Marketing Case Study

Firm Objectives Increase active members and grow customer base. Have registered customer of 300000 members by year end 2000. Financial condition IF 1 million start up capital while investment to advertising was OFF per visitor. Marketing strategy Have registered customer of 300000 members by year end 2000. Analysis of performance Steady increase of visitors and new members to the website. The new member base increased 3. 5 times from Jan 2000 to June 2000 and from 2469 to 8662. The number of visitors also increased from 77383 to 480309 which is a 6. 2 times increase.

However the number of times the pages in the website viewed by visitors has decreased from 4. 9 times per visitor to 2. 8 times per visitor. SOOT Strengths- 1. Unique Brand image 2. 500000 visits per month average 3. High start up capital and have investors’ support 4. Unique services of workshop creation and group buying 5. Can help purchase rare imports and unique products 6. Let people encourage other people to buy things through group buying discount 7. Effective marketing campaign 8. Positive WHOM and increasing involvement of its members through discussion and so on.

Opportunities- . Increasing internet users 2. People are open to new ways of purchasing products Weaknesses- 1. Channel conflicts 2. Limitation to group buying solutions TTY, may not always stalest 1 . Competition lower profit margin costumers I nearest 2. Other different ways of purchasing products Problems found in situation analysis Statement of primary problem After the interesting launch strategy, the web site comes short of breath. Two pathways are outlined (focus on group-buying and good deals vs.. Focus on consumer creation and exclusives or remain the same to have both).

But the problem is which en to take? Evidence of problem “Pauli believed that two board alternative paths were conceivable: Clubs could focus purely on group buying, or it could broaden the websites offerings, with less emphasis on getting consumers a low price. ” Effects of problem By defining the strategy to go ahead, profitability and long term outlook will be effected. Strategic alternatives for solving problems Strategic alternative 1 This alternative concentrate on increasing values for group buying and getting members good deals on products at a discounted rate.

This strategy can maintain their profit and weight out the potential risks concentrated strategy. This alternative can definitely keep the present ideas people have about clubs. Com whilst maintain the brand image of a group buying site since so many violators an. Further, constant monitoring and statistical research should be conducted consistently to ensure the program can be run smoothly and effectively. If it does fail to become successful, outside consultant agency can help in terms of changing strategy or altering parts of it.