Final report
Directed by:
Doctor TRAPPEY
CHARLES V.
9862540
9762503
9862509
981027
9576502
林婉瑜
張明懿
郭芬芳
洪義超
沈育德
Amber Inn &
suites ,Inc.
Summary
Time: Late in the afternoon on April 4, 2005
Company profile:
Amber Inn Suites, Inc. is positioned as
limited service hotel between economy
hotels and full service hotels in US.
And the service mission
is to provide principally
business travelers with
clean and comfortable
quest accommodations
in convenient locations at
reasonable price.
Organization
Fiscal 2005 was projected to be the fifth consecutive unprofitable year
for Amber Inn & Suites, Inc. Ms. Elizabeth, Senior Vice-President of
Sales and Marketing, needed to prepare the sales and marketing
proposal of fiscal 2006 to achieve profitability within two years , and
three issues required immediate attention when preparing the April 11
presentation.
The allocation of media advertising dollars between the
pleasure/vacation travelers and business travelers market.
The “frontier strategy” initiated in fiscal 2005
Promotions, recommended by Grace, “weekend specials” as a
replacement for the “free-night stay” promotion used in fiscal
2005.
Question
How to approach goal for
the company was to
achieve profitability
within two years. His
overall corporate
objective was a 7 percent
annual increase in EBITDA
over the next two fiscal
years.
Answer
Focus on business travelers
by:
Additional service
Discount promotion
for companies
Change the mix of
advertising
expenditure
Explanation
Pleasure/ Vacation
14.2%
Convention
3.5%
Pleasure trip paid
for by self 18%
Business trip
paid for by self
16.3%
Personal
9.5%
Business 79.8%
Fig 1 Purpose of trip (percentages exceed
100% due to multiple answer)
Business trip paid for
by the company 65.7%
Fig 2 Type of trip and payment on
most recent visit
So we plan to increase the business traveler occupancy
and provide some recommendations for this purpose.
Recommendation
Additional service
Discount promotion
for companies
Recommendation
Change the mix of advertising expenditure
Table 2 Amber Inn & Suites, Inc. Advertising Media Budget Plan
EBITDA Results : Fiscal 2003 - 2006
Teaching Note
Setting reasonable communication
objects
。Primary demand
。 Selective demand
。 Consistent
。 Quantifiable
。 Attainable
Marketing Web Sites and Integrated Marketing
Communications
。 Purpose of Marketing Web Sites
。 Leveraging Advertising and Personal Selling with
Promotional Web Sites
Teaching Note
What’s the purpose of marketing
communication?
Communication is necessary to inform buyer
of the following.
。 The availability of an offering
。 The unique benefits of the offering
。 The where and how of obtaining and
using the offering
Developing of an integrated marketing
communication mix.
。 The information requirements of potential buyers.
。 The nature of the offering.
GloFish,LCC
Summary
Time: January 5, 2005
Company profile:
Glofish, LLC is a company which product is fluorescent zebra
fish in US, devoted to promote and popularize the fluorescent
zebra fish to common consumers. And
has noted as “The GlofishTM fluorescent
fish provide marine colors at fresh water
prices”
Distribution was the key to market success.
Blake listed four distribution alternatives to
present in the next day’s meeting in Board of
Directors—independent pet stores, chain stores,
kiosks and internet.
Blake recommendation
would have to
consistent with the
resources that Glofish
presently have
available as well as fit
other elements of the
company’s marketing
strategy.
Question
The distribution was the key to
market success. The fluorescent
zebra fish only sold in few
retailers, and Glofish LLC had to
expand their market channel let
consumers could easier to buy.
Alan Blake listed four distribution
alternatives, independent pet
stores, chain store, kiosks, and
Internet. We have to select the
suitable channel to sell the
fluorescent fish.
Answer
Except the original
channel of pet store,
we also add two
channels, chain
stores and internet,
to sale the
fluorescent fish.
Explanation
Table 1 SWOT Analysis
Independent Pet Stores
Chains Stores
Kiosks
Internet
1.offer varied pets and pet-related
products.
2.The revenue raise 7% of pet stores
wholesales and it will also influent the
sales of fluorescent fish.
