Final report

Directed by:Doctor TRAPPEY CHARLES V.

9862540 林婉瑜9762503 張明懿9862509 郭芬芳981027 洪義超9576502 沈育德

Amber Inn &suites ,Inc.

SummaryTime:Company profile:

Amber Inn Suites, Inc. is positioned as limited service hotel between economy hotels and full service hotels in US.

And the service mission is to provide principally business travelers with clean and comfortable quest accommodations in convenient locations at reasonable price.

Late in the afternoon on April 4, 2005

Organization

Fiscal 2005 was projected to be the fifth consecutive unprofitable year for Amber Inn & Suites, Inc. Ms. Elizabeth, Senior Vice-President of Sales and Marketing, needed to prepare the sales and marketing proposal of fiscal 2006 to achieve profitability within two years , and three issues required immediate attention when preparing the April 11 presentation.

The allocation of media advertising dollars between the pleasure/vacation travelers and business travelers market.The “frontier strategy” initiated in fiscal 2005

Promotions, recommended by Grace, “weekend specials” as a replacement for the “free-night stay” promotion used in fiscal 2005.

How to approach goal for the company was to achieve profitability within two years. His overall corporate objective was a 7 percent annual increase in EBITDA over the next two fiscal years.

QuestionKelly Eliza

beth

Answer

Additional service

Discount promotion for companies

by:

Change the mix of advertising expenditure

Focus on business travelers

Explanation

Purpose of trip (percentages exceed 100% due to multiple answer)

Personal 9.5%

Business 79.8%

Pleasure/ Vacation 14.2%

Convention 3.5%

Business trip paid for by the company 65.7%

Business trip paid for by self

16.3%

Pleasure trip paid for by self 18%

Fig 1Fig 2 Type of trip and payment on

most recent visit

So we plan to increase the business traveler occupancy and provide some recommendations for this purpose.

Recommendation

Additional service

Discount promotion for companies

RecommendationChange the mix of advertising expenditure

Table 2 Amber Inn & Suites, Inc. Advertising Media Budget Plan

EBITDA Results : Fiscal 2003 - 2006

Teaching NoteSetting reasonable communication objects。 Primary demand。 Selective demand。 Consistent。 Quantifiable。 Attainable

Marketing Web Sites and Integrated Marketing Communications。 Purpose of Marketing Web Sites。 Leveraging Advertising and Personal Selling with Promotional Web Sites

Teaching NoteWhat’s the purpose of marketing communication?Communication is necessary to inform buyer of the following.。 The availability of an offering 。 The unique benefits of the offering。 The where and how of obtaining and using the offeringDeveloping of an integrated marketing communication mix. 。 The information requirements of potential buyers.。 The nature of the offering.

GloFish,LCC

SummaryTime:Company profile:

January 5, 2005

Glofish, LLC is a company which product is fluorescent zebra fish in US, devoted to promote and popularize the fluorescentzebra fish to common consumers. And has noted as “The GlofishTM fluorescent fish provide marine colors at fresh water prices”

Organization

Blake recommendation would have to consistent with the resources that Glofish presently have available as well as fit other elements of the company’s marketing strategy.

Blake listed four distribution alternatives to present in the next day’s meeting in Board of Directors—independent pet stores, chain stores, kiosks and internet.

Distribution was the key to market success.

GoFish

Question The distribution was the key to market success. The fluorescent zebra fish only sold in few retailers, and Glofish LLC had to expand their market channel let consumers could easier to buy. Alan Blake listed four distribution alternatives, independent pet stores, chain store, kiosks, and Internet. We have to select the suitable channel to sell the fluorescent fish.

Except the original channel of pet store, we also add two channels, chain stores and internet, to sale the fluorescent fish.

Answer

ExplanationTable 1 SWOT Analysis

Independent Pet Stores Chains Stores Kiosks Internet

Opportunities Fish lovers can get the news offluorescent fish and may arise theinteresting by AD in fish area.

If we can get the chance to open thechain stores channel, we can get in thelargest channel of freshwater fish.

1.offer Glofish-branded tanks andsuppliers, fish food, and waterconditioner2. Unexpected purchasing of the windowshopping in kiosks.

1.more and more people shopping on theinternet, it provides no limitation for thelocation and time.2. new channel and broaden the salesscale.

ThreatsTo has many kinds of choices,customers may attract by any kind of newpets in the market.

