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.
Your roles and responsibilities are to implement the following ideas:
>> Expand the product line to include housewares. The key supplier carries a full range of good quality housewares products and GGI can leverage its existing relationship to obtain discounted pricing on these additional product lines.
>> Repackage and brand: currently, the products arrive with a "plain brown wrapper" sort of packaging so little attention has been paid to whether GGI even has a reputation in the market. GGI has the option to repackage the items to promote a stronger brand image, but the cost will shrink their profit margin.
>> Open additional stores, possibly under a new brand, much like other manufacturers' and importers' "factory" stores.
>> Engage in a major marketing effort to increase sales and brand awareness.
Deliverable length 9 to 10 slides with notes.... not including the cover introduction, reference or conclusion slides.
You have done preliminary market research and are ready to present it to the GGI Senior Management. Your goal is to provide them with research information that is the foundation for future marketing strategy recommendations. You will make assumptions (such as the target audience, demographic profile, store locations, and so on) as long as they are supported in your presentation.
When preparing this presentation, you will conduct some "preliminary research". Do the best you can to find information, and you are welcome to share your resources with your small group. Prepare a PowerPoint presentation with speaker notes (that thoroughly cover each slide's main points). Your presentation will have a title slide, introduction slide, 9-10 slides answering each of the following points listed below, plus a reference slide.
The presentation should address the following points:
1. Industry size and growth - This is a large industry with potential growth.
2. Consumer buying trends for Housewares - What are people buying? You will find this information in home related periodicals, videos, TV, and websites.
3. Target audience demographic details and statistics - Who is buying Housewares? Find demographic information (the census.gov site is free). You will have many segments such as lifestyle, gender, age, and geographic location. Keep in mind that your market includes the 11+ stores, as well as internet sales.
4. Information on competitors in the market - Who is the competition? What differentiates these competitors?
Important note: The demographic information should be on following states...Washington, Oregon and Idaho.
The following websites can help you gain more information about retail market:
Retail Merchandiser (http://www.retail-merchandiser.com/index.php)
HFN Weekly News (http://www.hfnmag.com/)
Key Findings (http://www.keyfindings.com)
Additionally, major business magazines may have archived articles with general economic and industry data. These magazines may include:
BusinessWeek Online (http://www.businessweek.com/)
Fortune Magazine (http://www.fortune.com/)
The response addresses the queries posted in 11 slides (2640 words) with references. It covers the size and growth of the industry, as well as trends in consumerism, demographic information, and competitors of GGI.