Case Study Marketing

A MARKETING CASE STUDY

Problem

The problem of Alloy is its inability to operate profitably . Venture capital funds have been infused in Alloy and the additional capital generated by its shares through an Initial Public Offering (IPO ) will mean more investments placed in Alloy 's operations with blind confidence that soon Alloy will be generating profits and can therefore return the amounts invested in it - plus satisfactory yield . So far , it would seem that they are all in for a big disappointment

Alternative Solutions and Their Pros Cons

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ways to promote Alloy and to make its products more accessible . While maintaining the distribution system over the internet , Alloy can as well open retail stores in strategic locations

The advantage of this alternative lies on the reliability of physical retail stores as a distribution method . There is much basis for optimistic projections for this alternative . The disadvantage of this comes with the need for additional capital to be used for the setting up of the retail stores and for the overhead expenses that will be incurred by such stores (salaries , utilities , rent , etc

Cut operating costs so losses will be eliminated . One other way to reverse Alloy 's results of operations from loss to profits is to increase sales . However , the latter is difficult to accomplish in the light of the past months ' performance of the company

The outright advantage of this would be prudence in spending on Alloy 's operations . One way to do this is by shifting from outsourcing the -processing work to employment of staff to take over . Another way is by refocusing from expensive , ineffective advertisement means to more direct advertising strategies . With the savings that these changes will produce , Alloy 's losses can be eliminated . The disadvantage of this alternative lies in the fact that this is not in congruence with the original strategies of the management . Since they believe the massive advertisement costs will eventually be overtaken by the revenues coming in , this alternative represents a diversion from their plans and therefore is not healthy for the company

Maintain the current corporate strategy in place . It may mean incurring further expenses on advertising and therefore may mean continually ending up with losses , but this third alternative banks on the probability that Alloy 's management might turn out to be correct for assuming from the very start that there is much more growth left in the online distribution method

The advantage of this alternative lies in the fact that this fully supports the management 's conviction - which might turn out to be right at a later time . The disadvantage , meanwhile , of this alternative comes in the form of additional losses that will continue to be incurred until the projected profitable times finally come Recommended Solution

Based on the foregoing , the recommended solution is to find more ways to promote and sell the company 's products like the opening of retail stores . However , while implementing that as the solution , it would help if the alternative...