Assignment Assessment Report

Campus: MUMBAI Year/semester 2011

Level: PCLII MKT Assignment Type ASSIGNMENT B
Module Name: IMCEO Assessor’s Name RAKESH VANRSE
Student’s Name: PRATIK MEHTA Reqd Submission Date 28.02.2011
Pratik_59@hotmail.com/ Actual Submission 24.02.2011
e-mail id & Mob No
+919819932757 Date
Stream BUSINESS Submitted to : REENA RAGHAVAN

Certificate by the Student:

Plagiarism is a serious College offence.
I certify that this is my own work. I have referenced all relevant materials.
(Student’s Name/Signatures)

Expected Outcomes Assessment Criteria Grade based Feedback

on D,M,P,R
system
General Parameters
Clarity Clear understanding of
the concept
Analytical Thinking- Ability to analyze the
problem realistically
Research Done- Research carried out to
solve the problem
Formatting & Concise& clear
Presentation- thinking along with
presentation
Subject Specific Parameters
1.

2.

3.

Grades Grade Descriptors Achieved Yes/No (Y / N)

P A Pass grade is achieved by meeting all the requirements defined.
M Identify & apply strategies/techniques to find appropriate solutions
D Demonstrate convergent, lateral and creative thinking.

Assignment Grading Summary (To be filled by the Assessor)

OVERALL ASSESSMENT GRADE:
TUTOR’S COMMENTS ON
ASSIGNMENT:

SUGGESTED MAKE UP PLAN

(applicable in case the student is asked
to re-do the assignment)

REVISED ASSESSMENT GRADE

TUTOR’S COMMENT ON REVISED
WORK (IF ANY)
Date: Assessor’s Name / Signatures:
 Case Study
Waterbed World

Bernice Kepford prepared for an important staff meeting with her clients at Waterbed World,
knowing that the next year or two would be crucial in that company's life. Bernice's advertising
agency had long served Waterbed World in a fairly simple fashion, preparing print ads for trade
journal advertising campaigns. Now, however, the company needed a strong boost to sales.

Waterbed World began as a small "head shop" operation in the early 19705. At that time, the
owner sold posters, black lights, subversive literature, and drug paraphernalia. As a side product,
the local company (in Fort Myers, Florida) also carried water beds. At the time, the quality of the
product was low and it was not the store's main feature. Later, as waterbed quality improved, the
owner decided an upscale clientele would be more profitable. He relocated Waterbed World to a
freestanding store near a major mall. Salespeople began to wear dresses and suits, and the store
sold water beds along with quality furniture and other higher-markup items.

In the early 1980s, Waterbed World acquired a mattress manufacturer, and the seamless waterbed
mattress became the company's most visible product. Waterbed World expanded to sell its
mattresses and frames on a national level. Traveling sales reps visited waterbed stores throughout
the country and the firm grew quickly to a major scale. Three primary promotional tools were
used: (1) trade shows for furniture and waterbeds, (2) trade journal advertisements, and (3)
personal selling techniques of the traveling reps.

As the millennium ended, interest in waterbeds had begun to diminish. The beds had a loyal set of
consumers, but the increased quality of regular mattress and air mattresses provided substantial
competition. The owner of Waterbed World believed the company needed to move the product
into other, more mainstream, markets in order to survive. Specialty water bed stores were not the
answer.

The company asked Bernice to create a trade promotions campaign to go along with consumer
ads for Waterbed World's products. The goal was to expand the sales of mattresses and frames
into furniture stores and even into places such as Wal-Mart's Supercenters and Sam's Club outlets.
No distributors or wholesalers would be involved. Waterbed World wanted to sell directly to an
entirely new set of retailers.

Consumer ads would promote two features: (1) better sleep and (2) healthy rest. They would
portray other mattresses as less comfortable and harder on the joints and back as the person
sleeps. Ads also would emphasize product quality and customer support.

One of Bernice's primary concerns was how the company could convince various retailers that
water beds would bring in potential consumers and generate profits for the stores. She knew retail
space was limited, especially for such large items.

Questions:

Q1. What trade promotions tools should Bernice recommend? Which ones would not
work?

Q2. How can Waterbed World integrate this new emphasis on retail accounts with
consumer sales promotions and advertising?
Q3. What obstacles will Waterbed World encounter as the firm makes this move into new
markets?
HISTORY OF WATERBED WORLD

• Waterbed World began as a small "head shop" operation in the early 1970’s.

• The owner sold posters, black lights, subversive literature, and drug
paraphernalia.

• The local company in Fort Myers, Florida carried water beds as the side product.

• The quality of the product was low and it was not the store's main feature.