1. Sold the fish in competitive price to
attract more price-sensitive customers.
2. Near the downtown and crowded
Shopping Mall kiosks have enjoyed
circle.
explosive growth, both in terms of number
3. Unexpected purchasing of the window and revenue.
shopping in the chain stores.
1. It is cheap to set up the internet web.
2.We can downsize the inventory cost, as
warehouse and counter’s cost.
3.We can put the other category fish as
traditional freshwater fish for customers
to choose.
1. The cost of lease space is too costly.
2. Added facilities, manpower and
miscellaneous will be the revenue burden.
3. Shopping mall can gather more
crowded on the weekend, but few in the
week days.
1. Customers can not differ if the fish is
what they see in the Web.
2. As the freightage cost, if every deal
can not achieve $40 per sale, the internet
business will not get the profit.
1.offer Glofish-branded tanks and
suppliers, fish food, and water
conditioner
2. Unexpected purchasing of the window
shopping in kiosks.
1.more and more people shopping on the
internet, it provides no limitation for the
location and time.
2. new channel and broaden the sales
scale.
Strengths
Weaknesses
1. The price of fluorescent fish is 5 times
than traditional zebra fish.
1. not including in this channel yet.
2. Customers will get more expensive
2cannot provide sufficient face to face
price for the same products compare to service.
other channels.
Fish lovers can get the news of
Opportunities fluorescent fish and may arise the
interesting by AD in fish area.
Threats
Risk
If we can get the chance to open the
chain stores channel, we can get in the
largest channel of freshwater fish.
Glofish will be suffered by the economic
To has many kinds of choices,
purchasing scale of chain stores. The
customers may attract by any kind of new
strong price negotiation ability will press
pets in the market.
the earning space of Glofish.
Low
Low
Similar products sold in kiosks like
colorful “fighting” fish.
High
1. per purchasing should up to $40 that is
higher than the pet store, chain stores of
$27; it may reduce the willing of
purchasing.
2. not provide face to face service
Middle
Table 2 Forecast Assumption Of Customer Market
Unit：USD Dollar
Customer Market Data
Category
ASP by Data's
Assumption
QTY
FISH
Related Products
200,000,000
38,000,000
$
1
13
14.0
Customer Market
Sales Amount
200,000,000
494,000,000
694,000,000
700,000,000
Table 3 Forecast Assumption Of ASP
Assumption
Fish ASP in dollar
wholesaler
retailer
customer
Traditonal
Glofish market share in 2004-Estimated
Glofish Target
Glofish ASP to customer
QTY/Per Fish
market share by Q'TY
$
$
Fluorescent
0.050
0.300
0.250
1.500
1.000
5.000
Unit：USD Dollar
4,000,000
5.00
800,000
0.4000% =800,000/200,000,000
Table 4 Planned Forecast in 2005
Internet-
Mall kiosks
Forecast in 2005
Forecast
Traditonal in 2005
0 Glofish ASP
1.00
5.00
in dollar
Glofish ASP in dollar
0 Revenue Growth
1.100
Revenue Growth
% market share by category 10.00%
market share by category
0 Revenue
704,000
440,000
Revenue $ $
0 QTY/Per
704,000
88,000
Fish
QTY/Per Fish
Independent
TTL
Internet-GlofishIndependent
Internet-Glofish pet
pet
5.00
5.00
1.100
1.100
20%
20%
2,917,200
880,000
880,000
1,598,667
176,000
176,000
InternetRetailer chain InternetRetailer chain
Traditonal
Traditonal
1.50
1.50
1.100
1.100
41%
41%
550,000
550,000
366,667
366,667
1.30
1.30
1.100
1.100
30%
30%
343,200
343,200
264,000
264,000
Mall kiosks
Mall kiosks
1.00
1.00
704,000
704,000
704,000
704,000
TTL
TTL
5.00
5.00
1.100
1.100
10.00%
10.00%
440,000
440,000
88,000
88,000
2,917,200
2,917,200
1,598,667
1,598,667
COST
COST
Variable-UC*QTY(@0.2)Variable-UC*QTY(@0.2)Fluorescent
Fluorescent
Royalty
Royalty
Fixed Cost
Fixed Cost
Internet setup cost
Internet setup cost
Internet maintaineence cost-Labor
Internet maintaineence cost-Labor
Hour
Hour
Mall kiosks cost
Mall kiosks cost
Inventory Cost
Inventory Cost
Delivery Cost
Delivery Cost
Other Cost-Traditonal
Other Cost-Traditonal
fish_purchasing
fish_purchasing
COST TTL
COST TTL
NetIncome
Income
Net
NetMargin
Margin%%LOW
Net
178,933
178,933
354,112
354,112
600,000
600,000
20,000
20,000
50,000
50,000
1,046,000
1,046,000
80,000
80,000
291,720
291,720
176,000
176,000
2,796,765
2,796,765
178,933
354,112
600,000
20,000
50,000
1,046,000
80,000
291,720
176,000
2,796,765
120,435
120,435
120,435
4.13%
too low!!!
