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7.You Make the Call—Situation 2Cheree Moore owns and operates a small business that supplies delicatessens with bulk containers of ready-made salads. When served in salad bars, the salads appear to have been freshly prepared from scratch at the delicatessen. Moore wants additional promotional exposure for her products and is considering using her fleet of trucks as rolling billboards. If the strategy is successful, she may even attempt to lease space on other trucks. Moore is concerned about the cost-effectiveness of the idea and whether the public will even notice the advertisements. She also wonders whether the image of her salad products might be hurt by this advertising medium.Question 1What suggestions can you offer that would help Moore make this decision?Question 2How could Moore go about determining the cost-effectiveness of this strategy?Question 3What additional factors should Moore evaluate before advertising on trucks?ANS:2.Moore offered a trucking firm approximately $1,500 for the privilege to advertise on 25 of its trucks for three years. Using these cost figures, some exposure data provided by the American Trucking Association, and a reference showing that 90 percent of survey respondents notice truck advertising, Moore estimated that she is paying only 21 cents per thousand exposures.
3.One concern is a legal one. Does the Department of Transportation allow this type of advertising on the trucks it regulates? With certain restrictions, Moore’s ads were PTS:1REF:p. 429OBJ:17-4 TYPE: C8.You Make the Call—Situation 3If people are willing to pay to have groceries delivered to their home, why not high-fashion clothing? This type of thinking is what led Claudine Gumbel and her husband, Brian, to develop Caravan, a boutique-on-wheels that brings the latest in high fashion to people all over New York City. Their mobile “caravan” is stocked with merchandise from the trendiest designers. “People like the convenience of a shop that comes to them,” comments Brian. “If an area doesn’t work, we move on,” he adds. Plans are to expand into Los Angeles and Miami soon. Sales for the NYC Caravan were expected to top $700,000 in 2006. It appears that the Gumbels’ business has been given the green light.(Source: Karen Edwards, “Shop and Go,” Entrepreneur, June 2006, p. 97.)Question 1What might be the best ways for the Gumbels to promote their business?