PRINCIPLES OF MANAGEMENT UNIT 3 CASE STUDY JANINE EASTEP COLUMBIA SOUTHERN UNIVERSITY
It has come to my attention as CEO of Donaldson’s clothing store that sales have been steadily declining in the last quarter. There is a growing list of competitors in the area who are offering lower prices dramatically increasing competition. In addition many of these stores are offering an extensive line of men’s and children’s clothing as well. In order to increase sales I have created an analysis of the situation and will be implementing a new sales plan effective next week. Although the sales team at our St. Paul location has known about the issue facing their store and have made great efforts in improving customer service and offering discounts, sales are still plummeting I have identified a list of options. After identifying our three main competitors it is clear they have been using a low price strategy that has offset sales at Donaldson’s. A feasible choice is to offer lower prices. We have developed a client base and repeated customers in the past by offering great service at an affordable price. We cannot afford to offset service at this point in return for lower prices. Our competitors clothing line is not in comparison with our line in quality, and price will not affect sales where quality is a preference. Therefore, I do not believe that lower prices will earn us an advantage. However, to offer savings we will be mailing special promotions to customers. For the sales team there will be incentives for promoting our new sales strategy of suggestion selling. Another obvious advantage our competitors have is the offering of a family clothing line. I have estimated the cost of expanding our line and at this time revenues are not high enough to justify expansion at this time. Donaldson’s...
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