Glofish will be suffered by the economicpurchasing scale of chain stores. Thestrong price negotiation ability will pressthe earning space of Glofish.

Similar products sold in kiosks likecolorful “fighting” fish.

1. per purchasing should up to $40 that ishigher than the pet store, chain stores of$27; it may reduce the willing ofpurchasing.2. not provide face to face service

Risk Low Low High Middle

1. Customers can not differ if the fish iswhat they see in the Web.2. As the freightage cost, if every dealcan not achieve $40 per sale, the internetbusiness will not get the profit.

1. Sold the fish in competitive price toattract more price-sensitive customers.2. Near the downtown and crowdedcircle.3. Unexpected purchasing of the windowshopping in the chain stores.

1. The cost of lease space is too costly. 2. Added facilities, manpower andmiscellaneous will be the revenue burden. 3. Shopping mall can gather morecrowded on the weekend, but few in theweek days.

1. It is cheap to set up the internet web.2.We can downsize the inventory cost, aswarehouse and counter’s cost.3.We can put the other category fish astraditional freshwater fish for customersto choose.

Strengths

1.offer varied pets and pet-relatedproducts.2.The revenue raise 7% of pet storeswholesales and it will also influent thesales of fluorescent fish.

Shopping Mall kiosks have enjoyedexplosive growth, both in terms of numberand revenue.

Weaknesses

1. The price of fluorescent fish is 5 timesthan traditional zebra fish.2. Customers will get more expensiveprice for the same products compare toother channels.

1. not including in this channel yet.2cannot provide sufficient face to faceservice.

AssumptionFish ASP in dollar Traditonal Fluorescentwholesaler 0.050 0.300retailer 0.250 1.500customer 1.000 5.000

Glofish market share in 2004-Estimated Unit：USD DollarGlofish Target 4,000,000$ Glofish ASP to customer 5.00$ QTY/Per Fish 800,000market share by Q'TY 0.4000% =800,000/200,000,000

Customer Market Data Unit：USD Dollar

Category QTYASP by Data'sAssumption

Sales Amount

FISH 200,000,000 1 200,000,000Related Products 38,000,000 13 494,000,000

14.0$ 694,000,000Customer Market 700,000,000

Table 2 Forecast Assumption Of Customer Market

Table 3 Forecast Assumption Of ASP

Table 4 Planned Forecast in 2005

Forecast in 2005 Internet-GlofishIndependentpet

Retailer chainInternet-Traditonal

Mall kiosks TTL

Glofish ASP in dollar 5.00 1.50 1.30 1.00 5.00Revenue Growth 1.100 1.100 1.100 1.100market share by category 20% 41% 30% 10.00%

Revenue $ 880,000 550,000 343,200 704,000 440,000 2,917,200

QTY/Per Fish 176,000 366,667 264,000 704,000 88,000 1,598,667

COSTVariable-UC*QTY(@0.2)-Fluorescent

178,933

Royalty 354,112Fixed Cost 600,000Internet setup cost 20,000Internet maintaineence cost-LaborHour

50,000

Mall kiosks cost 1,046,000Inventory Cost 80,000Delivery Cost 291,720Other Cost-Traditonalfish_purchasing

176,000

COST TTL 2,796,765

Net Income 120,435

Net Margin % LOW 4.13%

Forecast in 2005 Internet-GlofishIndependentpet

Retailer chainInternet-Traditonal

Mall kiosks TTL

Glofish ASP in dollar 5.00 1.50 1.30 1.00 5.00Revenue Growth 1.100 1.100 1.100 1.100market share by category 20% 41% 30% 10.00%

Revenue $ 880,000 550,000 343,200 704,000 440,000 2,917,200

QTY/Per Fish 176,000 366,667 264,000 704,000 88,000 1,598,667

COSTVariable-UC*QTY(@0.2)-Fluorescent

178,933

Royalty 354,112Fixed Cost 600,000Internet setup cost 20,000Internet maintaineence cost-LaborHour

50,000

Mall kiosks cost 1,046,000Inventory Cost 80,000Delivery Cost 291,720Other Cost-Traditonalfish_purchasing

176,000

COST TTL 2,796,765

Net Income 120,435

Net Margin % LOW 4.13%

too low!!!

