2. Example: Coquitlam Public Library has a floor space of 14,834 m2, yes not all of that would be wall space to be covered, but there would still be a large area of wall
3. Example: Evergreen Cultural centre in Coquitlam, a floor space of 4,224 m2, again, not all wall, but still would be a significant job
6. Expansion means they could produce more product, the more product they get out there/the more buildings they have put their wall coverings in, the more people know about their company and this could increase sales.
7.
8. Demand from the government could be too great and cause them to go under due to the cost of buying machines to try and produce enough Decoline.
9. Not being able to produce enough Decoline could cause them to lose the contract and customers.
10. If the work could not be completed it could ruin their reputation.
11. Could be costly, if they decide to expand in order to keep up with the demand
13. Costs for more of the base equipment (cutters and tables) in order to produce more product
14. Costs for hiring more employees in order to produce more product
15.
16. By using premium pricing, this will target consumers who specifically shop for products that are of better quality, and they also believe a product of greater quality is always priced higher than other products
17.
18. After lowering the price from using the pricing strategy of premium pricing, some costumers may lose their loyalty from being dissatisfied with the high they initially paid.
34. Maturity Stage REFERENCES: 1) Grewel, D., Levy, M., Persaud, A., & Lichti, S. (2009). Marketing Canadian Edition, USA: McGraw Hill Ryerson Limited. 2) Metro Vancouver. (2009). Coquitlam Town Centre. Retrieved October 27, 2009, from http://www.metrovancouver.org/planning/development/livablecentres/Pages/coqutilam.aspx 3) Renovation and Building Costs. (2000-2009). Ontario Contractors. Retrieved October 26, 2009, from http://www.ontariocontractors.com/costs.htm?printable=1 SWOT Analysis GraphENVIRONMENTPOSITIVENEGATIVEINTERNALSTRENGTH:-Loyal customer basis (strong market position within hospitality and tourism industry).- Their products are well-established because they have already been in the business.-Their new idea has been tested and is described as “the answer to the manufacturers needs”.WEAKNESS:-Lack of experience in this type of concept/ this change may be risky.-creating need recognition for their new image may be risky. For example, what if customers don’t see the value of the product?-reliance on fewer customers for eco-friendly demographic (concentrated segmentation strategy).- Possible unqualified workers to produce eco-friendly material and export eco-friendly materials.EXTERNALOPPORTUNITIES:-Expand into other countries/ company development-Boost revenues by expanding into a more affluent target market-The customer that they have, Bryant Inn, is a huge player in the hotel industry. They have the opportunity to promote their brand, get more brand recognition-engage in Business-to-BusinessTHREATS:-Other companies carrying similar product, competitive retaliation *they would have more competitive prices*big companies like Rona Revy who already have a loyal customer base- They are venturing into new material knowledge. For example, they may not know the long term research about the bamboo and technofibre. What tests do we know of? Could cost of production go up?-Possible government regulations, building codes. We just don’t know the long term effects.
![[object Object],Sales Projection1st 6 months2nd 6 months3rd 6 monthsSales$160,000$216,000$288,000Monetary discount$24,000$21,600$0.00Sales return & allowance$3,200$4,320$5,760COGS $57,870 $81,018 $115,740 Net Sales$74,930$109,062$166,500Other ExpenseAdvertising Budget$35,000$30,000$30,000Survey and Data collection$6,835$6,835$6,835Administration Cost$44,605 $49,065 $51,518 Total Expense$86,440$85,900$88,353Net income-$11,510$23,161.50$78,146 SWOT ANALYSIS: STRENGTHS The first apparent strength of Canty International is the amount of loyalty Bryant Inns has given to them. Bryant could have applied some research into the world of eco-friendly wall coverings but they first wanted to offer the challenge to Canty international because they favor and trust the values the company. Canty International is well established with the products they already sell to other consumers/customers. They have established a name for their company and for brand recognition. The new product, Decoline, has been tested in their design lab and has been described by their fully qualified technicians to be “the answer to the manufacturer’s needs.” WEAKNESSES Canty International is lacking in experience with eco-friendly material which is a risky venture for the company to take part in. The new product has a need for new brand recognition. The consumers may not even see the value for the new product and not understand the high pricing that comes along with a new product. Entering an eco-friendly environment means to enter into a smaller target market which may cause a loss of loyal customers. Since Canty International is placing a high majority of effort to Bryant Inns, they have concentrated a segment strategy upon the product. Relying on potential unqualified employee/manufactures that produce or export the eco-friendly material, without the proper knowledge of the product and what its needs are to be kept safe. OPPORTUNITIES Canty International already has Bryant Inn as a