• As waterbed quality improved, the owner decided an upscale clientele would be

more profitable.

• He relocated Waterbed World to a freestanding store near a major mall.

• In the early 1980s, Waterbed World acquired a mattress manufacturer, and the
seamless waterbed mattress became the company's most visible product.

• Waterbed World expanded to sell its mattresses and frames on a national level.

• As the millennium ended, interest in waterbeds had begun to diminish.

• The beds had a loyal set of consumers, but the increased quality of regular
mattress and air mattresses provided substantial competition.

COMPANY’S GOAL

• To expand the sales of mattresses and frames into furniture stores and even
into places such as Wal-Mart's Supercenters and Sam's Club outlets.

• No distributors or wholesalers would be involved.

• To sell directly to an entirely new set of retailers.

Trade Promotion Tools used by Waterbed World

(1) Trade shows for furniture and waterbeds.

(2) Trade Journal Advertisements.

(3) Personal selling techniques of the traveling reps.

Consumer Promotion
 (1) Better sleep and (2) Healthy rest.

Problems concerns –

• How the company could convince various retailers that water beds would bring in
potential consumers and generate profits for the stores.

• Retail space was limited, especially for such large items.

Q1. What trade promotions tools should Bernice recommend? Which ones would
not work?

Trade promotional tools:

 Trade Allowances
 Trade contests
 Trade Incentives
 Training programs
 Vendor Support Programs
 Trade shows
 Specialty Advertising
 Point of Purchase Advertising

Bernice should recommend the trade promotion tools -

Trade Allowances:

• Off –Invoice Allowance - A per case rebate paid to retailers for an order.

• Drop- ship Allowance – Money paid to retailers who bypass wholesalers or

brokers for preplanned orders.

Trade shows

• Gets better opportunity to showcase the product in both “B to B” segment and

“B to C” segment.

• Chance to make new contacts and sale of products and get the orders.

• Chance to show new range of waterbeds available.

Trade Incentives

• If retailers make a sale of certain units in volume they can get into qualify for
trade incentives in form of extra money, free gifts, tour package, etc.

Trade Promotion tools would not work: –

• Trade Journal Advertising

 Reason - It is the old tradition of trade promotion tool. In current scenario the new
tactics are needed to impress the trading fraternity.
Q2. How can Waterbed World integrate this new emphasis on retail accounts with
consumer sales promotions and advertising?

 A promotion is made to encourage the sales process in the store.

 Advertising is the delivery of the message to the consumers making them aware
that a promotion even exists.

The messages carried to integrate the consumer sales promotion and advertising-

Advertising-

• Newspapers and magazines.

• On radio and television broadcasts.
• Circular of all kinds, (whether distributed by mail, by person, thorough
tradesmen)
• Window display and counter – display materials and efforts.
• Store signs, motion pictures used for advertising.
• Novelties bearing advertising messages and Signature of the advertiser.
 Advertising is considered multi dimensional.
 It helps number of marketing activities.
 It is a technique of sales promotion.
 Sales volume is increased by advertising.
 It helps and supports the salesman in selling the products.
 Consumer knowledge about the product is increased by advertising.
 It helps the consumer to save their time in purchases.

Sales Promotion –

Purpose –

 From the marketer’s perspective, sales promotion serves three essential roles, it
informs, persuades and reminds prospective and current customers and other
selected audiences about a company and its products.

Objectives-

 To introduce new products.

 To attract new customers.
 To induce present customers to buy more.
 To help firm remain competitive.
 To increase the inventories of business buyers.

Conclusion: A firm as its basic of fundamental tool production uses it. It normally has long-
term objectives like building brand awareness or building consumer loyalty or repositioning
a brand. It helps sales by adding some durable and long-term value to the product.
Advertising is mostly an indirect way for consumer to buy a product. The best way to
increase sales is through the Sales promotion rather than advertising. It is because in
advertising a product there is many criteria which are to be, fulfilled, which is not an easy
task. Thus it is easier to increase the sales through sales promotion.
Q3. What obstacles will Waterbed World encounter as the firm makes this
move into new markets?

Obstacles would be encounter by waterbed World as it makes this move into new
markets –

 Potential retailers find difficult to sell in off season.

 Potential buyers hard to get
 Competitors edge
 Consumers need and requirements not fulfilled.
 After sales service not provided properly.
 New alternate products compete, such as air mattress which could be used in
travelling as well.
 Change of Government Policy.
 Political aspect such as change in government.
 Economic aspect such as inflation.
 Environmental factors.
 Society Factors.

These are few of the obstacles which could be encountered while entering new
horizons of markets.