Imagine you were the Regional Sales Manager at a leading womens’ handbag brand (Brand X) in Australia, and you were tasked with increasing the monthly sales of Brand X by 10% across Australia.What would you need to take into account and how would you go about doing this?
Please choose the most relevant action for the initial stage of this process.
1.Research Brand X’s previous sales over the last five years and determine the periods of successful sales and periods of low sales.
2.Initiate marketing campaign using AdWords and other forms of digital advertising.
3.Initiate market research to understand top selling handbags in Australia and their relevant demographics.
4.Launch a 30% off campaign and track the increase in sales across each state.
Answers
Here the third option seems suitable.
Marketing is a very hard job and needs required expertise and knowledgeably to do it.
Lets consider each of the given options to understand the best option.
The first option woulds give us an overall idea about how far sales has been conducted for this product by this hand bag company, but it would still not be completely sufficient to prepare the sales rates at a hike of 10 percent successfully as there would be many missing facts.
The second option is also a useful one, as marketing of products through campaigns is useful. Yet marketing mix and S.T.P. analysis would prove that it cannot be the only factor by which hike can be brought about successfully.
The third option seems wise as in this way, this company as well its marketing team would be able to understand the price and quality range that is being offered by other competitor companies. Also, by understanding the demography, it can understand whether people can offer more money or less and hence a wise price range can be fixed. This would not be a risk in terms of investments on their bags.
The last factor is okay, but it would lower their profit margin by offering more discounts. The company should first try to see an increase without having to offer any discount from their side. Else, others might feel that the quality of bags is not good which is why they are ready to offer discounts. Hence it would negatively affect their "brand value" then and price hike or price discount would not leave any positive impact on people.
Hence, the third option seems suitable.
Answer:
1st option looks more suitable (Research Brand X's previous sales over the last five years and determine the periods of successful sales and periods of low sales).
Explanation:
Because, First we have to examine the last year sales. In which session we got successful sales , low sales and what was the reason behind that. Implement the changes according to performance and next step should be of marketing.