Forecast in 2005 Internet-GlofishIndependentpet

Retailer chainInternet-Traditonal

Mall kiosks TTL

Glofish ASP in dollar 5.00 1.50 1.30 1.00 5.00Revenue Growth 1.100 1.100 1.100 1.100market share by category 20% 41% 30% 10.00%

Revenue $ 880,000 550,000 343,200 704,000 440,000 2,917,200

QTY/Per Fish 176,000 366,667 264,000 704,000 88,000 1,598,667

COSTVariable-UC*QTY(@0.2)-Fluorescent

178,933

Royalty 354,112Fixed Cost 600,000Internet setup cost 20,000Internet maintaineence cost-LaborHour

50,000

Mall kiosks cost 1,046,000Inventory Cost 80,000Delivery Cost 291,720Other Cost-Traditonalfish_purchasing

176,000

COST TTL 2,796,765

Net Income 120,435

Net Margin % LOW 4.13%

Table 5 Revised Planned Forecast in 2005Pullback

Forecast in 2005 Internet-GlofishIndependentpet Store

Retailer chainInternet-Traditonal

Mall kiosks TTL

Glofish ASP in dollar 5.00 1.50 1.30 1.00 5.00Revenue Growth 1.100 1.100 1.100 1.100market share by category 20% 45% 30%

Revenue $ 880,000 550,000 343,200 704,000 0 2,477,200

QTY 176,000 366,667 264,000 704,000 0 1,510,667

COST

Variable-UC*QTY(@0.2)-Fluorescent 161,333

Royalty 283,712Fixed Cost 600,000Internet setup cost 20,000

Internet maintaineence cost-LaborHour

50,000

Mall kiosks cost

Inventory Cost 80,000

Delivery Cost 247,720

Other Cost-Traditonalfish_purchasing

176,000

COST TTL 1,618,765

Net Income 858,435

Net Margin % 34.65%

Pullback

Forecast in 2005 Internet-GlofishIndependentpet Store

Retailer chainInternet-Traditonal

Mall kiosks TTL

Glofish ASP in dollar 5.00 1.50 1.30 1.00 5.00Revenue Growth 1.100 1.100 1.100 1.100market share by category 20% 45% 30%

Revenue $ 880,000 550,000 343,200 704,000 0 2,477,200

QTY 176,000 366,667 264,000 704,000 0 1,510,667

COST

Variable-UC*QTY(@0.2)-Fluorescent 161,333

Royalty 283,712Fixed Cost 600,000Internet setup cost 20,000

Internet maintaineence cost-LaborHour

50,000

Mall kiosks cost

Inventory Cost 80,000

Delivery Cost 247,720

Other Cost-Traditonalfish_purchasing

176,000

COST TTL 1,618,765

Net Income 858,435

Net Margin % 34.65%

Pullback

Forecast in 2005 Internet-GlofishIndependentpet Store

Retailer chainInternet-Traditonal

Mall kiosks TTL

Glofish ASP in dollar 5.00 1.50 1.30 1.00 5.00Revenue Growth 1.100 1.100 1.100 1.100market share by category 20% 45% 30%

Revenue $ 880,000 550,000 343,200 704,000 0 2,477,200

QTY 176,000 366,667 264,000 704,000 0 1,510,667

COST

Variable-UC*QTY(@0.2)-Fluorescent 161,333

Royalty 283,712Fixed Cost 600,000Internet setup cost 20,000

Internet maintaineence cost-LaborHour

50,000

Mall kiosks cost

Inventory Cost 80,000

Delivery Cost 247,720

Other Cost-Traditonalfish_purchasing

176,000

COST TTL 1,618,765

Net Income 858,435

Net Margin % 34.65%

Pull back the shopping mall kiosks channel.

great !!!

How to leverage the resource allocation of multiple channels?- Minimize the conflict between the agents and associate the argument among pricing strategy.

How to attract consumer to pay attention and buy?-Variety: Stimulate consumer’s purchasing willing. -Advertisement: Right segmentation target.-Service: Face to face service can provide explanation and feeding attentions for customer to raise their fish smoothly and can exchange the feeding experiences.

Teaching Note

How would you manage the company’s future growth?-Define the core competitive advantage to ensure that all future activities will focus on how to change the mindset of possession for fluorescent zebra fish.

What solutions to the distribution problems are being pursued by GloFish LLC?- To expand the channel to make consumer easier to get the product. To see, then have chance to buy.- Convenience- To apply the change of the consumer purchasing behavior.

Teaching Note

Thankyou