Marketing Research:
-IT-Trip industry decided to invest as much as one can in its market study. This, in order to obtain the most precise study with the less error margin.
-In addition, the market study represented less of 10% of available cash during the quarter 1.
Segments:
-The first decision was to choose different segments of activity, from the market research. Thus, "travellers" and "workhorse" segments were selected.
-These segments were chosen because they had the following characteristics: potentially high demand, prices that allow to the company to generate margins relatively quickly, geographical location more or less similar (so the sales offices can work for both segments) as revealed a convergence analysis with data of market research buy in quarter 1.Manufacturing:
-IT-Trip Industry has its manufacturing facility located in China.
-This location allows to obtain the lowest costs in the mid-term and long term (it planned to position this company sustainably on the computer market), despite transport costs initially higher for targeted markets.
[...] As a consequence we need over 3 millions to invest in R&D to create this product. Investment projected At the end the 2millions left would help the IT Trip strategy in the exploitation of the company. Indeed, this money is needed to hire new sellers in the other sale offices opened, as our strategy explained it before. Moreover, an investment would be useful in advertising in the other markets targeted. To conclude, as it has been explained before, It Trip strategy has been built for quarters now. [...]
[...] Indeed, it seems it would be more effective to put the excess money in the certificate of deposit during the quarter rather than leaving it locked to our operations. Thus, the loan was made because the money was blocked, not because the company has not the cash. Market shares after quarter Sales after quarter 3 : 1.3 Strategy for quarter 4 The strategy of IT-Trip Ind. was to continue to grow after convincing results during Q3. Therefore, the advertising of the Traveller product was reviewed whereas the Work Horse one was kept. [...]
[...] Indeed, IT-Trip will open two new sales offices in Shanghai for and Guangzhou for a value of 80 000.This second choice is very strategic. Knowing that the factory is located in China, the cost of shipping for these two sales offices will be so cheap. The company could free an important margin per product and therefore an high global margin which will permit to increase net income at the end of the quarter and reduce financial risk ratio. Manufacturing From the analysis of the first year of operations, IT-Trip appears to have faced a problem of production management. [...]
[...] Thus, the product will be better than the previous one and should be got a competitive advantage against the competitors' brands. Advertising Knowing that IT-trip has already developed its activity in Europe during the previous quarter, a regional advertising plan exists. The goal will be to increase by 33% the total advertising expenses for regional media. However, China will be only local placement knowing that there are only two sales offices open on this continent. Sales Force For the quarter the sales force will increase of 33% for each existing outlets and the previous schema of sharing for the new ones. [...]
[...] With a total of 12 sales offices, IT-Trip is already a strong competitor in three different continents. Located on the higher potential market for each segment, IT-Trip needs now to increase only its staff in each outlet. Indeed, if the company continues to open new sales offices during the next three quarter, it will be difficult to invest more money in sales force and increase significantly profit margin and net income results. Manufacturing Main changes will be done on quarter 5 in order to match demand for the next quarters. [...]
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