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Marketing - Case Study Example

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Course: Date Marketing Analysis: The Case of Don Martin Limited Introduction Don Martin Limited was started about twenty three years ago as an auto supplier. The company has grown both in size and in the products offered and currently it operates in a large store with a total area of 910 meters (Grasby et al 379)…
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Download file to see previous pages Despite the fact that parking in the street is usually a problem, there is a metered parking behind the store although most customers do not seem to be aware of these parking lot. Throughout its existence, the expansion has brought positive gains but the last expansion did not bring additional sales. This paper will carry out a marketing analysis of Don Martin and this will be organized into three sections. The sections include problems and analysis, alternative analysis and a recommendations section. Problems and Analysis Don Martin Limited has always strived to expand thereby increase sales which would eventually translate to high profitability. To achieve this, the company has made several acquisitions given that initially it only had a total area of 45 meters squared (Grasby et al 379). The expansion has always produced an increase in the sales volumes but about three ago, a store that neighbored that of Don Martin Limited was floated for sales and the company bought it. After the acquisition, Don Martin Limited brought down the wall separating the two companies and ended up with a large store. However, instead of increased sales; the new acquisition eventually led to losses. The expansion has necessitated the need for more staff members who are now currently twenty six and this has increased the expenditure by the company. In addition, the increased workforce makes it hard for the company to monitor the staff and the business in general thereby leading to loss of some goods. The proprietor of asserts that he is afraid that the company staff may be stealing. Things are further complicated for Don Martin given that he has approximately 500 suppliers which means that he has to spend about seventy five percent of his time. The company buys directly from manufacturers in small quantities which mean that the company cannot advantage economies of scale (Grasby et al 380). The customers coming to Don Martin Limited are trying to cut down on expenses given that they are cash strapped. The services offered to customers no longer lead to higher customer satisfaction and most of them are ready to do without such services in order to save some money. For instance, previously whenever a customer came to the store of a sport’s equipment; there was a salesperson to help them but currently customer no longer seem to like this service. Despite the low reception of the company’s services by customers, Don Martin believes that such services have always attracted customers to the store. The company is incurring high expenses in maintaining these services where for instance the company has to pay $1,000 for gas not forgetting the pay to truck drivers (Grasby et al 381). Consumer Analysis Segment 1 Segment 2 Segment 3 Who Customers having low income Customers having cars External customers (Customers not living within the city) What These customers are cutting spending given that they low income. These customers require parking when doing their shopping These are customers who are not in close proximity to the business. When The company is losing these customers since the last expansion undertaken three years ago. Following the last expansion three years ago, Don Martin has a parking lot The company has been attracting this kind of customers since inception Where The company is facing competition for these customers from nearby stores. The parking lot for the Don Martin is ...Download file to see next pagesRead More
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