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Question 1 - How do you address the problem at hand Our group identified the main areas of concern for Comp-Data as such DISTRIBUTION CONSIDERATION OF COMPETITORS STRATEGIES PROMOTION AT THE POINT OF SALE RELATIONSHIPS BETWEEN VENDOR AND DEALER AND DEALER AND CONSUMER HIGH INVENTORY CARRYING COSTS MARKET EXPOSURE FORECASTING CONSUMER NEEDS AND WANTS PRICE After accurate analysis of all of these concerns it is our feeling that we can establish the best course of action for Comp-Data to utilize in the distribution of their new microcomputers Question 2 - Whose position do you support Why We identified mostly with the complications raised by Joe DiMaio in that our marketing strategy has to place us over and above our competitors in our customers view That being said it would be difficult to achieve such a status if the leading retailers are using this same small retailer approach This is a new product for us the inventory carrying costs associated with it are high and as such we definitely need to focus our product into a retailer that can give us the exposure we need in order to compete with the leading names We did not necessarily agree with Ed McHughs belief in relation to consumer confidence being linked to the smaller electronic stores mainly because todays consumers are willing to purchase computers virtually anywhere as long as the price and warranties meet their expectations We acknowledge the need for consumer confidence yet believe we will be able to achieve it using a larger retailer Question 3 - What are your recommendations Why do you feel they will be more successful We believe that a large retail distribution will be the most efficient and effective in moving our computers from warehousing to point of sale At a larger retailer the product is going to get more exposure based on the fact that these larger stores generally receive the most traffic in a shopping
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