Badm 329 Fabusill Final Case

What is the problem?

        Fabusill is a product unlike any other in its category and has much potential to grow as an industry leader. However, there are many issues that can occur and many factors that need to be taken into account by Mr. Paul and Fabyan Enterprises when it comes to the implementation of Fabusill into the fiber market.

        The first major issue faced by the company is what is the optimal price for which Fabusill should be introduced to the market, within this category there are many key issues to consider and look at. At the time Fabusill was looking to launch, raw materials for leading manufacturer had increased which was greatly lowering the profit made by manufactures. With this being case the case it was realized that trade margins might soon be increased to make retailers happier. The next issue at hand was whether to use coupons or not to accelerate market penetration. The problem with couponing is it can help initial sales increase at first, but if used overtime or to long this can lower the value of the product in the eye of the consumer and ultimately be the demise of a new product, in this case Fabusill. The correct advertising strategy is the next problem faced by Mr. Paul and Fabusill. There are many options for which Fabusill can begin its marketing campaign; however it is critical that when choosing a marketing channel, this is the channel that best reaches the largest percent of the target market we are aiming for. The main channels for which Fabusill can be marketed are TV, radio, newspaper supplements and magazines, home delivery flyers, and online marketing. All of these are great for reaching the target market, but what must be considered is which grabs the largest number of consumers while also allows for Fabusill to be most profitable, this is the channel that is ideal for the launch. Keeping with the theme of how to market and advertise the product the next key issue facing Fabusill is what are the main benefits that will highlighted in the advertisements, Fabusill offers many benefits that its competitors simply cannot replicate. Picking the best of these benefits is another key factor is the launch of Fabusill. Finishing up with advertising aspects of Fabusill, Mr. Paul’s next question is what outlets does he introduce and sell his product in. In this questions he mainly has two options which are drug stores and grocery stores. In Canada drug stores account for about 60% of the total bulk fiber sales, while grocery stores account for about 35%. These are the two biggest options for introducing Fabusill to the market quickly and efficiently, choosing the right one between the two is extremely important. The last big decision Mr. Paul must make is who will be the ones selling his product. He has two choices to choose from; either salary based salespeople or commissioned based salespeople. One of these types of employees will be a key part is selling Fabusill to its target choice store format. It is important to look at the benefits each provide, salary-based salespeople who work directly for you and your company will most likely have a greater understanding for your product (Fabusill) and your overall goals for it and the company. However, you are responsible for all expenses incurred by these employees. When looking at commissioned salespeople they would only be receiving 7% of what they sell which would most likely be cheaper than the $75,000 you are paying your salary salespeople. However, the commissioned salespeople may lack product knowledge and be only concerned with making their own money, which could intern reflect bad on the company if something