Shoes for Moos, Inc. Strengths Research Proposal

Indeed, most likely this is just considered a simple product on the market and any company can take over the idea, produce at higher quality or at lower prices and acquire some of the market share.

2. Risks related to cows. Any epidemics for cows or related actions, including economic actions, such as a decision for the government to purchase meat from other countries, because it would be cheaper, would affect the company.

Alternatives

1. Target all Canadian dairy farmers with direct mail.

Several pros for this type of distribution alternative include the fact that it is relatively cheap compared to other options, that it helps give a personal touch to the relationship with the clients and that the company is able to coordinate activities such as marketing and maintain the company ideas.

A disadvantage of such an alternative is that this is an impersonal sale and the potential client may not understand what he is really buying, making the product he receives different that what he thought he would be receiving.

2. Sell to Veterinarians through distributors if available.

The main advantage of such a solution is that veterinarians are the clients most likely to understand the benefits of such a service.

The cons of such as solution are the fact that it limits the clients to veterinarians and that the contact with the actual users is too limited, through an excessive extension of the distribution channel.

3. Use distributors that serve farm supply dealers and sell directly to the dealers and price the shoe at $80.

The pros of such a solution include the fact that the company is able to make the biggest margin of all alternative solutions (the company retains only the production costs), but there is also the disadvantage of having to share part of that margin with the dealers.At the same time, the product market would be geographical more spread out than the other solutions, the volume of sales and client recognition will increase. However, the fact that the profit will have to be shared with the dealer may be a deterrent, as the company is assuming all the risks.

Best alternative

The best alternative is to sell directly to the dealers, especially during the incipient phases of development at the company. The reason for this is that, at the beginning, the company's product is not that well-know across the country. It is also an innovative product, not something that the market has seen until this point. Being able to use a network of dealers that have a widespread network will increase the chances of fast brand recognition for the company. At the same time, the company will be able to sell at its best price of $80. Given the fact that the cost of production of a shoe will be $19 and there are not so many other additional costs, the profit margin is large enough for the company to afford even the 40% share of the dealers.

The analysis used in making this decision is a market-based analysis, taking into….....