THE COOP Essay Example for Free

THE COOP Essay1. What is the size of the loss at the Coop? What could postulate been attributed to this loss? (Be unadulterated in your analysis) issue In 1994, The Coops total sales were $775,000, and there were 76 stores in total. So the Coop would reach the sales $58,900,000(76 x $775,000 =$58,900,000). If Coop were able to maintain the 10% growth per year. In 1995 Coops sales should be $64,790,000 ($58,900,000 x (1 +10%) =$64,790,000). However, due to the 6% average decline in sales for 20 stores, the real sales in 1995 is $62,310,000 (20 x $775,000 x (1-6%) + 56 x $775,000 x (1+10%) =,310,000). So in total Coop lost $2,480,000 ($64,790,000 $62,310,000 = $2,480,000) in 1995. There be many factors may result in Coops sales decline. Firstly, Coop may fail to meet the consumer needs. The Chicken Coop founded in 1974, and the specializing in chicken never changed. However the consumer taste and habit have changed today. Also, the consumer targeting between the age of 18 a nd 45 is too board. Secondly, the manger does not have depth knowledge about the market. Wallace made business plan rely on his hotel business experience. Thirdly, the flake of new employee increased because of the business expanding. However, there are many new employee are less trained, so the quality of the service decreased. Also, the Coop sales did not increase, the cost of the new employee increased a lot. Lastly, the competitors are improving. For example the KFC complemented its advertising with special promotions and provide a variety products service. All the four factors may have been attributed to Coops sales loss.2. Analyze the dynamics between McMichael and Wallace. Are they looking in the same direction? Why, why not? Answer McMichael and Wallace are two of the top managers. All of them are paid close attention to customers. They realized the lack of customer sight and market insight, but they have contrasting views about the market research and the sales slump. McM ichael worked for Coop science 1982, she always stand fors the quality of the food is the core competence of Coop. As same as Buckmeister, she believes the axiom We are chicken. So she thinks the better food quality and service could help Coop solve the sales problem. For Wallace, he is relatively new to the participation and has extensive experience in the hotel business. Wallace cogitate on renew the brand image to meet current consumer needs. He provided new menu to puff to a greater extent consumers. Wallace thinks Coop need new market activitiesimprove competitive advantages. Both McMichael and Wallace are thinking from their narrow functional area.3. Evaluate each of the initiatives proposed by Buckmeister, Wallace, and McMichael (pros and cons). Answer McMichael suggested Quality Inspection Program and The taste. The Quality Inspection Program will help Coop improve the quality of the food, service and facilities, these all important factors to attract consumers and incr ease sales. However, these platform only provide current information about Coop stores, it does not provide information about consumer taste and competitor situations. The taste grogram provided the information of competitors, it help Coop to make positive change to reflect competitive environment. However the information suffered from loyal customer may not represent all the consumer thought. And it has the cost of the program is high. Wallace suggested Brand Image Monitoring Surveys and The Customer Experience cultivation. The Brand Image Monitoring Surveys will gather three-figure data on the Coops brand image vis--vis its competitors.A market research supplier would interview customers and potential customer by telephone. This program may help Coop gather a lot of representative information. However it cost too much. And personally I do not same answer the telephone survey, especially pick up a call from restaurant which I have never been. The Customer Experience Study pro vided consumer virtually benefit if they cooperate with Coops survey, I think it will help for Coops brand image and attract loyal consumer. However, I do not think this is the best way to gather information with so many costs. Coop should consider is that worth to cost $45,600 and even more. Buckmeisters Customer Feedback Cards is a direct and easy way to get consumer feedback, and it cost less and response well. However, it will make employees and mangers work more. And the flexibility is poor, withal this method only gather information from current Coop consumer.4. Which one(s) would you support and why?Answer I support Wallaces suggestion. McMichaels suggestion focus on the customer service and food quality, I do not think this the main factors related to Coops sales decrease. I think Coop should focus on consumer information research. Coop is old company failed to meet current consumer needs. Wallaces suggestion will help Coop gather large information about consumer thinking, and then they can make changes to reflect the marketdevelopment.5. What would be the total cost of your selected market research and is it well reassert? Answer Brand Image Monitoring Surveys was the most expensive option that The Coop was considering. Proposals from market research suppliers ranged from $20,000 to $50,000, and it may need 900 interviews. The Customer Experience Study would cost $45,000 and even more. I think the cost is not justified, because not very consumer will cooperate with the survey. I do not think all telephone survey will be successes answered, but Coop has to pay it.