Omega Paw

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Analysis indicated Grocery Stores is the best profitable option for Distribution.

Key Opportunities

Simplicity of the product over the products of the competitors and the with the correct pricing the company has a opportunity capture the Grocery Store Market.

Key Success factors

In taking a lesson from the past where it had a dent in its reputation t has to maintain production and Inventory levels in order to meet the increasing demands when an advertising campaign is been carried out and this would be a key to its success.

Key Uncertainties

The reaction by the Competitors is the major uncertainty that the company would face as it is facing competitors with larger budgets on expenditure.

Alternative & Analysis

The existing Trade Magazine advertising and selling is the next best alternative with only $1k of weekly fixed cost and no additional mark up costs. Mail Order would be the 3rd alternative but the profit is not closer to as the previous two options.

Recommendation

Although Grocery Store option is the best the company should follow the Selling and Advertising through the Trade Magazine as there is not much additional cost or mark up involved in the price. Another reason is that there are many intermediaries involved before the products reach the Grocery store and the consumer in the Grocery Store Option. Also the price twice from the existing and there is uncertainty whether a customer would make an impulse buy of $30 as part of their weekly grocery shopping.

Action Plan & Contingency

Immediate distribution channel to be Trade Magazine with advertising and Grocery Store option to be the Long Term Plan as it gives a larger exposure.

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