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Rotman Commerce (1,103)
RSM251H1 (8)
Lecture

RSM251 – Full Course Lecture Notes.docx

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Department
Rotman Commerce
Course
RSM251H1
Professor
Claire I.Tsai
Semester
Fall

Description
Lecture 1 - MicroFridge MicroFridge Case  MiniFridge and microwave in one  Market to university dorms and motels  Cost of this product is $263  How do you define this business… must consider who competitors will be when you position your product.  Dorm Market: o Who are the customers? Universities for dorm rooms, parents deciding whether or not to purchase for child. End users are students. o 2% of students surveyed would like to have this in their dorm o Product adds convenience. o Product does not solve any existing problems for students (if a student wants to cook, they will do it despite the rules) o Product DOES solve existing problem for administration (student safety) o Admin is hesitant because they will lose money on meal plans, is the product reliable, budget  Possible markets: motels, RV’s/mobile homes  Characteristics: small office, small space, short-term tenants, end user and consumer are different Motel Market: o Customers are likely on a budget o Convince Motels that they can make a profit from buying product Lecture 2 – Calyx & Corolla  Flowers go straight from grower to customer  Size of retail flower industry is $9 billion  FTD is their major competitor in the Gift segment  Size of gift segment is $3.5 billion, size of event segment is $5.5 billion  Each market has a substantial market opportunity, meaning Calyx & Corolla could be successful if entering these markets  Four potential segments that Calyx & Corolla could enter: 1. Gift 2. Personal Use 3. Events 4. Commercial  Strengths: o Longevity/freshness o Delivery on Saturday o Larger selection o Consultation o Management Talent  Weaknesses: o Heavy reliance on single supplier (FedEx) o Flowers not blossomed when received o Cold weather  They should target personal use because many of their strengths are attributes that coincide with the wants/needs of this market  Target existing customers = get them to buy more/become repeat customers  Cost of sending 100 catalogues to new customer is $40  Average sale per order is $45  Make a profit of $22. They need at least two (1.8) catalogue orders to break even with the cost of sending out the catalogue  Cost of sending 100 catalogues to existing customers is $32  Profit of $22. So they need about 1.5 orders to cover the cost.  A way to sustain current users is to keep them happy, use promotional strategies, loyalty program Relevant Topics  Developing strategies for Growth (graph) – Calyx and Corolla used existing products with existing markets and new markets  Sedment by usage/occasion  Targeting o Customer acquisition and retention cost o Profit/loss from new and old customers  Target for growth o 3C and prospecting anal
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