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Company XYZ has been struggling financially for many years. The demographic focu

ID: 332425 • Letter: C

Question

Company XYZ has been struggling financially for many years. The demographic focus is on the ages 8-17. The company has not made a profit in almost 5 years and needs to revive their marketing strategy. Most sales come from in store purchases (80%), and their online stores are (20%). In their industry, there are less specialized stores that offer similar products as XYZ.

* XYZ has about 800 domestic stores and 800 international.
* Financial information: see attached
* A major competitor uses an e-commerce platform to sell products whereas Company ABC uses more physical locations so people can view the items before purchase.

Create a Marketing Strategy to save Company XYZ. How can the team create the most value for the smallest amount of money?

Possible ideas include but are not limited to:
- SWOT Analysis
- Changes in Organizational Structure
- Marketing Plan (how to keep current customer base, how to get new customers)
- Come up with an advertising plan and include price
- Distribution Plan

January 28, January 30 January 31 February1 February 2 ftn millions, except number of stores) Statement of Operations Data 2017 2016 2015 2014 2013 Net sales 11,540 11,802 12,361 12,543 S 13,543 Net (loss) earnings (2) Net (loss) earnings attributable t $ Balance Sheet Data (end of period) Working capital Property and equipment, net $ Total assets (3) Total debt (3)(4) Total (deficit) equity Store Count Data (end of period) 39 (29) $ (124) (288) (1,036) $ 38 (36) S (130) S (292) 1,039) $ 651 S 490 $ 355 $ 704 S 1,171 3,067 S 3,163 $ 3,335$ 3,638 S 3,891 6,908 6,910 $ 7,017 $ 7,447 $ 8,842 4,761 $ 4,685 S 4,690 S 4,917 $ 5,264 $ (1,292) $ (1,265) $(1,095) $ (656) $ 485 Domestic 879 866 872 873 875 International Operated 812 756 730 704 665 Total Operated 1,691 1,622 1,602 1,577 1,540 International Licensed 257 252 212 185 163 Non-GAAP Financial Measure Adjusted EBITDA (5) 792 $ 800 $ 642 $ 583 $ 1,019

Explanation / Answer

XYZ company needs to follow an Omni-channel Marketing and Distribution- Delivery strategy, that is, customers can view/ buy/ pay/ pick from both physical stores and online/ website buying by getting similar buying experience, if XYZ wants to beat it’s competitors in both online and offline segment.

Since its online sales is only 20% of its revenue, hence, it needs to improve its Weakness in online selling platform as:

Develop an Operational Plan to Improve the Customer Service processes by following ways:

For boosting Physical Store sales, Marketing and Operational Plan should on following points:

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