I assume JAC has advantage due to fame and motivating demeanor? Trying to figure

Question

I assume JAC has advantage due to fame and motivating demeanor? Trying to figure out a smart solution to halt in sales of Power Punch. Any help is greatly appreciated.

Kemp Corporation makes a protein supplement called Power PunchTM. Its principal competitor for Power Punch is the protein supplement Superior Strength"s, made by Jim Adams Company (JAC). Mr. Adams, a world-renowned weight-lifting champion, founded JAC. The primary market for both products is athletes. Kemp sells Power Punch to wellness stores, which sell it, along with other supplements and health foods, to the public. In contrast, Superior Strength is advertised in sports magazines and sold through orders generated by the ads. Mr. Adams' fame is an essential factor in his company's advertising program. He is a dynamic character whose personality motivates people to strive for superior achievement. His demeanor not only stimulates sales but also provides a strong inspirational force for company employees. He is a kind, understanding individual with high expectations who is fond of saying that "mistakes are just opportunities for improvement." Mr. Adams is a strong believer in total quality management. Mr. Quayle, president of Kemp Corporation, is a stern disciplinarian Page 399 who believes in teamwork. He takes pride in his company's standard costing system. Managers work as a team to establish standards and then are held

Explanation / Answer

JAC is following a different distrubution pattern compared to Kemp. Kemp sells to wellness stores who add their margin and then sell it to the public.

Kemp should try to adopt an ecommerce model: try to sell via online portal or through its website/app, it can cut down the distribution cost drastically. Use alternate source of marketing (impactful yet cheap) like social media marketing

At the same time to stay in the market they should adopt cost leadership strategy, since the rival brand is so strong. Rival brand would be incurring similar input cost, but they do not incur heavy marketing or distribution cost. If Kemp can reduce prices and achieve volumes it can gain market share and achieve profitability as well

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