customer. They are a huge player in the hotel industry and if Canty is successful in delivering a quality product and service, they will have a massive opportunity to promote their brand. Once they get more local brand recognition, they will have the opportunity to expand internationally. By improving the quality of their product and service, they will have the opportunity to boost revenues. As long as they can deliver perceived value, customers will pay more for superior quality. Canty also has the opportunity to engage in Business-to-Business marketing. Once they have experience with their new materials they could sell their products through home decorating companies such as Rona or Revy. THREATS Canty are taking a big risk by venturing into a new area of wall coverings. Because the materials are new to them, they may not have much research or testing for the long term. Other companies could develop a similar product. There is the threat of competitive retaliation here if the competitors decide to create a similar product for a cheaper price. Because they are using new materials for the wall coverings, conflicts with building codes and government regulations may be possible in the future. Competitive Analysis: There are extensive local wall covering companies that cater to the physical appearance of walls rather than the functionality of the product itself. For example, the Home Depot, being the main competitor is known for providing customers with a larger selection of colors and designs at low prices. A huge advantage that Canty has over its competitors is the environmental aspect as well as its longevity. While competitors offer a lifespan of 2 to 4 years, Canty offers up to 10 years on their Decoline which offers them great potential over their competitor. Target Market Identification The Decoline product that Canty International is creating has a distinct market set up for them. Since the company has been given a series of requirements and characteristics, the product is targeted towards Bryant Inns as a way of business-to-business marketing. This means targeting the CEO, buyers, initiators, deciders and even interior designers who work for Bryant Inns. These people’s demographics are professional men and woman who are meticulous with their careers. They analyze details of the product they are about to purchase; therefore the value must be noticeable when it comes to creating the product because they will know if the value is present. The Geographic market consists of all buyers who live in the regions of Bryant Inn’s 150 hotels. Demographic variables of this market are not specific, because the information regarding who the people in charge of the jobs above are not clear. We can assume that the psychographic variables would be the following: -Individuals who perceive value from characteristics featured in a product. -Purchasing habits associated with high quality -Desires the best for their company (Bryant Inns) -Have a decorative eye -Concerned with the environmental issues (our product is eco-friendly) We recognize that this market is very limited by saying that Bryant Inns is the only customer we have. This is true in the short run and is aware that our product will suffer once Bryant Inns has utilized the product in all its hotel chains. We would not want our product to only have a lifecycle measuring the amount of years Bryant Inns uses it. Therefore, our secondary target market would be other hotel chains who are aiming to build up their hotels with high quality decorations in their buildings. These companies would have high profits and may be in tune with environmental issues. They are companies who are keen on keeping up the image of their hotel rather than just cutting the costs to keep it running. All these are examples of benefit segmentation. On the perceptual map for wall coverings, our ideal point would be closest to quality rather than cost sensitive. They are located in Canada, just like Bryant Inns. We assume that they would be relatively experienced companies in the market, whose current wall coverings have expired and gotten old. We could also avoid issues of being able to afford our wall coverings, since they are companies who are in the maturity stage of their lifecycle and have money to spend on increasing credibility of their hotels. Alternatives and RecommendationAlternative #1: To gain a government contract to produce our new product of Decoline. A government contract would enable us to set a higher price of $65.00 m2 (premium pricing). This is possible because of the government’s economic stimulus plan. If the government supports us with a contract, they are supporting and stimulating trades. If we position the decoline product into our customers mind as a premium alternative to their current wall covering, they will be more inclined to pay a higher price because it is justified through our features. For the premium decoline they are getting more value for a premium price, but in the long run because they do not need to maintain or change the covering as much, they are saving money because they pay less for shutting down their business for renovations and maintenance. Also they are getting a more valuable product in the end so they will be satisfied with their purchase and accept our price. Advantages: ,[object Object]](https://image.slidesharecdn.com/cantycasestudyfinallast-091112121206-phpapp02/85/Canty-International-Case-Study-1-320.jpg)
