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Marketing Management Internship Project
- 2. Project Summary • CurrentBenefits • Conceptual Ideas • Timeline • Financial Impact • Risk Analysis • Pros and Cons
- 3. Through increased awarenessof our membership benefits among associates, current members, and prospects, we intend to grow our membership base and increase retention rates.
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- 6. Tire & BatteryCenter Because you are a member, did you know that our tire and battery center offers free: flat tire repairs, battery checks, air pressure checks, and tread depth checks. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 8170 6663 6667 6319 6412 6313 Member Associates Average Member 31% Average Associate 77%
- 7. Tire & BatteryCenter Current Benefits • Free flat repairs • Free battery check • Free air pressure check • Free tread depth check Conceptual Ideas • Wheel alignment equipment - Offer free alignment when upgrading to plus or renewing - Offer an (e value) $10 off prior to a purchase of 4 new tires Timeline • October (fall season) -Promote winterizing
- 8. If Sam’s Cluboffered Wheel Alignments as a service to the tire/battery center, would you take advantage of it? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 8170 6663 6667 6319 6412 6313 Member Associates Member Average 84% Associate Average 83%
- 9. Impact of WheelAlignments Pros • Competitor driven (COSTCO) Long- term profit by: - Increase member satisfaction - Increase plus memberships Cons - Starting cost (equipment and certifications) - Not enough space - Labor wages
- 10. Tire & BatteryCenter Alignment Financial Impact • Equipment $38,000 • $452 amortization per month for 7yrs. • $30 align. cost * 80 expected monthly align. = $2400 PROFIT • $2400 – $452 = $1948 PROFIT per month • Associate state certification cost $27 Risk Analysis • Safety/Physical liability of associates • Increase liability insurance • Significant financial risk due to lack of sales
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- 12. Jewelry Would you takeadvantage of our Jewelry dept. if we offered: ring cleaning and adjustments? 0% 10% 20% 30% 40% 50% 60% 70% 80% 8170 6663 6667 6319 6412 6313 Members Associates Member Average 53% Associate Average 56%
- 13. Jewelry Current Benefits • 1& 2 yr. warranty • 100% refundable • Plus Membership additional yr. Conceptual Ideas • Ring Cleaning/adjustment • Host education classes • Make cost comparison sheets • Demo fragrance Timeline • February & December
- 14. Jewelry Financial Impact • TotalCost of Hosting Educational Classes – minimal • Total Cost of Cost Comparison Sheets – minimal • Total Cost of 2 Fragrances Demoed over a month- $48.00 • Expected Sales – 17 bottles @ • 10 bottles x $34.67 = $346.70 • 7 bottles x $36.27 = $253.89 • Total Expected Sales = $600.59 • Total Profit = $192.24 • Total Profit / Total Cost = ROI • ROI = 300% • Total Dollars = Total Profit – Total Cost $144.24 • *Total Cost of Demo Cart = $150.00 initial fee • There will be a small loss on the first use of the Fragrances Demoed, however, the SECOND time and beyond these numbers are accurate. RiskAnalysis • Hosting class (low) • Cost comparison sheet (low) • Fragrance demo (moderate-high) • Ring cleaning/adjust. (extremely high)
- 15. Impact of JewelryBenefits Pros Fragrance demo • Increase sales • Member satisfaction Educational Class • Informative • Test pilot for other departments Cons Fragrance demo • Safety Issues • No profit Educational Class • Ineffective
- 16. Cost Comparison Sheet JewelryCost Comparisons - Example Item Competitor Price Our Price Savings .75 ct. t.w. 14K White Gold Diamond Studs $3,400.00 $ 1,104.00 $2,296.00 14K Gold Freshwater Pearl Earrings 6.0mm $85.00 $27.88 $57.12 .20 ct. t.w. Black & White Diamond Pendant $600.00 197.12 $402.88 Total Savings $2,756.00
- 17. Conclusion We hope thatbecause of our dedication and research that these ideas will be considered as a future reference to bring in new members and enhance the shopping experience of our existing valuable members.
Editor's Notes
- #4 Good morning. I am thrilled to be able to spend a few minutes with you all this morning. Wow, you have covered a lot of information over the last 2 days, I am sure it feels like information overload! I know you have all been told how critical you and your position is to the current and future success with Sam’s Club. Here is the deal, you cannot do it alone, you have to understand, this is shared responsibility with the other assistant mgrs and all the associates in the Club. Now let’s not kid ourselves, everyone is busy and no one is waiting back at the club for you to return and give them more work. That’s why I want to spend a few minutes talking about “leading through influence and influencing others without authority” Remember, “if your life in any way connects with other people, you are an influencer”