33.98, which is $63.02 per mower. (Appendix 4) • Contribution Margin would drop from 14.92% to 5.5%, which is 9.42%. (Appendix 4) • Swisher Mower would only profit $62,819 from producing the 8,200 units in the Private-Label in the first full year of production. (Appendix 5) o Profit per mower is only $7.66…

    • 498 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Mower

    • 1340 Words
    • 6 Pages

    There are dedicated self-propelled cutting machines, which often have the mower units mounted at the front and sides for easy visibility by the driver. There are different types of mower based on the design of the cutting mechanism. They include : 1.Sickle mowers: They also called reciprocating mowers, bar mowers, sickle-bar mowers, or finger-bar mowers. They have a long (typically six to seven and a half feet) bar on which are mounted fingers finger with stationary guardplates. In a channel…

    • 1340 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Swisher Case Study

    • 109 Words
    • 1 Page

    The purchasing process at Swisher is seriously flawed. In almost every function Mike has clearly operated as a one person purchasing empire. There is no method. There is a need for the management at Swisher to implement a professional purchasing department based on acceptable purchasing standards. The first step would be to contract with a consultant to do a purchasing systems audit. The purchasing audit is used as a diagnostic process that identifies opportunities for increased profitability. The…

    • 109 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Swisher Systems Case Study

    • 1442 Words
    • 6 Pages

    Summary Swisher Systems Corporation (SSC) is an industrial heating company that was established in 1949 (W.C. Benton, 2010). SSC is an innovator of flexible heating products, particularly with its knit and braided heating element. The heating element consists of a multi-stranded resistance wire which is knit and braided with fiberglass and is the center technology for most of all the Swisher Systems’ products. Swisher is also known in the heating industry as being the highest quality…

    • 1442 Words
    • 6 Pages
    Better Essays