Group 2

Wells

noticed that cows would get foot infections, which hindered their productivity Wells designed rubber shoes to combat this Since it is a new innovation on the market He doesnt know how to:
Distribute Market

 Goal

: To make a profit Needs to:

Analyze competition Determine price Target market How to promote Distribution plan

 Product

new to the market Kaufman known for its excellent quality production capabilities High quality, fabric backed shoes designed specifically for cows Product durable and reusable Seasonal Business, only spring/winter months

 Competitor

Sells Hoof shoe 3 sizes Either Flat standard or could be adjusted

Advertised using Direct mail

$21.80 Moisture can get in and worsen infection

 Competitor

Hydrotherapy Boots Completed with hoses, suspenders and

compressor Not for hoof infection Horse more so than cows Intended for Clinical use $400

 Dairy

cow farmers

Although more beef than dairy, beef cows when

sick are just killed. Dairy cows more valuable in long term Low population of research and show cow compared to dairy cows

 Direct

mail through Foundations of the Mentally Handicapped (Ontario and Quebec)

Magazines ads $3795 Trade shows $8235 per year

Dealers

at stores - 40% mark up

Flyers $6744 Magazines ads - $3795

Sell

or license idea to Kaufman Footwear

 Alternative

1 - $64.99 - $79.99 would be way too high 2 - $44.99

Alternative

- Dealers wants a 40% mark-up - If it cost too high, it would become very unrealistic when the dealers are selling it

 Alternative

Alternative 2
Decide Not to hire salesman Assume all 500 dealers accept partnership Minimum 15 pairs of shoes Breakeven quantity = 1108 units

Unit contribution =

43.81 Break-Even Quantity = 692units

Number of Sales ($) pairs 1 5 10 1460800.6 4 7304003.2 14608006. 0 Profit ($) 1430520.6 4 7273723.2 14577726. 4

 Alternative Most

1>Alternative 2 or 3

profit Most manageable Gets to go to trade shows to scope competition.