Marketing Strategy – Cuero Company

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Table of Contents

Introduction
Details of Key Problem Areas
Changes That are Needed to be Made
Conclusion
References

Introduction

The Cuero Company manufactures shoes for the United Kingdom Market. Weihrich (2009) proposes that the report focuses on the marketing strategy of the company. The report focuses on generating findings and recommendations to improve the company’s current marketing policy.

Details of Key Problem Areas

Abele (2008) emphasized that there are key problem areas in the marketing aspect of the company’s strategic management plan. First, the company sells its products in the Dent store locations; the Dent stores are strategically placed in prime sites in 60 major towns and cities within the United Kingdom; the stores focus on in-house brands such as Savoy, Ritz, and Leathercraft.

Second, the company caters to the military’s shoe needs. Third, the company sells shoes, accessories, and other leather products. Fourth, the company ventures into the mail order business; the business focuses on the shoes and accessories advertising using the services of the European media outlets. Fifth, the company engages in children’s shoes marketing.

Sixth, the sales price incorporates high United Kingdom manufacturing costs. Seventh, the company focuses on selling more men’s shoes than ladies’ shoes. Eighth, the company sells limited shoe styles. Ninth, selling prices are instituted by merchandisers; selling prices are set at 100 percent profit. The company uses its own vehicles to transport the shoe products to the different shoe display stores within the United Kingdom. Tenth, the Kilsby shoes are sold at marginal cost prices.

Changes That are Needed to be Made

Product

Bragg (2006) theorized that the company must implement some marketing changes to increase the clients’ demand for its products. The company must add additional shoe styles. The new shoe styles are based on the latest market segment trends. The company must increase the production of its ladies’ shoe brands to the same quantity level of the male shoe production data.

The company must conduct a feasibility study to determine the current shoe trends. The company’s production must focus on filling the current and future shoe style demands. The company must reduce raw materials wastage to allowable levels. The reduction in raw materials wastage reduces production costs and increases the company’s net profits.

Price

Czinkota (2007) insists that the company must institute reasonable prices to increase its client base. The reasonable price is not the same as the lowest price. The reasonable price is not the same as the highest price. Rather, the reasonable price is grounded on the competitors’ prices, the company’s production costs, and the company’s profit policies. The company must deviate from its current marginal cost and merchandiser-instituted policies to generate higher revenues.

Place

Fisk (2006) opined that the company can enhance its marketing policy on location. The company should set up additional display shops to increase its current revenues. The company can set up shops in the international market to increase its revenue. Setting up an online company website can generates more sales from online shoe customers. The company can venture into franchising to increase its branches in a shorter time compared to using the company’s scarce money resources to fund a new branch.

Promotion

McDonald (2007) theorized that the company must increase its advertising activities to increase revenues. The company must increase its allotted advertising and promotion budget to attract current and future shoe clients. The company’s must donate shoe or cash items to orphanages, homes for the elderly, religious, cultural, educational, and other charitable foundations to increase the public’s interest to buy the company’s shoe products. The company can also institute special offers to increase its revenues.

Measures for Improving Performance

Rix (2007) emphasized that the company must institute measures to improve its marketing performance. First, the company must set 110 percent of last year’s actual sales output as the benchmark for the current year’s revenue. Next, the company must compare the shoe industry’s average market price as the benchmark for the company’s current pricing policy.

Third, the company must set a ten percent increase of last year’s shoe store location as the benchmark for the current year’s location benchmark. The company must set up a ten percent increase of last year’s actual advertising and promotion expenses as the benchmark for the current year’s advertising and promotion expenses.

Conclusion

The company must increase its current marketing strategy. The company’s product policy is not geared towards incorporating the competitors’ shoe styles and brands. The company does not incorporate the current and future clients’ demands in its production schedules. The company’s pricing policy is based on the merchandisers’ prices as well as marginal costs. The company has no new store branches. The company’s advertising policy needs more boosts.

Recommendations

Some recommendations increase the company’s current marketing strategy. The company must increase the quality of its shoe styles by importing high quality raw materials from China and other Asian suppliers; the move reduces raw material expenses. The company must setup shoe shops in new locations to increase its current client base. The company must increase its current advertising and promotion expenses to attract more clients.

Reflection

The above discussion vividly shows that the company must improve its current marketing strategy. The company must increase its focus on the four major aspects of the company’s marketing strategy: product, price, place, and promotion. The new focus brings forth more revenues and profits.

References

Abele, E., (2008) Global Production: A handbook for Strategy and Implementation. London, Springer Press.

Bragg, S., (2006) Outsourcing . London, Wiley & Sons.

Czinkota, M., (2007) International Marketing. London, Cengage Press.

Fisk, P., (2006) Marketing Genius. London, J. Wiley & Sons.

McDonald, M., (2007) Marketing Plans: How to Prepare them, How to Use Them. London, Butterworth –Heinemann Press.

Rix, P., (2007) Marketing: A Practical Approach. London, McGraw Hill Press.

Weihrich, H., (2009) Management. London, McGraw Hill.

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