Introduction of the company:
Gabriel has been in the textile industry for more than 150 years and it has proven to be a sustainable company. It has been dealing with many big customers on the business-to-business market. The company produces textile for furniture, seats and upholstered surface. Being part of this industry is defined as monopolistic competition.
Scope:
In this report we will focus on the Danish market for textile. We will exhibit the performance of the consolidated company of Gabriel as it shows the overall activities during 2010/2011 years. Moreover, we are concentrating on the current customers because our problem does not concern the potential ones. Furthermore, we will use Segmentation Targeting Positioning (STP) Model . However, we will only look further at segmentation and targeting as way of approaching differently our current customers.
[...] Gabriel company case study: Theories and models Contents 1. Interpretation of the questions Introduction of the company Scope Theories and Models 3 Answers to the questions: 4 Appendix 9 Interpretation of the questions From the first question the management of Gabriel wants to distinguish the different types of the current customers through relevant segmentation criteria. Moreover, we have to target and communicate an appropriate message of reduced payment terms to each segment. Next, the second question is regarding their strategic situation and how Gabriel has performed financially. [...]
[...] Respectively, the first one has increased from to and the second- to 7,5%. Furthermore, the correlation between Debt and Equity is decreasing in a positive way having very low level. Last, Return on Equity is increasing during the years and remains double than the Return on Assets. This is an indicator of Gabriel taking a loan without decreasing their profitability ratios. Doing the shareholders analysis we can see that the share price has grown from the previous year from 68 to 80 DKK. [...]
[...] As long as company size and size of order are closely connected in the segmentation matrix we will combine them. The results are presented in the table below: Table 1 Segmentation Matrix Thus, we can conclude that the target marketing strategy will be differentiated. Starting with, the primary segment for Gabriel is the key-account customers with big amount of purchase. The message communicated to them will be different in a way that the relationship between the buyer and seller is well-established and long-lasting. [...]
[...] Moreover, the company has currently set financial goals of having 15% Return on Investment and increase in the turnover by over 10%. This is important for potential customers to assure them in the future growth of Gabriel. It aims at ‘becoming the preferred development partner and supplier to, leading international manufacturers of furniture, seats and upholstered surface'. What Gabriel DOes to prove that their strategy works properly and fulfill their objectives are the environmental and quality improvements of the products they offer. [...]
[...] Thus, the risks are low, so company will keep knowledge, experience and productivity of the employees, which can bring advantage. No threat of shortage of labor, no threat of facing difficulties of replacement. Dependencies: Gabriel is in cooperation and trading with approx key account customers, which means, there is no big threat for them to lose few key account. Moreover they are constantly open to potential collaborations.[14] Gabriel is dependent on the key employees, which is management team. It is based on the internal and external relationships they have already built ex.suppliers, customers etc. [...]
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