MKT291DirRep - JKLM Report to the board 11/2/2010 Overview...

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JKLM Report to the board 11/2/2010 Overview Through six quarters, JKLM has struggled to gain significant market share since its inception. The major highlight thus far has been the recent introduction of a Traveler market product, the Phoebe 500. JKLM’s marquee poduct line, its Chandler series, has been bogged down by inconsistent marketing effectiveness and an extremely competitive market. JKLM’s Workhorse product line, the Joey series, has been very dissapointing in performance thus far. While producing well-rated products, JKLM has had difficulty staying innovative in its marketing strategies and maintaining consistent growth of market share.
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Financial and Market Performance JKLM’s cumulative net profit built up over time to total at over $21 million. JKLM’s strongest quarter, with a total net profit of over $10.5 million, was quarter 5. Our analysis concludes that the immediate success of the Phoebe product, JKLM’s traveler line, was chiefly responsible for the roughly 400% increase in profitability as it accounted
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for $6.6 million in profit alone. It concluded a five consecutive quarter streak of rapid growth brought on by JKLM’s entrance into the marketplace. In quarter six, however, profits declined by approximately 20% to $8.1 million. In an overall poor market, the Phoebe 500’s revenues increased minimally whilest all other lines of products, both editions of the Chandler and Joey, saw there revenues decline. Despite JKLM’s heaviest investment yet in training sales persons and advertising, revenue’s fell by $2.5 million. The dissapointing performance seems rooted in the overal growth slowdown seen in the market. As while most companies increased investments in advertisements, salespersons, and offices, the market grew at a fraction of its previous rate. Sales per salesman and revenue per advertising dollar declined marketwide, leaving JKLM and its competitors short of target growth numbers.
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JKLM spent the majority of its effective quarters with a strong Marketing Effectiveness rating. The statistic uses the average brand judgement and the average ad judgement to produce a number that measures JKLM’s ability to satisfy its customers needs. JKLM performed well in its initial quarters, however it performed very poorly in quarter’s four and five. This is most likely due to the dissapointing performance of the Joey line, as its financial performance suffered due to poor product and ad judgements. If the focus of JKLM had been placed on its Phoebe line in quarter five, as opposed to the initial action to leave it as a third focus behind the new offerings from the Chandler and Joey line, the marketing effectiveness surely would have been higher in quarter five. JKLM posted the highest marketing effectivness in quarter six, as the statistic recognized
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This document was uploaded on 11/02/2011 for the course MKT 291 at Miami University.

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MKT291DirRep - JKLM Report to the board 11/2/2010 Overview...

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