Marketing Recommendations
MARKETING RECOMMENDATIONS FOR OSWALD OPTICAL
After analyzing the Oswald Optical profitability results I have come to the conclusion to recommend to you three actions that you can take that will increase market share without sacrificing profitability. In fact, I believe that within these three recommendations we can increase both market share and profitability. These three recommendations are as follows:
1. We have a substantial advantage over our competitors without changing anything. Our store is on average 2,000 square feet larger than our competitors. We also have on staff two optometrists. Our competition only has one. We need to explain this to our customers in our advertising. In these ads we do we need to tell them how spacious our store is compared to our competitors. “You can walk around without being crowded”, this is what our ads need to say. We need to explain the fact that our store is better because it is more spacious. We also need to explain the fact that we have two optometrists on staff rather than just one. We can provide more service to our customers faster than our competition can. Our competitions ads say that they have quick service and low prices but if they only have one optometrist and we have two we can do the same work in half the time. Our customers need to know this. We have to tell them about this story and the only way to tell the story is by explaining this on the advertisements that we already do. This will drive people to come here rather than to go to another store even though it might be closer. I think a conservative number would be an increase of 1.5% market share for this one change. This is hard to guess at what kind of number that this would acquire but if we run an ATAR model on the situation then we can see that it comes out to be 1.3% increase in market share. (See Appendix A)
2. This plan would be to focus more of our efforts on contact lenses. Our total contribution to gross profit for eyeglasses...
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