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GGI Housewares Marketing Trends and Differentiation

Global Gadgets Imports (GGI) began operations in 1992 as an importer of home decor and gift items. Initially, GGI imported from various Asian manufacturers and sold its inventory through a network of distributors and other intermediaries who supplied to the retail and mail order catalog market. In 1995, GGI opened its first retail store. This decision was fueled by a desire the owner had to be closer to the consumer and capture the high profit margins possible through eliminating the distributors. The success of this one location led to the opening of ten additional stores in a three state region, while the
distributor business also continued to grow.

After ten years in business, GGI deals almost exclusively with one manufacturer so import and distribution functions are somewhat optimized. However, over the last year, revenues from the wholesale business have been slipping, while store sales remain flat. Management believes the weakness to be marketing. GGI has a few ideas that might turn the business around and bring new growth. They want to hire you to give them guidance and direction on this marketing project.

1. How can GGI Housewares differentiate themselves?
2. Who will be your various market segments?
3. What are the trends and how can we utilize this knowledge in our marketing campaign/strategy?
4. What housewares related products should you focus on marketing?

Solution Preview

1. How can GGI Housewares differentiate themselves?

CGI deals in the business of gifts and home decor items and the primary way in which it can differentiate itself is via offering new and innovative gift products on a regular basis to its customers. The customers walking into the company's stores or the wholesalers procuring products from the company should find new products every time they come to purchase. The products should not only be fresh, but unique as well and should not be found elsewhere.

To ensure such differentiation, GCI will have to work very hard in terms of its procurement strategy and widen its base of suppliers overseas. It cannot just rely on one major manufacturer for import and has to establish a strong base of suppliers that can supply innovative products on a regular basis.

2. Who will be your various ...

Solution Summary

The answers are given in paragraph form in 545 words, cover ideas like market segmentation, utilizing knowledge of trends and how to pic a focus product.