BU362 Study Guide - Final Guide: Power Tool
Document Summary
Chainsaws responsible for 38% of company profits. Excelsior accounts for 59% of gordon chainsaw sales (15 yrs running) Gordon power tools sells 59% of product through excelsior. Implementing a marketing campaign would affect excelsior profit placing a strain on a critical relationship between to two firms. Kevin is basing his decision on a survey of power tools over 100$ Chainsaws retail for 500$, there exists a large gap between a table saw and a 500$ chainsaw. Consumers preferences may be different for a power tool over 300$ Logger market is cyclical, homeowner is growth. The ads in magazines should be targeted towards capturing a larger share of a growing market (homeowner) logger is already saturated. Since logger is also cyclical, ads should be timed to increase sales during slow periods. Excelsior relationship may be put in jeopardy. Find out more about consumer demands for chainsaws in particular.
