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Case Study:. Canty International. Main Event, Facts & Characters. Request for proposal received from Bryants Inns (Diana Cromwell) to Bob Sweeney Requested a substitute to replace wall coverings(vinyl/paper based). Attractive Fire resistant

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Case study

Case Study:

Canty International


Main event facts characters

Main Event, Facts & Characters

Request for proposal received from Bryants Inns (Diana Cromwell) to Bob Sweeney

Requested a substitute to replace wall coverings(vinyl/paper based)


Case study

  • Attractive

  • Fire resistant

  • Pass safety requirements

  • Competitive in price(high value)

  • Sound proof

  • Durable

Purchasing agent’s requirements:


Facts on product produced

Facts on product produced

Techno-Fibre cover

Lightweight sturdy bamboo fibre core

Highly:

--abrasion resistant, soil proof

--Low maintenance, fire resistant, sound proofing

Estimated 10 year value

*All products are produced upon customers designated orders


Case study

Problem

How can Canty International establish the value that Decoline will contribute to the industrial and commercial industry consumers?


Numbers breakdown

Numbers Breakdown

Fixed Costs

Break-Even Point = $24.75

At 500 m₂

Variable Costs


Assumptions

Assumptions

We assume:

Canty International is well established

No other products in the market are like Decoline

Canty International has the funds to develop Decoline

No other company has the advantage of a design lab


Competitive analysis

Competitive Analysis

  • Decoline doesn’t have any direct competition but they have a lot of competitors that offer similar style products

  • Decoline lasts 5 times longer than the current products on the market


Swot analysis

SWOT Analysis

Strengths:

  • The design lab allows the company to produce a product that completely meets the customer’s request.

  • Making a greater profit due to the supply of high quality materials at minimum cost

Weaknesses:

  • Not meeting current capacity restrictions

  • Problems at any area of production may delay the process of making a product


Swot analysis1

SWOT Analysis

Opportunities:

  • Many growth opportunities because of the design lab

Threats:

  • Losing market shares if their products don’t equal or surpass their competitors’ products


Target market

Target Market

Hospitality and Service Industries

Hotels

Hospitals

Restaurants

Retirement Communities

Focus on North America


Alternative 1 price skimming

Alternative #1: Price Skimming

Canty International will set high price for Decoline initially to maximize revenues

Advantages

High price equates to high quality

High price will limit demand giving time to build production capacities

Better to price too high than too low


Alternative 1 price skimming1

Alternative #1:Price Skimming

Disadvantages

Competitors may enter the market with a lower price

Company may have high unit costs associated with small volume productions

When the price drops past customers may feel cheated


Alternative 2 market penetration

Alternative # 2: Market Penetration

Initially set the price low to attract more consumers

Advantages

Low price will build sales, market share, and profits quickly

As sales grow, costs drop, which causes the price to drop

Discourages competitors because the profit margin is low


Alternative 2 market penetration1

Alternative # 2: Market Penetration

Disadvantages

Lower price will cause larger volumes, which may cause the company difficulty to keep up with demand

Consumers may believe low price means low quality product

Company will have a hard time increasing selling price later


Alternative 3 value based

Alternative # 3: Value-based

Decoline is prices to match Customer’s value perception

Advantages

Higher the value perception, higher the sales

Donation to charity increases company’s image

Decoline will perceived as prestigious, because of their high prices


Alternative 3 value based1

Alternative # 3: Value-based

Disadvantages

Consumer research implementation costs

If consumer’s value perception of Decoline decrease, less products are sold

Value of products depends on how consumers view them


Solution

Solution

Price Skimming

?


Case study

Price will be set at $49.50 to get 100% markup

Implementation plan


Case study

Plan B

Price is set at $30.99

to get 25% in markup


Case study

Break-Even Analysis

  • Fixed costs

  • Variable costs

  • Break-even point

    Pricing strategies

  • Cost-based

  • Competitor-based

  • Value-based

Course Concepts:

Monopolistic competition

Price Skimming


Key findings

Key Findings

  • Canty International is world renowned and that helps launch a new product into the market.

  • RFT requested for a product with certain specifications.

  • Current products in the market don’t measure up to Decoline.


Bibliography

Bibliography

  • Case reference materials: Marketing, Canadian edition

    • Dhruv Grewal, Michael Levy, Ajax Persaud and Shirley Lichti; McGraw-Hill Ryerson, 2009


Credits

Credits

Created by Group B

Sayali DeshmukhAman DhaliwalKai Min (Leo) HuangLeslie McCollumBrittany PetersenEmily SandhackColin Williams


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