Randy Sneaker Company is a maker of mid-priced sneakers. They have recently made a new running sneaker
Question:
Randy Sneaker Company is a maker of mid-priced sneakers. They have recently made a new running sneaker but it has not met its sales expectations. As a result, the company president has asked you to review Randy Company 's value strategy for this product
Currently there are 8 sneakers, including Randy, in the market, ranging in price from a high of $250 for Brand A and Brand B, and down to a low of $150 for Brand G and $140 for Brand H. Randy is priced toward the high end of the mid-priced at $190. Brand C is priced slightly more at $200 and Brands E and F and priced slightly lower at $185 and $175 respectively. Consumers generally view quality and price as equally important in this market when making a purchase.
The most recent market survey Randy conducted when it was designing their running sneakers was that performance, comfort and durability were more important features for consumers, with performance at 30%, comfort and 25%, durability at 20%, and style and weight were less important, with style at 15% and weight at 10%.
Randy's market survey also indicated how Randy's new sneaker performed on these features compared to the other sneakers in the market.
The two more expensive shoes, Brand A and Brand B were generally rated well on all features. Brand A was a little better with ratings of 10, 9 and 9 on performance, comfort and durability. Brand B was rated 1 point lower on all of these. The opposite was true for style and weight, with Brand B getting ratings of 8 and 7 respectively. Brand A was rated 1 point lower on these.
At the other end of the price scale, Brands G and H generally did well on style and weight with both getting ratings of 9 and 8 respectively. Brand G was a little better on performance and durability getting 5 and 4 which was 1 more than Brand H which got ratings of4 and 3. But Brand H was a little more comfortable getting a
rating of 9 compared to 8 for Brand G
The sneakers in the mid-price range were a bit more varied. Brand C got ratings of 8 for performance, comfort and durability but 7s for style and weight. Brand E got an 8 for performance, 7 for comfort, 6 for durability, 6 for style and 7 for weight. Brand F got a 7 for performance, 6 for comfort, 7 for durability, 7 for style and 6 for weight.
Randy's brand seemed to fit in here with ratings of 6 for performance, 9 for comfort, 6 for durability, 9 for style and 10 for weight.
Using all of this information, you have been asked to evaluate whether Rand'? 'g genera! value competitive strategy is working for this product, and what if anything Randy would need to change.
NOTE:
• Plagiarized answers will receive a grade of zero!
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr