The paper “ Negotiation with the Retailer’ s Representative - Quantity of Supplies, Product Promotion, Advertisement in Media and at the Store” is a spectacular version of a case study on marketing. Keeping in mind the importance of market diversity and variety, a decision was reached to reduce the current supply volume of shirts from Sydney shirts. The current annual volume of supply is to be reduced by 2.5%. the decreased quantity is to be replaced by the supply of a new brand shirt but with the same Sydney shirts label.
The decision was reached after considering the outcome of internal market research which established that it is important to try and offer a wider range of commodities since it attracts more customers. Apart from considering the importance of market diversity, the introduction of the new shirt brand from Stanley in the market will give the customers a wide range of products to choose from while in the stores. This will greatly improve the number of sales since the customers will have the agility to try the new brand and those who value the current brand will have it at their disposal.
Greenberg (2004). The introduction of a new commodity will improve the revenue of the retail both in the short run and in the long run. This is because to have a taste of a new commodity the customers will tend to acquire it. This will, in turn, increase the number of sales. All this is done keeping in mind that the current volume of shirts being supplied would be back to its optimal level. This will have a positive effect on the overall profits expected to the retail stores this is because of the following The introduction of a new commodity which will increase the sales Maintaining the current volume of shirts with Sydney which contributes to about 15% of the annual sales The expected increase in sales The attraction of new customers due to the introduction of new commodities Sydney agreed that orders will be filled within the proposed seven days instead of 10 days the main reason for this is to ensure that the retail meets the required time after a customer makes a demand.
However Sydney rejected the fact that they need to increase the annual special price promotion to four they argued that this may increase the overall annual cost of sales and the costs may not be recovered, Sydney also argue that this may temper with some of the fixed components of the annual budget. Sydney accepted the other proposals put on the table i. e. they agreed to increase the cash discount period to fifteen days instead of the normal 10 days. This move was aimed at making sure we increase our profit margin.
Last but not least Sydney only agreed to give a 5% specially designed package since this was the best negotiable offer put on the table we agreed to pay for the remaining 5% of the remaining special Package. Other factors negotiated included Product promotion Media advertisementA decision was reached to see to it the Sydney shirts are advertised at least twice a month by the store. This new cooperative advertising scheme will see to it that the costs are shared equally between the two parties. The acceptance of this new deal with Sydney will see that the cost of sales raises by two percent, this will intern increase the organization's cost of sells.
However, the advertising scheme will have long term positive effects on both organizations. This is because the promotion of the products of Sydney shirts by our store will create consumer awareness of the products. This will greatly improve the number of sales of Sydney shirts by the store. This will see to it that there is an increase volume order from Sydney which may attract ‘ lovely’ discounts from the supplier.