530assn4_Bryson_Victor

530assn4_Bryson_Victor - Marketing Strategy General...

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Marketing Strategy General Description The marketing strategy of Magnus Enterprises LLC is based on the mission of the company. The mission is to create a cost-effective clothing line alternative for young men aged 18-35. Through our method of distribution and sales promotions, Magnus Enterprises will be able to build a recognizable brand image in the minds of its consumers in order to launch a unique clothing brand. Method of Sales and Distribution Considering the rise of computer technology and Internet usage, Magnus Enterprises will develop a user friendly website for the sale of the CZAR clothing line. Using the internet as a distribution channel has its advantages as well as disadvantages. Unlike a physical location that would incur inventory, staffing and rental costs, a website, where consumers would place orders and make payments, would enable Magnus Enterprises LLC to reduce their inventory costs. For instance, costs as they would not have to worry about hiring extra cashiers or stocks persons. However, consumer confidence of online purchases is still quite risky. Many shoppers have concerns regarding security and privacy of online purchases. They are not willing to give credit card information to a website where they do not know who is handling this type of information. Despite this, the website would be an effective means of distribution as it is available 24 hours a day. The primary focus distribution channel will be through specialty stores in various metropolitan areas. At the present, 100 sales commitments have been received from 100 specialty stores. The specialty stores have a proven track record in selling to the market that
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CZAR is targeting. The distribution at this level is expected to reach 150 specialty stores by the March, 1 2011. Pricing Taking into consideration the strengths of the various competitors, Magnus Enterprises LLC will use a unique pricing strategy to gain a competitive edge in the clothing industry. In comparison, Ralph Lauren Polo offers their shirts on average at $80.00; customers will save more than 50% of their expenditure due to the sales discounts that the company provides by selling our Polos at $40.00. Assuming a consumer buys one Polo a month, this means an
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530assn4_Bryson_Victor - Marketing Strategy General...

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