Question

Positioning Basket of Goodies is positioning itself as an upscale manufacturer of gourmet gift baskets through the introduction of several production baskets as well as custom options. BOG will achieve this positioning by leveraging their competitive advantages. The competitive advantage is based on two factors, low overhead which supports reasonable prices, and an unrelenting desire for the highest quality product and service. 1. Overhead- BOG's overhead is particularly low because it is a home based business. Most of BOG's competition is based in retail shopping areas. While they receive more walk by traffic and therefore higher sales numbers, their rent is a very large monthly expense. BOG avoids this large expense by having the business run out of owner Susan Presento's home. Additionally, Susan will be using a modified version of JIT (just in time) inventory and assembling. Susan's husband passes by 90% of Susan's vendors on his way home from work so Susan is able to order inventory when she needs it and have her husband pick it up on the way home from work. This significantly lowers shipping costs and carrying costs for The Basket of Goodies Page 8 inventory. BOG will have some of the standard baskets in stock for walk by orders, but will try not to have large amounts in overhead. 2. Unrelenting desire for the highest quality product and service- Let's face it, this market space is already crowded and a mediocre gift basket service is not going to fly, so Basket of Goodies must have some sort of differentiating feature that lets it stand out. Susan only uses the finest quality ingredients and can afford to because of her low overhead. Additionally, she always follows the maxim that the customer must be 100% satisfied. That means she is willing to loose money on an occassional order, if necessary, to please a customer, confident that in the long run this is a wise business decision. 3.6 Strategies The single objective is to position Basket of Goodies as a manufacturer of unique, attractive, gourmet gift baskets for individuals as well as corporate customers. The marketing strategy will seek to create customer awareness regarding the product offerings, develop the customer base, and work toward building customer loyalty and referrals that will significantly decrease customer acquisition costs. BOG will seek to communicate the message that they offer a higher quality, gourmet alternative for gift baskets relative to the baskets currently available. This message will be communicated through various methods, tailored to each target market. The first method will be the use of a Website. The Website will have product information, company information, as well as ordering information and order taking. The site will be useful to both targeted groups, individuals as well as corporate customers. The second method will be brochures, primarily marketing to individuals. These brochures will be dispersed through many different sources. The last method of communication is networking and it is primarily for the corporate customer. Before founding Basket of Goodies Susan worked within the Human Resource Department of several larger corporations and has developed a large list of contacts. Susan will leverage these personal/professional relationships to generate business for BOG. Since she has worked within the HR departments before, she is quite familiar with the buying habits and decision making processes; key knowledge for generating corporate sales. 3.7 Marketing Mix BOG's marketing mix consists of the following approaches to pricing, distribution, advertising and promotion, and customer service. • Pricing- BOG will be charging a per basket fee for the stock production baskets. Regarding the custom baskets, a price can be quoted once the customer decides on the ingredients that they want. • Distribution- While the orders for the baskets can be placed on our secure Website, by phone, or at the office, the distribution of the product will occur from the office and can be shipped to any continental U.S. address. • Advertising and Promotion- A Website, brochures, and networking will be used to raise awareness and generate sales. • Customer Service- Following benchmark companies such as L.L. Bean, Eddie Bauer, and Siemens, customer service will be a priority. Susan truly believes that reputation is everything.

Question: What are the sales promotions/techniques discussed?

Answer 1

What are the Sales Promotions/ Techniques Discussed?

Basket of Goodies, targeting major groups individuals customer and corporate customers.,

For sales promotions or techniques which is used by Basket of Goodies

1.Website Marketing

2.Brouchers Marketing

3.Networking

4.Refderal Marketing

5.Marketing mix Tools

1.Website Marketing -

Basket of Goodies company preferably used website marketing for their customers and also corporate customer, on website they present product information with features of product with good design also provide information of company and information of orders, consumers can buy from website, Phone that's why website create and design with e-payment method most of the orders they got from online website., So Basket of Goodies mostly depend on website for sales promotions of their product.

2. Brochure marketing -

Another important sales promotion tool or technique used by Basket of Goodies is browser marketing, it is used for provide information of company and products to individuals for increase sale, this Brochure will be dispatched from various sources such as - Newspaper magazines, Dispatched via workers to direct individual in the form of Door to Door marketing,

3. Networking -

Another important sales tool for marketing for promotions of Basket of Goodies is networking, it is a specially used for Corporate Customer where Susan Personally visit corporate customers for present information of product and company to them and Generate leads from corporate customer, Susan was work in many firm, and she utilise this contact for her company.

4.Refferal marketing -

Most of the company use referrals for increase sales and provide commission to referral leads generator, Basket of Goodies owner Susan use it for increase sale and provide commission to referral leads generator.

5. Marketing mix Tools/Techniques -

Basket of Goodies use marketing mix tools or techniques for increase sale,

i) Price -

Basket of Goodies charge per basket fee for the production baskets and custom baskets, price can be quoted once the customer want or decide on the ingredients that why want. Place management tools used by Basket of Goodies.

ii) Distribution -

Another important marketing mix tools and techniques used by Basket of Goodies after got order from online or by phone they can be shipped this order to any Continental U.S Address.

III) customer service-

Customer service is very important to satisfy customers who have query about any product, Basket of Goodies provide best customer service in market such as LLB Bean and Siemens.

This is about sales promotion tools and techniques which is used by Basket of Goodies