LOW
LOW
4.13%
4.13%
Table 5 Revised Planned Forecast in 2005
Pull back thePullback
shopping mall kiosks channel.
InternetForecast
inin
2005
chain
Forecast
2005
Traditonal
Pullback
Pullback
Independent
InternetIndependent
InternetRetailer
chain
Mall kiosks Internet-Glofish
Internet-Glofish
TTL
Retailer
chain
pet
Store
Traditonal
pet
Store
Traditonal
Glofish
ASP
in in
dollar
1.30
Glofish
ASP
dollar
1.00
Revenue
Growth
1.100
Revenue
Growth
market
share
byby
category
30%
market
share
category
343,200
Revenue
Revenue$ 704,000
$
QTY
264,000
QTY
704,000
5.00
1.100
0
0
5.00
5.00
1.100
1.100
20%
20%
2,477,200
880,000
880,000
176,000
176,000
1,510,667
1.50
1.50
1.100
1.100
45%
45%
550,000
550,000
366,667
366,667
1.30
1.30
1.100
1.100
30%
30%
343,200
343,200
264,000
264,000
Mall
kiosks
Mall
kiosks
TTL
TTL
1.00
1.00
5.00
5.00
1.100
1.100
704,000
704,000
704,000
704,000
00
00
2,477,200
2,477,200
1,510,667
1,510,667
COST
COST
Variable-UC*QTY(@0.2)-Fluorescent
Variable-UC*QTY(@0.2)-Fluorescent
161,333
161,333
161,333
Royalty
Royalty
Fixed
Cost
Fixed
Cost
Internet
setup
cost
Internet
setup
cost
283,712
600,000
20,000
283,712
283,712
600,000
600,000
20,000
20,000
50,000
50,000
50,000
Inventory
Cost
Inventory
Cost
80,000
80,000
80,000
Delivery
Cost
Delivery
Cost
247,720
247,720
247,720
Other
Cost-Traditonal
Other
Cost-Traditonal
fish_purchasing
fish_purchasing
176,000
176,000
176,000
1,618,765
1,618,765
1,618,765
858,435
858,435
858,435
Internet
maintaineence
cost-Labor
Internet
maintaineence
cost-Labor
Hour
Hour
Mall
kiosks
cost
Mall
kiosks
cost
COSTTTL
TTL
COST
NetIncome
Income
Net
NetMargin
Margin%%
Net
34.65%
great !!!
34.65%
34.65%
Teaching Note
How to leverage the resource allocation of multiple
channels?
- Minimize the conflict between the agents and
associate the argument among pricing strategy.
How to attract consumer to pay attention and buy?
-Variety: Stimulate consumer’s purchasing willing.
-Advertisement: Right segmentation target.
-Service: Face to face service can provide explanation
and feeding attentions for customer to raise their fish
smoothly and can exchange the feeding experiences.
Teaching Note
How would you manage the company’s future growth?
-Define the core competitive advantage to ensure
that all future activities will focus on how to change
the mindset of possession for fluorescent zebra fish.
What solutions to the distribution problems are being
pursued by GloFish LLC?
- To expand the channel to make consumer easier to
get the product. To see, then have chance to buy.
- Convenience
- To apply the change of the consumer
purchasing behavior.